The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Report Highlights Inside: More Than 50,000 New Permanent Modifications in June HAMP Program Snapshot 2 Characteristics of Permanent Modifications 3 Servicer Activity 4 Disposition Path of Homeowners Canceled From HAMP Trials 5 Disposition Path of Homeowners Ineligible for HAMP Trials 6 Selected Outreach Measures 7 Implementation of Program Updates 7 Homeowner Experience 8 HAMP Activity by State 9 • Total number of permanent modifications increases nearly 15%, with growth in permanent modifications averaging more than 50,000 per month over the last six months. • Homeowners in permanent modifications are experiencing a median payment reduction of 36%, more than $500 per month. • Homeowners in permanent modifications are guaranteed lower payments for five years, then fixed terms at today’s low rates for the life of the loan. Servicers Continue to Work Through Aged Trial Population • Cancellations continue to rise as servicers comply with Treasury guidance to make decisions on aged trials. Of the newly canceled trials this month, more than 60% had been in trial six months or longer. • Servicers are still completing their reviews of nearly 166,000 active trials lasting six months or more. • Approximately 45% of homeowners in canceled trials entered an alternative modification, based on survey data from the eight largest HAMP participants. Fewer than 2% of homeowners in canceled trials went to foreclosure sale. • The most common causes of cancellations include incomplete documentation, missed trial payments, or mortgage payments already less than 31% of the homeowner’s income. New This Month: Servicer Engagement • Servicers have shared timetables for participating in the Home Affordable Foreclosure Alternatives Program and the HAMP Second Lien Modification Program (2MP). • Call center metrics and time to resolve escalated cases are reported for the eight largest participating servicers. HAMP Activity by Metropolitan Area 10 Modifications by Investor Type 10 List of Non‐GSE Participants 11 Definitions of Compliance Activities 12 Detailed Footnotes on Performance Data 13 1 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 HAMP Activity: All Servicers HAMP Trials Started (Cumulative) Total 1,400,000 Eligible Delinquent Loans1 3,125,198 1,200,000 Eligible Delinquent Borrowers2 1,623,584 1,000,000 Trial Plan Offers Extended3 1,528,563 800,000 All Trials Started 1,282,912 600,000 HAMP Eligibility 1,200,077 1,132,451 1,282,912 1,267,759 1,244,597 1,047,188 954,723 837,446 723,191 564,172 429,321 Trial Modifications Trials Reported Since May 2010 Report4 38,728 400,000 284,209 200,000 Trial Modifications Canceled 520,814 164,696 55,041 0 Permanent Modifications Active Trials 364,077 All Permanent Modifications Started 398,021 Permanent Modifications Begun Since May 2010 Report 51,205 May June and Prior July Aug Sep Oct Nov Dec Jan 2010 Feb Mar Apr Source: HAMP system of record. Note: Servicers may enter new trial modifications anytime before the loan converts to a permanent modification. Permanent Modifications Started (Cumulative) 500,000 Permanent Modifications Canceled5 8,823 398,021 400,000 Active Permanent Modifications 346,816 389,198 1 Estimated eligible May June 60+ day delinquent loans as reported by servicers as of May 31, 2010, 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 on or before January 1, 2009. Estimated eligible 60+ day delinquent loans exclude: 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 April 1, 2010 that did not participate in the 60+ day delinquency survey, the delinquency count is from the servicer registration form. 2 The estimated eligible 60+ day delinquent borrowers are those in HAMP‐eligible loans, minus estimated exclusions of loans on vacant properties, loans with borrower debt‐to‐income ratio below 31%, loans that fail the NPV test, properties no longer owner‐occupied, manufactured housing loans with title/chattel issues that exclude them from HAMP, and loans where the investor pooling and service agreements preclude modification. Exclusions for DTI and NPV results are estimated using market analytics. 3 As reported in the weekly servicer survey through July 1, 2010. 