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Making Home Affordable Program Servicer Performance Report Through December 2010 Report Highlights Inside: Homeowners Entering HAMP Modifications at Steady Rate HAMP Program Snapshot 2 • New permanent modifications have averaged 30,000 per month for the last six months. New trial modifications have averaged 27,000 per month over the same period. The total number of permanent modifications started has increased more than 45% since June. • As of June 1, all homeowners now begin a trial modification with verified documentation, which streamlines the conversion process to a permanent modification. • Homeowners in permanent modifications realize real savings, with aggregate reductions in monthly mortgage payments totaling more than $4.5 billion, program to date. • As servicers continue to work through the backlog of trials lasting six months or more, the number of these aged trials has fallen below 40,000. Reducing the number of aged trials should free servicer resources to focus on new trial modifications and conversions. Characteristics of Permanent Modifications 3 Performance of Permanent Modifications 4 Servicer Activity 6 Disposition Path of Homeowners Canceled From HAMP Trials 7 Disposition Path of Homeowners Ineligible For HAMP Trials 8 Selected Outreach Measures 9 This Month: Performance of Permanent Modifications • Program data indicates that homeowners in HAMP permanent modifications are performing well over time, with re-default rates lower than industry statistics. • At 12 months, nearly 85% of homeowners remain in a permanent modification, with less than 16% of homeowners missing three consecutive payments. • Homeowners with payment reductions of more than 30% were far less likely to become delinquent on their permanent modifications, compared with those receiving a payment reduction of 20% or less. Homeowner Experience 10 HAMP Activity by State 11 HAMP Activity by Metropolitan Area 12 Modifications by Investor Type 12 List of Non‐GSE Participants 13 Participants in Additional MHA Programs 14 Definitions of Compliance Activities 15 Areas of Compliance Emphasis 16 1 Making Home Affordable Program Servicer Performance Report Through December 2010 HAMP Activity: All Servicers HAMP Trials Started All Trials Permanent Modifications (Cumulative)3 Started4 1,711,002 1,466,448 Trials Reported Since November 2010 Report5 39,615 Trial Modifications Canceled (Cumulative) 734,509 Active Trials 152,289 All Permanent Modifications Started 579,650 Permanent Modifications Reported Since November 2010 Report 30,030 58,020 Active Permanent Modifications 521,630 FHA‐HAMP Permanent Modifications Started 1,281 1,302 1,326 1,437 1,379 150 1,207 1,200 1,137 1,049 100 955 800 50 0 Dec 2009Jan 2010 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. 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 of large SPA servicers through December 30, 2010. 4 Data includes HAMP modifications only. Except for the two lines in the above table, FHA‐HAMP modifications are excluded from exhibits in this report. 5 Servicers may enter new trial modifications into the HAMP system of record anytime before the loan converts to a permanent modification. 6 A permanent modification is canceled when the borrower has missed three consecutive monthly payments. Includes 807 loans paid off. Note: Effective this month, the data in this report reflects the HAMP system of record as of the monthly cycle close on or about the 17th of the month. Mar Apr May June July Aug Sep Oct Nov Dec Permanent Modifications Started (Cumulative) 643 60+ day delinquent loans as reported by servicers as of November 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. Feb Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record anytime before the loan converts to a permanent modification. For example, 39,615 trials have entered the HAMP system of record since the prior report; of those, 29,764 were trials with a first payment recorded in December 2010. 