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The Obama Administration’s Efforts To Stabilize
The Housing Market
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners
and Help American Homeowners
U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S. Department of Housing and UrbanUrban Development | U.S. Department of the and Research
U.S Department of Housing and Development | Office of Policy Development Treasury

The Administration’s goal is to promote stability for both the
housing market and homeowners. To meet these objectives, the
Administration developed a broad approach implementing state
and local housing agency initiatives, tax credits for homebuyers,
neighborhood stabilization and community development
programs, mortgage modifications and refinancing, continued
FHA engagement, and support for Fannie Mae and Freddie
Mac. In addition, Federal Reserve and Treasury MBS purchase
programs have helped to keep mortgage interest rates at record
lows over the past year. More detail on the Administration’s
efforts can be found in the Appendix.

•

Servicers report that the number of homeowners receiving
restructured mortgages since April 2009 has increased
to 2.8 million. This includes more than 1.2 million
homeowners who have started HAMP trial modifications
and nearly 400,000 who have benefitted from FHA loss
mitigation activities. Of those in the HAMP program,
346,000 have entered a permanent modification saving a
median of more than $500 per month. In addition, HUDapproved mortgage counselors have assisted 3.6 million
families.

•

Based on newly available survey data, nearly half
of homeowners unable to enter a HAMP permanent
modification enter an alternative modification with their
servicer, and fewer than 10 percent of cancelled trials move
to foreclosure sale. Link to see MHA report: http://www.
financialstability.gov/docs/May%20MHA%20Public%20
062110.pdf

Overall Impact of Administration’s
Comprehensive Housing Initiative
The President’s housing market recovery efforts began
immediately after taking office in February 2009. The
Administration’s comprehensive response, as outlined above,
has yielded many positive impacts:
•

Home price performance has improved. After 30 straight
months of decline and an expectation of continued
significant deterioration, home prices have leveled off in
the past year and expectations have adjusted upward.
Homeowners have benefitted from the stabilization, as
owner equity has increased by over $1 trillion since the first
quarter of 2009

•

More than 2.5 million first time homebuyers have purchased
a home using the First-Time Homebuyer Tax credit,
helping to stabilize home sales and prices and increase
affordability.

•

Martgages are now more affordable. Due to historically
low interest rates, more than 6 million homeowners have
refinanced, saving an estimated $150 per month on
overage and more than $11 billion in total.

The Administration’s housing initiatives were intended to help
prevent avoidable foreclosures and stabilize the housing market.
However the foreclosure prevention initiatives were not designed
to help every borrower and the housing market will continue to
adjust for some time.
•

Investors and speculators are not protected under the
Administration’s efforts, nor are Americans living in million
dollar homes, defaulters on vacation homes, or those who
don’t meet their responsibilities for qualification. This month,
HAMP cancellations are high because many borrowers
who received temporary modifications were not able to
meet eligibility requirements such verifying their income and
successfully making trial payments.

•

The supply of homes on and off market remains near all-time
highs. It will take time to work through this large inventory.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners
6.1 Million Homeowners Have Refinanced Since April 2009

30-Yr Fixed Mortgage Rates Remain Near Historic Lows

Quarterly Refinance Mortgage OriginaGons (Thousands)  

Percentage Rates  

9.0 
8.0 
7.0 
9.0 
6.0 
8.0 
5.0 
7.0 
4.0 
6.0 
3.0 
5.0 
2.0 
4.0 
1.0 
3.0 
2.0 
1.0 

30-Yr Fixed Mortgage Rates Remain Near Historic Lows

6,000 

6.1 Million Homeowners Have Refinanced Since April 2009
Quarterly Refinance Mortgage OriginaGons (Thousands)  

Percentage Rates  

5,000 
6,000 
4,000 
5,000 
3,000 
4,000 
2,000 
3,000 
1,000 
2,000 
0 
1,000 
30 Yr FRM Mortgage  

10 Yr Treasury Yield 

Source:  Freddie Mac and Treasury. 

30 Yr FRM Mortgage  

10 Yr Treasury Yield 

Source:  Freddie Mac and Treasury. 

0 
Sources:  Mortgage Bankers AssociaGon  and HUD. 
See Note 4, Sources and Methodolgy. 
Sources:  Mortgage Bankers AssociaGon  and HUD. 
See Note 4, Sources and Methodolgy. 