4 Servicers may enter new trial modifications anytime before the loan converts to a permanent modification. 5 Includes 195 loans paid off. 299,092 300,000 230,801 200,000 170,207 117,302 100,000 66,938 4,742 15,649 31,424 0 Sep and Earlier Oct Nov Source: HAMP system of record. Dec Jan Feb Mar Apr May June 2 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Modification Characteristics Permanent Modifications by Modification Step • Lower monthly mortgage payments for homeowners in active trial and permanent modifications yield a cumulative reduction of nearly $3.2 billion. Interest Rate Reduction 1 100% • The median savings for borrowers in permanent modifications is $510.19 per month, or 36% of the median before-modification payment. Term Extension 56.3% • 76.8% of homeowners in permanent modifications were 60 days delinquent or more at trial entry; the remainder were up to 59 days late or in imminent default. Principal Forbearance 29.1% Performance of Permanent Modifications (As of May 31, 2010) Delinquency: Months After Conversion to Permanent 3 Modification Became Permanent in: 6 9 # 60+ Days* 90+ Days* # 60+ Days* 90+ Days* # 60+ Days* 90+ Days* Q3 2009 3,614 9.7% 3.5% 4,499 14.8% 9.7% 4,764 19.6% 14.9% Q4 2009 44,595 5.3% 1.4% 48,542 9.7% 5.7% -- -- -- Q1 2010 126,537 4.0% 1.2% -- -- -- -- -- -- ALL 174,746 4.5% 1.3% 53,041 10.1% 6.1% 4,764 19.6% 14.9% Note: For permanent loans aged at least 3 months as of May 31, as reported by servicers through June 17. Please refer to Appendix C on Page 13 for detailed footnotes on this table. Select Median Characteristics of Permanent Modifications Predominant Hardship Reasons for Permanent Modifications Loss of Income 60.2% Excessive Obligation 10.8% Illness of Principal Borrower Median Monthly Payment3 2.9% 0% 1 Loan Characteristic Front-End Debt-to-Income Ratio1 Back-End Debt-to-Income Ratio2 Before Modification After Modification Median Decrease 44.8% 31.0% ‐13.8 pct pts 79.9% 63.7% ‐14.4 pct pts $1,422.16 $837.92 ‐$510.19 1 20% 40% 60% 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 17.5% of permanent modifications reported as Other. 80% Ratio of housing expenses (principal and interest on the first mortgage, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. 2 Ratio of total monthly debt payments (including principal and interest on the first mortgage, 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. 3 Principal and interest payment on the first mortgage. 3 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Conversion Rate1 HAMP Modification Activity by Servicer Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc 51,745 24,274 19,906 9,494 9,504 Aurora Loan Services, LLC 39,253 47,640 44,099 7,263 12,562 469,905 405,861 311,801 121,369 72,232 5,180 3,611 2,933 710 2,019 CitiMortgage, Inc. 143,074 155,955 146,857 27,965 40,813 GMAC Mortgage, Inc. 20,459 57,244 46,917 6,083 27,505 Servicer Bank of America, NA4 Carrington Mortgage Services LLC 100% All HAMP Trials Active Trial Started3 Modifications3 Green Tree Servicing LLC 6,912 7,290 6,144 2,133 2,347 HomEq Servicing 16,089 6,669 5,479 1,450 3,793 233,180 256,775 202,831 63,259 54,722 Litton Loan Servicing LP 52,675 36,902 34,564 4,640 8,116 Nationstar Mortgage LLC 20,018 25,667 22,007 5,495 8,265 Ocwen Financial Corp. Inc. 35,099 25,615 26,511 6,333 16,004 J.P. Morgan Chase Bank, NA5 89% Permanent Modifications3 80% 77% 75% 71% Trial Evaluation : Verified Income Stated Income2 66% 62% 60% 57% 47% 50% 45% 44% 25% 41% 37% 35% 31% 29% 28% 27% 26% 25% 14% 0% Trial Length at Conversion (months): 3.2 4.6 3.0 3.0 3.3 3.1 3.9 3.7 3.5 3.6 3.6 5.4 4.0 6.3 4.4 7.5 4.5 4.9 5.4 3.4 3.3 1 As measured against trials eligible to convert – those three months in trial, or four months if the borrower was in imminent default. Per program guidelines, all servicers must be using verified income before starting trial modifications by June 1. These servicers initiated trials prior to the June 1 required deadline using stated income information. •Other SPA and Other GSE servicers represent a mix of verified and stated income trial starts. Permanent modifications transferred among servicers are credited to the originating servicer. 