FHFA says GSE foreclosure prevention actions fell in May

Foreclosure prevention activity at Fannie Mae and Freddie Mac declined in May as refinance volume fell sharply amid higher mortgage rates, according to the Federal Housing Finance Agency’s (FHFA) May 2026 Foreclosure Prevention and Refinance Report, released Thursday. The GSEs completed 15,855 foreclosure prevention actions in May, down from 17,201 in April. The May total brought the cumulative number of foreclosure prevention actions completed since the start of the enterprises’ conservatorships in September 2008 to 7.41 million. About 38.7% of those actions have been permanent loan modifications, the report noted. Permanent loan modifications accounted for the largest share of May’s activity, with 6,616 completed during the month, down from 7,484 in April. Meanwhile, payment deferrals fell to 5,389 from 5,729, while completed repayment plans declined to 1,384 from 1,476. Forbearance plans also edged lower, to 2,313 from 2,344. Among May loan modifications, 35.3% involved extending the loan term only, while modifications involving principal forbearance accounted for 63.1%. The cumulative number of permanent loan modifications reached nearly 2.86 million at the end of May. The numb...