Foreclosure Prevention, Refinance, and FPM Report - 1Q2024

Published: 06/21/2024

1Q24 Highlights -- Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

The Enterprises completed 52,154 foreclosure prevention actions in the first quarter of 2024, bringing the total to 6,957,884 since the start of conservatorships in September 2008. Of these actions, 6,252,827 have helped troubled homeowners stay in their homes, including 2,697,881 permanent loan modifications.
Initiated forbearance plans decreased to 21,050 in the first quarter of 2024 from 24,579 in the fourth quarter of 2023. The total number of loans in forbearance at the end of the quarter was 34,348, representing approximately 0.11 percent of the total loans serviced and 7 percent of the total delinquent loans.
Twenty percent of modifications in the first quarter of 2024 were modifications with principal forbearance. Modifications that include extend-term only accounted for 79 percent of all loan modifications during the quarter.
There were 142 completed short sales and deeds-in-lieu during the quarter, bringing the total to 705,057 since the conservatorships began in September 2008.

The Enterprises' Mortgage Performance:

The 60+ days delinquency rate decreased from 0.77 percent at the end of the fourth quarter of 2023 to 0.70 percent at the end of the first quarter of 2024.
The Enterprises' serious (90 days or more) delinquency rate declined to 0.51 percent at the end of the first quarter of 2024. This compared with 3.18 percent for Federal Housing Administration (FHA) loans, 2.01 percent for Veterans Affairs (VA) loans, and 1.44 percent for all loans (industry average).

The Enterprises' Foreclosures:

Foreclosure starts fell slightly to 18,643 while third-party and foreclosure sales declined 3 percent to 3,178 in the first quarter of 2024.

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

Total refinance volume decreased in the first quarter of 2024 as mortgage rates through February increased but remained below the elevated levels observed in late 2023. Mortgage rates rose in March: the average interest rate on a 30-year fixed rate mortgage increased to 6.82 percent.

The percentage of cash-out refinances was 70 percent in March after rising as high as 82 percent over the last two years. Higher mortgage rates have reduced the opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.