1,871 1 Estimated eligible 1,255 1,408 1,349 400 Permanent Modifications Canceled (Cumulative)6 FHA‐HAMP Trial Modifications Started FHA-HAMP 1,420,048 1,466 New Trials Started (000s) Eligible Delinquent Borrowers2 Trial Plan Offers Extended Trial Modifications 2,896,806 All Trials Started (000s) (As of Nov. 30, 2010) Eligible Delinquent Loans1 Bars: Cumulative Trial Starts (Left Axis) Line: Monthly Trial Starts (Right Axis) 700 All Permanent Modifications Started (000s) HAMP Eligibility 200 1,600 Total 580 600 520 500 468 398 400 550 496 435 347 299 300 231 200 170 117 100 67 0 Dec Jan 2010 2009 Feb Mar Source: HAMP system of record. Apr May June July Aug Sep Oct Nov Dec 2 Making Home Affordable Program Servicer Performance Report Through December 2010 Predominant Hardship Reasons for Active Permanent Modifications Modification Characteristics • Aggregate reductions in monthly mortgage payments for borrowers who received permanent modifications are estimated to exceed $4.5 billion, program to date. Loss of Income 1 • The median monthly savings for borrowers in active permanent modifications is $527.10, or 37% of the median monthly payment before modification. 60.2% Excessive Obligation 11.6% Active Permanent Modifications by Modification Step Interest Rate Reduction 100% Term Extension 58.3% Illness of Principal Borrower 2.8% 0% 20% 40% 60% 80% 1 Principal Forbearance 30.3% Select Median Characteristics of Active Permanent Modifications Loan Characteristic 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 17.1% of permanent modifications reported as category “Other”. Loan Status Upon Entering Trial At Risk of Default at Trial Start: 22.2% Median Decrease Front-End Debt-to-Income Ratio1 45.3% 31.0% ‐14.3 pct pts Back-End Debt-to-Income Ratio2 79.5% 62.8% ‐14.8 pct pts Median Monthly Housing Payment3 $1,435.77 $836.42 ‐$527.10 In Default at Trial Start: 77.8% 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. 3 Making Home Affordable Program Servicer Performance Report Through December 2010 Performance of Permanent Modifications (As of November 30, 2010) This table shows the performance of permanent HAMP modifications at 3, 6, 9, and 12 months of age and includes modifications that have aged at least 3, 6, 9, or 12 months, as applicable. For example: Of loans that became permanent in the 2nd quarter of 2010, 11.8% were 60+ days delinquent at six months’ seasoning. Delinquency: Months After Conversion to Permanent 3 Modification Became Permanent in: 6 9 12 # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days Q3 2009 3,587 9.8% 3.5% 4,462 14.9% 9.8% 4,721 19.6% 15.0% 4,707 25.4% 20.7% Q4 2009 44,419 5.3% 1.4% 48,289 9.6% 5.7% 51,153 15.3% 10.6% 52,344 19.9% 15.3% Q1 2010 125,829 3.7% 1.0% 152,633 9.7% 5.3% 160,703 16.0% 11.2% -- -- -- Q2 2010 150,564 5.0% 1.4% 160,393 11.8% 7.0% -- -- -- -- -- -- Q3 2010 86,953 4.7% 1.4% -- -- -- -- -- -- -- -- -- ALL 411,352 4.6% 1.3% 365,777 10.7% 6.2% 216,577 15.9% 11.1% 57,051 20.4% 15.8% Note: For permanent loans aged at least 3 months as of November 30, as reported by servicers through December 17, 2010. • The table stratifies the data by the quarter in which the permanent 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 39,369 disqualified loans that have aged 3, 6, 9, or 12 months through the November activity period as reported by servicers through December 17. • 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 for each quarter in months 6 and beyond to be higher than the count in month 3. Reported loan counts may shift from prior reports due to servicer data corrections. • Once a loan is paid off, it is no longer reflected in future periods. • This table will be published quarterly. 