FHFA Report Shows Improvement in Fannie Mae, Freddie Mac Loan Performance
Report also highlights data on forbearance, foreclosure, and delinquency rates.
The Federal Housing Finance Agency (FHFA) has released its latest Foreclosure Prevention and Refinance Report, revealing that the mortgage performance of Fannie Mae and Freddie Mac loans improved slightly in the fourth quarter of 2022.
Fannie Mae and Freddie Mac completed over 52,000 foreclosure prevention actions in the fourth quarter of 2022. According to the report, 37% of loan modifications completed in Q4 reduced borrowers’ monthly payments by more than 20%. However, the number of refinances decreased from 194,189 to 111,251 quarter over quarter amid rising mortgage rates.
As of December 31, there were 81,173 loans in forbearance, representing 0.26% of Fannie and Freddie’s single-family conventional book of business – up from 78,432 or 0.25% in the third quarter. About 3% of these loans have been on a forbearance plan for over 12 months.
