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The Obama Administration’s Efforts
To Stabilize The Housing Market
and Help American Homeowners
December 2013

U.S. Department of Housing and UrbanUrban Development | U.S. Department of theand Research
U.S Department of Housing and Development | Office of Policy Development Treasury
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 over the past year.
More detail on the Administration’s efforts can be found in the Appendix.

December 2013 Scorecard on Administration’s
Comprehensive Housing Initiative

full extinguishment of their second lien receive a median total first and
second lien monthly payment reduction of $1,047, or 53 percent of
their before-modification payment.
•

Treasury Expanded the 2MP Program. Effective September
2013, Treasury expanded the 2MP program to include qualifying first
liens that have been modified under the GSE Standard Modification
requirements. When a borrower’s first lien is modified under the GSE
Standard Modification requirements and the first lien satisfies the HAMP
eligibility criteria, the 2MP servicer must offer to modify or extinguish the
borrower’s second lien under 2MP. View the Making Home Affordable
Program Report with data through November 2013.

•

Home Values Continue to Increase. Rising home values have
contributed to both the rise in homeowners’ equity and the decline
in underwater borrowers. As of October 2013, the Federal Housing
Finance Agency (FHFA) purchase-only index rose 8.2 percent from last
year and ticked up 0.5 percent (seasonally adjusted) from September,
showing that home values are now on par with prices in early 2005. The
S&P/Case-Shiller 20-City Home Price Index for October posted returns
of 13.6 percent over the past 12 months and was up 0.2 percent (not
seasonally adjusted) over September, indicating that home values are at
the same level as in mid-2004.

•

The Administration’s foreclosure mitigation programs
continue to provide relief for millions of homeowners
as the recovery from the housing crisis continues.
Over 1.9 million homeowner assistance actions have taken place
through the Making Home Affordable Program, including more
than 1.2 million permanent modifications through the Home
Affordable Modification Program (HAMP), while the Federal
Housing Administration (FHA) has offered more than 2.1 million loss
mitigation and early delinquency interventions through November. The
Administration’s programs continue to encourage improved standards
and processes in the industry, with HOPE Now lenders offering families
and individuals more than 3.9 million proprietary modifications
through October.

The President’s housing market recovery efforts began immediately after
taking office in 2009. The December 2013 housing scorecard includes key
indicators of market health and results of the Administration’s comprehensive
response, as outlined above:
•

Homeowners’ Equity Continues to Rise. Homeowners’ equity
jumped $418 billion, or 4.5 percent, to $9.669 trillion in the third
quarter of 2013, which is slightly higher than its value at the end of
2003. The equity homeowners have in their homes (total property value
less mortgage debt outstanding) is up $3.4 trillion or 55 percent, since
the end of 2011.

•

Millions of Homeowners Are No Longer Underwater.
The number of underwater borrowers has fallen 47.5 percent since
the beginning of 2012—from 12.1 million to 6.4 million in the third
quarter of 2013—lifting 5.7 million homeowners (who owed more
on their mortgages than the value of their homes) above water. The
national share of mortgages that are underwater fell from 25.2 percent
to 13.0 percent over the same period.

•

Treasury’s Second Lien Modification Program Has
Completed More than 123,000 Modifications. Homeowners
in 2MP with an active permanent modification save a median of $153
per month on their second mortgage, resulting in a median total first
and second lien monthly payment reduction of $784, or 41 percent of
their median before-modification payment. Homeowners who receive a

Given the current fragility 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.

December 2013 National Scorecard | Page 1

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 | December 2013

December 2013 National Scorecard | Page 2

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 | December 2013

December 2013 National Scorecard | Page 3

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 | December 2013

December 2013 National Scorecard | Page 4

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

U.S. Department of Housing and Urban Development | Office of Help Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Policy American Homeowners | December 2013

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

13.7
16.4
54.6
39.8
56.0

2,138
1,298
2,108
3,932
2,989

November-13
November-13
November-13
October-13
October-13

389.5

359.3

9,479

2nd Q 13

Borrower Annual Savings ($ millions)
HAMP Active Trial Modifications
HAMP Active Permanent Modifications
All Refinances

----

----

296
5,964
58,070

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

----

----

28,710 [61,020]
27,239 [23,965]
10,503 [17,036]

418.2

528.2

Counseled Borrowers (thousands)

Change in Aggregate Home Equity ($ billions)

15.0 (s)
13.0 (s)
50.6
33.6
46.4

(r)

