January 2020 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 9,108 foreclosure prevention actions in January, bringing the total to 4,416,074 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 5,827 permanent loan modifications in January, bringing the total to 2,395,909 since the conservatorships began in September 2008.
  • Twenty-five percent of modifications in January were modifications with principal forbearance. Modifications with extend-term only accounted for 64 percent of all loan modifications during the month.
  • There were 442 short sales and deeds-in-lieu of foreclosure completed in January, up 30 percent compared with December 2019.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate decreased slightly from 0.65 percent at the end of December 2019 to 0.64 percent at the end of January 2020.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales increased 27 percent from 2,537 in December to 3,225 in January.
  • Foreclosure starts increased from 10,670 in December to 11,624 in January.

January 2020 Highlights — Refinance Activities

  • Total refinance volume decreased in January 2020 but remained near the highs observed in late 2019 as mortgage rates remained near lows last observed in 2015. Mortgage rates decreased in January: the average interest rate on a 30-year fixed rate mortgage fell to 3.62 percent from 3.72 percent in December.
  • In January 2020, 4 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 15.
  • The percentage of cash-out refinances continued at 42 percent in January remaining well below the peak observed in late 2018. Mortgage rates have fallen from the highs observed a year ago to lows last observed in 2015, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.