View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

The Obama Administration’s Efforts
To Stabilize The Housing Market
and Help American Homeowners
November 2010
U.S. Department of Housing and Urban Urban 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 stabilize the housing market and
provide security for 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, housing counseling, continued Federal Housing
Administration (FHA) engagement, support for Fannie Mae and
Freddie Mac and increased consumer protections. 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.

November 2010 Scorecard on Administration’s
Comprehensive Housing Initiative
The President’s housing market recovery efforts began immediately after
taking office in February 2009. The November 2010 housing scorecard
includes the following key indicators of market health and results of the
Administration’s comprehensive response, as outlined above:
•

An additional 1 million families refinanced their
mortgages in the last quarter, taking advantage of the
lowest rates in history on 30-year fixed mortgages. Since
April of 2009, record low interest rates have helped more than
8.3 million homeowners to refinance, resulting in more stable
home prices and $15.2 billion in annual borrower savings.

•

As expected with the expiration of the Homebuyer Tax
Credit, new and existing home sales remained below
levels seen in the first half of 2010. At the same time, home
prices remained level in the past year after 33 straight months of
decline and homeowners added $95 billion in home equity in the
second quarter.

•

More than 3.73 million modification arrangements were
started between April 2009 and the end of August 2010

—more than double the number of foreclosure completions
during that time. These included nearly 1.4 million trial Home
Affordable Modification Program (HAMP) modification starts,
more than 600,000 Federal Housing Administration (FHA) loss
mitigation and early delinquency interventions, and nearly 1.8
million proprietary modifications under HOPE Now. While
some homeowners may have received help from more than one
program, the number of agreements offered were more than
double the number of foreclosure completions for the same period
(1.6 million). To view the October HAMP Servicer Performance
Report, visit: http://financialstability.gov/docs/Oct%202010%20
MHA%20Public%20Final.pdf

Data in the scorecard also show that the recovery in the housing market
continues to remain fragile. While the recovery will take place over
time, the Administration remains committed to its efforts to prevent
avoidable foreclosures and stabilize the housing market.
The impact of new and expanded resources is expected to contribute
to progress captured in future Housing Scorecards. For example, the
Federal Housing Administration (FHA) recently announced a short
refinance option targeted to help people who owe more on their
mortgage than their home is worth because their local markets saw
large declines in home values. The option will allow certain underwater
non-FHA borrowers – those current on their existing mortgage and
whose lenders agree to write off at least 10 percent of the unpaid
principal balance of the first mortgage – the opportunity to qualify for a
new FHA-insured mortgage. In addition, HUD’s Emergency Homeowner
Loan Program is intended to complement Treasury’s Hardest Hit Fund
by providing bridge loans to help unemployed and underemployed
borrowers to meet their mortgage obligations. Treasury has provided
support through the Hardest Hit Fund to assist homeowners in the states
hardest hit by the housing market downturn. Additional servicers have
expressed their commitment and begun implementing the Second Lien
Modification Program, the Unemployment Program, and the Principal
Reduction Alternative to reach more homeowners.

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | November 2010

Expectations On House Prices Have Shifted Up From 2009

House Prices Show Signs Of Stabilizing

:5 (6 ##'2 &,( '  ,),'( %/ 7
% A??? I @??8

&%)#0 &,( '  '%( 0 %/ 7< &,(%(8
AAD

AFD

&,( '  ,),'(

&- A?@?

A??

AD?

:5 (6 ##'
@FD

AAD

:5 (6 ##'
%/

@D?

A??

@AD

@FD

&,( '  ,),'(

% A??H

@??
@D?
FD
A??B

Existing And New Home Sales
G??

/ (*% &$
#( 7# / (8

@??

E?


. &$
#( 7' ) / (8

?

(&%##0 !,()
&,'3 
*&%# ((& *&% & #)&'( 2
 
&) B2 &,'( % )&&#&04

A??G

A??H

A?@?

A?@@

A?@A

A?@B

D

C

/ (*% &$(
&% '")

C?
B
A?
?

%(,( ,',2 %  4

A??F

/ (*% &$( - ## &' # 7 % & ' &8 %
&)# %) &,( % % )( 7' &,%8  '") 7 ## &%(8

@A?

G?

A??

A??E

Existing Homes On The Market Below Peak,
Number Of Units Held Off The Market Remains High

&%)#0 #( 7&,(%(8

C??

A??D

&,'(3 )%' % &&'9( % ' & 4
 
&) A2 &,'( % )&&#&04

&,'(3 )%' : &&'9( 2 '# &,( % %% %02 %  4
 
&) @2 &,'( % )&&#&04

E??