4 Making Home Affordable Program Servicer Performance Report Through December 2010 Performance of Permanent Modifications by Homeowner Payment Reduction (As of November 30, 2010) Delinquency: Months After Conversion to Permanent 3 Decrease From BeforeModification Principal + Interest Payment: 6 9 12 # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days ≤20% Decrease 80,154 7.9% 2.4% 70,928 18.0% 10.8% 40,806 25.8% 18.7% 10,165 32.5% 26.2% (20%‐30%] Decrease 64,659 5.8% 1.7% 57,481 13.3% 7.8% 34,033 19.8% 14.1% 9,237 24.7% 19.5% >30% Decrease 266,539 3.4% 0.8% 237,368 7.9% 4.4% 141,738 12.1% 8.2% 37,649 16.0% 12.0% ALL 411,352 4.6% 1.3% 365,777 10.7% 6.2% 216,577 15.9% 11.1% 57,051 20.4% 15.8% Note: For permanent loans aged at least 3 months as of November 30, as reported by servicers through December 17, 2010. See previous page for technical notes. 5 Making Home Affordable Program Servicer Performance Report Through December 2010 Conversion Rate1 HAMP Modification Activity by Servicer As of Nov. 30, 2010 Servicer American Home Mortgage Servicing Inc Aurora Loan Services, LLC Cumulative Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 All HAMP Trials Started3 52,098 32,947 28,824 As of Dec. 31, 2010 All HAMP Permanent Modifications Active Trial Started3 Modifications3 18,806 7,311 49,509 38,835 14,328 1,643 13,072 408,524 464,174 352,869 101,604 45,753 90,243 CitiMortgage, Inc. 96,909 169,336 128,016 46,205 7,415 42,746 GMAC Mortgage, LLC 15,010 67,297 55,294 37,977 3,953 34,371 J.P. Morgan Chase Bank, NA5 195,841 281,215 222,582 77,183 20,799 66,441 Litton Loan Servicing LP 46,867 39,384 36,828 10,239 1,935 8,904 Nationstar Mortgage LLC 29,164 28,994 44,758 20,778 3,477 19,441 Ocwen Financial Corp. Inc. 48,855 43,324 40,316 29,040 6,327 24,467 OneWest Bank 40,532 64,960 48,513 23,764 4,193 22,034 PNC Mortgage6 15,460 23,691 18,978 5,011 975 4,623 Saxon Mortgage Services, Inc. 24,423 42,239 37,323 13,811 1,846 12,650 Select Portfolio Servicing 18,927 65,391 40,057 19,510 1,717 17,337 US Bank NA 14,959 15,527 14,736 9,204 2,667 8,374 166,441 291,772 213,241 76,408 18,526 70,135 servicers8 24,943 31,242 30,453 18,661 3,684 17,001 Other GSE Servicers9 190,517 NA 114,825 57,121 20,068 52,600 579,650 152,289 521,630 Wells Fargo Bank, NA7 Other SPA Total 1,420,048 1,711,002 1,466,448 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of November 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. 66% 60% 51% 50% 49% 17,191 30,578 Bank of America, NA4 74% 73% 71% 70% 80% Active Permanent Modifications3 43% 42% 41% 40% 38% 38% 38% 31% 29% 28% 20% 0% Trial Length at Conversion (months): 3.2 3.3 3.0 3.6 4.1 4.4 3.6 3.7 4.3 6.4 6.4 5.1 7.8 4.5 4.8 3.3 3.2 Note: Per program guidelines, effective June 1, 2010 all trials must be started using verified income. Prior to June 1, some servicers initiated trials using stated income information. 1 As measured against trials eligible to convert – those three months in trial, or four months if the borrower was at risk of default. Permanent modifications transferred among servicers are credited to the originating servicer. Aged Trials1 15,000 12,783 39,800 active trials were initiated at least six months ago. 10,000 8,360 2 As reported in the weekly servicer survey of large SPA servicers through December 30, 2010. As reported into the HAMP system of record by servicers. Excludes FHA-HAMP modifications. Subject to adjustment based on servicer reconciliation of historic loan files. Totals reflect impact of servicing transfers. 