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INVESTMENT GOVERNMENT PROPERTY PRESERVATION
FHFA UPDATES
ON FORECLOSURE
PREVENTION
& REFINANCE
ACTIVITY
e Federal Housing Finance Agency
(FHFA) released the Federal Property
Manager's 21-page Foreclosure Prevention,
Refinance Report for October 2020. e full
document details the entire month, but here are
some highlights.
When it came to refinancing, October
continued to raise numbers. A record-breaking
month for refinancing, decreasing mortgage
rates incentivized more people to refinance their
existing properties. In fact, the already-low
September mortgage rate of 2.89% fell a few
more hundredths of a point to 2.83%.
Since the program's inception in September
of 2008, 107 refinances were completed through
the High LTV refinance option. Two were
completed in October.
Cash-out refinances were on the rise, but
only marginally. After hitting a low of 25%
in August and steadily increasing during
September, they hit 26% in October. With the
continuous decrease in mortgage rates, there are
more opportunities for on cash-out borrowers
to get lower rates and lower monthly payments
when they refinance.
As for foreclosure prevention actions in
October, the total since September 2008
has risen to 5, 391,530. October's number
is 166,189, 45%, or 2,890, of which were
permanent loan modifications. e total
number of permanent loan modifications since
the program began is 2,434,509.
e COVID-19 related forbearance plan
saw an increase in activity. In October, 83,384
borrowers received payment deferrals compared
to 72,589 in September.
However, initiated forbearance plans saw
a decreased 9%. is sets the total number of
loans in forbearance plans at 922,589 versus
1,045,808 the month before.
October also saw 315 short sales and deeds-
in-lieu of foreclosure, which is a seven percent
rise compared with September. Foreclosure
and third-party sales went up 19% to 741, but
foreclosure starts decreased 13%.
e 30-59 days delinquency rate also
decreased, hitting 1.01%. e serious
delinquency rate fell, as well, to 2.99%.
September's rate was 3.14%.
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