The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Making Home Affordable Program Servicer Performance Report Through January 2010 Report Highlights Inside: Number of Permanent Modifications Nearly Doubles Over Previous Month Administration Housing Initiatives 2 Economic Indicators 3 HAMP Program Snapshot 4 Waterfall of HAMP‐Eligible Borrowers 5 Characteristics of Permanent Modifications 6 Servicer Activity 7 HAMP Activity by State 8 HAMP Activity by Metropolitan Area 9 Modifications by Investor Type 9 • In addition to the 116,000 permanent modifications, an additional 76,000 permanent modifications have been approved by servicers and are pending borrower acceptance. • The median savings to borrowers in permanent modifications is more than $500 each month. Over One Million Borrowers Have Had the Opportunity to Modify Mortgages • Nearly 1.3 million homeowners have received offers for trial modifications. • More than 940,000 borrowers are in active modifications; 116,000 of those are permanent modifications. • These homeowners’ lower monthly mortgage payments represent a cumulative savings of $2.2 billion. • New streamlined documentation requirements will make it easier for borrowers to apply for a HAMP modification and receive permanent relief. Permanent Modifications Are Helping Borrowers Who Have Experienced a Loss of Income • The majority of permanent modifications – 57.4% – are helping people who are coping with unemployment or who have seen a reduction in hours or wages. List of Non‐GSE Participants 10 National Participation by Mortgage Lenders and Coverage of Outstanding Mortgage Debt Is Extensive • 110 servicers have signed servicer participation agreements to modify loans under HAMP, and new servicers continue to join the program each week. In addition, approximately 2,300 lenders service loans owned or guaranteed by Fannie Mae or Freddie Mac; these GSE loans are automatically eligible for HAMP. • Approximately 89% of eligible mortgage debt outstanding is covered by HAMP participating servicers. 1 Making Home Affordable Program Servicer Performance Report Through January 2010 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 new 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 1 million homeowners have started trial modifications and nearly 1.3 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 $2.2 billion through trial and permanent modifications. Making Home Affordable – Refinancing: • Refinancing flexibility and low mortgage rates, which have allowed over 4 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. 2 Making Home Affordable Program Servicer Performance Report Through January 2010 Mortgage Rates Housing Inventory 14 12 Conventional 30‐ year Fixed Rate 10 Months Percent 20 18 16 14 12 10 8 6 4 2 0 8 Months' supply of existing homes at the current sales pace 6 4 10‐year Treasury Rate Months' supply of new homes at the current sales pace 2 0 1999 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Source: Federal Reserve. Home Prices 1999 2005 2008 Source: National Association of Realtors. New and Existing Home Sales Index: Jan 2000 = 100 1,600 Case/Shiller 20‐city composite 1,400 7,000 Sales of existing homes (right axis) 6,000 1,200 5,000 1,000 FHFA purchase‐only index Loan Performance National Home Price Index Thousands 230 210 190 170 150 130 110 90 70 50 2002 4,000 Sales of new homes (left axis) 800 3,000 600 2,000 400 1,000 200 0 2002 2005 Sources: S&P/Case-Shiller Home Price Index; LP/Haver Analytics; FHFA. Note: Shaded areas indicate recessions. 2008 1999 0 2002 2005 2008 Source: National Association of Realtors, Census Bureau. 