Fannie Mae and Freddie Mac completed 15,855 foreclosure prevention actions in May, a decline from the prior month, as the mortgage giants continued to work with a relatively small pool of distressed borrowers, according to the Federal Housing Finance Agency’s Foreclosure Prevention, Refinance, and Federal Property Manager’s Report released Thursday.
The May figure brought the cumulative total to 7,410,301 foreclosure prevention actions since the two government-sponsored enterprises entered federal conservatorship in September 2008. Of those actions, the large majority have helped homeowners stay in their homes.
Modifications and payment relief
The enterprises completed 6,616 permanent loan modifications in May, part of a cumulative 2,864,357 since 2008. Modifications that included principal forbearance β which sets aside a portion of the balance to lower the monthly payment β accounted for 63.1% of all loan modifications during the month, a sign that servicers are still leaning on payment relief to keep struggling borrowers current after modifications rose in April.
Loan modifications are the most common tool the enterprises use to prevent foreclosures, alongside repayment plans, forbearance and short sales. The mix shifts over time with policy changes and the health of the broader economy.
Delinquencies remain low
Mortgage performance stayed strong by historical standards. The serious delinquency rate β the share of loans 90 or more days past due β held at 0.58% at the end of May, far below the levels seen in past downturns and a reflection of the deep equity cushions most homeowners still hold, even as overall U.S. foreclosure filings have crept higher this year.
Foreclosure activity remained contained. The enterprises initiated 7,979 foreclosure starts in May and recorded 1,167 third-party and foreclosure sales. Those figures remain modest relative to the size of the enterprises’ combined book of tens of millions of loans.
Refinancing cools with rates
Refinance volume fell in May as borrowing costs rose. The average interest rate on a 30-year fixed mortgage climbed to 6.44% in May from 6.33% in April, according to the report β one leg of a broader move higher that pushed rates to their 2026 peaks over the summer before a modest recent pullback. With few borrowers holding loans priced above current market rates, the incentive to refinance has stayed limited.
What it means: The May data reinforces a picture of a mortgage market under pressure at the margins but not in distress. A serious delinquency rate below 0.6% and historically low foreclosure activity indicate that most borrowers are comfortably current, supported by strong equity positions. The heavy use of principal forbearance in modifications, however, shows that servicers are still tailoring relief for the smaller group of homeowners who do fall behind. Should the labor market weaken or home prices soften further, these figures would be among the first to signal rising stress.
The FHFA publishes the report monthly, drawing on operational data from Fannie Mae and Freddie Mac, which together guarantee a large share of the nation’s residential mortgages.
