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Making Home Affordable Program Servicer Performance Report Through July 2010 Report Highlights Inside: Nearly 37,000 New Permanent Modifications in July 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 Homeowner Experience 8 HAMP Activity by State 9 • 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 current rates for the life of the loan. • Trial modification starts were lower, as expected, as servicers transition to upfront verification of documentation. Servicers Continue to Work Through Aged Trial Population • As servicers continue to review aged trials, the number of active trials initiated at least six months ago has decreased from 166,000 to 118,000. Two servicers account for half of the aged trials that have yet to be decisioned. Homeowners are not subject to foreclosure sale while decisions are being made. • As servicers work through this population, they are making extensive efforts to obtain documentation. Servicers indicate that the remaining decisions on aged trial modifications should be made in August. • The most common causes of cancellations include insufficient documentation, missed trial payments, or mortgage payments already less than 31% of the homeowner’s income. • Servicers reported that more than half of homeowners in canceled trials receive alternative modifications, become current, or pay off the loan completely. • As a result of the requirement that servicers verify borrower eligibility through documentation prior to initiating trials on or after June 1, cancellation activity for new trials is expected to gradually decline. However, the number of new cancellations is expected to exceed the number of new permanent modifications for the next few months as servicers clear their backlog of aged trials. New Outreach Initiatives Launched to Educate Homeowners • Treasury and HUD partnered with the Ad Council in a public service advertising campaign featuring homeowners who received HAMP modifications. • The advertisements, launched in late July, are being distributed to more than 33,000 media outlets nationwide. The advertisements are available in English and Spanish. HAMP Activity by Metropolitan Area 10 Modifications by Investor Type 10 List of Non‐GSE Participants 11 Definitions of Compliance Activities 12 1 Making Home Affordable Program Servicer Performance Report Through July 2010 HAMP Activity: All Servicers HAMP Eligibility HAMP Trials Started (Cumulative) Total 1,400,000 Eligible Delinquent Loans1 3,076,060 1,200,000 Eligible Delinquent Borrowers2 1,456,363 1,000,000 1,553,925 800,000 1,307,489 600,000 1,307,489 1,290,722 1,272,497 1,248,200 1,202,593 1,134,169 1,048,426 955,664 838,082 Trial Plan Offers Extended3 All Trials Started Trial Modifications 723,525 564,328 429,460 24,577 400,000 Trial Modifications Canceled (Cumulative) 616,839 200,000 Active Trials 255,934 0 Trials Reported Since June 2010 Report4 284,443 164,800 55,121 All Permanent Modifications Started Permanent Modifications 434,716 Permanent Modifications Begun Since June 2010 Report 36,695 Permanent Modifications Canceled (Cumulative)5 12,912 Active Permanent Modifications 421,804 1 Estimated May June July and Prior eligible 60+ day delinquent loans as reported by servicers as of June 30, 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 May 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 servicing agreements preclude modification. Exclusions for DTI and NPV results are estimated using market analytics. 3 As reported in the weekly servicer survey through July 29, 2010. 4 Servicers may enter new trial modifications into the HAMP system of record anytime before the loan converts to a permanent modification. 