3 Making Home Affordable Program Servicer Performance Report Through January 2010 HAMP Trials Started (Cumulative, by Month) Home Affordable Modification Program (HAMP) Snapshot through January 20101 1,200,000 Number of Trial Period Plan Offers Extended to Borrowers (Cumulative) 2 1,269,937 1,008,216 927,739 1,000,000 818,201 800,000 708,120 All HAMP Trials Started Since Program Inception 1,008,216 600,000 550,970 416,471 All Active Modifications (Trial and Permanent) Active Trial Modifications 400,000 946,735 271,765 153,710 200,000 53,791 830,438 0 May and Prior Trial Modifications Canceled All Permanent Modifications Started 60,476 117,302 June July August September October November December January Source: All trial modifications started by month first payment posted; based on numbers reported by servicers to the HAMP system of record. Active Permanent Modifications 140,000 Permanent Modifications Canceled 1,005 116,297 120,000 100,000 Active Permanent Modifications 116,297 1 As reported by the HAMP system of record except where noted. 2 Source: Survey data provided by servicers. 80,000 66,465 60,000 31,382 40,000 Additional information on HAMP can be found on MakingHomeAffordable.gov or by calling the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673). 20,000 1,711 5,181 0 September and Prior Source: HAMP system of record. October November December January 4 Making Home Affordable Program Servicer Performance Report Through January 2010 Waterfall of HAMP-Eligible Borrowers Not all 60-day delinquent loans are eligible for HAMP. Other characteristics may preclude borrower eligibility. Based on the estimates, of the 5.6 million borrowers who are currently 60 days delinquent , 1.7 million borrowers are eligible for HAMP. As this represents a point-in-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that more borrowers will become eligible for HAMP from now through 2012. 6 5 5.6 5.0 4.3 Loans (Millions) 4 3.5 3 HAMPEligible 60+ Day Loans (SPA Servicers) 2 HAMP Estimated Eligible 60+ Day Loans 3.4 2.5 1.7 2.1 1.7 1 = Estimate 0 1st Lien, 60+ Days Less: Non‐ Delinquent Participating HAMP Servicer Less: FHA or VA Less: Non‐Owner Occupied at Origination Less: Jumbo Non‐ Less: DTI Less Than Less: Negative NPV Less: Vacant Conforming Loans 31% Properties and and Loans Other Exclusions* Originated After 1/1/2009 Estimated HAMP‐ Eligible •Other exclusions include: no longer owner-occupied; investor’s pooling and servicing agreement precludes modification; and manufactured housing loans with titling/chattel issues that exclude them from HAMP. Sources: Fannie Mae; monthly survey of participating servicers for December 31, 2009. Total 60+ figure from 3rd quarter MBA delinquency survey, Q3 2009. Excluded loans are as reported by servicers by survey who have signed a servicer participation agreement for HAMP. 5 Making Home Affordable Program Servicer Performance Report Through January 2010 Predominant Hardship Reasons for Permanent Modifications Modification Characteristics • Borrowers in active trial and permanent modifications have saved more than $2.2 billion through HAMP modifications. Loss of Income 1 57.4% • Loss of income is the primary borrower hardship for borrowers in permanent modifications. Excessive Obligation Permanent Modifications by Modification Steps: Interest Rate Reduction 10.7% 100% Term Extension 41.7% Principal Forbearance Illness of Principal Borrower 27.4% 2.7% 0% 20% 40% 60% 80% 1 Includes borrowers who are employed but have faced a reduction in hours and/or wages as well as those who have lost their jobs. Note: Does not include 21.0% of permanent modifications reported as Other. Select Median Characteristics of Permanent Modifications Before Modification After Modification Median Decrease Front-End Debt-to-Income Ratio1 45.1% 31.0% ‐14.2 pct pts Back-End Debt-to-Income Ratio2 76.1% 59.7% ‐14.7 pct pts $1,431.30 $835.33 ‐$521.85 Loan Characteristic Median Monthly Payment 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. 