FHFA Report Shows a Substantial Decrease in Mortgage Refinancing in Q2 2022

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The Federal Housing Finance Agency (FHFA) has released its second quarter 2022 Foreclosure Prevention and Refinance Report​. The report shows that Fannie Mae and Freddie Mac (enterprises) completed 96,945 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,591,002 since the start of conservatorships in September 2008.

The report also shows that 72% of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20%. The number of refinances decreased significantly amid rising mortgage rates from 899,518 in the first quarter to 444,852 in the second quarter.

The enterprises’ serious delinquency rate declined from 0.97% to 0.79% at the end of the second quarter. This compares with 4.64% for Federal Housing Administration (FHA) loans, 2.83% for Veterans Affairs (VA) loans, and 2.12% for all loans (industry average).

As of June 30, 2022, there were 90,889 loans in forbearance, representing approximately 0.29% of the enterprises single-family conventional book of business, down from 126,758 or 0.41% at the end of the first quarter of 2022. About 9% of these loans have been on the plan for more than 12 months.

In regard to mortgage performance, the 60+ days delinquency rate dropped from 1.11% at the end of the first quarter to 0.92% at the end of the second quarter of 2022. The delinquency rates remained higher than pre-coronavirus rates due to the forbearance programs offered to borrowers affected by the pandemic.

The number of foreclosure starts decreased to 19,388 while third-party and foreclosure sales increased 13% to 3,458 in the second quarter.

​ The enterprises’ real estate owned (REO) inventory increased 3% from 9,048 in the first quarter to 9,341 in the second quarter of 2022, as REO acquisitions outpaced property dispositions. The total number of property acquisitions increased 3% to 1,523, while dispositions decreased slightly to 1,239 during the quarter.

FHFA’s quarterly foreclosure prevention and refinance reports include data on the Enterprises’ mortgage performance, delinquencies and active forbearance plans, as well as forfeiture actions and refinances by state. The data included in these reports are also available on FHFA’s website as an interactive​ Borrower Assistance Map​.​

Read the full report here.

Image: “Foreclosure” by taberandrew is licensed under CC BY 2.0.

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