5 A permanent modification is canceled when the borrower has missed three or more consecutive monthly payments. Includes 272 loans paid off. Aug Sep Oct Nov Dec Jan Feb 2010 Mar Apr May June July Source: HAMP system of record. Note: Servicers may enter new trial modifications into the HAMP system of record anytime before the loan converts to a permanent modification. Permanent Modifications Started (Cumulative) 500,000 434,716 398,021 400,000 346,816 299,092 300,000 230,801 200,000 170,207 117,302 100,000 66,938 4,742 15,649 31,424 0 Sep and Earlier Oct Nov Source: HAMP system of record. Dec Jan 2010 Feb Mar Apr May June July 2 Making Home Affordable Program Servicer Performance Report Through July 2010 Predominant Hardship Reasons for Permanent Modifications Modification Characteristics • Aggregate reductions in monthly mortgage payments for borrowers in active trial and permanent modifications total more than $3.1 billion. Loss of Income 1 • The median savings for borrowers in permanent modifications is $513.09, or 36% of the median payment before modification. 60.2% Excessive Obligation 11.2% Permanent Modifications by Modification Step Interest Rate Reduction 100% Term Extension 56.8% Illness of Principal Borrower 2.9% 0% 20% 40% 60% 80% 1 Principal Forbearance 29.3% Select Median Characteristics of Permanent Modifications Loan Characteristic Front-End Debt-to-Income Ratio1 Back-End Debt-to-Income Ratio2 Median Monthly Payment3 Before After Modification Modification 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 17.3% of permanent modifications reported as Other. Loan Status Upon Entering Trial At Risk of Default at Trial Start: 23.2% Median Decrease 44.8% 31.0% ‐13.8 pct pts 79.7% 63.5% ‐14.4 pct pts $1,426.13 $839.16 ‐$513.09 In Default at Trial Start: 76.8% 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. 3 Principal and interest payment. Note: For all trial modifications started. “At Risk of Default” includes borrowers up to 59 days delinquent at trial entry as well as those in imminent default. “In Default” refers to borrowers 60 or more days late at trial entry. Note: Data on the performance and delinquency of permanent modifications, included in the June 2010 Servicer Performance Report, will be published quarterly. 3 Making Home Affordable Program Servicer Performance Report Through July 2010 Conversion Rate1 HAMP Modification Activity by Servicer Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc 48,122 25,862 21,894 9,992 10,761 Aurora Loan Services, LLC 35,216 47,768 44,243 4,434 13,823 Bank of America, Carrington Mortgage Services LLC CitiMortgage, Inc. 416,879 408,019 312,318 84,741 76,330 Servicer NA4 All HAMP Trials Active Trial Started3 Modifications3 3,743 3,110 751 2,109 127,618 158,499 148,274 20,458 44,276 GMAC Mortgage, Inc. 16,570 58,817 48,203 2,777 29,636 Green Tree Servicing LLC 5,949 7,431 6,432 1,686 2,800 HomEq Servicing 14,564 7,048 6,107 1,419 4,403 J.P. Morgan Chase Bank, NA5 215,640 263,553 208,270 37,586 58,489 Litton Loan Servicing LP 47,451 37,194 34,808 2,783 8,447 Nationstar Mortgage LLC 17,677 26,188 22,763 3,885 9,170 Ocwen Financial Corp. Inc. 31,440 26,269 28,144 5,991 17,403 OneWest Bank 42,697 61,249 44,635 15,141 17,334 PNC Mortgage6 Saxon Mortgage Services, Inc. Select Portfolio Servicing 17,742 22,128 18,036 1,915 3,009 24,211 45,202 34,774 3,206 10,815 17,392 61,988 38,011 2,516 15,808 US Bank NA 12,421 13,873 11,630 1,946 7,128 27,571 16,606 14,388 8,650 5,539 Wells Fargo Bank, NA8 156,332 247,638 177,267 22,338 46,732 Other SPA servicers9 11,592 14,850 13,719 3,754 7,153 Other GSE Servicers10 165,750 NA 70,463 19,965 30,639 1,456,363 1,553,925 1,307,489 255,934 421,804 Total 90% Trial Evaluation : Verified Income Stated Income2 81% 80% 70% 68% 75% 66% 63% 60% 50% 50% 3,529 Wachovia Mortgage, FSB7 100% Permanent Modifications3 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of June 30, 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. Exclusions for DTI and NPV are estimated using market analytics. For servicers enrolling after May 1, 2010 that did not participate in the 60+ day delinquency survey, the delinquency count is from the servicer registration form. 2 As reported in the weekly servicer survey through July 29, 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 as of March 31, 2010, that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A. 10 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans transferred from SPA servicers. 