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

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 in
the context of a very challenging market, 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.

July 2010 Scorecard on Administration’s
Comprehensive Housing Initiative
•

•

Historic low rates continue to promote affordability:

Families continue to benefit from the lowest rates in history
on 30-year fixed mortgages. Since April of 2009, record
low rates have helped more than 7.2 million homeowners to
refinance, resulting in more stable home prices and $12.9
billion in total borrower savings.
Over twice as many homeowners helped compared to
foreclosure completions: Nearly three million borrowers

have received restructured mortgages since April 2009,
outpacing the 1.24 million foreclosure completions for the
same period. As more families are able to remain in their
homes, household assets continue to rise with $1.1 trillion in
home equity gained since April 2009.

•

HAMP permanent modifications are on pace, as more
than 51,000 trial agreements graduated to permanent in
June: Servicers report the number of homeowners receiving

restructured mortgages has increased to a new total of 2.95
million, including more than 1.2 million homeowners under
HAMP trial modifications and nearly 400,000 benefitting
from FHA loss mitigation activities. However, cancellations
from HAMP trial plans remain high as many borrowers who
received temporary modifications were not able to meet
eligibility requirements such as verifying their income and
successfully making trial payments. Link to view the latest
Making Home Affordable program report:
http://makinghomeaffordable.gov/docs/June%20
MHA%20Public%20Revised%20080610.pdf
For the first time, this report now tracks the impact of HUD’s
Neighborhood Stabilization Program (NSP), a $6 billion effort to
help local jurisdictions address the foreclosure crisis by allowing
grantees to acquire foreclosed homes and repair, redevelop, rent
or sell them to low and moderate income households. Nearly $2
billion in Recovery Act funds were awarded in the second round
of NSP grants.
Meanwhile other data in the scorecard show that the recovery
of the housing market remains fragile, with the some measures
suggesting recovery will take place over time. For example,
in May, sales of new and existing sales dropped after the
expiration of the tax credit, and the supply of homes on and off
the 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

Expectations on House Prices Have Shifted Up from 2009

House Prices Show Signs of Stabilizing

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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

7.2 Million Homeowners Have Refinanced Since April 2009

Mortgage Rates Fall to Record Low and Affordability Index Remains High

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Three Million Borrowers Have Received Restructured Mortgages,
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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

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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

Distressed Borrowers Assisted (thousands)
HAMP Trial Modifications
HAMP Permanent Modifications
FHA Loss Mitigation Interventions
HOPE Now Modifications
Counseled Borrowers (thousands)
Borrower Annual Savings ($ millions)
HAMP Trial Modifications
HAMP Permanent Modifications
All Refinances
Completed Activities under NSP (housing units)
New Construction or Residential Rehab
Demolition or Clearance
Direct Homeownership Assistance
Change in Aggregate Home Equity
($ billions)

This Period Last Period

Cumulative From Apr 1, 2009

Latest Release

38.7
51.2
32.9
112.1

30.1
47.7
25.2
103.1

1,282.9
398.0
416.4
1,322.7

June-10
June-10
June-10
May-10

839.4

1,075.6

3,558

----

----

2,313.3
2,410.3
12,909.0

2nd Q 10
2nd Q 10
2nd Q 10

2,118 (p)
1,278
48

8,597 (p)
3,580
679

21,148 (p)
11,814
3,283

2nd Q 10
2nd Q 10
2nd Q 10

28.6

97.3

1,079.4

1st Q 10

1st Q 10

HOUSING MARKET FACT SHEET
Indicator

Mortgage Rates (30-Yr FRM, percent)

This Period Last Period
4.57

4.57

Year Ago

5.14

As of Dec 2008

5.1

Latest Release
15-Jul-10

Housing Affordability (index)

162.0

168.3

174.2

166.3

May-10

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

144.6
194.7

143.4
193.2

139.3
197.7

150.5
199.0

April-10
April-10

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

25.0
471.7
233.4

37.2
482.5
244.2

30.6
395.8
200.4

31.4
395.0
174.8

May-10
May-10
May-10

3,892.0
8.3
213.0
8.5
3,628.0

4,029.0
8.4
214.0
5.8
3,497.0

3,851.0
9.7
291.0
9.5
3,527.0

3,700.0
9.4
353.0
11.2
3,508.0

1,100.8 (p)
1,140.8 (p)

