Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its first quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 58,268 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,771,101 since the start of conservatorships in September 2008.
The report also shows that 35 percent of loan modifications completed in the first quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased amid rising mortgage rates from 111,251 in the fourth quarter of 2022 to 78,445 in the first quarter of 2023.
The Enterprises’ serious delinquency rate declined slightly from 0.65 percent to 0.60 percent at the end of the first quarter. This compares with 4.01 percent for Federal Housing Administration (FHA) loans, 2.26 percent for Veterans Affairs (VA) loans, and 1.73 percent for all loans (industry average).
Other highlights from the report include:
- Forbearance: As of March 31, 2023, there were 65,757 loans in forbearance, representing approximately 0.21 percent of the Enterprises' single-family conventional book of business, down from 81,173 or 0.26 percent at the end of the fourth quarter of 2022. Approximately 3 percent of these loans have been on a forbearance plan for more than 12 months.
- Mortgage Performance: The 60+ day delinquency rate decreased slightly from 0.84 percent at the end of the fourth quarter to 0.75 percent at the end of the first quarter of 2023.
- Foreclosures: The number of foreclosure starts increased 6 percent to 19,809 while third-party and foreclosure sales rose 12 percent to 3,700 in the first quarter.
- Real Estate Owned (REO) Activity & Inventory: The Enterprises’ REO inventory increased 2 percent from 10,997 in the fourth quarter to 11,190 in the first quarter of 2023, as REO acquisitions outpaced property dispositions. The total number of property acquisitions decreased slightly to 1,692, while dispositions rose 56 percent to 1,529 during the quarter.
FHFA’s quarterly foreclosure prevention and refinance reports include data on the Enterprises’ mortgage performance, delinquencies, and active forbearance plans, as well as forfeiture actions and refinances by state. The data included in these reports are also available on FHFA's website as an interactive Borrower Assistance Map.
Attachments:
Foreclosure Prevention, Refi, & FPM Report - 1Q2023
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.3 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on X @FHFA, YouTube, Facebook, and LinkedIn.
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