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The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners September 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research U.S Department of Housing and Urban Development hcraeseR dna tnempoleveD yc nempoleveD yciloP fo ecif fO | tnempole The Administration’s goal remains to stabilize the housing market and provide security for homeowners. To meet these objectives in a 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 Mortgage-Backed Securities purchase programs have helped to keep mortgage interest rates at record lows for more than a year. More detail on the Administration’s efforts can be found in the Appendix. • New home sales soared in August to their highest level in more than six years. Purchases of new home sales climbed 18.0 percent from a month earlier to a seasonally adjusted annual rate (SAAR) of 504,000 in August, and were 33.0 percent higher than one year ago. New home sales were last at this pace in May 2008. New home sales data can be volatile, however, and are often revised. (Source: HUD and Census Bureau). • Sales of previously owned (existing) homes fell slightly in August, although sales are at their second highest pace of 2014. The National Association of Realtors® (NAR) reported that existing homes—including single-family homes, townhomes, condominiums, and cooperatives—sold at a pace of 5.05 million (SAAR) in August, down 1.8 percent from July and are 5.3 percent below the 5.33 million pace last August, which was the second-highest peak level in 2013. The drop in sales was mainly attributable to a decrease in investor purchases. • In the second quarter of 2014, 946,000 borrowers returned to a position of positive equity in their homes. From the beginning of 2012 through the second quarter of 2014, the number of underwater borrowers (those who owe more on their mortgage than the value of their home) has fallen 56 percent--from 12.108 million to 5.309 million--lifting 6.8 million homeowners above water. Approximately 10.7 percent of residential properties with a mortgage are still underwater, however. (Source: Corelogic). • House prices increase in July while year-over-year gains continue to slow. The Federal Housing Finance Agency (FHFA) seasonally adjusted purchase-only house price index showed home values appreciated by 0.1 percent over the prior month and 4.4-percent over the previous year, marking the seventh straight month of more modest annual growth in home prices. The FHFA index shows that U.S. home values are on par with prices in July 2005 and now stand just 6.4 percent below their previous peak in April 2007. The S&P/Case-Shiller 20-City Home Price Index (not seasonally adjusted) posted month-over-month returns for July of 0.6 percent and gains of 6.7 percent over the past 12 months; annual rates of gain in home prices have slowed over the last eight months. The Case-Shiller index shows home values at November-2004 levels and 16.1 percent below their peak in July 2006. (The Case-Shiller and FHFA price indices are released with a 2-month lag.) • Foreclosure starts are on par with a year ago, while completions continue their annual downward trend. Lenders started the public foreclosure process on 55,573 U.S. properties in August, up 12 percent from the previous month but virtually the same as a year earlier (foreclosure starts were up from a year ago in 19 states). Lenders completed the foreclosure process (bank repossessions or REOs) on 26,343 U.S. properties in August, up 2 percent from the previous month but down 33 percent from one year ago. (bank repossessions were up from a year ago in 7 states). (Source: Realty Trac) • The Administration’s foreclosure mitigation programs continue to provide relief for millions of homeowners as the recovery from the housing crisis continues. In all, more than 8.7 million mortgage modification and other forms of mortgage assistance arrangements were completed between April 2009 and the end of August 2014. More than 2.1 million homeowner assistance actions have taken place through the Making