2 OneWest Bank 50,402 60,068 43,605 18,949 PNC Mortgage6 Saxon Mortgage Services, Inc. Select Portfolio Servicing 20,824 21,964 17,890 3,960 2,502 27,204 44,909 35,231 4,752 10,535 19,899 61,379 37,745 4,984 14,807 US Bank NA 16,302 13,581 10,482 2,523 5,732 Wachovia Mortgage, FSB7 30,957 14,888 11,320 7,599 3,594 Wells Fargo Bank, NA8 179,421 243,504 175,564 30,949 44,628 Other SPA servicers9 15,043 14,767 12,727 4,145 6,207 Other GSE Servicers10 169,943 NA 68,299 30,022 28,611 1,623,584 1,528,563 1,282,912 364,077 389,198 Total 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of May 31, 2010, include those in 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 borrowers excludes: Those in FHA and VA loans. Those in loans that are current or less than 60 days delinquent, which may be eligible for HAMP if a borrower is in imminent default. Those borrowers with debt-to-income ratios less than 31% or a negative NPV test, Owners of vacant properties or properties otherwise excluded (see footnotes of page 7 for further explanation). Exclusions for DTI and NPV are estimated using market analytics. For servicers enrolling after April 1, 2010 that did not participate in the 14,700 60+ day delinquency survey, the delinquency count is from the servicer registration form. 2 As reported in the weekly servicer survey through July 1, 2010. 3 Active trial and permanent modifications as reported into the HAMP system of record by servicers. Subject to adjustment based on servicer reconciliation of historic loan files. 4 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 5 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 6 Formerly National City Bank. 7 Wachovia Mortgage, FSB consists of Pick-a-Payment loans. 8 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. 9 Other SPA servicers are entities with less than 5,000 estimated eligible 60+ day delinquent borrowers 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. Aged Trials1 as Share of Active Trials 166,000 active trials were initiated at least six months ago. The servicers with the largest portion of the oldest trials are Bank of America and J.P. Morgan Chase, who account for 53% of the volume. 80% 72% 60% 68% 66% 65% 58% 56% 43% 42% 40% 36% 35% 34% 33% 32% 31% 28% 23% 20% 17% 11% 10% 7% 0% 1 Active trials initiated at least six months ago. Note: Excludes Wachovia Mortgage, FSB at 0%. 4 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Disposition Path Homeowners in Canceled HAMP Trial Modifications Through May 2010 (8 Largest Servicers) 1 Homeowners Whose HAMP Trial Modification Was Canceled in the Process of: Servicer American Home Mortgage Servicing Inc. Action Borrower Pending2 Bankruptcy Current The most common causes of trial cancellations are: Short Sale/ Total Alternative Payment Deed in Foreclosure Foreclosure (As of May Modification Plan3 Loan Payoff Lieu Starts Completions 2010) 60 9 26 16 8 1 0 6 3 129 Bank of America, NA4 69,653 2,154 3,009 20,564 761 392 1,248 2,440 192 100,413 CitiMortgage Inc. 16,863 6,232 7,471 30,145 1,063 232 1,017 5,286 509 68,818 GMAC Mortgage Inc. 1,053 202 877 4,310 226 239 223 651 275 8,056 JP Morgan Chase Bank NA5 12,462 205 712 31,973 58 246 903 10,927 1,119 58,605 Litton Loan Servicing LP 2,726 334 1,286 8,259 363 61 591 1,814 218 15,652 OneWest Bank 1,816 174 173 2,785 40 8 360 883 350 6,589 Wells Fargo Bank NA6 6,229 435 6,592 56,821 544 1,699 3,903 8,610 1,774 86,607 110,862 32.1% 9,745 2.8% 20,146 5.8% 154,873 44.9% 3,063 0.9% 2,878 0.8% 8,245 2.4% 30,617 8.9% 4,440 1.3% 344,869 100% TOTAL (These 8 Servicers) Note: Data is as reported by servicers for actions completed through May 31, 2010. 1 As defined by cap amount. 2 Trial loans that have been canceled, but no further action has yet been taken. 3 An arrangement with the borrower and servicer that does not involve a formal loan modification. 