FHFA July report: Fannie and Freddie foreclosure starts fall 22.4%, refinances slow
The report published Oct. 15 covers July 2026 enterprise loans: 16,195 prevention actions, 7,503 modifications and 46,974 refinances. It is not a read on October.
By Anthony Brikho · 3 min read
Fannie Mae and Freddie Mac completed 16,195 foreclosure prevention actions in July 2026, according to the Federal Housing Finance Agency's latest monthly Foreclosure Prevention, Refinance, and Federal Property Manager's Report, published Oct. 15. The report covers July data, so it describes conditions roughly three months ago, not October. FHFA report summary.
Modifications and forbearance
Of July's actions, 7,503 were permanent loan modifications. FHFA said 62.3% of modifications included principal forbearance and 35.7% extended the loan term only. Initiated forbearance plans rose to 9,798 from 8,657 in June, and 38,002 loans were in forbearance at the end of July, about 0.12% of loans serviced.
Foreclosure starts fell
Foreclosure starts declined 22.4% to 7,569 in July from 9,760 in June, according to the full report. Third-party and foreclosure sales were flat at 1,403. The serious delinquency rate, loans 90 or more days past due or in foreclosure, held at 0.59%, while the 30-to-59-day delinquency rate fell to 0.96%. Full FHFA report.
Refinances slowed
Total refinances fell to 46,974 in July from 59,773 in June. FHFA tied the decline to higher rates, noting the average 30-year fixed rate rose to 6.54% in July from 6.49% in June. Cash-out refinances made up 58.1% of refinance activity, below the 82.4% peak in September 2022.
Fannie Mae and Freddie Mac loan performance, June vs. July 2026
| Measure | June 2026 | July 2026 |
|---|---|---|
| Foreclosure starts | 9,760 | 7,569 |
| Total refinances | 59,773 | 46,974 |
| Foreclosure prevention actions | See report | 16,195 |
| Permanent loan modifications | See report | 7,503 |
| Serious delinquency rate | 0.59% | 0.59% |
How to read it
These figures cover only loans owned or guaranteed by Fannie Mae and Freddie Mac. They do not include FHA, VA or most bank-portfolio loans, so they are not a whole-market measure of distress. A one-month drop in foreclosure starts also does not establish a trend.
For servicers and housing counselors, the useful detail is the mix of workout tools. Most July modifications used principal forbearance, and post-forbearance payment deferrals rose to 4,993 from 4,545 in June. Borrowers who are behind on an enterprise-backed loan should contact their servicer about the options the servicer offers; this report does not describe eligibility for any individual borrower.
Cover: Constitution Center, 400 7th Street SW, Washington, D.C., the building that houses FHFA's headquarters, photographed June 21, 2024 by ajay_suresh, CC BY 2.0, via Wikimedia Commons. Archival image; cropped. Provenance and rights.
Watch: the verified facts in 15 seconds
Transcript (on-screen text; original instrumental music, no narration): FHFA | PUBLISHED OCT. 15, 2026; JULY 2026 DATA; 16,195; Foreclosure prevention actions; Fannie Mae and Freddie Mac loans only. LOAN MODIFICATIONS; PERMANENT MODIFICATIONS; 7,503; Completed in July 2026; 62.3% included principal forbearance. FORECLOSURE STARTS; DOWN 22.4% FROM JUNE; 7,569; July 2026, vs. 9,760 in June; Serious delinquency held at 0.59%. REFINANCES; TOTAL REFINANCES; 46,974; July 2026, vs. 59,773 in June; July data, not October conditions.