Home Affordable Program, including more than 1.4 million permanent modifications through the Home Affordable Modification Program (HAMP), while the Federal Housing Administration (FHA) has offered more than 2.4 million loss mitigation and early delinquency interventions through August. These Administration programs continue to encourage improved standards and processes in the industry, with lenders offering families and individuals nearly 4.2 million proprietary modifications through July. You can read the Treasury’s MHA report here. Encouraging news notwithstanding, there is a need to continue with recovery efforts to foster new home sales, help homeowners that are underwater, and reduce mortgage delinquencies rates that remain elevated. There is also considerable geographic variation in market conditions not captured in the national statistics, which suggests some markets are improving at different rates than others. Given the current state of the market and recognizing that recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market. September 2014 National Scorecard | Page 1 U.S Department of Housing and Urban Development The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | September 2014 Expectations on House Prices Above December 2011 Projections; Far Above January 2009 Projections House Prices Rise in July Montly House Price Trends by Index ($ Thousands) 275 250 S&P/Case-Shiller 20-City Index 250 S&P/Case-Shiller 10-City Index (NSA, Jan 2000 = 100) and Implied Index Values Based Upon House Price Futures Market as of Indicated Dates Implied CS-10 Index S&P/Case-Shiller From 10-City Index September 2014 House Price Futures 225 CoreLogic (Excluding Distressed Sales) 200 225 175 200 FHFA Purchase-Only Index 175 125 House Price Trend From January 2009 House Price Futures 100 l-0 4 n05 Ju l-0 5 Ja n06 Ju l-0 6 Ja n07 Ju l-0 7 Ja n08 Ju l-0 8 Ja n09 Ju l-0 9 Ja n10 Ju l-1 0 Ja n11 Ju l-1 1 Ja n12 Ju l-1 2 Ja n13 Ju l-1 3 Ja n14 Ju l-1 4 Ju 75 2003 Ja 3 04 n- Ja l-0 Ju n- 03 150 Ja S&P/Case-Shiller 10-City Index 150 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sources: Standard and Poor’s, CME Group, and Radar Logic. See Note 2, Sources and Methodology. Sources: Standard & Poor’s, Federal Housing Finance Agency, CoreLogic, and HUD. See Note 1, Sources and Methodology. Supply of Existing Homes on the Market Increasing, Number of Units Held off the Market Remains High New and Existing Home Sales Monthly Sales (Thousands) 1,200 Existing Homes Available for Sale (End of Period) and Total Vacant Housing Units (Year Round) Oﬀ Market (Millions) 120 New Home Sales (right axis) 1,000 2006 Implied CS-10 Index From December 2011 House Price Futures 5 100 800 80 600 60 400 40 Units Held oﬀ Market Seasonally Adjusted Sources: National Association of Realtors®, Census Bureau, and HUD. See Note 3, Sources and Methodology. Q1 Q3 20 14 Q1 20 13 Q3 20 13 Q1 20 12 Q3 20 12 Q1 20 11 Q3 20 11 Q1 20 10 Q3 20 10 Q1 20 Sources: National Association of Realtors® and Census Bureau. September 2014 National Scorecard | Page 2 09 Q3 20 09 Q1 20 08 Q3 20 08 Q1 20 07 Q3 20 07 Q1 20 06 Q3 20 06 Q1 20 05 Q3 20 05 Q1 20 04 Q3 04 20 03 n03 Ju l-0 3 Ja n04 Ju l-0 4 Ja n05 Ju l-0 5 Ja n06 Ju l-0 6 Ja n07 Ju l-0 7 Ja n08 Ju l-0 8 Ja n09 Ju l-0 9 Ja n10 Ju l-1 0 Ja n11 Ju l-1 1 Ja n12 Ju l-1 2 Ja n13 Ju l-1 3 Ja n14 Ju l-1 4 Ja 1 20 0 0 Existing Homes on Market 2 Q1 20 03 Existing Home Sales 3 20 200 4 U.S Department of Housing and Urban Development The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | September 2014 Home Affordability Remains Above Historic Norm, Mortgage Rate Within One Percentage Point of Historic Low 27.9 Million Homeowners Have Refinanced Since April 1, 2009 Percentage Rates and Index Values Quarterly Reﬁnance Mortgage Originations (Millions) 240 9 NAR Home Aﬀordability Index (right axis) 30-Yr Fixed Mortgage Rate 8 220 200 7 180 160 6 6 5 4 3 140 Aﬀordability Index Historic Norm 100 14 n- 13 0 Ja nJa 12 nJa 11 10 nJa 09 nJa nJa 08 nJa 07 06 nJa 05 nJa nJa 04 nJa 03 02 nJa nJa n- 01 80 Ja n- 00 3 Ja 1 20 03 20 Q1 03 20 Q3 