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 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 8 Other SPA servicers are entities with less than 5,000 estimated eligible 60+ day delinquent borrowers as of November 30, 2010, that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A. 9Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans transferred from SPA servicers. 5,000 3 3,621 3,323 2,589 2,294 1,884 1,298 955 865 592 444 227 224 174 88 32 0 1 As of December 31, 2010. Active trials initiated at least six months ago. 6 Making Home Affordable Program Servicer Performance Report Through December 2010 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through November 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: Total Short Sale/ (As of Alternative Payment Deed in Foreclosure Foreclosure November Modification Plan3 Loan Payoff Lieu Starts Completions 2010) 356 28 212 1,363 20 33 125 285 25 2,447 Bank of America, NA4 53,218 4,492 19,219 72,600 1,890 2,454 19,667 21,880 3,776 199,196 CitiMortgage Inc. 19,529 4,057 6,439 33,159 1,250 1,524 2,033 10,839 2,499 81,329 GMAC Mortgage, LLC 1,655 341 1,067 5,815 189 286 638 1,716 930 12,637 JP Morgan Chase Bank NA5 10,926 815 2,965 61,491 315 2,913 4,912 22,047 7,613 113,997 Litton Loan Servicing LP 3,384 688 1,899 13,579 334 130 1,165 2,410 710 24,299 OneWest Bank 1,316 799 492 10,696 278 19 770 3,686 2,299 20,355 Wells Fargo Bank NA6 3,705 803 13,420 61,854 975 5,296 4,294 18,959 9,089 118,395 TOTAL (These 8 Servicers) 94,089 16.4% 12,023 2.1% 45,713 8.0% 260,557 45.5% 5,251 0.9% 12,655 2.2% 33,604 5.9% 81,822 14.3% 26,941 4.7% 572,655 100.0% Note: Data is as reported by servicers for actions completed through November 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 all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes cancellations pending data corrections and loans otherwise removed from servicing portfolios. • Insufficient documentation • Trial plan payment default • Ineligible borrower: first‐ lien housing expense is already below 31% of household income 7 Making Home Affordable Program Servicer Performance Report Through December 2010 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through November 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: Total Short Sale/ (As of Alternative Payment Deed in Foreclosure Foreclosure November Modification Plan3 Loan Payoff Lieu Starts Completions 2010) American Home Mortgage Servicing Inc. 1,641 552 5,015 20,972 571 149 944 3,835 429 34,108 Bank of America, NA4 18,192 3,435 5,234 18,031 1,251 1,395 18,572 35,872 12,549 114,531 CitiMortgage Inc. 30,758 7,280 22,933 34,369 6,365 10,199 3,370 8,864 4,527 128,665 GMAC Mortgage, LLC 25,045 5,263 29,803 35,427 3,126 1,922 4,928 20,739 8,388 134,641 JP Morgan Chase Bank NA5 58,015 3,669 90,566 101,136 928 25,586 9,892 35,676 8,994 334,462 Litton Loan Servicing LP 9,772 3,817 7,835 13,478 1,057 492 4,319 9,982 3,232 53,984 OneWest Bank 5,772 2,408 18,856 7,064 1,381 538 1,999 11,086 4,025 53,129 Wells Fargo Bank NA6 16,317 3,939 47,818 55,141 1,411 6,957 10,550 18,914 11,340 172,387 TOTAL (These 8 Servicers) 165,512 16.1% 30,363 3.0% 228,060 22.2% 285,618 27.8% 16,090 1.6% 47,238 4.6% 54,574 5.3% 144,968 14.1% 53,484 5.2% 1,025,907 100.0% Note: Data is as reported by servicers for actions completed through November 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 all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes loans removed from servicing portfolios. • Insufficient documentation • Ineligible borrower: first‐ lien housing expense is already