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November 2023 » thefivestar.com 69 November 2023 J O U R N A L Among 223 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2023 were: » Houston, Texas (one in every 371 hous- ing units with a foreclosure filing) » Atlantic City, New Jersey (one in every 453) » Cleveland (one in every 459) » Bakersfield, California (one in every 465) » Columbia, South Carolina (one in every 503) Lenders repossessed 11,020 U.S. prop- erties through foreclosure (REO) in Q3 2023, up 9% from the previous quarter, and up 5% from a year ago. States that posted the largest number of completed foreclosures in Q3 2023, included: » California (1,277 REOs) » Illinois (1,057 REOs) » Pennsylvania (743 REOs) » New York (673 REOs) » Ohio (635 REOs) Properties foreclosed in Q3 2023 had been in the foreclosure process an aver- age of 778 days, down 36% from 1,212 days in the previous quarter, and down 12% from 885 days in Q3 2022, to the lowest level since Q2 2020. States with the longest average fore- closure timelines for homes foreclosed in Q3 2023 were: » Louisiana (3,045 days) » Hawaii (2,498 days) » New York (1,941 days) » Nevada (1,690 days) » New Jersey (1,621 days) States with the shortest average fore- closure timelines for homes foreclosed in Q3 2023 were: » Texas (160 days) » Montana (169 days) » Wyoming (177 days) » Missouri (211 days) » Michigan (213 days) In September 2023 alone, one in every 3,706 properties had a foreclo- sure filing. States reporting the highest foreclosure rates in September 2023 were Nevada (one in every 2,163 housing units with a foreclosure filing); Maryland (one in every 2,253 housing units); South Car- olina (one in every 2,260 housing units); Delaware (one in every 2,380 housing units); and New Jersey (one in every 2,531 housing units). ATTOM also reported that in September 2023, 25,042 U.S. properties started the foreclosure process, up 9% from the previous month, and up 15% from a year ago. Nationwide, lenders completed the foreclosure process on 4,334 properties in September 2023, up 29% from the previ- ous month, and up 24% from a year ago. GSES COMPLETED NEARLY 50K FORECLOSURE PREVENTION ACTIONS IN Q2 T he Federal Housing Finance Agency (FHFA) has released its 2023 Foreclosure Prevention and Refinance Report for the second quarter of 2023, showing that Fannie Mae and Freddie Mac completed 47,370 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,818,471 since the start of conservator- ships in September 2008. The report also shows that 33% of loan modifications completed in Q1 reduced borrowers' monthly payments by more than 20%. The number of refinances increased from 78,445 in Q1 of 2023 to 93,952 in Q2 of 2023. The GSEs' serious delinquency rate declined slightly from 0.60% to 0.55% at the end of Q1; this compares with 3.71% for Federal Housing Administration (FHA) loans, 2.15% for Veterans Affairs (VA) loans, and 1.61% for all loans (indus- try average). Other highlights from the Q2 2023 Foreclosure Prevention and Refinance Report include: » Forbearance: At the end of Q2, there were 54,109 loans in forbearance, representing approximately 0.17% of the Enterprises' single-family conven- tional book of business, down from 65,109 or 0.21% at the end of Q1 of 2023. Approximately 2% of these loans have been on a forbearance plan for more than 12 months. » Mortgage performance: The 60-plus day delinquency rate decreased slight- ly from 0.75% at the end of Q1 of 2023 to 0.72% at the end of Q2 of 2023. » Foreclosures: There were 3,783 com- pleted third-party and foreclosure sales in Q2, up 2% compared with Q1 of 2023. The number of foreclosure starts decreased from 19,809 in Q1 to 17,919 in Q2 of 2023. » Foreclosure prevention activity and home forfeiture actions: There were 193 completed short sales and deeds- in-lieu in Q2, bringing the total to 704,628 since the start of conservator- ships. The number of completed short sales and deeds-in-lieu increased by 30% in Q2 compared to Q1 of 2023. These foreclosure alternatives help to reduce the severity of losses result- ing from a borrower's default and minimize the impact of foreclosures on borrowers, communities, and neighborhoods. » Real estate owned (REO) activity & inventory: The GSEs' REO inventory decreased 1.2% from 11,190 in Q1 of 2023 to 11,061 in Q2 of 2023, as property dispositions outpaced acquisitions. The total number of property acquisitions decreased slightly to 1,639, while disposi- tions rose 16% to 1,767 during Q2. » Delinquent loans by state: The total number of the GSEs' delinquent loans increased in Q2 of 2023. Approximate- ly 34% of the Enterprises' troubled borrowers had missed three or more payments at the end of the quarter. California reported the highest num- ber of 90-plus days delinquent loans, followed by Florida and Texas. As of June 30, 2023, approximately 33% of the troubled borrowers in California had missed three or more monthly payments, compared to 38% in Florida, and 31% in Texas.