FHFA Reports Drop In Serious Loan Delinquency – NMP Skip to main content

FHFA Reports Drop In Serious Loan Delinquency

Mar 25, 2022
FHFA Foreclosure Prevention and Refinance Report
The FHFA Foreclosure Prevention and Refinance Report for 4Q 2021 shows a drop in serious delinquency.
FHFA
Senior Editor

Freddie Mac and Fannie Mae delinquencies compare favorably to industry average.

KEY TAKEAWAYS
  • Serious delinquency rate dropped from 1.55% to 1.19%.
  • Loan modifications lowered monthly payments by more than 20%.
  • Loans in forbearance continue to trend downward.

The fourth quarter 2021 Foreclosure Prevention and Refinance Report from the ​Federal Housing Finance Agency (FHFA) shows a drop in loans in serious delinquency. Over 150,000 loans were stopped from going into foreclosure as well.

According to the report, Fannie Mae and Freddie Mac completed 153,793 foreclosure prevention actions during the quarter. The report also shows that 46% of loan modifications completed in the fourth quarter reduced borrowers' monthly payments by more than 20%.

The number of refinances decreased slightly from 1.286 million in the third quarter to 1.266 million in the fourth quarter, the report states.

The serious delinquency rate for Freddie Mac and Fannie Mae loans dropped from 1.55% to 1.19% at the end of the fourth quarter, according to the report. This compares with 6.48% for Federal Housing Administration (FHA) loans, 3.82% for Veterans Affairs (VA) loans, and 2.83% for all loans (industry average).

Other highlights from the report include:

  • Forbearance: The total number of loans in forbearance plans continued to trend downward since its peak in May 2020, but remained elevated through the fourth quarter of 2021 compared with pre-pandemic levels. As of Dec. 31, 2021, there were 178,019 loans in forbearance, representing approximately 0.59% of Fannie Mae and Freddie Mac’s single-family conventional book of business, down from 320,009 or 1.07% at the end of the third quarter.
  • Mortgage Performance: The 60+ days delinquency rate dropped from 1.69% at the end of the third quarter to 1.34% at the end of the fourth quarter. The delinquency rates remained elevated as a result of the COVID-19 pandemic and the forbearance programs offered to affected borrowers.
  • Foreclosures: The number of foreclosure starts decreased 15% to 6,178, while third-party and foreclosure sales rose 27% to 3,213 in the fourth quarter.
About the author
Senior Editor
Keith Griffin is a senior editor at NMP.
Published
Mar 25, 2022
Higher Mortgage Rates Shrink Purchase Demand, Expand Buyer Leverage

Pending sales fell to their lowest level since early April, but lower asking prices and reduced competition give originators more options to structure deals for qualified borrowers

Jul 31, 2026
Even Stable Public-Service Careers No Longer Guarantee Homeownership

Younger teachers, health care workers, first responders, and military households can afford median-priced homes in only a fraction of major metros

Jul 31, 2026
Buyers Gain Negotiating Power In 41 Major Housing Markets

Price cuts and longer listing times are creating opportunities for loan officers to help borrowers negotiate seller concessions, but leverage varies sharply by metro

Jul 30, 2026
Fannie Mae Purchase Volume Jumps 33% In Second Quarter

The GSE financed 201,000 home purchases, while appraisal alternatives pushed estimated borrower closing-cost savings to $3 billion

Jul 29, 2026
Second-Home Lending Grows Faster Than Primary-Home Market

Vacation-home mortgages rose 4.1% in 2025, led overwhelmingly by affluent borrowers

Jul 28, 2026
Credit Score Battle Picks Up Speed With FICO, VantageScore Gains

FICO 10T enrollment tops 70 lenders while VantageScore 4.0’s presence in TransUnion mortgage credit pulls jumps from less than 5% to roughly 30%

Jul 28, 2026