2.8 Million Borrowers Have Received Restructured Mortgages
CumulaGve Mortgages Restructured Since April 2009 (Millions) 

Foreclosure Starts Declining, Foreclosure Completions Rising

2.8 Million Borrowers Have Received Restructured Mortgages

Foreclosure Starts Declining, Foreclosure Completions Rising

Mortgages  restructured since April  2009:  2.8 million 
CumulaGve Mortgages Restructured Since April 2009 (Millions) 

3.0 

160.0  

Mortgages  restructured since April  2009:  2.8 million 

2.5 
3.0 
2.0 

160.0  
120.0  

2.5 
1.5 
2.0 
1.0 

Cumula&ve foreclosure comple&ons since April 2009: 1.15 million 
Monthly Foreclosure AcGons (Thousands) 
(Includes investor, second home, and jumbo proper&es) 

Cumula&ve foreclosure comple&ons since April 2009: 1.15 million 
(Includes investor, second home, and jumbo proper&es) 

120.0  
80.0  

1.5 
0.5 
1.0 
0.0 
0.5 

Monthly Foreclosure AcGons (Thousands) 

Apr‐09  May‐09  Jun‐09 

Jul‐09  Aug‐09  Sep‐09  Oct‐09  Nov‐09  Dec‐09  Jan‐10  Feb‐10  Mar‐10  Apr‐10 

Apr‐09  May‐09  Jun‐09 

Jul‐09  Aug‐09  Sep‐09  Oct‐09  Nov‐09  Dec‐09  Jan‐10  Feb‐10  Mar‐10  Apr‐10 

80.0  
40.0  

0.0 
FHA Loss MiGgaGon 

HAMP ModificaGons 

Hope Now ModificaGons 

6/20/20106/20/20106/20/2010

40.0  

Foreclosure Starts 

Foreclosure CompleGons 

Source: Realty Trac. 
See Note 6, Sources and Methodology. 
Foreclosure Starts 

Foreclosure CompleGons 

6/20/20106/20/20106/20/2010

Sources:  HUD, Dept. of Treasury, and Hope Now Alliance. 
FHA Loss MiGgaGon 
HAMP ModificaGons 
See Note 5, Sources and Methodology. 
Sources:  HUD, Dept. of Treasury, and Hope Now Alliance. 
See Note 5, Sources and Methodology. 

Hope Now ModificaGons 

Source: Realty Trac. 
See Note 6, Sources and Methodology. 

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners
Homeowners Save From Reduced Mortgage Payments

Home Equity Up More than $1 Trillion Since First Quarter 2009

Annualized Savings from Payment Reduc?ons ($ Billions) 

Owners’ Equity in Household Real Estate at End of Period ($ Trillions) 

16 

Home Equity Up More than $1 Trillion Since First Quarter 2009

20 

Owners’ Equity in Household Real Estate at End of Period ($ Trillions) 

14 
16 
12 

Annualized Savings from Payment Reduc?ons ($ Billions) 

20 
15 

14 
10 
12 
8 

Homeowners Save From Reduced Mortgage Payments

15 
10 

10 
6 
8 
4 

10 
5 

6 
2 
4 
0 

5 
0 

2 
0 

2009 Q4 

2010 Q1 

0 

All Refinances 
HAMP Modifica?ons 
2009 Q4 
2010 Q1 
Aggregate annual reduc?on in mortgage payments on refinances and loan modifica?ons since April 1, 2009. 

Source:  Federal Reserve Board. 

Sources:  MBA, Treasury, Freddie Mac, and HUD. 
All Refinances 
HAMP Modifica?ons 
See Note 7, Sources and Methodology. 
Aggregate annual reduc?on in mortgage payments on refinances and loan modifica?ons since April 1, 2009. 
Sources:  MBA, Treasury, Freddie Mac, and HUD. 
See Note 7, Sources and Methodology. 

Source:  Freddie Mac and Treasury. 
Source:  Federal Reserve Board. 
Source:  Freddie Mac and Treasury. 

FHA Supports Mortgage Lending During Crisis

Housing Counselors Serve Millions of Families

FHA Supports Mortgage Lending During Crisis

Housing Counselors Serve Millions of Families

Cumula?ve Households Counseled Since Apr 1, 2009 (Thousands)  

FHA as Share of Quarterly Mortgage Origina?ons by Type (Percent) 

35 

FHA as Share of Quarterly Mortgage Origina?ons by Type (Percent) 

30 
35 
25 
30 
20 
25 
15 
20 
10 
15 
5 
10 
0 
5 
0 
Purchase 
Sources:  MBA and HUD. 
See Note 8, Sources and Methodology. 
Purchase 
Sources:  MBA and HUD. 
See Note 8, Sources and Methodology. 

