33
Journal
HOW FANNIE
AND FREDDIE
WORK TO
PREVENT
FORECLOSURES
Fannie Mae and Freddie Mac completed
9,082 foreclosure prevention actions in
October 2019, bringing the total to 4,390,118
since the start of the conservatorships in
September 2008 according to the Federal
Housing Finance Agency (FHFA).
Most of the actions taken by Fannie
Mae and Freddie Mac have been permanent
loan modifications. Another 26% of actions
taken have been modifications with principal
forbearance. Modifications with extend-
term only accounted for 67% of all loan
modifications during the month.
e FHFA also measured the GSEs'
mortgage performance, finding that the
serious delinquency rate remained unchanged
at 0.65% between October and September.
ird-party and foreclosure sales increased 5%
from 3,021 in September to 3,174 in October
while foreclosure starts decreased from 10,975
to 9,678 month-over-month.
Additionally, total refinance volume
increased in October 2019 as mortgage rates
fell in previous months to lows last observed
in 2015. Mortgage rates increased in October:
the average interest rate on a 30-year fixed
rate mortgage rose to 3.69% from 3.61% in
September.
