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INVESTMENT GOVERNMENT PROPERTY PRESERVATION TECH
Journal
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FHFA: FORBEARANCE
PLANS DOMINATED
MAY FORECLOSURE-
PREVENTION
ACTIONS
e government-sponsored enterprises
(GSEs) completed 83,756 foreclosure
prevention actions during May, according to
new data released by the Federal Housing
Finance Agency (FHFA).
e overwhelming majority of the
GSEs' actions in May were forbearance
plans—77,218, up from 9,749 in April—while
4,577 were loan modifications, 1,598 were
repayment plans, and 77 were charge-offs-in-
lieu.
e FHFA reported that initiated
forbearance plans declined from 989,594 in
April to 392,338 in May. e total number of
loans in forbearance plans at the end of May
was 1,450,557, which represented slightly
more than 5% of the total loans serviced by the
GSEs.
e GSEs also completed 286 home
forfeiture actions in May, which consisted of
218 short sales and 68 deeds-in-lieu.
Furthermore, the FHFA revealed that
the GSEs' 30-59 days delinquency rate fell to
2.53% in May, but the serious delinquency rate
inched up by less than a quarter-percentage
point to 0.86%. ird-party and foreclosure
sales totaled 344, down from 260 in April,
and the decline was attributed to the GSEs'
suspension of foreclosures in response to
the COVID-19 pandemic. As a result of
foreclosures being suspended, foreclosure starts
fell from 3,229 in April to 2,316 in May.
Elsewhere in May, the FHFA determined
the GSEs' total refinance volume rose to their
highest levels in seven years as mortgage rates
tumbled—the average interest rate on a 30-year
fixed rate mortgage slid from 3.31% in April to
3.23% in May. During May, 14 refinances were
completed through the High LTV Refinance
Option, bringing total refinances through this
channel to 46 since its inception earlier in the
year. e percentage of cash-out refinances
dipped from 30% in April to 28% in May.
Fannie Mae and Freddie Mac have
completed 4,534,370 since they were put into
federal conservatorship in September 2008,
with more than half of these actions consisting
of permanent loan modifications.