Refinance 
Refinance 

Combined 
Combined 

4000 
3500 
4000 
3000 
3500 
2500 
3000 
2000 
2500 
1500 
2000 
1000 
1500 
500 
1000 
0 
500 

Cumula?ve Households Counseled Since Apr 1, 2009 (Thousands)  

2009 Q2 

2009 Q3 

2009 Q4 

2010 Q1 

2009 Q2 

2009 Q3 

2009 Q4 

2010 Q1 

0 

Source:  HUD. 
Source:  HUD. 

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama U.S. Department of Housing and Urban Development | Office of Policy Development American Homeowners
Administration’s Efforts To Stabilize The Housing Market and Help and Research
HOuSing ASSiSTAncE AnD STABiLiZATiOn PErFOrMAncE METricS
indicator

This Period

Last
Period

cumulative From
Apr 1, 2009

Latest release

Sources

May-10
May-10
May-10
April-10

Treasury
Treasury
HUD
Hope Now Alliance

Distressed Borrowers Assisted (thousands)
HAMP Trial Modifications
HAMP Permanent Modifications
FHA Loss Mitigation Interventions
HOPE Now Modifications

30.1
47.7
25.2
104.3

37.0
68.1
25.2
114.9

1,244.2
346.8
383.5
1,211.8

Counseled Borrowers (thousands)

839.4

1,075.6

3,558

1st Q 10

HUD

----

----

6,095.9
1,401.4
10,918.9

1st Q 10
1st Q 10
1st Q 10

Treasury, Freddie Mac, and HUD
Treasury and HUD
MBA, Treasury, and HUD

28.6

97.3

1,079.4

1st Q 10

Federal Reserve Board

Borrower Annual Savings ($ millions)
HAMP Trial Modifications
HAMP Permanent Modifications
All Refinances (Including GSEs and FHA)
Change in Aggregate Home Equity
($ billions)

HOuSing MArkET FAcT SHEET
indicator
Mortgage Rates (30-Yr FRM, percent)

This Period Last Period Year Ago

As of Dec 08

Latest
release

Sources

4.75

4.72

5.38

5.1

17-Jun-10

Freddie Mac

Home Prices (indices)
Case Shiller (NSA)
FHFA (SA)

143.4
193.9

144.1
193.4

140.1
198.3

150.5
199.0

March-10
March-10

Standard and Poor’s
Federal Housing Finance Agency

Home Sales (thousands, SA)
New
Existing
First Time Buyers

42.0
480.8
245.7

36.6
446.7
227.2

28.4
391.7
197.4

31.4
395.0
174.8

April-10
April-10
April-10

HUD and Census Bureau
National Association of Realtors ®
NAR, Census Bureau, and HUD

Housing Supply
Existing Homes for Sale (thousands, SA)
Existing Homes - Months’ Supply (months)
New Homes for Sale (thousands, SA)
New Homes for Sale - Months’ Supply (months)
Vacant Units Held Off Market (thousands)

4,044.0
8.4
211.0
5.0
3,628.0

3,626.0
8.1
227.0
6.2
3,497.0

3,937.0
10.1
300.0
10.6
3,527.0

3,700.0
9.4
353.0
11.2
3,508.0

April-10
April-10
April-10
April-10
1st Q 10

National Association of Realtors ®
National Association of Realtors ®
HUD and Census Bureau
HUD and Census Bureau
Census Bureau

Mortgage Originations (thousands)
Refinance Originations
Purchase Originations

1,165.0
725.0

1,610.5
978.6

1,309.1
625.1

767.2
986.4

1st Q 10
1st Q 10

Mortgage Bankers Association and HUD
Mortgage Bankers Association and HUD

FHA Originations (thousands)
Refinance Originations Purchase
Purchase Originations
Purchases by First Time Buyers

21.6 (p)
95.0 (p)
71.3 (p)

33.4
103.3
76.1

92.7
88.9
70.2

62.9
72.7
56.2

May-10
May-10
May-10

HUD
HUD
HUD

5.9
36.4
12.4

5.8
35.9
11.7

4.9
33.5
13.6

4.4
34.1
14.3

May-10
May-10
May-10

LPS-McDash, MBA, and HUD
LPS-McDash, MBA, and HUD
HUD

1,939.5
1,930.9
548.2

1,983.0
1,959.4
544.5

1,366.1
1,776.4
388.7

910.5
1,642.8
333.1

May-10
May-10
May-10

LPS-McDash and HUD
LPS-McDash and HUD
HUD

11,276.9

11,321.7

10,163.3 (a)