49% 25% 45% 44% 41% 36% 33% 31% 30% 28% 25% 25% 17% 0% Trial Length at Conversion (months): 3.1 3.0 4.7 3.0 4.2 3.3 3.1 3.7 3.6 3.5 5.4 3.6 4.1 6.3 4.4 4.8 7.6 4.9 3.3 5.4 3.3 1 As measured against trials eligible to convert – those three months in trial, or four months if the borrower was at risk of default. Per program guidelines, all servicers must be using verified income before starting trial modifications by June 1. Prior to June 1, these servicers initiated trials 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 Aged Trials1 as Share of Active Trials 118,000 active trials were initiated at least six months ago. The servicers with the largest number of the oldest trials are Bank of America and J.P. Morgan Chase, who account for 50% of the backlog. 80% 68% 66% 65% 63% 60% 57% 52% 49% 49% 41% 41% 40% 33% 31% 31% 28% 20% 23% 23% 19% 14% 6% 4% 1% 0% 1 Active trials initiated at least six months ago. 4 Making Home Affordable Program Servicer Performance Report Through July 2010 Disposition Path Homeowners in Canceled HAMP Trial Modifications Through June 2010 (8 Largest Servicers) 1 Homeowners Whose HAMP Trial Modification Was Canceled Who Are in the Process of: Servicer American Home Mortgage Servicing Inc. Action Pending2 Action Not Allowed – Bankruptcy Borrower in Process Current The most common causes of trial cancellations are: Short Sale/ Total Alternative Payment Deed in Foreclosure Foreclosure (As of June Modification Plan3 Loan Payoff Lieu Starts Completions 2010) 137 15 59 373 10 164 17 68 3 846 Bank of America, NA4 75,276 2,383 3,868 26,307 812 555 1,400 3,564 824 114,989 CitiMortgage Inc. 18,992 7,019 8,414 33,948 1,197 260 1,146 5,953 573 77,502 GMAC Mortgage Inc. 2,119 287 1,026 6,455 132 394 341 1,196 392 12,342 JP Morgan Chase Bank NA5 12,503 300 1,033 44,086 71 1,141 1,313 11,977 2,062 74,486 Litton Loan Servicing LP 3,099 386 1,439 12,893 313 85 697 2,313 342 21,567 OneWest Bank 2,017 243 223 4,626 50 9 440 1,032 622 9,262 Wells Fargo Bank NA6 9,251 512 8,212 57,469 669 2,069 4,019 14,128 2,658 98,987 123,394 30.1% 11,145 2.7% 24,274 5.9% 186,157 45.4% 3,254 0.8% 4,677 1.1% 9,373 2.3% 40,231 9.8% 7,476 1.8% 409,981 100% TOTAL (These 8 Servicers) Note: Data is as reported by servicers for actions completed through June 30, 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. • Insufficient documentation • Trial plan payment default • Ineligible borrower: debt‐ to‐income ratio is already below 31% 5 Making Home Affordable Program Servicer Performance Report Through July 2010 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Through June 2010 (8 Largest Servicers) 1 Homeowners Not Accepted for a HAMP Trial Modification Who Are in the Process of: Servicer Action Pending2 Action Not Allowed – Bankruptcy Borrower in Process Current The most common causes of trials not accepted are: Short Sale/ Total Alternative Payment Deed in Foreclosure Foreclosure (As of June Modification Plan3 Loan Payoff Lieu Starts Completions 2010) • Ineligible borrower: debt‐ to‐income ratio is already below 31% American Home Mortgage Servicing Inc. 1,198 253 1,992 13,962 381 225 1,038 2,236 18 21,303 • Insufficient documentation Bank of America, NA4 26,130 2,307 2,358 8,759 784 307 9,388 16,686 2,310 69,029 • Imminent default not evidenced by borrower CitiMortgage Inc. 17,111 6,920 3,975 35,202 5,583 10,597 1,849 10,640 4,265 96,142 GMAC Mortgage Inc. 19,832 3,256 19,348 26,945 2,891 3,374 2,654 12,573 3,549 94,422 JP Morgan Chase Bank NA5 25,382 1,441 68,448 52,007 241 6,155 2,247 8,928 1,374 166,223 Litton Loan Servicing LP 7,573 3,144 6,618 9,608 1,093 280 2,943 7,085 1,908 40,252 OneWest Bank 8,363 1,433 5,440 4,465 480 127 2,534 4,012 4,115 30,969 Wells Fargo Bank NA6 13,253 1,054 20,497 40,239 1,706 2,665 3,470 12,673 4,931 100,488 TOTAL (These 8 Servicers) 118,842 