below 31% of household income • Ineligible mortgage 8 Making Home Affordable Program Servicer Performance Report Through December 2010 Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) Servicer Solicitation of Borrowers (cumulative)1 Page views on MakingHomeAffordable.gov (December 2010) Call Center Volume 49 49,506 6,837,428 2,070,354 Total Number of Calls Taken at 1-888-995HOPE Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline Program to Date December 1,893,239 81,204 906,998 36,040 Source: Homeowner’s HOPETM Hotline. Page views on MakingHomeAffordable.gov (cumulative) Percentage to Goal of 3-4 Million Modification Offers 106,510,859 43-57% 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. 9 Making Home Affordable Program Servicer Performance Report Through December 2010 Homeowner Experience (8 Largest Servicers)* Average Speed to Answer Homeowner Calls (November) Program to date, there have been 923,919 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.2% included complaints. Below shows specific complaint rates. 60 Average of Calls to Homeowner’s HOPETM Hotline for November: 0.5 Seconds Seconds 40 10% Program to Date Average: 6.2% 9% % of Calls for Specific Servicer 50 Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through December) 30 20 8% 7% 6% 5% 4% 10 3% OneWest 0 Calls to OneWest Servicer: Bank of America NA GMAC Litton Wells Fargo CitiMortgage Am. Home Servicing JP Morgan Chase NA Call Abandon Rate (November) 11,520 Bank of America NA Litton GMAC Am. Home Servicing CitiMortgage 1,292 2,341 1,640 5,018 18,950 Wells Fargo 7,858 Servicer Time to Resolve Third-Party Escalations (Program to Date, Through December) Homeowner’s HOPETM Hotline Average for November: 1.1% 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 OneWest, 9.9% included complaints.) Source: Survey data through November 30, 2010, from servicers on call volume to loss mitigation lines. 5% Complaints (PTD): 186 50 Target: 25 Calendar Days Calendar Days 40 3% 2% 30 20 10 1% 0 0% Bank of America OneWest GMAC Litton JP Morgan Chase NA Wells Fargo Am. Home Servicing Source: Survey data through November 30, 2010, from servicers on call volume to loss mitigation lines. *As defined by cap amount. CitiMortgage Bank of America NA Resolved: 3,232 Cases (PTD) JP Morgan Chase NA 2,206 OneWest 532 Am. Home Servicing 305 CitiMortgage Wells Fargo 820 1,999 Source: HAMP Solutions Center. Target of 25 calendar days includes an estimated 5 days processing by HAMP Solutions Center. Litton 448 GMAC 592 10 Making Home Affordable Program Servicer Performance Report Through December 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 69 218 287 0.0% MT 193 556 749 0.1% AL 1,009 2,992 4,001 0.6% NC 2,734 9,709 12,443 1.8% AR 355 1,171 1,526 0.2% ND 24 89 113 0.0% AZ 6,222 25,725 31,947 4.7% NE 214 695 909 0.1% CA 34,392 123,629 158,021 23.4% NH 703 2,450 3,153 0.5% CO 1,876 7,369 9,245 1.4% NJ 4,961 16,821 21,782 3.2% CT 1,875 6,623 8,498 1.3% NM 527 1,650 2,177 0.3% DC 262 866 1,128 0.2% NV 3,931 13,720 17,651 2.6% DE 458 1,625 2,083 0.3% NY 7,388 23,047 30,435 4.5% FL 19,043 61,689 80,732 12.0% OH 3,474 11,743 15,217 2.3% GA 5,663 18,900 24,563 3.6% OK 411 1,192 1,603 0.2% HAMP Modifications HI 630 1,954 2,584 0.4% OR 1,668 5,666 7,334 1.1% IA 403 1,324 1,727 0.3% PA 3,358 10,841 14,199 2.1% ID 650 1,974 2,624 0.4% RI 758 2,722 3,480 0.5% IL 8,166 28,080 36,246 5.4% SC 1,456 4,993 6,449 1.0% IN 1,587 5,123 6,710 1.0% SD 67 201 268 0.0% KS 379 1,215 1,594 0.2% TN 1,697 5,343 7,040 1.0% KY 563 1,997 2,560 0.4% TX 4,579 13,178 17,757 2.6% LA 1,019 2,683 3,702 0.5% UT 1,435 4,869 6,304 0.9% MA 3,742 13,095 16,837 2.5% VA 3,502 12,926 16,428 2.4% MD 4,759 16,943 21,702 3.2% VT 122 432 554 0.1% ME 478 1,430 1,908 0.3% WA 3,023 10,052 13,075 1.9% MI 4,834 17,647 22,481 3.3% WI 1,587 5,162 6,749 1.0% MN 2,393 9,601 11,994 1.8% WV 224 792 1,016 0.2% MO 1,603 5,619 7,222 1.1% WY 72 267 339 0.1% MS 622 1,989 2,611 0.4% Other* 1,129 1,033 2,162 0.3% * Includes Guam, Puerto Rico and the U.S. Virgin Islands. 