--

1st Q 10

First American CoreLogic

96.5
132.7
93.8

103.8
137.6
92.4

123.1
133.3
65.0

121.5
103.0
78.9

May-10
May-10
May-10

Realty Trac
Realty Trac
Realty Trac

Mortgage Delinquency Rates (percent)
Prime
Subprime
FHA
Seriously Delinquent Mortgages (thousands)
Prime
Subprime
FHA
Underwater Borrowers
Foreclosure Actions (thousands)
Foreclosure Starts
Notice of Foreclosure Sale
Foreclosure Completions

SA= seasonally adjusted, NSA = not seasonally adjusted, p = preliminary, a = adjusted for methodology change.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama U.S. Department of Housing and Urban Development | Office of Policy Development American Homeowners
Administration’s Efforts To Stabilize The Housing Market and Help and Research
A. Items in Tables

SOurcES AnD METHODOLOgY

indicator

Frequency

Sources

notes on Methodology

Distressed Homeowners Assisted
HAMP Trial Modifications
HAMP Permanent Modifications
FHA Loss Mitigation Interventions
HOPE Now Modifications

Monthy
Monthy
Monthy
Monthy

Treasury
Treasury
HUD
Hope New Alliance

As reported.
As reported.
All FHA loss mitigation and early delinquency interventions.
All proprietary modifications completed.

Counseled Borrowers (thousands)

Quarterly

HUD

Housing Counseling Activity Reported by All HUD-Approved Housing Counselors.

Borrower Annual Savings
HAMP Trial Modifications

Quarterly

Estimates of average savings per HAMP Trial Modifications made by Freddie
Mac.
Average savings per HAMP permanent modification reported by Treasury.
Estimate of refinance originations (see below) is multiplied by Freddie Mac estimate of savings per refinance.

HAMP Permanent Modifications
All Refinances

Quarterly
Quarterly

Treasury, Freddie Mac, and
HUD
Treasury and HUD
MBA, Treasury, and HUD

Change in Aggregate Home Equity

Quarterly

Federal Reserve Board

Difference in aggregate household owners’ equity in real estate as reported in the
Federal Reserve Board’s Flow of Funds Accounts of the United States for stated
time period.

Mortgage Rates (30-Yr FRM)

Weekly

Freddie Mac

Weekly Survey of Mortgage Commitment Rates.

Home Prices
Case Shiller (NSA)
FHFA (SA)

Monthy
Monthy

Standard and Poor’s
Federal Housing Finance
Agency

Case Shiller 20-metro composite index, January 2000 = 100.
FHFA monthly (purchase-only) index for US, January 1991 = 100.

Home Sales (SA)
New
Existing

Monthy
Monthy

HUD and Cencus Bureau
National Association of
Realtors®
NAR, Census Bureau, and
HUD

Seasonally adjusted annual rates divided by 12.
Seasonally adjusted annual rates divided by 12.

National Association of
Realtors®
National Association of
Realtors®
HUD and Cencus Bureau
HUD and Cencus Bureau
Cencus Bureau

As reported.

Mortgage Bankers Association and HUD
Mortgage Bankers Association and HUD

HUD estimate of refinance originations based on MBA estimate of dollar volume of
refiance originations.
HUD estimate of home purchase originations based on MBA estimate of dollar volume
of home purchase originations.

First Time Buyers

Housing Supply
Existing Homes for Sale (SA)

Monthy

Monthly

Existing Homes - Months’ Supply

Monthly

New Homes for Sale (SA)
New Homes for Sale - Months’ Supply
Vacant Units Held Off Market

Monthly
Monthly
Quarterly

Mortgage Originations
Refinance Originations

Quarterly

Purchase Originations

Quarterly

Sum of seasonally adjusted new and existing home sales (above) multiplied by
National Association of Realtors ® annual estimate of first time buyer share of
existing home sales.

As reported.
As reported.
As reported.
As reported.

FHA Originations
Refinance Originations
Purchase Originations
Purchases by First Time Buyers

Monthy
Monthy
Monthy

HUD
HUD
HUD

FHA originations reported as of date of loan closing. Estimate for current month
scaled upward due to normal reporting lag and shown as preliminary.