4 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 5 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 6 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. Excludes Wachovia Mortgage FSB Pick-a-Payment Loans. Note: Excludes cancellations pending data corrections. • Missing documentation • Trial plan default • Ineligible borrower: debt‐ to‐income ratio is already below 31% 5 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Through May 2010 (8 Largest Servicers) 1 Homeowners Not Accepted for a HAMP Trial Modification in the Process of: Servicer Action Borrower Pending2 Bankruptcy Current The most common causes of trials not accepted are: Short Sale/ Total Alternative Payment Deed in Foreclosure Foreclosure (As of May Modification Plan3 Loan Payoff Lieu Starts Completions 2010) • Ineligible borrower: debt‐ to‐income ratio is already below 31% American Home Mortgage Servicing Inc. 1,209 529 2,096 12,851 395 313 1,116 2,463 18 20,990 • Missing documentation Bank of America, NA4 29,070 2,264 1,922 8,729 690 265 8,768 13,588 1,097 66,393 • Imminent default not evidenced by borrower CitiMortgage Inc. 33,881 8,282 8,912 24,316 4,165 13,470 1,382 11,414 4,068 109,890 GMAC Mortgage Inc. 13,076 2,721 15,664 25,653 3,411 3,221 2,536 8,043 3,223 77,548 JP Morgan Chase Bank NA5 16,467 537 43,401 32,504 110 400 908 4,765 446 99,538 Litton Loan Servicing LP 7,806 3,009 6,856 8,432 1,273 174 2,651 6,894 1,274 38,369 OneWest Bank 7,530 1,331 4,562 3,844 509 102 2,284 3,338 3,839 27,339 Wells Fargo Bank NA6 12,657 1,021 18,951 41,334 1,676 2,630 3,236 12,119 4,886 98,510 TOTAL (These 8 Servicers) 121,696 22.6% 19,694 3.7% 102,364 19.0% 157,663 29.3% 12,229 2.3% 20,575 3.8% 22,881 4.2% 62,624 11.6% 18,851 3.5% 538,577 100% Note: Data is as reported by servicers for actions completed through May 31, 2010. 1 As defined by cap amount. 2 Homeowners who were not approved for a HAMP trial modification, but no further action has yet been taken. 3 An arrangement with the borrower and servicer that does not involve a formal loan modification. 4 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 5 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 6 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. Excludes Wachovia Mortgage FSB Pick-a-Payment Loans. 6 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Selected Outreach Measures Call Center Volume Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 40 41,103 Servicer Solicitation of Borrowers (cumulative)1 5,032,530 Page views on MakingHomeAffordable.gov (June 2010) 4,602,051 Page views on MakingHomeAffordable.gov (cumulative) Percentage to Goal of 3-4 Million Modification Offers by 20122 Total Number of Calls Taken at 1-888-995HOPE (since program inception) Borrowers Receiving Free Housing Assistance Through the Homeowner’s HOPETM Hotline Cumulative June 1,273,021 107,784 636,815 45,580 89,967,960 38-51% 1 Source: survey data provided by servicers. Servicers are encouraged by HAMP to solicit information from borrowers 60+ days delinquent, regardless of eligibility for a HAMP modification. 2 In 2009, Treasury set a goal of offering help to 3-4 million borrowers through the end of 2012. Implementation of Program Updates (8 Largest Servicers)1 Began Verified Income Trials2 Servicer American Home Mortgage Servicing, Inc. Home Affordable Foreclosure Alternatives (HAFA) 3 Offers Initiated Operationally Ready4 To Homeowners Second Lien Modification Program (2MP)5 Offers Initiated Operationally Ready To Homeowners Source: Homeowner’s HOPETM Hotline. At Signup (7/09) 4/10 5/10 Not Participating N/A Bank of America, NA6 4/10 4/10 4/10 4/10 4/10 CitiMortgage Inc. 3/10 6/10 6/10 10/10 10/10 GMAC Mortgage Inc. 4/107 4/10 6/10 Not Participating N/A JP Morgan Chase Bank NA8 4/10 4/10 5/10 5/10 5/10 Litton Loan Servicing LP 4/10 4/10 4/10 Not Participating N/A OneWest Bank 4/10 5/10 5/10 Not Participating N/A 3/10 4/10 4/10 7/10 7/10 Wells Fargo Bank 1 As NA9 defined by cap amount. 2 Per Supplemental Directive 10-01, all servicers were required to start trials using verified income documentation at trial start by June 1, 2010. Servicers had the option to use verified income at any time. 3 HAFA guidelines enable short-sale and deed-in-lieu transactions for borrowers at risk of foreclosure. 4 Operationally ready means that servicers have implemented the program as outlined in Supplemental Directive 09-09. Dates after May 31, 2010 are estimated. 5 Treasury’s Second Lien Modification Program was revised in March 2010. Servicers participating in HAMP are not required to sign up for Revised 2MP. 6 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 7 Prior to April 2010, GMAC operated a program where most documents were provided at trial start, but some supporting documents could be produced during the trial period. 