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 Source: 3rd Quarter 2010 National Delinquency Survey, Mortgage Bankers Association. 60+ Day Delinquency Rate 5.0% and lower 10.01% - 15.0% 20.01% 5.01% - 10.0% 15.01% - 20.0% and higher 11 Making Home Affordable Program Servicer Performance Report Through December 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 Chicago-Joliet-Naperville, IL-IN-WI Active Trials Total Permanent HAMP Modifications Activity Modifications by Investor Type (Large Servicers) % of All HAMP Activity 10,067 35,514 45,581 6.8% 9,559 31,567 41,126 6.1% 7,105 28,068 35,173 5.2% 7,891 27,121 35,012 5.2% Servicer GSE Private Portfolio Total Bank of America, NA1 83,833 45,465 6,698 135,996 Wells Fargo Bank, NA 2 46,054 13,372 29,235 88,661 39,236 33,093 14,911 87,240 CitiMortgage, Inc. 29,021 4,602 16,538 50,161 GMAC Mortgage, LLC 22,323 5,694 10,307 38,324 Ocwen Financial Corporation, Inc. 6,876 23,673 245 30,794 JP Morgan Chase NA3 Miami-Fort Lauderdale-Pompano Beach, FL 7,811 24,105 31,916 4.7% OneWest Bank 12,753 11,551 1,923 26,227 Phoenix-Mesa-Glendale, AZ 5,001 21,292 26,293 3.9% American Home Mortgage Servicing Inc 1,314 23,188 0 24,502 Washington-Arlington-Alexandria, DC-VA-MD-WV 4,822 18,240 23,062 3.4% Nationstar Mortgage LLC 17,615 5,288 15 22,918 Atlanta-Sandy Springs-Marietta, GA 4,512 15,316 19,828 2.9% Select Portfolio Servicing 494 16,532 2,028 19,054 Las Vegas-Paradise, NV 3,254 11,258 14,512 2.2% Aurora Loan Services, LLC 7,302 7,201 212 14,715 Detroit-Warren-Livonia, MI 2,947 10,673 13,620 2.0% Saxon Mortgage Services Inc. 1,482 11,586 1,428 14,496 US Bank NA 7,406 19 3,616 11,041 Orlando-Kissimmee-Sanford, FL 2,978 10,028 13,006 1.9% Litton Loan Servicing LP 1,049 9,774 16 10,839 San Francisco-Oakland-Fremont, CA 2,932 9,252 12,184 1.8% 4,853 274 471 5,598 2,642 9,372 12,014 1.8% Remainder of HAMP Servicers 79,899 6,571 6,883 93,353 Total 361,510 217,883 94,526 673,919 2,416 8,948 11,364 1.7% Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-ArcadeRoseville, CA San Diego-Carlsbad-San Marcos, CA PNC Mortgage4 1 Bank 2,409 8,773 A complete list of HAMP activity for all MSAs is available at http://www.treasury.gov/initiatives/financial-stability/results/MHAReports/Documents/MSA%20Data%20Dec%202010.pdf 11,182 1.7% of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loans Services and Wilshire Credit Corporation. Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 3 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 4 Formerly National City Bank. 2 Note: Figures reflect active trials and permanent modifications. 12 Making Home Affordable Program Servicer Performance Report Through December 2010 Appendix A1: Non-GSE Participants in HAMP Servicers participating in the HAMP First‐Lien Modification Program may also offer additional homeowner incentives, including Home Affordable Foreclosure Alternatives (HAFA), at least three months’ forbearance for unemployed borrowers, and Principal Reduction Alternative (PRA). AgFirst Farm Credit Bank Allstate Mortgage Loans & Investments, Inc. American Eagle Federal Credit Union American Finance House LARIBA American Home Mortgage Servicing, Inc AMS Servicing, LLC Aurora Loan Services, LLC Bank of America, N.A.1 Bank United Bay Federal Credit Union Bayview Loan Servicing, LLC Bramble Savings Bank Carrington Mortgage Services, LLC