1,178.3
683.5

1,941.0
997.4

767.2
986.4

25.22 (p)
118.9 (p)
89.2 (p)

27.7
112.1
81.8

79.4
107.9
85.2

62.9
72.7
56.2

June-10
June-10
June-10

5.6
36.3
12.4

5.9
36.4
12.4

5.0
34.3
12.2

4.4
34.1
14.3

June-10
June-10
June-10

1,868.0
1,885.7
551.3

1,939.5
1,930.9
548.2

1,472.3
1,817.1
368.2

910.5
1,642.8
333.1

June-10
June-10
June-10

11,276.9

11,321.7

10,163.3 (a)

--

96.2
132.1
85.5

96.5
132.7
93.8

116.1
141.6
79.7

121.5
103.0
78.9

Housing Supply
Existing Homes for Sale (thousands, NSA)
Existing Homes - Months’ Supply (months)
New Homes for Sale (thousands, SA)
New Homes for Sale - Months’ Supply (months, SA)
Vacant Units Held Off Market (thousands)
Mortgage Originations (thousands)
Refinance Originations
Purchase Originations
FHA Originations (thousands)
Refinance Originations
Purchase Originations
Purchases by First Time Buyers
Mortgage Delinquency Rates (percent)
Prime
Subprime
FHA
Seriously Delinquent Mortgages (thousands)
Prime
Subprime
FHA
Underwater Borrowers (thousands)
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.

May-10
May-10
May-10
May-10
1st Q 10
2nd Q 10
2nd Q 10

1st Q 10
June-10
June-10
June-10

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
Description

SOURCES AND METHODOLOGY

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

Frequency

Sources

Notes on Methodology

Monthy
Monthy
Monthy
Monthy

Treasury
Treasury
HUD
Hope Now 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
HAMP Permanent Modifications
All Refinances

Quarterly
Quarterly
Quarterly

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

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

Completed Activities under NSP (housing units)
New Construction or Residential Rehab
Demolition or Clearance
Direct Homeownership Assistance

Monthly
Monthly
Monthly

HUD
HUD
HUD

Housing Units Constructed/Rehabilitated using Neighborhood Stabilization Program.
Housing Units Demolished/Cleared using Neighborhood Stabilization Program.
Completed downpayment assistance or non-amortizing second mortgages by grantee to
make purchase of NSP unit affordable.

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

Primary Mortgage Market Survey, as reported.

Housing Affordability

Monthly

National Association of Realtors ®

NAR's composite housing affordability index as reported. A value of 100 means that
a family with the median income has exactly enough income to qualify for a mortgage
on a median-priced home. An index above 100 signifies that family earning the median
income has more than enough income to qualify.

Home Prices
Case-Shiller (NSA)

Monthy

Standard and Poor’s

Monthy

Federal Housing Finance Agency

Case-Shiller 20-metro composite index, January 2000 = 100. Standard and Poor's
recommends use of not seasonally adjusted index when making monthly comparisons.
FHFA monthly (purchase-only) index for US, January 1991 = 100.

Monthy

HUD and Census Bureau

Existing

Monthy

National Association of Realtors ®

First Time Buyers

Monthy

NAR, Census Bureau, and HUD

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

Monthly
Monthly
Monthly
Monthly
Quarterly

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

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

Mortgage Originations
Refinance Originations

Quarterly

Purchase Originations

Quarterly

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.

FHFA (SA)
Home Sales (SA)
New

Seasonally adjusted annual rates divided by 12. A newly constructed house is considered
sold when either a sales contract has been signed or a deposit accepted, even if this occurs
before construction has actually started.
Seasonally adjusted annual rates divided by 12. Existing-home sales, which include
single-family, townhomes, condominiums and co-ops, are based on transaction closings.
This differs from the U.S. Census Bureau’s series on new single-family home sales, which are
based on contracts or the acceptance of a deposit.
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.

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 (NSA)
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

Monthly
Monthly
Monthly

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

Monthy
Monthy
Monthy

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 common base price set equal to the median price of an existing home sold
in January 2003 as reported by the National Association of Realtors. Indices shown: S&P/Case Shiller 20-metro composite index (NSA), January 2000 = 100, and
FHFA monthly (purchase-only) index for US (SA), January 1991 = 100.
2. S&P/Case-Shiller 20 Metro 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. Foreclosure completions are properties entering Real Estate Owned (REO) as reported by Realty Trac.
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