The state-sponsored companies (GSEs) completed 83,756 measures to prevent foreclosures in May. according to new data from the Federal Agency for Housing Financing (FHFA).
The overwhelming majority of the GSEs’ actions in May were forbearance plans – 77,218 up from 9,749 in April – while 4,577 were loan changes, 1,598 amortization plans and 77 were withdrawals instead.
The FHFA reported that the moratorium in place decreased from 989,594 in April to 392,338 in May. The total number of loans in forbearance plans at the end of May was 1,450,557, representing just over 5% of the total loans serviced by the GSEs.
The GSEs also completed 286 recoveries in May, which consisted of 218 short sales and 68 replacement contracts.
Additionally, the FHFA announced that the GSE’s 30-59-day failure rate decreased to 2.53% in May, but the severe failure rate rose less than a quarter of a percentage point to 0.86%. Third-party sales and foreclosures were 344, up from 260 in April, and the decrease was attributed to the GSEs’ suspension of foreclosures in response to the COVID-19 pandemic. As a result of the suspension of foreclosures, the number of starts of foreclosures decreased from 3,229 in April to 2,316 in May.
Elsewhere in May, the FHFA found that GSEs’ total refinancing volume rose to its highest level in seven years due to falling mortgage rates – the average rate on a 30-year fixed-rate mortgage fell from 3.31% in April to 3.23 % in May. In May, 14 refinances were completed through the High LTV refinancing option, bringing the total number of refinances through this channel to 46 since it was launched earlier this year. The proportion of cash-out refinancing fell from 30% in April to 28% in May.
Fannie Mae and Freddie Mac have completed 4,534,370 since they were placed under state conservatory administration in September 2008, with more than half of those actions consisted of permanent loan changes.