Foreclosure Prevention, Refinance, and FPM Report - 3Q2024

Published: 12/19/2024

3Q24 Highlights — Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:

The Enterprises completed 43,459 foreclosure prevention actions in the third quarter of 2024, bringing the total to 7,047,721 since the start of conservatorships in September 2008. Of these actions, 6,342,311 have helped troubled homeowners stay in their homes, including 2,731,403 permanent loan modifications.
Initiated forbearance plans rose to 30,938 in the third quarter from 20,557 in the second quarter of 2024. The total number of loans in forbearance at the end of the quarter was 39,669, representing approximately 0.13 percent of the total loans serviced and 7.3 percent of the total delinquent loans.
Twenty seven percent of modifications in the third quarter of 2024 were modifications with principal forbearance. Modifications that include extend-term only accounted for 73 percent of all loan modifications during the quarter.
There were 183 completed short sales and deeds-in-lieu during the quarter, bringing the total to 705,410 since the conservatorships began in September 2008.

The Enterprises' Mortgage Performance:

The 60+ days delinquency rate increased from 0.70 percent at the end of the second quarter to 0.75 percent at the end of the third quarter of 2024.
The Enterprises' serious (90 days or more) delinquency rate increased to 0.53 percent at the end of the third quarter of 2024. This compared with 3.63 percent for Federal Housing Administration (FHA) loans, 2.26 percent for Veterans Affairs (VA) loans, and 1.55 percent for all loans (industry average).

The Enterprises' Foreclosures:

Foreclosure starts rose 27.0 percent to 22,025 while third-party and foreclosure sales also increased 3.2 percent to 3,039 in the third quarter of 2024.

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

Total refinance volume increased in the third quarter of 2024 as mortgage rates decreased but remained above the levels observed through 2021. Mortgage rates fell between June and September: the average interest rate on a 30-year fixed rate mortgage decreased from 6.92 percent to 6.18 percent.

The percentage of cash-out refinances decreased to 59 percent in September after rising as high as 82 percent over the last three years. Lower mortgage rates have grown the opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.