8 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 9 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. Excludes Wachovia Mortgage FSB Pick-aPayment Loans. Wachovia Mortgage FSB began verified income trials at signup in July 2009. 7 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Homeowner Experience (8 Largest Servicers)* Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through June) Average Speed to Answer Homeowner Calls (May) 60 Program to date, there have been 598,486 calls to the Homeowner’s HOPETM Hotline regarding a specific servicer, of which 3.9% included complaints. Below 6% shows specific complaint rates, adjusted for volume: 50 % of Calls for Specific Servicer That Are Complaints Homeowner’s HOPETM Hotline Average for May: 2.8 Seconds Seconds 40 30 20 Program to Date Average: 3.9% 5% 4% 3% 10 2% 0 Litton Bank of America NA Litton JP Morgan Chase NA GMAC OneWest Am. Home Servicing Wells Fargo CitiMortgage Source: Survey data through May 31, 2010, from servicers on call volume to loss mitigation lines. Call Abandon Rate (May) OneWest Am. Home Servicing Bank of America NA GMAC CitiMortgage Wells Fargo Servicer Time to Resolve Third-Party Escalations (Program to Date, Through June) 5% 40 Homeowner’s HOPETM Hotline Average for May: 1.8% Target: 25 Calendar Days 30 Calendar Days 4% JP Morgan Chase NA Source: Homeowner’s HOPETM Hotline. Note: Complaint rate is the share of a specific servicer’s call volume that are complaints (i.e., for all calls about Litton, 5.3% included complaints.) 3% 2% 20 10 1% 0 0% Bank of America Litton JP Morgan Chase NA GMAC Am. Home Servicing Wells Fargo OneWest Source: Survey data through May 31, 2010, from servicers on call volume to loss mitigation lines. *As defined by cap amount. CitiMortgage Resolved: Cases (PTD) JP Morgan Chase NA Bank of America NA OneWest 755 1,038 208 CitiMortgage 330 Am. Home Servicing Wells Fargo GMAC Litton 139 766 277 234 Source: HAMP Solutions Center. Target of 25 calendar days includes an estimated 5 days processing by HAMP Solutions Center. 8 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 HAMP Activity by State State Active Permanent Trials Modifications Total % of Total State Modification Activity by State Active Permanent Trials Modifications Total % of Total AK 161 170 331 0.0% MT 504 418 922 0.1% AL 2,319 2,380 4,699 0.6% NC 7,231 7,574 14,805 2.0% AR 946 993 1,939 0.3% ND 87 71 158 0.0% AZ 16,816 20,652 37,468 5.0% NE 467 548 1,015 0.1% CA 82,341 85,814 168,155 22.3% NH 1,555 1,874 3,429 0.5% CO 4,870 5,656 10,526 1.4% NJ 11,739 12,727 24,466 3.2% CT 4,489 5,147 9,636 1.3% NM 1,302 1,252 2,554 0.3% DC 705 634 1,339 0.2% NV 9,664 10,498 20,162 2.7% 0.3% 4.4% DE 1,107 1,286 2,393 NY 17,472 15,882 33,354 FL 45,725 47,029 92,754 12.3% OH 7,702 8,769 16,471 2.2% GA 14,175 14,471 28,646 3.8% OK 1,044 943 1,987 0.3% HAMP Modifications HI 1,349 1,454 2,803 0.4% OR 4,017 4,389 8,406 1.1% IA 1,015 1,028 2,043 0.3% PA 7,746 8,180 15,926 2.1% ID 1,378 1,505 2,883 0.4% RI 1,611 2,060 3,671 0.5% IL 18,841 20,725 39,566 5.3% SC 3,544 3,868 7,412 1.0% IN 3,470 3,987 7,457 1.0% SD 173 143 316 0.0% KS 957 982 1,939 0.3% TN 3,878 4,227 8,105 1.1% KY 1,433 1,546 2,979 0.4% TX 12,025 9,752 21,777 2.9% LA 2,079 1,983 4,062 0.5% UT 3,186 3,612 6,798 0.9% MA 8,128 9,857 17,985 2.4% VA 9,191 9,938 19,129 2.5% MD 11,702 13,210 24,912 3.3% VT 263 327 590 0.1% ME 919 1,134 2,053 0.3% WA 7,110 7,721 14,831 2.0% MI 11,362 13,547 24,909 3.3% WI 3,421 3,977 7,398 1.0% MN 5,650 7,783 13,433 1.8% WV 536 632 1,168 0.2% MO 4,046 4,411 8,457 1.1% WY 204 191 395 0.1% 1,498 2,775 0.4% 743 1,888 0.3% MS 1,277 Other* * Includes Guam, Puerto Rico and the U.S. Virgin Islands. 1,145 Note: Includes active trial and permanent modifications from the official HAMP system of record. 5,000 and lower 20,001 – 35,000 5,001 – 10,000 35,001 and higher 10,001 – 20,000 Mortgage Delinquency Rates by State 60+ Day Delinquency Rate Source: Mortgage Bankers Association. Data is as of 1st Quarter 2010. 