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Making Home Affordable Program Servicer Performance Report Through December 2009 Overview of Administration Housing Stability Initiatives Initiatives to Support Access to Affordable Mortgage Credit and Housing Lower Mortgage Rates and Access to Credit: • Continued financial support to maintain affordable mortgage rates through the Government Sponsored Enterprises (GSEs) • Interest rates down a full percentage point over the past year. Every 1% reduction in interest rate saves a borrower a median of $1500 annually in mortgage payments. • Access to sustainable mortgages through the Federal Housing Administration (FHA). State and Local Housing Initiatives: • Access for Housing Finance Agencies to provide mortgages to first-time homebuyers, refinance opportunities for at-risk borrowers, and affordable rental housing. Tax Credits for Housing: • Homebuyer credit to help homebuyers buy new homes. • Low-Income Housing Tax Credit (LIHTC) programs to support affordable rental housing. Initiatives to Prevent Avoidable Foreclosures and Stabilize Neighborhoods Making Home Affordable – Modifications: • Goal of offering 3-4 million homeowners lower mortgage payments through a modification through 2012. • Over 900,000 homeowners have started trial modifications and over 1 million offers for trial modifications have been extended to borrowers. • Homeowners in permanent modifications are saving a median of over $500 per month on mortgage payments. In aggregate, homeowners have saved over $1.5 billion through modifications. Making Home Affordable – Refinancing: • Refinancing flexibility and low mortgage rates, which have allowed over 3.8 million borrowers to refinance, saving an estimated $150 per month on average and more than $6.8 billion in total over the first year. Neighborhood Stabilization and Community Development Programs: • Support for the hardest hit communities to help stabilize neighborhoods. 1 Making Home Affordable Program Servicer Performance Report Through December 2009 Housing Inventory 14 20 18 16 14 12 10 8 6 4 2 0 12 10 Months Percent Mortgage Rates Conventional 30‐year Fixed Rate Months' supply of existing homes at the current sales pace 8 6 4 2 10‐year Treasury Rate Months' supply of new homes at the current sales pace 0 1999 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Source: Federal Reserve. 2005 2008 Source: National Association of Realtors. Home Prices New and Existing Home Sales Index: Jan 2000 = 100 Sales of existing homes (right axis) 1,600 230 210 190 170 150 130 110 90 70 50 1999 2002 FHFA purchase‐only index Loan Performance National Home Price Index Thousands Case/Shiller 20‐ city composite 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 Sales of new homes (left axis) 600 3,000 400 2,000 200 1,000 0 0 2002 2005 Sources: S&P/Case-Shiller Home Price Index; LP/Haver Analytics; FHFA. Note: Shaded areas indicate recessions. 2008 1999 2002 2005 2008 Source: National Association of Realtors, Census Bureau. 2 Making Home Affordable Program Servicer Performance Report Through December 2009 HAMP Trials Started (Cumulative, by Month) Home Affordable Modification Program (HAMP) Snapshot through December 2009 1,000,000 Number of Trial Period Plan Offers Extended to Borrowers (Cumulative) 1 1,164,507 902,620 900,000 804,625 800,000 All HAMP Trials Started Since Program Inception2 902,620 All Active Modifications (Trial and Permanent) 853,696 Active Trial Modifications2 787,231 698,481 700,000 600,000 545,408 500,000 413,391 400,000 Permanent Modifications3 66,465 Permanent Modifications Pending Borrower Acceptance4 46,056 200,000 100,000 Total Permanent Modifications Approved by Servicers5 269,955 300,000 112,521 152,965 54,161 0 1 Source: Survey data provided by servicers. reported by the HAMP system of record. permanent modifications as reported by servicers into the HAMP system of record. 4 As reported by servicers in Treasury’s Conversion Campaign. Pending permanent modifications are those pending final signature of the borrower plus completed modifications not yet in the HAMP system of record. While pending, modifications are reflected in the count of active trials. 