04 20 Q1 04 20 Q3 05 20 Q1 05 20 Q3 06 20 Q1 06 20 Q3 07 20 Q1 07 20 Q3 08 20 Q1 08 20 Q3 09 Q 20 1 09 20 Q3 10 20 Q1 10 20 Q3 11 20 Q1 11 20 Q3 12 20 Q1 12 20 Q3 13 20 Q1 13 20 Q3 14 Q1 4 2 120 5 Sources: Mortgage Bankers Association and HUD. See Note 4 and Additional Notes, Sources and Methodology. The historic norm of 128 is the median value of the aﬀordability index since 1989. Sources: Freddie Mac and National Association of Realtors®. Mortgage Aid Extended Nearly 8.1 Million Times, Outpacing Foreclosures Mortgage Aid Helps Keep Foreclosure Filings Down Monthly Foreclosure Actions (Thousands) Cumulative Mortgages Receiving Aid and Mortgages Foreclosed Since April 1, 2009 (Millions) Mortgages modiﬁed or receiving loss mitigation since April 1, 2009: 8.1 million 8 7 Cumulative foreclosure completions since April 2009: 3.9 million (Includes investor, second home, and jumbo properties) 240 200 6 Foreclosure Starts 160 5 4 120 3 2 80 1 40 FHA Loss Mitigation Hope Now Modiﬁcations HAMP Modiﬁcations Foreclosure Completions Data exclude trial modiﬁcations. Hope Now data through July 2014, all other data through August 2014. Sources: HUD, Dept. of Treasury, Hope Now Alliance, and Realty Trac. See Note 5 and Additional Notes, Sources and Methodology. Foreclosure Completions 0 Ja nAp 08 r-0 Ju 8 lOc 08 t-0 Ja 8 nAp 09 r-0 Ju 9 lOc 09 t-0 Ja 9 nAp 10 r-1 Ju 0 lOc 10 t-1 Ja 0 nAp 11 r-1 Ju 1 lOc 11 t-1 Ja 1 nAp 12 r-1 Ju 2 lOc 12 t-1 Ja 2 nAp 13 r-1 Ju 3 lOc 13 t-1 Ja 3 nAp 14 r-1 Ju 4 l-1 4 Ja nM 10 ar M 10 ay -1 Ju 0 l-1 Se 0 pNo 10 v1 Ja 0 nM 11 ar M 11 ay -1 Ju 1 l-1 Se 1 pNo 11 v1 Ja 1 nM 12 ar M 12 ay -1 Ju 2 l-1 Se 2 pNo 12 v1 Ja 2 nM 13 ar M 13 ay -1 Ju 3 l-1 Se 3 pNo 13 v1 Ja 3 nM 14 ar M 14 ay -1 Ju 4 l-1 4 0 Foreclosure starts are default notices or scheduled foreclosure auctions, depending on the state. Source: Realty Trac. See Note 6, Sources and Methodology. September 2014 National Scorecard | Page 3 U.S Department of Housing and Urban Development The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | September 2014 Home Equity Posts Another Gain in Second Quarter 2014 Homeowners Save From Reduced Mortgage Payments Annualized Savings From Payment Reductions ($ Billions) Owners’ Equity in Household Real Estate at End of Period ($ Trillions) 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 14 12 10 8 6 4 2 09 20 Q4 0 Q1 0 Q2 0 Q3 0 Q4 1 Q1 1 Q2 1 Q3 1 Q4 2 Q1 2 Q2 2 Q3 2 Q4 3 Q1 3 Q2 3 Q3 3 Q4 4 Q1 4 Q2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 All Reﬁnances Q1 20 14 Q3 Q1 13 13 20 Q3 20 Q1 12 20 Q3 12 20 Q1 11 20 Q3 11 20 Q1 10 20 Q3 10 20 Q1 09 20 20 09 Q3 Q1 08 20 Q3 08 20 Q1 07 20 Q3 07 20 06 20 20 06 Q1 0 Source: Federal Reserve Board. Aggregate annual reduction in mortgage payments on reﬁnances since April 1, 2009 plus active trial and permanent HAMP modiﬁcations. Sources: MBA, Treasury, Freddie Mac, and HUD. See Note 7 and Additional Notes, Sources and Methodology. Housing Counselors Serve Millions of Families FHA Supports Mortgage Lending During Crisis Cumulative Households Counseled Since April 1, 2009 (Millions) FHA As Share of Quarterly Mortgage Originations by Type (Percent) 45 Households counseled since April 1, 2009: 10.3 million 11 40 10 35 9 30 8 25 7 20 6 15 5 10 4 5 3 September 2014 National Scorecard | Page 4 Q4 Q3 13 20 Q2 13 20 Q1 13 20 Q4 13 20 Q3 12 20 Q2 12 20 Q1 12 20 Q4 12 20 Q3 11 20 Q2 11 20 Q1 11 20 Q4 11 20 Q3 10 20 Q2 10 20 Q1 10 20 10 Q4 Source: HUD. 20 09 20 09 Q3 0 09 Combined 20 Sources: MBA and HUD. See Note 8, Sources and Methodology. Reﬁnance 1 20 Purchase 2 Q2 Q 20 3 04 Q 20 1 04 Q 20 3 05 Q 20 1 05 Q 20 3 06 Q 20 1 06 Q 20 3 07 Q 20 1 07 Q 20 3 08 Q 20 1 08 20 Q3 09 Q 20 1 09 Q 20 3 10 Q 20 1 10 Q 20 3 11 Q 20 1 11 Q 20 3 12 Q 20 1 12 Q 20 3 13 Q 20 1 13 Q 20 3 14 Q1 03 20 03 Q1 0 20 HAMP Modiﬁcations and Trials U.S Department of Housing and Urban Development U.S. Department of Housing and Urban Housing Market and Policy Development and Research The Obama Administration’s Efforts To Stabilize theDevelopment | Office of Help American Homeowners | September 2014 