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. Borrowers who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines. 6 Making Home Affordable Program Servicer Performance Report Through January 2010 HAMP Modification Activity by Servicer Servicer American Home Mortgage Servicing Inc Aurora Loan Services, LLC Estimated Eligible 60+ Day Delinquency1 Trial Plan Offers Extended2 All HAMP Trials Started3 Active Trial Modifications3 Permanent Modifications3 Pending Permanent Modifications4 Active Trials + Permanents as Share of Eligible 60+ Day Delinquencies 127,521 15,137 12,142 11,764 333 2,171 9% 77,985 43,666 38,187 21,299 6,554 2,236 Active Modifications as a Share of Estimated Eligible 60+ Day Delinquencies 36% CitiMortgage 50% GMAC 50% Saxon 1,066,025 329,745 237,766 221,395 12,761 13,701 22% Bank United 5,287 1,211 944 816 128 629 18% J.P. Morgan Chase Bayview Loan Servicing, LLC 10,413 4,603 3,960 3,564 249 48 48% Select Portfolio 37% Bank of America, NA5 Carrington Mortgage Services LLC 18,823 2,781 1,511 693 811 33 8% CCO Mortgage 5,387 1,169 1,132 1,103 29 311 21% 246,038 148,200 130,817 111,247 10,929 7,299 50% 9,527 76 8 8 0 NA 40% 38% Wells Fargo 0% CitiMortgage, Inc. Franklin Credit Management Corp. 38% Bayview 37% Aurora GMAC Mortgage, Inc. 65,751 45,880 34,486 21,330 11,494 1,352 50% Green Tree Servicing LLC 11,250 5,604 4,055 3,728 227 389 35% PNC Mortgage HomEq Servicing 41,513 3,250 2,020 1,333 596 16 36% Green Tree 5% J.P. Morgan Chase Bank, NA6 432,416 222,192 170,028 150,902 11,581 17,959 38% Litton Loan Servicing LP 110,795 30,114 22,782 18,454 2,568 942 19% Nationstar Mortgage LLC 49,556 24,399 17,427 12,953 2,271 696 31% Ocwen Financial Corporation, Inc. 65,608 18,938 14,217 7,032 6,930 4,836 35% 32% Nationstar 31% 21% US Bank 27% OneWest OneWest Bank 112,200 48,548 30,509 24,741 3,087 5,848 25% PNC Mortgage7 41,365 20,472 15,523 13,141 77 832 32% CCO Saxon Mortgage Services, Inc. 71,429 40,375 36,964 28,685 5,312 4,989 25% Bank of America 48% Select Portfolio Servicing 62,041 50,149 31,630 17,915 6,761 1,402 40% US Bank NA 29,393 10,626 7,799 6,673 1,126 2,366 27% Wachovia Mortgage, FSB8 86,461 11,418 2,834 2,443 330 873 3% Wells Fargo Bank, NA 357,483 188,749 144,904 119,476 17,652 7,554 22% 21% Ocwen 21% 38% Other SPA servicers9 Other GSE Servicers10 Total 22,981 2,635 1,921 1,131 750 NA 8% 277,253 NA 44,650 28,612 13,741 NA 15% 28% 3,404,501 1,269,937 1,008,216 830,438 116,297 76,482 Litton 19% Bank United 9% Carrington eligible 60+ day delinquent mortgages as reported by servicers as of December 31, 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. For servicers enrolling after December 1 that did not participate in the 60+ day delinquency survey, the delinquency count is from the servicer registration form. January 5% 2 As reported in the weekly servicer survey through January 28, 2010. 3 Active trial and permanent modifications as reported into the HAMP system of record by servicers. 4 As reported by servicers. Pending permanent modifications have been approved by the servicer but have not yet been accepted by the borrower. While pending, modifications are reflected in the count of active trials. 5 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 6 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 7 Formerly National City Bank. 8 Wachovia Mortgage FSB includes Wachovia Bank NA. 9 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 full list of participating servicers is in the Appendix. 