Mortgage Delinquency Rates
Prime

Monthy

LPS-McDash Analytics

Subprime

Monthy

LPS-McDash Analytics

FHA

Monthy

HUD

Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages
actively serviced.
Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages
actively serviced.
Total FHA mortgages past due (30+ days) but not in foreclosure, divided by FHA’s
insurance in force.

Seriously Delinquent Mortgages
Prime
Subprime
FHA

Monthy
Monthy
Monthy

LPS-McDash, MBA, and HUD
LPS-McDash, MBA, and HUD
HUD

Mortgages 90+ days delinquent or in foreclosure, scaled up to market.
Mortgages 90+ days delinquent or in foreclosure, scaled up to market.
Mortgages 90+ days delinquent or in foreclosure.

Underwater Borrowers

Quarterly

First American CoreLogic

As reported. Due to change in reporting methodology, underwater borrower
estimates prior to the third quarter of 2009 are adjusted to be compatible with
current estimates.

Foreclosure Actions
Foreclosure Starts
Notice of Foreclosure Sale
Foreclosure Completions

Monthly
Monthly
Monthly

Realty Trac
Realty Trac
Realty Trac

Notice of default plus lis pendens.
Notice of sale (auctions).
Real Estate Owned (REO).

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama U.S. Department of Housing and Urban Development | Office of Policy Development American Homeowners
Administration’s Efforts To Stabilize The Housing Market and Help and Research

SOurcES AnD METHODOLOgY
B. Notes on Charts.
1. Monthly house price trends shown as changes in respective house price indices applied to a base price in January 2008 set to equal the median price of an existing home
sold in January 2008 as reported by the National Association of Realtors. Indices shown: S&P/Case Shiller 20-metro composite index, January 2000 = 100, and FHFA
monthly (purchase-only) index for US, January 1991 = 100.
2. S&P/Case-Shiller Index as reported monthly. Futures index figures report forward expectations of house prices reflected by the market as of the date indicated.
3. Reported seasonally adjusted annual rates for new and existing home sales divided by 12.
4. HUD estimate of refinance originations based on MBA estimate of dollar volume of refinance originations.
5. Cumulative HAMP modifications started, FHA loss mitigation and early delinquency interventions, plus proprietary modifications completed as reported by
Hope Now Alliance.
6. Foreclosure starts include notice of default and lis pendens, completions are properties entering REO. Both as reported by Realty Trac.
7. See “Borrower Annual Savings” above.
8. FHA market shares as FHA purchase and refinance originations divided by HUD estimates of purchase and refinance mortgage originations as noted in “Mortgage Originations” above.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

The Obama U.S. Department of Housing and Urban Development | Office of Policy Development American Homeowners
Administration’s Efforts To Stabilize The Housing Market and Help and Research

Appendix
The Administration has taken a broad set of actions to stabilize the housing market and help American
homeowners. A year ago, stress in the financial system had severely reduced the supply of mortgage credit,
limiting the ability of Americans to buy homes or refinance mortgages. Millions of responsible families who
had made their monthly payments and had fulfilled their obligations saw their property values fall. They also
found themselves unable to refinance at lower mortgage rates.
In February 2009, less than one month after taking office, President Obama announced the Homeowner
Affordability and Stability Plan. As part of this plan and through other housing initiatives, the Administration
has taken the following actions to strengthen the housing market:
•

Supported to Fannie Mae and Freddie Mac to ensure continued access to affordable mortgage credit;

•

The Federal Reserve and the U.S. Treasury purchased more than $1.4 trillion in agency mortgage
backed securities through independent MBS purchase programs, helping to keep mortgage rates at
historic lows;

•

Launched a modification initiative to help homeowners reduce mortgage payments to affordable levels
and to prevent avoidable foreclosures;

•

Launched a $23.5 billion Housing Finance Agencies Initiative to increase sustainable homeownership
and rental resources;

•

Supported the First Time Homebuyer Tax Credit, which has helped 2.5 million American families
purchase homes;

•

Provided more than $5 billion in support for affordable rental housing through low income housing
tax credit programs and $2 billion in support for the Neighborhood Stabilization Program through the
Recovery Act to restore neighborhoods hardest hit by concentrated foreclosures;

•

Created the $2.1 billion HFA Hardest Hit Fund for innovative foreclosure prevention programs in the
nation’s hardest hit housing markets.

•

Supported home purchase and refinance activity through the FHA to provide access to affordable
mortgage capital and help homeowners prevent foreclosures.
###


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102