GSEs Record Eight-Year Lows on Delinquencies

The government-sponsored enterprises (GSEs) saw the number of 60-plus-day delinquent loans decline by six percent in the second quarter to 434,952, the lowest level since 2008, according to the latest Foreclosure Prevention Report issued by the Federal Housing Finance Agency (FHFA).

The GSEs serious delinquency rate fell to 1.2 percent at the end of the second quarter, also the lowest level since the start of conservatorship eight years ago. The Fannie Mae and Freddie ac serious delinquency rate for this period was lower than the levels for Federal Housing Administration loans (4.4 percent), the Department of Veterans Affairs’ loans (2.5 percent) and the 3.1 percent industry average for all loans.

The FHFA also reported that the GSEs completed 48,438 foreclosure prevention actions in the second quarter, with the share of modifications with principal forbearance remaining at 19 percent. As of June 30, approximately 20 percent of the GSEs’ loans modified in the second quarter of 2015 had missed two or more payments, one year after modification.

Furthermore, the FHFA reported there were 6,837 completed short sales and deeds-in-lieu during the quarter, while the GSEs’ foreclosure starts decreased nine percent to 55,100 while third-party and foreclosure sales fell six percent to 23,348 in the second quarter.