Fannie
Mae
and


Freddie
Mac
completed
43,903
foreclosure
prevention
actions
in
the
fourth
quarter
of
2023,
according
to
a
new

report
published
by
the

Federal
Housing
Finance
Agency
(FHFA).

Over
the
course
of
2023,
the
government-sponsored
enterprises
(GSEs)
completed
192,897
foreclosure
prevention
actions.
This
brought
the
total
to
6.905
million
since
the
start
of
the
GSE
conservatorships
in
September
2008,
the
FHFA
foreclosure
prevention
and
refinance
report
showed.

Of
these
actions,
2.682
million
have
been
permanent
loan
modifications
and
3.519
million
actions
have
been
other
forms
of
assistance
that
allowed
troubled
borrowers
to
stay
in
their
homes. 

A
total
of
704,915
of
the
actions
have
been
short
sales
and
deed-in-lieu
procedures,
which
result
in
borrowers
leaving
their
homes
without
going
through
the
foreclosure
process. 

The
number
of
completed
short-sale
and
deeds-in-lieu
transactions
in
Q4
2023
totaled
134,
a
decrease
of
12%
compared
to
the
previous
quarter.

“The
foreclosure
alternatives
help
to
reduce
the
severity
of
losses
resulting
from
a
borrower’s
default
and
minimize
the
impact
of
foreclosures
on
borrowers,
communities
and
neighborhoods,”
the
report
stated.

Loan
modifications
dropped
from
14,363
in
Q3
to
12,758
in
Q4,
an
11.2%
decline.
Of
the
total
number
of
modifications,
about
31%
in
the
fourth
quarter
reduced
a
borrower’s
monthly
payments
by
more
than
20%. 

Meanwhile,
the
60-day
delinquency
rate
increased
to
0.77%
at
the
end
of
the
fourth
quarter,
up
from
0.73%
in
the
previous
quarter.
And
the
GSEs’
serious
delinquency
rate
(defined
as
90
or
more
days
delinquent
or
loans
in
the
process
of
foreclosure)
marginally
increased
to
0.55%
at
the
end
of
the
fourth
quarter,
compared
to
0.54%
in
Q3.

By
comparison,
the
serious
delinquency
rate
for

Federal
Housing
Administration
(FHA)
loans
was
3.42%
in
Q4
2023.
The
rate
for

U.S.
Department
of
Veterans
Affairs
(VA)
loans
was
2.01%
and
the
industrywide
average
for
all
loans
was
1.52%.

The
GSEs’
real
estate-owned
(REO)
inventory
decreased
slightly
to
10,902
in
Q4,
down
from
11,019
in
Q3
as
REO
dispositions
outpaced
acquisitions,
the
report
noted.

The
total
number
of
REO
property
acquisitions
declined
6%
to
1,475,
while
disposition
fell
slightly
to
1,567
during
the
fourth
quarter. 

A
rise
in
mortgage
rates
in
the
fourth
quarter
led
total
refinance
volume
to
decline
to
71,378
loans,
down
from
83,522
in
Q3
2023.
FHFA

mortgage
rates
averaged
7.62%
in
October
and
remained
elevated
in
November
before
falling
to
an
average
of
6.82%
in
December.

“The
percentage
of
borrowers
refinancing
into
shorter
term
15-year
mortgages
continued
at
8%
in
December.
The
average
interest
rate
savings
of
a
15-year
mortgage
over
a
30-year
mortgage
has
been
higher
in
2021
through
2023
compared
to
previous
years,”
according
to
the
report. 

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