19.2% 19,808 3.2% 128,676 20.8% 191,187 30.9% 13,159 2.1% 23,730 3.8% 26,123 4.2% 74,833 12.1% 22,470 3.6% 618,828 100% Note: Data is as reported by servicers for actions completed through June 30, 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 Servicer Performance Report Through July 2010 Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) Call Center Volume 42 43,973 Servicer Solicitation of Borrowers (cumulative)1 5,511,941 Page views on MakingHomeAffordable.gov (July 2010) 2,836,592 Page views on MakingHomeAffordable.gov (cumulative) Total Number of Calls Taken at 1-888-995HOPE (since program inception) Borrowers Receiving Free Housing Assistance Through the Homeowner’s HOPETM Hotline Cumulative July 1,377,095 104,074 678,598 41,783 92,804,552 Source: Homeowner’s HOPETM Hotline. Percentage to Goal of 3-4 Million Modification Offers by 20122 39-52% 1 Source: survey data provided by SPA 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. Location of Events Hosted by Treasury and Partners Event Locations (Listed in Chronological Order) Note: From program launch through July 2010. Some markets have been visited more than once. Miami, FL Sacramento, CA North Las Vegas, NV Phoenix, AZ Chicago, IL Prince William County, VA Prince George's County, MD Boston, MA Tampa, FL Stockton, CA Philadelphia, PA Cincinnati, OH San Diego, CA Riverside, CA Atlanta, GA St Louis, MO Dallas/Ft Worth, TX Jacksonville, FL Orlando/Kissimmee, FL Los Angeles, CA Ft Myers, FL Ft. Lauderdale/Coral Springs, FL Houston, TX Sacramento, CA Tucson, AZ Glendale, AZ Portland, OR Seattle, WA Reno, NV Las Vegas, NV Richmond, VA Long Island, NY Anaheim, CA San Bernardino , CA Columbus, OH Kansas City, MO San Francisco, CA Oakland, CA Pittsburgh, PA Washington, DC Minneapolis, MN Atlanta, GA 7 Making Home Affordable Program Servicer Performance Report Through July 2010 Homeowner Experience (8 Largest Servicers)* Average Speed to Answer Homeowner Calls (June) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through July) 100 Program to date, there have been 650,202 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 4.5% included complaints. Below 7% shows specific complaint rates. 90 80 70 % of Calls for Specific Servicer That Are Complaints Homeowner’s HOPETM Hotline Average for June: 2.7 Seconds Seconds 60 50 40 30 Program to Date Average: 4.5% 6% 5% 4% 20 3% 10 2% 0 Bank of America NA OneWest GMAC JP Morgan Chase NA Litton Am. Home Servicing Wells Fargo CitiMortgage Source: Survey data through June 30, 2010, from servicers on call volume to loss mitigation lines. Call Abandon Rate (June) JP Morgan Litton OneWest Bank of Am. Home GMAC CitiMortgage Wells Fargo Chase NA America NA Servicing 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 JP Morgan Chase, 6.0% included complaints.) The HOPETM Hotline implemented a change to call center handling procedures effective June 25, 2010. The result of this procedural change is an increase in the capture of complaints identified by specific servicer, which previously were escalated prior to identifying the servicer involved. Servicer Time to Resolve Third-Party Escalations (Program to Date, Through July) 7% Homeowner’s HOPETM Hotline Average for June: 1.5% 6% Target: 25 Calendar Days 40 Calendar Days 5% 50 4% 3% 30 20 2% 10 1% 0 0% Bank of America Litton JP Morgan Chase NA GMAC Am. Home Servicing OneWest Wells Fargo Source: Survey data through June 30, 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 937 1,350 OneWest 252 Am. Home Servicing CitiMortgage 163 416 Litton Wells Fargo GMAC 851 345 277 Source: HAMP Solutions Center. Target of 25 calendar days includes an estimated 5 days processing by HAMP Solutions Center. 