Fannie Mae and Freddie Mac completed 46,378 foreclosure prevention actions in the second quarter, bringing the total number of homeowners helped to more than 7 million since conservatorships began in September 2008.

The Federal Housing Finance Agency’s (FHFA) Foreclosure Prevention and Refinance Report for the second quarter of 2024 shows that 32% of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20%.

According to the report, the number of refinances increased to 89,571 in the second quarter from 69,877 in the first quarter.

The rate of serious corporate defaults fell slightly from 0.51% at the end of the first quarter to 0.49%.

At the end of the quarter, there were 31,827 loans in forbearance, representing approximately 0.10% of the companies’ conventional single-family home business book, compared to 34,348, or 0.11%, at the end of the first quarter.

Approximately 1% of these loans have been under a forbearance plan for more than 12 months.

The late payment rate of more than 60 days remained unchanged at 0.70% at the end of the second quarter.

The number of foreclosures initiated fell 7.0% to 17,339 in the second quarter, while third-party and foreclosure sales fell 7.4% to 2,944.

Corporate REO inventory decreased 9.2% from 10,404 in the first quarter to 9,450 in the second quarter as real estate sales outpaced acquisitions.

Total property acquisitions fell 14.2% to 1,200, while disposals increased to 2,105 during the quarter.

Photo: Federico Burgalassi