Foreclosure Prevention, Refinance, and FPM Report - 2Q2024

Published: 09/24/2024

2Q24 Highlights -- Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

The Enterprises completed 46,378 foreclosure prevention actions in the second quarter of 2024, bringing the total to 7,004,262 since the start of conservatorships in September 2008. Of these actions, 6,299,035 have helped troubled homeowners stay in their homes, including 2,714,851 permanent loan modifications.
Initiated forbearance plans decreased to 20,557 in the second quarter from 21,050 in the first quarter of 2024. The total number of loans in forbearance at the end of the quarter was 31,827, representing approximately 0.10 percent of the total loans serviced and 5.9 percent of the total delinquent loans.
Twenty four percent of modifications in the second quarter of 2024 were modifications with principal forbearance. Modifications that include extend-term only accounted for 76 percent of all loan modifications during the quarter.
There were 170 completed short sales and deeds-in-lieu during the quarter, bringing the total to 705,227 since the conservatorships began in September 2008.

The Enterprises' Mortgage Performance:

The 60+ days delinquency rate remained unchanged at 0.70 percent at the end of the second quarter compared to the end of the first quarter of 2024.
The Enterprises' serious (90 days or more) delinquency rate declined to 0.49 percent at the end of the second quarter of 2024. This compared with 3.17 percent for Federal Housing Administration (FHA) loans, 2.07 percent for Veterans Affairs (VA) loans, and 1.43 percent for all loans (industry average).

The Enterprises' Foreclosures:

Foreclosure starts fell 7.0 percent to 17,339 while third-party and foreclosure sales also declined 7.4 percent to 2,944 in the second quarter of 2024.

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

Total refinance volume increased in the second quarter of 2024 as mortgage rates remained below the elevated levels observed in late 2023. Mortgage rates rose in the second quarter of 2024: the average interest rate on a 30-year fixed rate mortgage increased to 6.92 percent.

The percentage of cash-out refinances increased to 75 percent in June after rising as high as 82 percent over the last three years. Higher mortgage rates have reduced the opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.