5.0% and lower 10.01% - 15.0% 20.01% 5.01% - 10.0% 15.01% - 20.0% and higher 9 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 15 Metropolitan Areas With Highest HAMP Activity Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA New York-Northern New JerseyLong Island, NY-NJ-PA Chicago-Naperville-Joliet, IL-IN-WI Riverside-San Bernardino-Ontario, CA Miami-Fort Lauderdale-Pompano Beach, FL Active Trials 24,783 Total Permanent HAMP Modifications Activity 24,063 % of All HAMP Activity 48,846 6.5% 22,974 22,365 45,339 6.0% 18,150 20,004 38,154 5.1% 17,417 18,241 20,722 17,380 Modifications by Investor Type (Large Servicers) 38,139 35,621 5.1% 4.7% Phoenix-Mesa-Scottsdale, AZ 13,850 17,116 30,966 4.1% Washington-Arlington-Alexandria, DC-VA-MD-WV 12,628 13,917 26,545 3.5% Atlanta-Sandy Springs-Marietta, GA 11,448 11,771 23,219 3.1% Las Vegas-Paradise, NV 8,027 8,608 16,635 2.2% Servicer Bank of America, NA1 JP Morgan Chase NA2 Wells Fargo Bank, NA 3 Orlando-Kissimmee, FL Boston-Cambridge-Quincy, MA-NH Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Sacramento-Arden-ArcadeRoseville, CA San Francisco-Oakland-Fremont, CA 7,170 7,282 5,701 8,169 7,848 7,019 15,339 15,130 12,720 2.0% 2.0% 1.7% 6,522 12,426 1.6% 5,624 6,638 12,262 1.6% 6,471 5,590 12,061 1.6% Total 127,908 56,313 9,380 193,601 54,462 46,290 17,229 117,981 53,599 16,361 5,617 75,577 46,991 4,473 17,314 68,778 OneWest Bank 16,979 14,249 2,421 33,649 GMAC Mortgage, Inc. 20,272 7,729 5,587 33,588 Ocwen Financial Corporation, Inc. 5,679 16,286 372 22,337 Aurora Loan Services, LLC 11,397 8,185 243 19,825 450 16,790 2,551 19,791 Select Portfolio Servicing American Home Mortgage Servicing Inc Saxon Mortgage Services Inc. 1,127 17,871 -- 18,998 1,200 13,173 914 15,287 Nationstar Mortgage LLC 9,628 4,127 5 13,760 Litton Loan Servicing LP 1,151 11,605 -- 12,756 142 145 10,906 11,193 US Bank NA 5,361 21 2,873 8,255 PNC Mortgage5 5,680 192 590 6,462 5,243 HomEq Servicing Green Tree Servicing LLC Carrington Mortgage Services LLC 5,904 Private Portfolio CitiMortgage, Inc. Wachovia Mortgage, FSB4 Detroit-Warren-Livonia, MI GSE 2 5,025 216 4,207 264 9 4,480 -- 2,729 -- 2,729 Remainder of HAMP Servicers 60,743 3,470 4,772 68,985 Total 426,978 245,298 80,999 753,275 1 Bank A complete list of HAMP activity for all MSAs is available at http://www.financialstability.gov/docs/MSA%20HAMP%20Data%20June%202010.pdf 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 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. 4 Wachovia Mortgage, FSB consists of Wachovia Mortgage FSB Pick-a-Payment loans. 5 Formerly National City Bank. 2 J.P. Note: Figures reflect active trials and permanent modifications. 10 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Appendix A: Non-GSE Participants in HAMP Allstate Mortgage Loans & Investments, Inc. American Eagle Federal Credit Union American Home Mortgage Servicing, Inc AMS Servicing, LLC Aurora Financial Group, Inc. 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 DuPage Credit Union Eaton National Bank & Trust Co Farmers State Bank Fidelity Homestead Savings Bank First Bank First Keystone Bank First National Bank of Grant Park Franklin Credit Management Corporation Fresno County Federal Credit Union Glass City Federal Credit Union GMAC Mortgage, Inc. Golden Plains Credit Union Grafton Suburban Credit Union Great Lakes Credit Union Greater Nevada Mortgage Services Green Tree Servicing LLC Hartford Savings Bank Hillsdale County National Bank 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 iServe Servicing Inc. J.P.Morgan Chase Bank, NA2 Lake City Bank Lake National Bank Litton Loan Servicing Los Alamos National Bank Marix Servicing, LLC Metropolitan National Bank Midwest Bank & Trust Co. Mission Federal Credit Union MorEquity, Inc. Mortgage Center, LLC Mortgage Clearing Corporation National City Bank Nationstar Mortgage LLC Navy Federal Credit Union 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 Golden 1 Credit Union U.S. Bank National Association United Bank of Georgia United Bank Mortgage Corporation Urban Trust Bank Vantium Capital, Inc. Verity Credit Union Vist Financial Corp. Wells Fargo Bank, NA3 Wealthbridge Mortgage Corp. 