5 Permanent modifications in the HAMP system of record and pending modifications as reported by servicers in Treasury’s Conversion Campaign. Pending permanent modifications are those pending final signature of the borrower plus completed modifications not yet in the HAMP system of record. While pending, modifications are reflected in the count of active trials. May and Prior 2 As June July August September October November December 3 Active HAMP Program Highlights Approximately 89% of eligible mortgage debt outstanding is covered by HAMP participating servicers. Source: All trial modifications started by month first payment posted; based on numbers reported by servicers to the HAMP system of record. HAMP Trial Plans Offered to Borrowers (Cumulative, by Month) 1,400,000 1,164,507 1,200,000 During the 4th quarter, the number of servicers who have signed servicer participation agreements to modify loans under HAMP rose from 63 to 102. In addition, approximately 2,300 lenders service loans owned or guaranteed by Fannie Mae or Freddie Mac. These servicers are automatically eligible to participate in HAMP. In the 4th quarter, the volume of active trial and permanent modifications rose by more than 75% from the 3rd quarter. The December Conversion Campaign resulted in an increase in the number of permanent modifications of more than 100%. In addition, more than 46,000 offers for permanent modifications have been sent to borrowers and will be reported to the HAMP system of record once they have been signed and returned to the servicer. Additional information on HAMP can be found on MakingHomeAffordable.gov or by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673). 1,032,837 919,965 1,000,000 757,955 800,000 571,354 600,000 406,542 400,000 242,366 200,000 105,806 0 May and Prior June July August September October Source: Survey data provided by servicers. September data includes October 1. October data is 10/2 through 10/29. November data is through Nov. 26. November December 3 Making Home Affordable Program Servicer Performance Report Through December 2009 Predominant Hardship Reasons for Permanent Modifications • Borrowers in active trial and permanent modifications have saved more than $1.5 billion through HAMP modifications. Curtailment of Income 1 • Loss of income is the primary borrower hardship. 51.8% Excessive Obligation 11.2% Permanent Modifications by Waterfall Step: Unemployment Interest Rate Reduction 100% Term Extension 43.2% Principal Forbearance 26.6% 5.6% Illness of Principal Borrower 2.7% 0% 10% 20% 30% 40% 50% 60% 1 Curtailment of income refers to borrowers who are employed but have faced a reduction in hours and/or wages. Note: Does not include 19.3% of permanent modifications reported as Other. Select Median Characteristics of Permanent Modifications Before Modification After Modification Decrease Front-End Debt-to-Income Ratio1 45.0% 31.0% ‐14.1 pct pts Back-End Debt-to-Income Ratio2 72.2% 55.1% ‐14.7 pct pts $1,418.93 $829.96 ‐$516.14 Loan Characteristic Median Monthly Payment3 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. Decrease cited is median decrease. 2 Ratio of total monthly debt payments (including mortgage principal and interest, taxes, insurance, homeowners association and/or condo fees, plus payments on installment debts, junior liens, alimony, car lease payments and investment property payments) to monthly gross income. Decrease cited is median decrease. 3 Decrease cited is median decrease. 4 Making Home Affordable Program Servicer Performance Report Through December 2009 HAMP Modification Activity by Servicer Estimated Eligible 60+ Day Delinquency1 Trial Plan Offers Extended All HAMP Trials Started American Home Mortgage Servicing Inc 124,262 14,243 10,918 Aurora Loan Services, LLC4 78,225 Servicer Bank of America, NA5 Active Trial Permanent Modifications 2 Modifications2 10,658 Permanent Modifications Pending3 232 Active Trials + Permanents as Share of Eligible 60+ Day Delinquencies 41,259 36,618 21,912 4,682 2,737 292,305 206,775 200,287 3,183 959 685 683 2 13% Bayview Loan Servicing, LLC Carrington Mortgage Services LLC 10,183 4,170 3,653 3,398 106 34% CCO Mortgage 5,304 9,178 19% 18,937 2,598 1,507 899 608 36% Select Portfolio 35% 34% 8% Wells Fargo 1,474 1,132 1,127 5 241,981 139,812 119,097 107,999 4,999 9,557 32 0 0 0 69,281 10,927 42,411 4,838 