3rd Q 13
3rd Q 13
3rd Q 13

(b,s)
(b,s)
(b,s)

3rd Q 13
3rd Q 13
3rd Q 13

3,600.5

(r)

3rd Q 13

HOUSING MARKET FACT SHEET
Indicator
Mortgage Rates (30-Yr FRM, percent)

This Period

Last Period

Year Ago

As of Dec 2008

Latest Release

4.53

4.48

3.34

5.10

Housing Affordability (index)

165.4

165.1

(r)

203.7

162.9

Home Prices (indices)
Case Shiller (NSA)
FHFA (SA)
CoreLogic - Excluding Distressed Sales (NSA)

165.9
207.2
167.4

165.6
206.2
166.9

(r)
(r)

146.0
191.6
151.6

150.5
196.7
160.0

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

38.7
408.3
174.3
17

39.5
426.7
181.8
17

(r)

33.2
413.3
174.1
23

31.4
334.2
149.9
32

November-13
November-13
November-13
October-13

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)

2,090
5.1
167
4.3
3,675

2,110
4.9
179
4.5
3,773

(r)
(r)
(r)
(r)

1,990
4.8
149
4.5
3,798

3,130
9.4
353
11.2
3,542

November-13
November-13
November-13
November-13
3rd Q 13

Mortgage Originations (thousands)
Refinance Originations
Purchase Originations

971.7
815.7

(r)

1,816.2
831.2

1,802.3
742.3

767.1
986.3

3rd Q 13
3rd Q 13

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

13.4
47.9
37.5

(p)
(p)
(p)

17.7
52.7
39.1

58.5
57.2
44.6

62.9
72.7
56.2

November-13
November-13
November-13

Mortgage Delinquency Rates (percent)
Prime
Subprime
FHA

3.3
31.9
11.5

3.2
31.0
11.1

4.0
30.4
11.8

4.4
34.3
14.3

November-13
November-13
November-13

Seriously Delinquent Mortgages (thousands)
Prime
Subprime
FHA

779
1,140
627

801
1,131
629

1,181
1,555
735

915
1,632
333

November-13
November-13
November-13

Underwater Borrowers (thousands)

6,361

7,152

(r)

10,574

--

52.8
30.5
21.3
33.5

58.9
37.8
23.1
35.4

(r)
(r)

77.5
59.1
35.4
49.3

148.6
78.9
14.0
74.8

Foreclosure Actions (thousands)
Foreclosure Starts
Foreclosure Completions
Short Sales
REO Sales

(p)
(p)

(p)
(p)

(r)

(r)
(r)

(r)
(r)
(r)

2-Jan-14
October-13

(r)
(r)

October-13
October-13
November-13

3rd Q 13
November-13
November-13
October-13
October-13

SA = seasonally adjusted, NSA = not SA, p = preliminary, r = revised, b = brackets include units in process, s = see note Sources and Methodology page.
December 2013 National Scorecard | Page 5

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

U.S. Department of Housing and Urban Development | Office of Help Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Policy American Homeowners | December 2013

SOURCES AND METHODOLOGY

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

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. Also see additional note in Section C below on HARP.
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

Direct Homeownership Assistance
Change in Aggregate Home Equity

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.

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.
Mortgages 90+ days delinquent or in foreclosure.
HUD

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).

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

FHFA (SA)
CoreLogic - Excluding Distressed Sales
(NSA)
Home Sales (SA)
New

FHA Originations
Refinance Originations
Purchase Originations
Purchases by First Time Buyers
Mortgage Delinquency Rates (NSA)
Prime
Subprime
FHA

Foreclosure Completions
Short sales
REO Sales

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.
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).

December 2013 National Scorecard | Page 6

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

U.S. Department of Housing and Urban Development | Office of Help Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Policy American Homeowners | December 2013

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.
The Q1 2013 NSP actual count was revised for the demolition or clearance category.
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 have been revised from Q1 2011 to Q4 2012 based on new methodology and estimates of FHA Market Share for Q1 through
Q3 2013 are also reported for the first time. See the Q2 2013 FHA Market Share report on the FHA Market Share website for an explanation of the new
methodology: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/oe/rpts/fhamktsh/fhamktqtrly.

December 2013 National Scorecard | Page 7

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

U.S. Department of Housing and Urban Development | Office of Help Development and Research
The Obama Administration’s Efforts To Stabilize The Housing Market and Policy American Homeowners | December 2013

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.
###

December 2013 National Scorecard | Page 8

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