Gses Boost Foreclosure Prevention As Forbearances Surge

Foreclosure prevention activity increased in October as Fannie Mae and Freddie Mac completed more than 17,000 actions to help struggling homeowners, according to a Federal Housing Finance Agency (FHFA) report released Thursday.

The government-sponsored enterprises (GSEs) completed 17,032 foreclosure prevention actions in October 2025, bringing the total to nearly 7.3 million since the start of their federal conservatorships in September 2008. About 39% of these actions since 2008 have been permanent loan modifications, the agency’s report noted.

In October alone, the GSEs completed 7,210 permanent loan modifications. About 36% of these modifications involved extended loan terms only, while 64% included principal forbearance.

The number of borrowers receiving payment deferrals after completing a forbearance plan rose to 6,208 in October, up from 5,616 in September. Initiated forbearance plans more than doubled month over month, increasing from 7,863 in September to 17,075 in October.

The total number of loans in forbearance climbed to 42,112 at the end of October, up from 33,360 a month earlier. Loans in forbearance represented about 0.14% of all loans serviced and 8% of total delinquent loans.

Mortgage performance for Fannie Mae and Freddie Mac showed modest improvement. The 30-59 day delinquency rate declined to 0.93% at the end of October, while the serious delinquency rate (90 days or more past due, or in the process of foreclosure) held steady at 0.55%.

But foreclosure activity continued to rise as third-party and foreclosure sales ticked up 13% from September to 1,317 in October, while foreclosure starts rose 3% to 9,255.

Refinance activity also picked up during the month, driven by lower mortgage rates. The average interest rate on a 30-year fixed-rate mortgage fell to 6.25% in October, down 8 basis points from 6.35% in September, after rates also declined from August to September.

Cash-out refinances declined as a share of total refinance activity, falling to 38% in October from 55% in September. The share had climbed as high as 82% at various times over the past three years.