FHFA Releases Updated Foreclosure, Refinance Report
The Enterprises executed 48,439 foreclosure prevention measures during the second quarter of 2026, accumulating to a total of 7,425,684 since the inception of conservatorships in September 2008. Among these measures, 6,718,452 have enabled distressed homeowners to retain ownership of their properties, comprising 2,871,396 permanent loan modifications.
Initiated forbearance arrangements declined to 26,906 in the second quarter, compared to 27,477 in the first quarter of 2026. As of quarter-end, 37,283 loans were subject to forbearance, constituting approximately 0.12 percent of total loans serviced and 6.51 percent of total delinquent loans. Sixty-three percent of modifications completed in the second quarter of 2026 incorporated principal forbearance provisions. Modifications featuring extended-term arrangements exclusively represented 35.7 percent of all loan modifications during the quarter.
During the quarter, some 404 short sales and deeds-in-lieu transactions were successfully completed, which increased the cumulative total to 707,232 since the inception of the conservatorships in September 2008.
The delinquency rate for accounts exceeding 60 days past due rose marginally from 0.81% in the first quarter to 0.83% in the second quarter of 2026. The Enterprises maintained a consistent serious delinquency rate (90 days or more delinquent) of 0.59% as of the second quarter of 2026. This performance compared favorably against 6.07% for Federal Housing Administration (FHA) loans, 2.62% for Veterans Affairs (VA) loans, and 2.06% for all loans across the industry.
Foreclosure initiations experienced a 1.9% increase, reaching 25,908 cases, whereas third-party and foreclosure transactions increased by 4.1% to 3,894 during the second quarter of 2026.
The aggregate refinance volume experienced a contraction during the second quarter of 2026 attributable to an upward trajectory in mortgage rates. Throughout the quarter, the mean 30-year fixed mortgage rate rose to 6.42%, relative to 6.11% documented in the preceding quarter.
The proportion of cash-out refinance transactions expanded to 54.4% of overall refinance operations in June 2026, although this figure remains substantially beneath the historical maximum of 82.4% attained in September 2022.
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