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 Wells Fargo Bank, NA includes Wachovia Mortgage FSB and Wachovia Bank NA. 11 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Appendix B: Description of Compliance Activities Note: Servicer‐specific compliance data will be reported quarterly. Description of Compliance Activities Freddie Mac, serving as Compliance Agent for Treasury’s Home Affordable Modification Program (HAMP), has created a separate division known as Making Home Affordable ‐ Compliance (MHA‐C). Using a risk‐based approach, MHA‐C conducts a number of different types of compliance activities to assess servicer compliance with HAMP guidelines, as described below. On Site Reviews: Readiness & Governance – A review performed by MHA‐C to assess the servicer’s preparedness for complying with new/future HAMP requirements, or to research a trend or potential implementation risk. Reviews are performed as needed, determined by frequency of new program additions. NPV – A review conducted by MHA‐C to determine the servicer’s adherence to the HAMP NPV guidelines. For those servicers that have elected to recode the NPV model into their own systems (recoders), the testing process is designed to ensure the servicer’s NPV model is accurately calculating NPV and that the model usage is consistent with directives. At a minimum, recoders are subject to quarterly off‐site testing and semi‐annual for on‐site reviews. For servicers using the Treasury NPV Web Portal, reviews of data submissions are performed on a monthly basis. On Site Reviews: Implementation – A review conducted by MHA‐C covering the servicer’s overall execution of the HAMP program. Areas covered include, among other things, solicitation, eligibility, underwriting, document management, payment processing, reporting, and governance. Reviews are performed at a minimum for larger servicers on a semi‐annual schedule and for smaller servicers on an annual schedule. Loan File Review – A review performed by MHA‐C of a servicer’s non‐performing loan portfolio primarily to assess completeness of relevant documentation and appropriate loan modification decisioning. This includes reviews of loans which have successfully converted to a permanent modification to ensure they meet the HAMP guidelines, as well as loans that have not been offered HAMP modifications to ensure that the exclusion was appropriate (“Second Look”). Larger servicers are on an alternating permanent modifications and Second Look monthly loan file review cycle. These Loan File reviews consist of a statistical sample (typically 100‐ 150 loan files per larger servicer). Smaller servicers are also statistically sampled on a quarterly or semi‐annual cycle. Incentive Payments – A review performed by MHA‐C to determine the accuracy and validity of borrower and investor incentive payments, and to assess whether borrower payments are appropriately allocated to borrowers’ loan principal in accordance with HAMP guidelines. They are performed at a minimum annually on the top 21 servicers. Areas of Compliance Focus Based on the results of MHA‐C’s reviews to date and anticipated risks to the program, HAMP compliance efforts will remain focused on the following general areas: Borrower Solicitation – Servicers are required to solicit eligible borrowers without delay and not conduct foreclosure proceedings until such borrowers are appropriately considered for HAMP. It is critical that servicers not take actions that would lead to borrowers becoming displaced from their home without being given proper consideration for a loan modification or other foreclosure alternative. Servicers should ensure that their operating protocols identify all populations of eligible borrowers. Servicers should ensure that their operating procedures meet or exceed the minimum requirements of Supplemental Directive 10‐02 related to borrower solicitation and contact. Underwriting Documentation – Servicers must retain a complete and consistent set of documentation for all loans considered for HAMP, including evidence supporting borrower income. In addition, appropriate documentation must support all decisions (e.g., denials, permanent modifications, etc.) made by the servicer. Servicers’ quality assurance departments are required, and expected, to play an active role in the ongoing evaluation