10 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. December 8% HomEq 1 Estimated November 18% American Home Wachovia 3% 0% 10% 20% 30% 40% 50% 60% % of Eligible 60+ Day Loans in Active Trial Note: Includes active trial and permanent modifications. Servicer combinations are the same as the table at left. 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. January trials as a share of 60+ day delinquencies on December 31, 2009. 7 Making Home Affordable Program Servicer Performance Report Through January 2010 HAMP Activity by State State AK AL HAMP Activity by State Active Trials 483 Permanent Modifications 56 State MT Active Trials 1,140 Permanent Modifications 138 Total 539 Total 1,278 5,907 723 6,630 NC 17,531 2,510 20,041 AR 2,355 337 2,692 ND 215 22 237 AZ 40,438 7,000 47,438 NE 1,367 186 1,553 CA 167,399 24,242 191,641 NH 3,620 612 4,232 CO 11,708 1,797 13,505 NJ 27,905 3,710 31,615 CT 10,655 1,465 12,120 NM 3,012 390 3,402 DC 1,538 191 1,729 NV 21,568 3,484 25,052 DE 2,667 428 3,095 NY 38,706 3,777 42,483 HAMP Modifications FL 101,971 14,598 116,569 OH 18,451 2,529 20,980 5,000 and lower GA 33,059 4,508 37,567 OK 2,713 298 3,011 HI 2,891 436 3,327 OR 9,416 1,469 10,885 IA 2,743 322 3,065 PA 19,494 2,416 21,910 ID 3,335 508 3,843 RI 3,845 599 4,444 IL 44,281 5,592 49,873 SC 9,178 1,209 9,255 1,216 10,471 SD 405 43 448 KS 2,599 325 2,924 TN 9,452 1,338 10,790 KY 3,647 453 4,100 TX 29,351 2,481 31,832 LA 5,309 516 5,825 UT 7,029 1,105 8,134 MA 18,647 2,788 21,435 VA 20,542 3,377 23,919 MD 27,183 4,003 31,186 VT 598 93 691 ME 2,201 337 2,538 WA 16,255 2,580 18,835 MI 28,062 3,938 32,000 WI 8,344 1,243 9,587 MN 15,359 2,584 17,943 WV 1,466 199 1,665 MO 10,573 1,234 11,807 WY 440 73 513 MS 3,413 474 3,887 Other* 717 345 1,062 10,001 – 20,000 10,387 IN 5,001 – 10,000 Note: Includes active trial and permanent modifications from the official HAMP system of record. 20,001 – 35,000 35,001 and higher Mortgage Delinquency Rates by State 60+ Day Delinquency Rate 5.0% and lower Source: Mortgage Bankers Association. Data is latest available and is as of 3rd Quarter 2009. 10.01% - 12.5% 5.01% - 10.0% * Includes Guam, Puerto Rico and the U.S. Virgin Islands. 12.51% and higher 8 Making Home Affordable Program Servicer Performance Report Through January 2010 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 Lauderdale‐Pompano Beach, FL Riverside‐San Bernardino‐Ontario, CA Active Trials Total Permanent HAMP Modifications Activity HAMP Modifications by Investor Type (20 Largest Servicers) % of All HAMP Activity 51,613 5,743 57,356 6.1% 48,778 6,383 55,161 5.8% 42,683 5,381 48,064 5.1% 39,356 5,143 44,499 4.7% 38,040 6,139 44,179 4.7% Phoenix‐Mesa‐Scottsdale, AZ 33,157 5,834 38,991 4.1% Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV 28,520 4,330 32,850 3.5% Atlanta‐Sandy Springs‐Marietta, GA 26,593 3,692 30,285 3.2% Las Vegas‐Paradise, NV 18,000 2,757 20,757 2.2% Detroit‐Warren‐Livonia, MI 17,580 2,274 19,854 2.1% Orlando‐Kissimmee, FL 16,265 2,468 18,733 2.0% 14,807 1,961 16,768 1.8% 13,147 2,014 15,161 1.6% 12,752 1,943 14,695 1.6% 12,517 2,123 14,640 1.5% Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD Boston‐Cambridge‐Quincy, MA‐NH Tampa‐St. Petersburg‐Clearwater, FL Minneapolis‐St. Paul‐Bloomington, MN‐WI 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 Select Portfolio Servicing Litton Loan Servicing LP Nationstar Mortgage LLC Ocwen Financial Corporation, Inc. PNC Mortgage3 American Home Mortgage Servicing Inc US Bank NA Green Tree Servicing LLC Bayview Loan Servicing, LLC Wachovia Mortgage, FSB4 HomEq Carrington Mortgage Services LLC Remainder of HAMP Servicers Total 149,464 74,390 100,361 80,917 1,264 18,085 16,087 15,580 567 2,369 10,248 3,066 11,765 73,282 65,579 31,497 7,967 32,403 14,739 11,437 10,514 21,219 18,653 4,870 10,857 19 11,410 22,514 5,270 33,292 330 0 329 1,734 2,890 0 106 39 1,434 234,156 162,483 137,128 122,176 33,997 32,824 27,853 27,828 24,676 21,022 15,224 13,962 13,218 816 6,107 3,756 1 1,500 0 0 44,040 540,383 11,281 0 9 1,683 190 9 3,772 40 132 1,141 1,898 31 1,504 0 29 2,249 321,851 84,501 12,097 7,799 3,955 3,813 2,773 1,929 1,504 46,318 946,735 1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loans Services and Wilshire Credit Corporation. 