Indicator HOUSING ASSISTANCE AND STABILIZATION PERFORMANCE METRICS This Period Last Period Cumulative From April 1, 2009 Latest Release Distressed Homeowners Assisted (thousands) HAMP Trial Modifications HAMP Permanent Modifications FHA Loss Mitigation Interventions HOPE Now Modifications HARP Refinances 9.6 10.2 42.2 27.7 17.8 2,235 1,407 2,454 4,192 3,205 284.3 326.0 10,554 1st Q 14 Borrower Annual Savings ($ millions) HAMP Active Trial Modifications HAMP Active Permanent Modifications All Refinances ---- ---- 180 6,211 59,728 2nd Q 14 2nd Q 14 2nd Q 14 Activities Completed Under NSP (housing units) New Construction or Residential Rehab Demolition or Clearance Direct Homeownership Assistance ---- ---- 36,606 [62,821] 22,784 [24,280] 11,100 [17,078] 177.3 451.6 Counseled Borrowers (thousands) Change in Aggregate Home Equity ($ billions) Indicator Mortgage Rates (30-Yr FRM, percent) 11.0 (s) 9.6 (s) 31.5 25.2 15.7 Last Period 4.19 Year Ago 4.20 (b,s) (b,s) (b,s) 4,699.8 (r) HOUSING MARKET FACT SHEET This Period August-14 August-14 August-14 July-14 July-14 4.22 2nd Q 14 2nd Q 14 2nd Q 14 2nd Q 14 As of Dec 2008 Latest Release 5.10 2-Oct-14 Housing Affordability (index) 153.8 154.3 (r) 160.7 162.9 Home Prices (indices) Case-Shiller (NSA) FHFA (SA) CoreLogic–Excluding Distressed Sales (NSA) 173.3 212.7 176.9 172.3 212.5 175.0 (r) 162.4 203.7 165.7 150.5 196.2 160.0 Home Sales (thousands, SA) New Existing First-Time Buyers Distressed Sales (percent, NSA) 42.0 420.8 175.9 12 35.6 428.3 176.3 13 (r) (r) (r) 31.6 444.2 180.8 17 31.4 334.2 149.9 32 August-14 August-14 August-14 July-14 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) 2,310 5.5 203 4.8 3,975 2,350 5.5 201 5.6 3,888 (r) 2,210 5.0 175 5.5 3,771 3,130 9.4 353 11.2 3,542 August-14 August-14 August-14 August-14 2nd Q 14 Mortgage Originations (thousands) Refinance Originations Purchase Originations 534.3 668.9 554.0 521.8 (r) (r) 1,635.0 822.3 767.1 986.3 2nd Q 14 2nd Q 14 15.1 60.9 48.7 (r) (r) (r) 26.8 61.4 48.8 62.9 72.7 56.2 August-14 August-14 August-14 (p) (p) (r) (r) (r) July-14 (r) July-14 July-14 July-14 FHA Originations (thousands) Refinance Originations Purchase Originations Purchases by First-Time Buyers 17.9 56.0 44.8 Mortgage Delinquency Rates (percent) Prime Subprime FHA 2.9 31.0 10.4 2.8 30.0 9.7 3.3 30.3 10.7 4.4 34.3 14.3 August-14 August-14 August-14 590 952 540 596 952 543 851 1,132 623 915 1,632 333 August-14 August-14 August-14 5,309 6,255 7,229 -- 2nd Q 14 55.6 26.3 16.9 29.8 49.6 25.9 18.8 35.2 55.8 39.3 32.1 44.4 148.6 78.9 14.0 74.8 August-14 August-14 July-14 July-14 Seriously Delinquent Mortgages (thousands) Prime Subprime FHA Underwater Borrowers (thousands) Foreclosure Actions (thousands) Foreclosure Starts Foreclosure Completions Short Sales REO Sales (p) (p) (p) (p) (p) (r) SA = seasonally adjusted, NSA = not SA, p = preliminary, r = revised, b = brackets include units in process, s = see Additional Notes in Sources & Methodology. September 2014 National Scorecard | Page 5 U.S Department of Housing and Urban Development U.S. Department of Housing and Urban Housing Market and Policy Development and Research The Obama Administration’s Efforts To Stabilize theDevelopment | Office of Help American Homeowners | September 2014 A. Items in Tables Description Distressed Homeowners Assisted HAMP Trial Modifications HAMP Permanent Modifications HARP Refinances FHA Loss Mitigation Interventions HOPE Now Modifications Counseled Borrowers (thousands) Borrower Annual Savings HAMP Active Trial Modifications SOURCES AND METHODOLOGY Frequency Sources Notes on Methodology Monthly Monthly Monthly Monthly Monthly Treasury Treasury Federal Housing Finance Agency HUD Hope Now Alliance As reported. Also see additional note in Section C below on HAMP Tier 2. As reported. Also see additional note in Section C below on HAMP Tier 2. As reported. All FHA loss mitigation and early delinquency interventions. All proprietary modifications completed. Quarterly HUD Housing counseling activity reported by all HUD-approved housing counselors. HUD estimate of annualized