32,159 3,455 20,672 3,268 9,872 87 6,968 47% 0% 2,733 44% 31% 41,817 2,630 1,753 1,662 0 424,965 210,553 156,359 146,828 7,139 Litton Loan Servicing LP 111,260 25,641 21,113 17,377 959 16% 49,026 21,902 14,588 12,176 1,277 27% Nationstar Mortgage LLC Ocwen Financial Corporation, Inc. OneWest Bank 112,846 41,950 24,284 23,012 PNC Mortgage8 41,136 19,413 13,237 12,153 Saxon Mortgage Services, Inc. 72,709 39,843 36,406 30,914 2,497 64,797 17,557 12,884 7,427 4% 5,518 36% Bayview 21% 30% 63,690 46,918 29,280 17,399 4,675 35% US Bank NA 28,524 10,103 7,404 6,984 418 26% Bank United Wachovia Mortgage, FSB9 82,990 9,199 2,437 2,046 344 725 3% Wells Fargo Bank, NA 350,169 172,541 126,413 110,284 8,424 10,088 34% Other SPA servicers10 20,463 2,156 1,414 928 457 39,049 27,138 9,880 902,620 787,231 66,465 1 Estimated eligible 60+ day delinquent mortgages as reported by servicers as of November 30, 2009 include conventional loans: in foreclosure and bankruptcy. with a current unpaid principal balance less than $729,750 on a one-unit property, $934,200 on a two-unit property, $1,129,250 on a three-unit property and $1,403,400 on a four-unit property. on a property that was owner-occupied at origination. originated prior to January 1, 2009. Estimated eligible 60+ day delinquent loans excludes: FHA and VA loans. loans that are current or less than 60 days delinquent, which may be eligible for HAMP if a borrower is in imminent default. Servicers enrolling after December 1 did not participate in the 60+ day delinquency survey; their delinquency count is from the servicer registration form. 2 Active trial and permanent modifications as reported into the HAMP system of record by servicers. 3 As 21% 20% 19% 46% Select Portfolio Servicing NA 21% Bank of America Litton 1,164,507 26% OneWest 61 272,365 27% US Bank 1,226 3,356,844 30% Nationstar Ocwen 5,853 31% PNC Mortgage 20% 2,256 34% Green Tree CCO 5,332 34% 21% HomEq Servicing Total 44% J.P. Morgan Chase Aurora J.P. Morgan Chase Bank, NA7 Other GSE Servicers11 46% 34% 5,422 Franklin Credit Management Corporation GMAC Mortgage, Inc. Green Tree Servicing LLC 47% Saxon GMAC 1,046,008 CitiMortgage, CitiMortgage 9% Bank United Inc. 6 Active Modifications as a Share of Estimated Eligible 60+ Day Delinquencies 7% 16% 13% American Home 9% Carrington 25% reported by servicers targeted in Treasury’s Conversion Campaign. Includes permanent modifications pending final signature of the borrower plus completed modifications not yet reported into the HAMP system of record. While pending, modifications are reflected in the count of active trials. 4 Aurora Loan Services, LLC includes Aurora Financial Group. 5 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 6 CitiMortgage, Inc. includes CitiMortgage, Inc. Master Servicing Division. 7 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 8 Formerly National City Bank. 9 Wachovia Mortgage FSB includes Wachovia Bank NA. 10 Other SPA servicers are entities with less than 5,000 estimated eligible 60+ day delinquencies that have signed participation agreements with Treasury and Fannie Mae. A list of those servicers is available online at http://www.makinghomeaffordable.gov/contact_servicer.html 11 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. November 8% 14% 46,056 October 1 HomEq December 4% Wachovia 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of Eligible 60+ Day Loans in Active Trial 1 Bank United began participation on October 23, 2009. Note: Includes active trial and permanent modifications. Servicer combinations are the same as the table at left. October trials as a share of 60+ day delinquencies on September 30, 2009. November trials as a share of 60+ day delinquencies on October 31, 2009. December trials as a share of 60+ day delinquencies on November 30, 2009. 