FHFA’s 2nd Quarter Foreclosure Prevention and Refinance Report
The Federal Housing Finance Agency (FHFA) recently published its second quarter 2024 Foreclosure Prevention and Refinance Report, highlighting significant efforts by Fannie Mae and Freddie Mac to assist distressed homeowners. In the second quarter alone, the Enterprises completed 46,378 foreclosure prevention actions, bringing the total since conservatorships began in September 2008 to over 7 million homeowners helped. Notably, 32% of loan modifications implemented during this period resulted in a reduction of borrowers’ monthly payments by more than 20%. Additionally, the number of refinances increased from 69,877 in the first quarter to 89,571 in the second quarter, reflecting a growing trend toward financial relief for homeowners.
The report underscores an improving landscape in mortgage performance, with serious delinquency rates for Enterprises at 0.49%, significantly lower than those for FHA and VA loans. The decline in foreclosure starts (down 7%) and Real Estate Owned (REO) inventory (down 9.2%) indicates a stabilizing market, which could foster renewed confidence in homebuying and construction. Furthermore, the FHFA’s emphasis on data transparency through its interactive Borrower Assistance Map provides stakeholders with valuable insights to inform their strategies and engagement with prospective buyers, particularly in the context of rising refinancing activity and ongoing foreclosure prevention efforts.