savings based on Treasury reported active HAMP trial modifications and Freddie Mac monthly savings estimates. Also see additional note in Section C below on HAMP Tier 2. HUD estimate of annualized savings based on Treasury reported active HAMP permanent modifications and median monthly savings estimates. Also see additional note in Section C below on HAMP Tier 2. Refinance originations (see below) multiplied by HUD estimate of annualized savings per refinance. Quarterly HUD, Treasury, and Freddie Mac HAMP Active Permanent Modifications Quarterly HUD and Treasury All Refinances Quarterly HUD, and MBA Quarterly HUD Quarterly HUD Quarterly HUD Quarterly Federal Reserve Board 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 a family earning the median income has more than enough income to qualify. Home Prices Case-Shiller (NSA) Monthly Standard and Poor’s Monthly Monthly Federal Housing Finance Agency CoreLogic 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 (purchaseonly) index for US, January 1991 = 100. CoreLogic national combined index, distressed sales excluded, January 2000 = 100. (Only available as NSA). Monthly HUD and Census Bureau Existing Monthly National Association of Realtors® First Time Buyers Monthly NAR, Census Bureau, and HUD Distressed Sales (NSA) Monthly CoreLogic 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 in Census CPS/HPS Table 4. Estimates of Housing Inventory, line item “Year-round vacant, held off market for reasons other than occasional use or usually reside elsewhere.” Vacant units can be held off the market for a variety of reasons. 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. Completed Activities Under NSP (housing units) New Construction or Residential Rehab Demolition or Clearance Direct Homeownership Assistance Change in Aggregate Home Equity FHFA (SA) CoreLogic - Excluding Distressed Sales (NSA) Home Sales (SA) New Housing units constructed/rehabilitated using Neighborhood Stabilization Program. Bracketed numbers include units in process. 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. 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. 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. Short sales and REO (Real Estate Owned) sales as a percent of total existing home sales (current month subject to revision). FHA Originations Refinance Originations Purchase Originations Purchases by First Time Buyers Mortgage Delinquency Rates (NSA) Prime Subprime FHA 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. Monthly Monthly Monthly LPS Applied Analytics LPS Applied 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 Applied Analytics, MBA, and HUD Mortgages 90+ days delinquent or in foreclosure, scaled up to market. LPS Applied Analytics, MBA, and HUD Mortgages 90+ days delinquent or in foreclosure, scaled up to market. HUD Mortgages 90+ days delinquent or in foreclosure. Underwater Borrowers Quarterly CoreLogic As reported. Foreclosure Actions Foreclosure Starts Monthly Realty Trac Monthly Monthly Monthly Realty Trac CoreLogic CoreLogic Foreclosure starts are reported counts of notice of default or scheduled foreclosure auction, depending on which action starts the foreclosure process in a state. Real Estate Owned (REO). Count of Short Sales for the month as reported (current month subject to revision). Count of REO (Real Estate Owned) Sales for the month as reported (current month subject to revision). Foreclosure Completions Short sales REO Sales September 2014 National Scorecard | Page 6 U.S Department of Housing and Urban Development U.S. Department of Housing and Urban Housing Market and Policy Development and Research The Obama Administration’s Efforts To Stabilize theDevelopment | Office of Help American Homeowners | September 2014 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, FHFA monthly (purchase-only) index for US (SA), January 1991 = 100, and CoreLogic-Distressed Sales Excluded (Monthly) for US (NSA), January 2000 =100. 