5 Making Home Affordable Program Servicer Performance Report Through December 2009 HAMP Activity by State HAMP Activity by State Permanent Modifications 34 Total 493 State AK Active Trials 459 AL 5,521 435 State MT Active Trials 1,052 Permanent Modifications 88 Total 1,140 5,956 NE 1,291 116 1,407 AR 2,182 228 2,410 NC 16,401 1,535 17,936 AZ 38,989 4,137 43,126 ND 190 15 205 CA 158,935 13,353 172,288 NH 3,498 351 3,849 CO 11,170 1,072 12,242 NJ 26,490 2,027 28,517 CT 10,063 802 10,865 NM 2,806 239 3,045 DC 1,428 105 1,533 NV 20,597 1,942 22,539 DE 2,560 250 2,810 NY 36,308 1,974 38,282 FL 96,703 8,405 105,108 OH 17,489 1,477 18,966 5,001 – 10,000 GA 31,147 2,627 33,774 OK 2,530 178 2,708 10,001 – 20,000 HI 2,714 240 2,954 OR 8,888 875 9,763 IA 2,554 174 2,728 PA 18,459 1,388 19,847 ID 3,167 308 3,475 RI 3,694 338 4,032 IL 41,793 3,149 44,942 SC 8,636 699 9,335 IN 8,821 718 9,539 SD 376 30 406 KS 2,428 172 2,600 TN 8,997 752 9,749 KY 3,479 258 3,737 TX 27,092 1,485 28,577 LA 4,990 289 5,279 UT 6,599 637 7,236 MA 17,817 1,619 19,436 VA 19,791 1,898 21,689 MD 25,847 2,270 28,117 VT 571 53 624 ME 2,120 190 2,310 WA 15,455 1,515 16,970 MI 26,777 2,326 29,103 WI 7,873 767 8,640 MN 14,813 1,527 16,340 WV 1,372 120 1,492 MO 9,980 668 10,648 WY 423 43 466 MS 3,210 307 3,517 Other* 611 222 833 * Includes Guam, Puerto Rico and the U.S. Virgin Islands. Note: Figures include active trial and permanent modifications. They do not include 113 loans that did not have identifiable state data. HAMP Modifications 5,000 and lower 20,001 – 35,000 35,001 and higher Note: Includes active trial and permanent modifications from the official HAMP system of record. Mortgage Delinquency Rates by State 60+ Day Delinquency Rate 5.0% and lower 5.01% - 10.0% 10.01% - 12.5% 12.51% and higher Source: Mortgage Bankers Association. Data is as of 3rd Quarter 2009. 6 Making Home Affordable Program Servicer Performance Report Through December 2009 15 Metropolitan Areas With Highest HAMP Activity Metropolitan Statistical Area New York-Northern New Jersey-Long Island, NY-NJ-PA Los Angeles-Long Beach-Santa Ana, CA Chicago-Naperville-Joliet, IL-IN-WI Miami-Fort LauderdalePompano Beach, FL Riverside-San BernardinoOntario, CA Phoenix-Mesa-Scottsdale, AZ Active Trials Total Permanent HAMP Modifications Activity HAMP Modifications by Investor Type (20 Largest Servicers) % of All HAMP Activity 48,692 3,056 51,748 6.1% 45,945 3,469 49,414 5.8% 40,291 3,036 43,327 5.1% 37,261 2,987 40,248 4.7% 36,671 3,383 40,054 4.7% 32,075 3,453 35,528 4.2% 2,446 29,647 3.5% 2,165 27,272 3.2% Washington-ArlingtonAlexandria, 27,201 DC-VA-MD-WV Atlanta-Sandy Springs-Marietta, 25,107 GA Las Vegas-Paradise, NV 17,187 1,531 18,718 2.2% Detroit-Warren-Livonia, MI 16,687 1,336 18,023 2.1% Orlando-Kissimmee, FL 15,516 1,400 16,916 2.0% 13,994 1,125 15,119 1.8% 12,596 1,184 13,780 1.6% 12,136 1,237 13,373 1.6% 12,044 1,159 13,203 1.5% Philadelphia-CamdenWilmington, PA-NJ-DE-MD Boston-Cambridge-Quincy, MA-NH Minneapolis-St. PaulBloomington, MN-WI Tampa-St. PetersburgClearwater, FL Servicer GSE Private Portfolio Total Bank of America, NA1 JP Morgan Chase NA2 Wells Fargo Bank, NA CitiMortgage, Inc. Saxon Mortgage Services Inc. GMAC Mortgage, Inc. Aurora Loan Services, LLC OneWest Bank 128,699 68,140 90,757 74,098 1,206 17,089 15,647 14,937 65,404 63,956 22,910 7,252 31,882 13,455 10,639 8,012 9,367 21,871 5,041 31,648 323 0 308 1,289 203,470 153,967 118,708 112,998 33,411 30,544 26,594 24,238 Select Portfolio Servicing Litton Loan Servicing LP3 Nationstar Mortgage LLC Ocwen Financial Corporation, Inc. PNC Mortgage4 American Home Mortgage Servicing Inc US Bank NA Bayview Loan Servicing, LLC Green Tree Servicing LLC Wachovia Mortgage, FSB5 HomEq Carrington Mortgage Services LLC Remainder of HAMP Servicers Total 522 2,228 8,845 2,508 10,868 19,118 15,443 4,485 10,231 7 2,434 665 123 20 1,339 22,074 18,336 13,453 12,759 12,214 723 6,041 0 3,156 1,500 0 10,167 7 3,461 190 97 1,662 0 1,354 43 9 793 0 10,890 7,402 3,504 3,355 2,390 1,662 0 38,454 485,418 1,507 14 289,899 0 1,752 78,379 1,507 40,220 853,696 1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loans Services and Wilshire Credit Corporation. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Loans previously reported as portfolio have been restated as private per supplemental guidance from Treasury. 4 Formerly National City Bank. 5 Wachovia Mortgage FSB includes Wachovia Bank NA. 2 J.P. Note: Figures reflect active trials and permanent modifications. Note: Figures include active trial and permanent modifications. A complete list of HAMP activity for all MSAs is available at http://www.financialstability.gov/docs/press/MSA%20Data%20December.pdf 7
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