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66 66 66 INVESTMENT GOVERNMENT PROPERTY PRESERVATION Journal FHFA FINALIZES GSE RULE ON NEW PRODUCTS Due to Freddie Mac and Fannie Mae's status as government-sponsored enterprises, the Federal Housing Finance Agency (FHFA) has announced a new rule to protect the public and maintain high standards of financial safety and soundness. According to an announcement from the FHFA, the GSEs will have to provide advance notice to the agency—and receive approval—be- fore offering any new products or services. e final rule defines what categories of activities would be considered "new," and the FHFA will determine if such new products or services rise to the level of needing public comment. e rule also establishes a public disclosure requirement, requiring the FHFA to publish its de- terminations on requested new activities or services. "e final rule clarifies how FHFA will conduct assessments of new activities and prod- ucts proposed by the Enterprises," said Director Sandra L. ompson. "Enterprise activities can have significant effects on the mortgage market, consumers, and industry stakeholders, and today's rule further refines FHFA's process to ensure activities continue to serve the Enterpris- es' mission while maintaining high standards of safety and soundness." e final rule implements Section 1321 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by Section 1123 of the Housing and Economic Recovery Act of 2008. FHFA PUBLISHES Q3 FORECLOSURE PREVENTION AND REFINANCE REPORT e Federal Housing Finance Agency (FHFA) released its Q3 2022 Foreclosure Pre- vention and Refinance Report, which shows that Fannie Mae and Freddie Mac completed 69,362 foreclosure prevention actions during the quarter. is raised the total number of homeowners who have been helped to 6,660,364 since the start of conservatorships in September 2008. e report also shows that some 53% of loan modifications completed in the second quarter reduced borrowers' monthly payments by more than 20%. e number of refinances decreased significantly amid rising mortgage rates from 444,850 in the second quarter to 194,189 in the third quarter. e Enterprises' serious delinquency rate declined from 0.79% to 0.68% at the end of the third quarter. is compares with 4.26% for FHA loans, 2.51% for Veterans Affairs (VA) loans, and 1.90% for all loans (industry average). Other highlights from the report include: • Forbearance: As of September 30, 2022, there were 78,432 loans in forbearance, represent- ing approximately 0.25% of the Enterprises single-family conventional book of business, down from 90,889 or 0.29% at the end of the second quarter of 2022. Approximately 4% of these loans have been on a forbearance plan for more than 12 months. • Mortgage Performance: e 60+ days delinquency rate dropped from 0.92% at the end of Q2 to 0.83% at the end of Q3 of 2022. e delinquency rates remained slightly higher than pre-coronavirus rates due to the forbear- ance programs offered to borrowers affected by the pandemic. • Foreclosures: e number of foreclosure starts decreased to 17,327 while third-party and foreclosure sales increased by 3% to 3,566 in Q3. • Real Estate-Owned (REO) Activity & Inventory: e Enterprises' REO inventory increased 10% from 9,341 in Q2 to 10,251 in Q3 of 2022, as REO acquisitions outpaced property dispositions. e total number of prop- erty acquisitions increased 23% to 1,880, while dispositions decreased to 993 during the quarter. FHFA's quarterly foreclosure prevention and refinance reports include data on the Enterpris- es' mortgage performance, delinquencies, and active forbearance plans, as well as forfeiture actions and refinances by state.