Foreclosure Prevention, Refinance, and FPM Report

Foreclosure Prevention, Refinance, and Federal Property Manager's Report - May 2024

May 2024 Highlights - Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

• The Enterprises completed 15,955 foreclosure prevention actions in May, bringing the total to 6,990,322 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
• There were 5,880 permanent loan modifications in May, bringing the total to 2,709,348 since the conservatorships began in September 2008.
• Approximately 75 percent of loan modifications in May involved extend term only. Modifications with principal forbearance accounted for 24 percent of all loan modifications during the month.
• The number of borrowers who received payment deferrals after completing a forbearance plan decreased 8 percent from 7,182 in April to 6,623 in May.
• Initiated forbearance plans increased from 6,364 in April to 6,818 in May. The total number of loans in forbearance also decreased from 32,351 at the end of April to 31,558 at the end of May, representing approximately 0.10 percent of the total loans serviced and 6.9 percent of the total delinquent loans.

The Enterprises' Mortgage Performance:

• The 30-59 day delinquency rate decreased to 0.83 percent while the serious delinquency rate decreased to 0.48 percent at the end of May.

The Enterprises' Foreclosures:

• Third-party and foreclosure sales decreased 3 percent to 1,008 while foreclosure starts increased 3 percent to 6,007 in May.

May 2024 Highlights - Refinance Activities

• Total refinance volume increased in May 2024 as mortgage rates remained below the elevated levels observed in late 2023. Mortgage rates rose in May: the average interest rate on a 30-year fixed rate mortgage increased to 7.06 percent.
• The percentage of cash-out refinances decreased to 70 percent in May after rising as high as 82 percent over the last three years. Higher mortgage rates have reduced the opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.