2. S&P/Case-Shiller 10-metro composite index (NSA) as reported monthly. Implied Case-Shiller futures index figures report forward expectations for the level of the S&P/Case Shiller index as of the date indicated, estimated from prices of futures purchased on the Chicago Mercantile Exchange reported by CME Group. The January 2009 market trend projection reports forward expectations estimated from prices of futures contracts reported by Radar Logic. Also see additional note in Section C below. 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 permanent 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. Also see additional note in Section C below on HAMP Tier 2. 6. Beginning with the September 2012 release, filings of a notice of default or scheduled foreclosure auction, depending on which action starts the foreclosure process in a state, are reported for foreclosure starts. Foreclosure defaults previously had been reported as a proxy for foreclosure starts. Foreclosure 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. See additional note below on FHA market share. C. Additional Notes. Beginning with the February 2013 release, the House Price Expectations Chart was updated by replacing market expectations as they existed in January 2009 with expectations as of December 2011. Prices of futures purchased for the S&P/Case-Shiller 10-metro composite index, available on the web from CME Group, were used to estimate expectations for December 2011 and for the current month. Market trend as of January 2009 is estimated from percentage changes in house price futures based on a different house price index: RadarLogic RPX. This trend has been added back to the chart because it imparts important information on how house price expectations have changed over time. Beginning with the January 2013 release, mortgage aid under HAMP Tier 2 is included in the totals. Effective June 2012, HAMP Tier 2 expanded eligibility requirements to further reduce foreclosures and help stabilize neighborhoods. For non-GSE loans, eligibility was expanded to allow for more flexible debt-toincome criteria and to include properties currently occupied by a tenant, as well as vacant properties which a borrower intends to rent. FHA market share estimates are based on new methodology beginning with the October 2013 report; estimates were revised back through Q1 2013. See the FHA Market Share report on their website for an explanation of the new methodology: http://portal.hud.gov/hudportal/HUD?src=/program_offices/ housing/rmra/oe/rpts/fhamktsh/fhamktqtrly. The Q2 2014 NSP actual count was revised for the demolition or clearance category and the Q2 2014 NSP projected counts were revised for the new construction or residential rehabilitation and the direct homeownership assistance categories. September 2014 National Scorecard | Page 7 U.S Department of Housing and Urban Development U.S. Department of Housing and Urban Housing Market and Policy Development and Research The Obama Administration’s Efforts To Stabilize theDevelopment | Office of Help American Homeowners | September 2014 Appendix The Administration has taken a broad set of actions to stabilize the housing market and help American homeowners. Three years 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 helped more than 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 $7.6 billion HFA Hardest Hit Fund for innovative foreclosure prevention programs in the nation’s hardest hit housing markets; • Launched the $1 billion Emergency Homeowners Loan Program, as part of the DoddFrank Wall Street Reform and Consumer Protection Act, to help unemployed and underemployed homeowners pay a portion of their monthly mortgage. • Created an FHA Short Refinance Option that helps underwater borrowers refinance into a new, stable, FHA-insured mortgage that is more aligned with actual property values. • Supported home purchase and refinance activity through the FHA to provide access to affordable mortgage capital and help homeowners prevent foreclosures. • Implemented a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgages during this time of historically low mortgage rates. ### September 2014 National Scorecard | Page 8