2 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Formerly National City Bank. 4 Wachovia Mortgage FSB includes Wachovia Bank NA. Note: Figures reflect active trials and permanent modifications. A complete list of HAMP activity for all MSAs is available at http://www.financialstability.gov/docs/MSA%20Data%20Jan%202010.pdf 9 Making Home Affordable Program Servicer Performance Report Through January 2010 Appendix: Non-GSE Participants in HAMP Allstate Mortgage Loans & Investments, Inc. American Eagle Federal Credit Union American Home Mortgage Servicing, Inc AMS Servicing, LLC Aurora Loan Services, LLC Bank of America, N.A.1 Bank United Bay Federal Credit Union Bay Gulf Credit Union Bayview Loan Servicing, LLC Carrington Mortgage Services, LLC CCO Mortgage Central Florida Educators Federal Credit Union Central Jersey Federal Credit Union Chase Home Finance, LLC CitiMortgage, Inc. Citizens 1st National Bank Citizens First Wholesale Mortgage Company Community Bank & Trust Company CUC Mortgage Corporation Digital Federal Credit Union DuPage Credit Union Eaton National Bank & Trust Co Farmers State Bank Fidelity Homestead Savings Bank First Bank First Federal Savings and Loan First Federal Savings and Loan Assn. of Lakewood First Keystone Bank First National Bank of Grant Park Franklin Credit Management Corporation Fresno County Federal Credit Union Glass City Federal Credit Union Glenview State Bank GMAC Mortgage, Inc. Golden Plains Credit Union Grafton Suburban Credit Union Great Lakes Credit Union Greater Nevada Mortgage Services Green Tree Servicing LLC Harleysville National Bank & Trust Company Hartford Savings Bank Hillsdale County National Bank Home Financing Center, Inc HomEq Servicing HomeStar Bank & Financial Services Horicon Bank Horizon Bank, NA Iberiabank IBM Southeast Employees' Federal Credit Union IC Federal Credit Union Idaho Housing and Finance Association iServe Residential Lending LLC J.P.Morgan Chase Bank, NA2 Lake City Bank Lake National Bank Litton Loan Servicing Los Alamos National Bank Marix Servicing, LLC Members Mortgage Company, Inc Metropolitan National Bank Mission Federal Credit Union MorEquity, Inc. Mortgage Center, LLC Mortgage Clearing Corporation National City Bank Nationstar Mortgage LLC Oakland Municipal Credit Union Ocwen Financial Corporation, Inc. OneWest Bank ORNL Federal Credit Union Park View Federal Savings Bank PennyMac Loan Services, LLC PNC Bank, National Association Purdue Employees Federal Credit Union QLending, Inc. Quantum Servicing Corporation Residential Credit Solutions RG Mortgage Corporation Roebling Bank RoundPoint Mortgage Servicing Corporation Saxon Mortgage Services, Inc. Schools Financial Credit Union SEFCU Select Portfolio Servicing Servis One Inc., dba BSI Financial Services, Inc. ShoreBank Silver State Schools Credit Union Sound Community Bank Specialized Loan Servicing, LLC Spirit of Alaska Federal Credit Union Stanford Federal Credit Union Sterling Savings Bank Technology Credit Union Tempe Schools Credit Union The Bryn Mawr Trust Co. The Golden 1 Credit Union U.S. Bank National Association United Bank of Georgia United Bank Mortgage Corporation Vantium Capital, Inc. Verity Credit Union Wachovia Mortgage, FSB3 Wells Fargo Bank, NA Wescom Central Credit Union Yadkin Valley Bank 1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Wachovia Mortgage FSB includes Wachovia Bank NA. 10