ENHOUSING FINANCE & MORTGAGE PERFORMANCE · SEPTEMBER 28, 2026
FHFA Reports 48,439 Foreclosure-Prevention Actions in the Second Quarter
FHFA reported continued foreclosure-prevention activity, stable serious delinquency, higher foreclosure starts, and lower refinance volume as mortgage rates increased during the second quarter.
What FHFA released on September 24
Source publication date: September 24, 2026. The Federal Housing Finance Agency reported that Fannie Mae and Freddie Mac completed 48,439 foreclosure-prevention actions during the second quarter. That brought total actions since the September 2008 conservatorships to 7,425,684, including 6,718,452 that helped borrowers remain in their homes and 2,871,396 permanent loan modifications. The report covers Enterprise residential mortgages and should not be treated as a commercial-loan performance report.
- 01Serious delinquency held at 0.59%
- 02Foreclosure starts rose 1.9%
- 03Refinance volume declined
Forbearance and delinquency measures remained low but mixed
Initiated forbearance plans declined to 26,906 from 27,477 in the first quarter. At quarter-end, 37,283 loans remained in forbearance, approximately 0.12% of total loans serviced. The 60-plus-day delinquency rate increased to 0.83% from 0.81%, while the serious delinquency rate remained 0.59%. Sixty-three percent of second-quarter modifications included principal forbearance, and extend-term-only modifications represented 35.7% of modifications.
Foreclosure and refinance measures moved in less favorable directions
FHFA reported foreclosure starts increased 1.9% to 25,908, while third-party and foreclosure sales increased 4.1% to 3,894. Total refinance volume declined as the average 30-year fixed residential mortgage rate rose to 6.42% from 6.11% in the first quarter. Cash-out refinances represented 54.4% of June refinance activity. These national residential figures are market context, not a direct pricing or credit standard for a commercial property transaction.
Practical borrower and investor takeaway
Review every debt maturity, rate reset, extension test, reserve requirement, tenant or customer exposure, and property-level cash-flow assumption before liquidity becomes urgent. Model refinance proceeds under lower valuation, higher debt cost, slower lease-up, and reduced lender leverage. Maintain current operating statements, rent rolls, debt schedules, insurance, taxes, and capital plans, and approach the existing lender early if performance weakens. Workout, modification, and refinance availability remain loan- and lender-specific and should be evaluated with qualified advisers.
Real-estate borrowers and investors should model property cash flow, maturity, refinance proceeds, reserves, and workout options early; national residential performance statistics do not replace loan-level and property-level underwriting.
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