of the servicers’ underwriting process and related documentation. NPV model usage – Servicers are required to utilize net present value (NPV) models that produce valid and accurate results. In order to eliminate adverse borrower outcomes from negative NPV results, servicers must hold required inputs constant between NPV tests. Servicers should regularly test their recoded NPV models against the Treasury NPV Portal to identify any anomalous or inaccurate results. Document processing and control – Servicers must have policies and procedures that clearly describe document acquisition, tracking, and retention practices. Any potential for misplaced or lost documents should immediately be addressed so that timely decisions can be made for borrowers eligible for assistance under HAMP. In addition, servicers should ensure that proper training and education is provided for all parties involved in the document management life cycle, including those with responsibility for the servicers’ document management technology. IR2 Data Maintenance – Servicers are required to report timely and accurate information to the Program Administrator’s IR2 data base. This information serves not only to measure HAMP’s progress, but also as the authoritative source for incentive payments due to borrowers, servicers, and investors. Servicers should be conducting ongoing reviews of their reported data and be prepared to explain circumstances where data is either inconsistent or missing. Governance – Servicers should ensure that a sound governance process exists for HAMP. An appropriate governance model begins with senior executive accountability and extends to formal policies and procedures for HAMP‐related activities, including the development of comprehensive fraud prevention, fair lending, and quality assurance programs. 12 Making Home Affordable Program Revised 8/06/10 Servicer Performance Report Through June 2010 Appendix C: Detailed Footnotes on Performance of Permanent Modifications In reference to the table on Page 3, “Performance of Permanent Modifications”: • The table on page 3 shows the performance of permanent HAMP modifications at 3, 6, and 9 months of age and includes modifications that have aged at least 3, 6, or 9 months, as applicable. The table stratifies the data by the quarter in which the modification became effective and provides two separate performance metrics: • 60+ days delinquent: All loans that have missed two or more consecutive monthly payments, including 90+ days delinquent loans. • 90+ days delinquent: All loans that have missed three or more consecutive monthly payments. • The table reflects the fact that loan payment status is not reported by servicers after program disqualification (90+ days delinquent). Therefore, 90+ days delinquent loans are included in each of the 60+ days delinquent and 90+ days delinquent metrics for all future reporting periods, even though some loans may have cured or paid off following program disqualification. • This table reflects a total of 5,064 disqualified loans that have aged 3, 6, or 9 months through the May activity period as reported by servicers through June 17. The table published on July 20 inadvertently excluded 1,793 disqualified loans and partially reported 857 disqualified loans due to an error in the development of the metric. • Servicers are required to report monthly payment information on HAMP modifications in the form of an Official Monthly Report (OMR). If a servicer does not report an OMR for a loan in a given month, the performance of that loan is not included in the table for that month. This table reflects improved servicer OMR reporting as the modification ages, causing the total loan count in months 6 and 9 to be higher than the count in month 3. • Once a loan is paid off, it is no longer reflected in future periods. • The data set forth in this table has been reviewed and verified by an independent third party consultant contracted by Fannie Mae's Internal Audit group. • This data has also been independently verified by MITRE, an outside review firm retained by Treasury. A report from MITRE is available online: • http://www.financialstability.gov/docs/MITRE%20Final%20Public%20Version%208‐6‐10.pdf 13
@FedFRASER