8 Making Home Affordable Program Servicer Performance Report Through July 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 115 178 293 0.0% MT 328 456 784 0.1% AL 1,645 2,545 4,190 0.6% NC 4,709 8,109 12,818 1.9% AR 588 1,053 1,641 0.2% ND 49 78 127 0.0% AZ 11,784 22,213 33,997 5.0% NE 327 591 918 0.1% CA 60,066 94,356 154,422 22.8% NH 1,114 2,019 3,133 0.5% CO 3,329 6,124 9,453 1.4% NJ 8,421 13,793 22,214 3.3% CT 3,156 5,505 8,661 1.3% NM 879 1,340 2,219 0.3% DC 463 699 1,162 0.2% NV 7,043 11,288 18,331 2.7% DE 749 1,383 2,132 0.3% NY 12,774 17,613 30,387 4.5% FL 31,206 50,687 81,893 12.1% OH 5,561 9,559 15,120 2.2% GA 9,285 15,521 24,806 3.7% OK 680 1,005 1,685 0.2% HAMP Modifications HI 984 1,562 2,546 0.4% OR 2,747 4,700 7,447 1.1% IA 682 1,090 1,772 0.3% PA 5,410 8,855 14,265 2.1% ID 972 1,612 2,584 0.4% RI 1,175 2,229 3,404 0.5% IL 13,223 22,627 35,850 5.3% SC 2,338 4,190 6,528 1.0% IN 2,434 4,279 6,713 1.0% SD 122 153 275 0.0% KS 643 1,039 1,682 0.2% TN 2,552 4,529 7,081 1.0% KY 1,001 1,639 2,640 0.4% TX 8,213 10,563 18,776 2.8% LA 1,417 2,120 3,537 0.5% UT 2,299 3,922 6,221 0.9% MA 5,849 10,637 16,486 2.4% VA 6,122 10,660 16,782 2.5% MD 8,066 14,184 22,250 3.3% VT 182 359 541 0.1% ME 676 1,186 1,862 0.3% WA 4,919 8,296 13,215 1.9% MI 8,117 14,525 22,642 3.3% WI 2,406 4,284 6,690 1.0% MN 3,947 8,360 12,307 1.8% WV 344 682 1,026 0.2% MO 2,790 4,728 7,518 1.1% WY 141 209 350 0.1% 848 1,879 0.3% MS 861 1,622 2,483 0.4% Other* * Includes Guam, Puerto Rico and the U.S. Virgin Islands. 1,031 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 and is latest available. 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 Servicer Performance Report Through July 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 Riverside-San Bernardino-Ontario, CA Active Trials 17,904 16,678 Total Permanent HAMP Modifications Activity 26,713 24,615 44,617 41,293 Modifications by Investor Type (Large Servicers) % of All HAMP Activity 6.6% 6.1% Servicer Bank of America, JP Morgan Chase NA2 Wells Fargo Bank, NA 3 Private Portfolio Total 104,960 48,399 7,712 161,071 44,544 37,091 14,440 96,075 48,786 14,323 5,961 69,070 CitiMortgage, Inc. 44,197 4,143 16,394 64,734 OneWest Bank 16,029 14,047 2,399 32,475 GMAC Mortgage, Inc. 19,825 6,216 6,372 32,413 4.7% Ocwen Financial Corporation, Inc. 5,850 17,114 430 23,394 28,144 4.2% American Home Mortgage Servicing Inc 1,137 19,616 - 20,753 23,577 3.5% Select Portfolio Servicing 426 15,867 2,031 18,324 Aurora Loan Services, LLC 10,897 7,139 221 18,257 3.0% Wachovia Mortgage, FSB4 159 93 13,937 14,189 15,108 2.2% Saxon Mortgage Services Inc. 1,160 12,230 631 14,021 Nationstar Mortgage LLC 8,914 4,136 5 13,055 13,856 2.0% Litton Loan Servicing LP 1,069 10,161 - 11,230 US Bank NA 6,158 14 2,902 9,074 12,691 22,478 35,169 5.2% Chicago-Naperville-Joliet, IL-IN-WI 12,734 21,842 34,576 5.1% Miami-Fort Lauderdale-Pompano Beach, FL 12,786 18,923 31,709 Phoenix-Mesa-Scottsdale, AZ 9,735 18,409 Washington-Arlington-Alexandria, DC-VA-MD-WV 8,542 15,035 Atlanta-Sandy Springs-Marietta, GA 7,510 12,621 20,131 Las Vegas-Paradise, NV 5,866 9,242 Detroit-Warren-Livonia, MI 5,059 8,797 Orlando-Kissimmee, FL 4,898 8,448 13,346 2.0% Boston-Cambridge-Quincy, MA-NH 4,148 7,570 11,718 1.7% 4,045 7,194 11,239 1.7% 4,912 6,327 11,239 1.7% 4,143 7,023 11,166 1.6% 1 Bank Sacramento-Arden-ArcadeRoseville, CA San Francisco-Oakland-Fremont, CA Philadelphia-Camden-Wilmington, PA-NJ-DE-MD GSE NA1 HomEq Servicing A complete list of HAMP activity for all MSAs is available at http://www.financialstability.gov/docs/MSA%20Data%20July%202010.pdf 2 5,569 251 5,822 PNC Mortgage5 4,295 188 441 4,924 Green Tree Servicing LLC 4,184 280 22 4,486 - 2,860 - 2,860 Remainder of HAMP Servicers 52,817 3,406 5,288 61,511 Total 375,409 222,892 79,437 677,738 Carrington Mortgage Services LLC 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 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. Note: Figures reflect active trials and permanent modifications. 10 Making Home Affordable Program Servicer Performance Report Through July 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 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 Servicer Performance Report Through July 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
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