The number of foreclosure prevention actions by Fannie Mae and Freddie Mac continued to slow in May, dropping by 7.8% from the prior month.
However, since the government-sponsored enterprises entered conservatorship in September 2008, total foreclosure prevention activity undertaken has now topped 7.4 million, the Federal Housing Finance Agency report said.
The May decline is the fifth consecutive month where the number of foreclosure prevention actions declined, following December's peak at 20,770.
Combined, Fannie and Freddie performed 15,855 foreclosure prevention actions in May, including 113 where the property was forfeited by the owner in a short sale or a deed-in-lieu transaction.
It is the lowest amount since last September, where 15,550 total foreclosure prevention actions were reported.
April's
For May 2025, the GSEs conducted 18,250 foreclosure prevention actions, with 79 involving the owner giving up the property.
What foreclosure prevention actions did the GSEs do in May?
The agencies modified 6,616 mortgages in May, down from 7,484 in April and 7,609 one year ago. Over 2.68 million mortgages has been modified during the conservatorship period.
Principal forbearance was the method used in 64% of the modifications during May, with approximately 35% extending the loan term only, the FHFA report said.
The inventory of loans in forbearance plans totaled 37,644, versus 37,517 in April and 35,900 in May 2025.
While 46% of the forborne loans have been in a plan for less than three months, and another 36% for between three and six months, 1.2% remain in this status for over a year.
The number in a repayment plan fell month-to-month to 8,509 from 8,635. A year ago, this portion of the inventory had 10,444 loans.
Meanwhile, the 30-to-59-day delinquency rate increased in May over April by 9 basis points, to 1.03% from 0.94%. The 60-day-plus rate moved 2 basis points higher to 81 basis points.
The subset of serious delinquencies, those 90 days or more behind on their payments, plus mortgages in foreclosure, was unchanged from the prior month at 58 basis points.
Curtailment of income remains the leading cause of late payments at 29%, followed by excessive obligations and unemployment, tied at 17%. Illness caused 12% to not make a payment on time, while 3% cited marital difficulties.
In its second quarter results, which will include June data not yet released by FHFA,
Fannie Mae was
Third‑party and foreclosure sales by the GSEs fell 11.9% to 1,167. Foreclosure starts slipped 2.3% to 7,979 in May, the FHFA said.
What share of GSE refinancings were cash-out?
The FHFA report also covers refinance activity in the GSEs' portfolios during the month. This was severely affected by the huge jump in mortgage rates, the report noted.
For the week of May 28, the Freddie Mac Primary Mortgage Market Survey had
Refinances in May totaled 67,281, compared with 96,082 during April. The cash-out share was 43%, versus 33% in April. Borrowers typically turn to cash-out refis when they have a financial need and are otherwise unable to tap their home equity.
The peak share for cash-out refis was 82.4% in September 2022, FHFA noted.
ICE Mortgage Technology data from the first quarter found
Nearly half of them got their last first lien in 2023 or later, while one-quarter was from the 2020-2022 period.