A??C

% )( # &
'")
A

&,'(3 
*&%# ((& *&% & #)&'( % %(,( ,',4

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 | November 2010

8.3 Million Homeowners Have Refinanced Since April 1, 2009

Mortgage Rates Fall To Record Low And Affordability Index Remains High

.)+)$2 && ')+ 
)!!&,'&* 8!$$!'&*9

)&+ +* & &1 $.*

E6<

=E<
=D<
=C<
=B<
=A<
=@<
=?<
=><
==<
=<<
E<
D<

?<7) !1 ')+
+ 8$ 1!*9

D6<
C6<
B6<
A6<
@6<
?6<
>6<

'.*!& ')!$!+2
&1 8)! + 1!*9

=6<
<6<

B
A
@
?
>
=
<

'.)*5 ')+ &#)* **'!,'& &  6
 '+ @4 '.)* & + ''$26

'.)*5 )!  & ,'&$ ***'!,'& ' $+')*6

Foreclosure Starts And Completions Remain Elevated

Mortgage Aid Has Been Extended More Than 3.7 Million Times,
Outpacing Foreclosures

'&+ $2 ')$'*.) ,'&* 8 '.*&*9

.%.$,/ ')+* 
) ! 
) ')$'* !& ()!$ =4 ><<E 8!$$!'&*9

=B<

.%.$,/ ')$'*.) '%($,'&* *!& ()!$ ><<E5 =6B %!$$!'&
8 &$.* !&/*+')4 *'& '%4 & ".%' ()'(),*9

')$'*.)
+)+*

')+ %'!,'&* !&!,+ *!& ()!$ =4 ><<E5 ?6C? %!$$!'&
@
=><

?
>

D<

=

')$'*.)
'%($,'&*

<
()7<E 27<E .&7<E

.$7<E


'** !,,'&

.7<E (7<E 
+7<E '/7<E

 '!,'&*

7<E &7=<

7=< )7=<

()7=< 27=< .&7=<

'( '0 '!,'&*

'.)*5  4 (+6 ' )*.)24 '( '0 $$!&4 & $+2 )6
 '+ A4 '.)* & + ''$'26

.$7=<

.7=< (7=<

@<

')$'*.) '%($,'&*
'.)5 $+2 )6
 '+ B4 '.)* & + ''$'26

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 | November 2010

Home Equity Up More Than $1 Trillion Since First Quarter 2009
*#$1 "(%+ 

Homeowners Save From Reduced Mortgage Payments

($   $%% %   
#  25 # $3

(, )$ #  
+% (& $ 25  $3

:=

9>
9<

:8

9:
9=

98
@

98

>
=

<
:

8

8

:88A <

:898 9

:898 :

 $

 (#/ # $#)

:898 ;



 
 & $

#% ( #(&    #% !+%$  #$ $ !# 9. :88A !($ &) %#
 !#% 

  & $0
 (#$/ 
 . #$(#+. # 
.   0
  % ?.  (#$  
%   +0

#0

FHA Supports Mortgage Lending During Crisis

Housing Counselors Serve Millions Of Families

$ #  (#%#+ 
 #% #& $ + +! 2
#%3

<8

((&)

($ $

($  !# 9. :88A 2
 $3

=

;=
;8

<

:=
:8

;

9=
98

:

=
8

9

8

(#$
 (#$/ 
   0
  % @.  (#$  
%   +0





:88A :
 (#/

 0

:88A ;

:88A <

:898 9

:898 :

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 | Office of Policy Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | November 2010

HOUSING ASSISTANCE AND STABILIZATION PERFORMANCE METRICS
Indicator

Distressed Homeowners 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
Activities Completed 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

26.1
23.8
31.9
119.6

35.3
27.8
56.4
115.8

1,395.5
519.6
600.0
1,795.1

October-10
October-10
October-10
September-10

713.5

839.4

4,272

2nd Q 10

----

----

1,103.0
2,925.0
15,227.8

3rd Q 10
3rd Q 10
3rd Q 10

3,033
1,041
1,147

2,537
667
1,094

95.4

201.1

9,249 [36,292] (b) 2nd Q 10
2,987 [8,252] (b) 2nd Q 10
3,768 [18,000] (b) 2nd Q 10
1,020.3

2nd Q 10

HOUSING MARKET FACT SHEET
Indicator

Mortgage Rates (30-Yr FRM, percent)

This Period

4.17

Last Period

4.24

Year Ago

4.91

As of Dec 2008

5.10

Latest Release
11-Nov-10

Housing Affordability (index)

179.1

173.4

163.9

166.3

September-10

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

148.6
192.8

148.9
192.0

146.1
197.6

150.5
198.8

August-10
August-10

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

25.6
377.5
189.4 (p)

24.0
343.3
172.6

32.6
466.7
234.6

31.4
395.0
174.8

September-10
September-10
September-10

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)

4,040
10.7
204
8.0
3,557

4,117
12.0
206
8.6
3,725

3,710
8.0
252
7.7
3,396

3,700
9.4
353
11.2
3,511

September-10
September-10
September-10
September-10
3rd Q 10

1,371.2
532.1

1,144.9
833.4

1,280.6
1,046.8 (r)

