Foreclosure Prevention, Refinance, and FPM Report - 4Q2022

Published: 03/23/2023

4Q22 Highlights — Foreclosure Prevention

The Enterprises completed 52,469 foreclosure prevention actions in the fourth quarter of 2022, bringing the total to 6,712,833 since the start of conservatorships in September 2008. Of these actions, 6,008,546 have helped troubled homeowners stay in their homes, including 2,625,151 permanent loan modifications.
Initiated forbearance plans increased to 47,608 in the fourth quarter from 41,856 in the third quarter of 2022. The total number of loans in forbearance at the end of the quarter was 81,173, representing approximately 0.26 percent of the total loans serviced, and 15 percent of the total delinquent loans.
Twelve percent of modifications in the fourth quarter were modifications with principal forbearance. Modifications that include extend-term only accounted for 64 percent of all loan modifications during the quarter.
There were 163 completed short sales and deeds-in-lieu during the quarter, bringing the total to 704,287 since the conservatorships began in September 2008.

The 60+ days delinquency rate increased slightly from 0.83 percent at the end of the third quarter to 0.84 percent at the end of the fourth quarter of 2022. The delinquency rates remained slightly higher than pre-coronavirus rates due to the forbearance programs offered to borrowers affected by the pandemic.
The Enterprises' serious (90 days or more) delinquency rate fell to 0.65 percent at the end of the fourth quarter. This compared with 4.40 percent for Federal Housing Administration (FHA) loans, 2.43 percent for Veterans Affairs (VA) loans, and 1.89 percent for all loans (industry average).

Foreclosure starts increased 8 percent to 18,693 while third-party and foreclosure sales dropped 8 percent to 3,297 in the fourth quarter.

For an interactive online map that provides state data, click on the following link:

Fannie Mae and Freddie Mac State Borrower Assistance Map

Total refinance volume decreased in December 2022 as mortgage rates decreased in November but remained near the October peak of 6.90 percent. Mortgage rates fell in December: the average interest rate on a 30-year fixed rate mortgage decreased to 6.36 percent from a November level of 6.81 percent.
The percentage of borrowers refinancing into shorter term 15-year fixed rate mortgages decreased to 9 percent in December as the difference between 15- and 30-year fixed rate mortgages decreased to 0.67 percent in November.