767.2
986.4

3rd Q 10
3rd Q 10

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

48.5 (p)
56.0 (p)
39.2 (p)

52.8 (r)
68.6 (r)
45.4 (r)

Mortgage Delinquency Rates (percent)
Prime
Subprime
FHA

5.2
36.5
11.9

Seriously Delinquent Mortgages (thousands)
Prime
Subprime
FHA
Underwater Borrowers (thousands)
Foreclosure Actions (thousands)
Notice of Default (Foreclosure Starts)
Notice of Foreclosure Sale
Foreclosure Completions
Short Sales

66.4
114.4
95.2

62.9
72.7
56.2

October-10
October-10
October-10

5.2
36.4
12.7

6.0
36.6
14.4

4.4
34.1
14.3

October-10
October-10
October-10

1,710.1
1,989.3
533.0

1,747.0
1,974.9
573.5

1,870.6
2,042.0
505.5

912.8
1,642.1
333.1

October-10
October-10
October-10

10,971.2

11,276.9

100.6
138.4
93.2
18.9 (p)

102.4
142.9
102.1
20.2 (r)

10,155.6 (a)
124.3
130.9
77.1
22.1

-121.5
103.0
78.9
13.9

2nd Q 10
October-10
October-10
October-10
August-10

SA = seasonally adjusted, NSA = not SA, p = preliminary, a = adjusted for methodology change, r = revised, b = brackets include units in process.

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

U.S. Department of Housing and Urban Development | Office of Policy Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | November 2010

A. Items in Tables

SOURCES AND METHODOLOGY

Description

Frequency

Sources

Notes on Methodology

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

Monthly
Monthly
Monthly
Monthly

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

Quarterly

HUD, Treasury, and Freddie Mac

HAMP Permanent Modifications

Quarterly

HUD and Treasury

All Refinances

Quarterly

HUD, and MBA

HUD estimate of annualized savings based on Treasury reported active HAMP trial modifications
and Freddie Mac monthly savings estimates.
HUD estimate of annualized savings based on Treasury reported active HAMP permanent
modifications and median monthly savings estimates.
Refinance originations (see below) multiplied by HUD estimate of annualized savings per refinance.

Quarterly

HUD

Demolition or Clearance

Quarterly

HUD

Direct Homeownership Assistance

Quarterly

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

Primary Mortgage Market Survey, as reported for 30-Year fixed rate mortgages (FRM).

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)

Monthly

Standard and Poor’s

Monthly

Federal Housing Finance Agency

Monthly

HUD and Census Bureau

Completed Activities Under NSP (housing units)
New Construction or Residential Rehab

FHFA (SA)
Home Sales (SA)
New
Existing

Monthly

First Time Buyers

Monthly

Housing units constructed/rehabilitated using Neighborhood Stabilization Program.
Bracketed numbers include units in process, to be completed by 3/2013.
Housing units demolished/cleared using Neighborhood Stabilization Program. Bracketed
numbers as above.
Completed downpayment assistance or non-amortizing second mortgages by grantee to
make purchase of NSP unit affordable. Bracketed numbers as above.

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.

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.
National Association of Realtors ® Seasonally adjusted annual rates divided by 12. Existing-home sales, which include singlefamily, 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
NAR, Census Bureau, and HUD
Association of Realtors ® annual estimate of first time buyer share of existing home sales.

Housing Supply
Existing Homes for Sale (NSA)
Existing Homes - Months’ Supply
New Homes for Sale (SA)
New Homes for Sale - Months’ Supply (SA)
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 refinance
originations.
HUD estimate of home purchase originations based on MBA estimate of dollar volume of home
purchase originations.

FHA Originations
Refinance Originations
Purchase Originations
Purchases by First Time Buyers

Monthly
Monthly
Monthly

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
Subprime
FHA

Monthly
Monthly
Monthly

LPS-McDash Analytics
LPS-McDash Analytics
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
Notice of Default (Foreclosure Starts)

Monthly

Realty Trac

Monthly
Monthly
Monthly

Realty Trac
Realty Trac
Core Logic

Reported counts of notice of default plus lis pendens. Some foreclosure starts may be omitted in
states where the filing of a notice of default is optional.
Notice of sale (auctions).
Real Estate Owned (REO).
Count of Short Sales for the month as reported (current month subject to revision).

Notice of Foreclosure Sale
Foreclosure Completions
Short sales

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

U.S. Department of Housing and Urban Development | Office of Policy Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | November 2010

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 composite index (NSA) as reported monthly. Futures index figures report forward expectations of the level of the S&P/Case Shiller
index as of the date indicated, estimated from prices of futures contracts reported by Radar Logic.
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. Some homeowners may be counted in more than one category. 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. See “Foreclosure
Actions” above.
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

U.S. Department of Housing and Urban Development | Office of Policy Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | November 2010

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 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 $6.92 billion in support for the Neighborhood Stabilization Program to restore
neighborhoods hardest hit by the concentrated foreclosures;

•

Created the $4.1 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