CCO Mortgage Central Florida Educators Federal Credit Union Centrue Bank CitiMortgage, Inc. Citizens 1st National Bank Citizens Community Bank Citizens First Wholesale Mortgage Company Community Bank & Trust Company Community Credit Union of Florida CUC Mortgage Corporation DuPage Credit Union Eaton National Bank & Trust Co Farmers State Bank Fay Servicing, LLC Fidelity Homestead Savings Bank First Bank First Financial Bank, N.A. First Keystone Bank First National Bank of Grant Park First Safety Bank Franklin Credit Management Corporation Franklin Savings Fresno County Federal Credit Union GFA Federal Credit Union Glass City Federal Credit Union GMAC Mortgage, LLC 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 Liberty Bank and Trust Co. Litton Loan Servicing Los Alamos National Bank Magna Bank Mainstreet Credit Union Marix Servicing, LLC Metropolitan National Bank Midland Mortgage Company Midwest Bank & Trust Co. Midwest Community Bank Mission Federal Credit Union MorEquity, Inc. Mortgage Center, LLC Mortgage Clearing Corporation 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 Pathfinder Bank PennyMac Loan Services, LLC PNC Bank, National Association PNC Mortgage3 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 Specialized Loan Servicing, LLC Spirit of Alaska Federal Credit Union Stanford Federal Credit Union Sterling Savings Bank Suburban Mortgage Company of New Mexico Technology Credit Union The Golden 1 Credit Union U.S. Bank National Association United Bank United Bank Mortgage Corporation University First Federal Credit Union Vantium Capital, Inc. Verity Credit Union Vist Financial Corp. Wealthbridge Mortgage Corp. Wells Fargo Bank, NA4 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 Formerly National City Bank 4 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 13 Making Home Affordable Program Servicer Performance Report Through December 2010 Appendix A2: Participants in Additional Making Home Affordable Programs Second‐Lien Modification Program (2MP) Bank of America, NA1 Bayview Loan Servicing, LLC CitiMortgage, Inc. Community Credit Union of Florida GMAC Mortgage, LLC Green Tree Servicing LLC iServe Residential Lending, LLC iServe Servicing, Inc. J.P.Morgan Chase Bank, NA2 Nationstar Mortgage LLC OneWest Bank PennyMac Loan Services, LLC PNC Bank, National Association PNC Mortgage 3 Residential Credit Solutions Servis One Inc., dba BSI Financial Services, Inc. Wells Fargo Bank, NA 4 FHA First‐Lien Program (Treasury FHA‐HAMP) Amarillo National Bank American Financial Resources Inc. Aurora Financial Group, Inc. Aurora Loan Services, LLC Banco Popular de Puerto Rico Bank of America, NA1 Capital International Financial, Inc. CitiMortgage, Inc. CU Mortgage Services, Inc. First Federal Bank of Florida First Mortgage Corporation Franklin Savings Gateway Mortgage Group, LLC GMAC Mortgage, LLC. Green Tree Servicing LLC Guaranty Bank iServe Residential Lending, LLC iServe Servicing, Inc. James B. Nutter & Company J.P.Morgan Chase Bank,NA2 M&T Bank Marix Servicing, LLC Marsh Associates, Inc. Midland Mortgage Company Nationstar Mortgage LLC Ocwen Financial Corporation, Inc. PennyMac Loan Services, LLC PNC Mortgage 3 RBC Bank (USA) Residential Credit Solutions Saxon Mortgage Services, Inc. Schmidt Mortgage Company Select Portfolio Servicing Servis One Inc., dba BSI Financial Services, Inc. Spirit of Alaska Federal Credit Union Stockman Bank of Montana Wells Fargo Bank, NA 4 Weststar Mortgage, Inc. FHA Second‐Lien Program (FHA 2LP) Bank of America, NA1 Bayview Loan Servicing, LLC CitiMortgage, Inc. Flagstar Capital Markets Corporation GMAC Mortgage, LLC. Green Tree Servicing LLC J.P.Morgan Chase Bank, NA2 Nationstar Mortgage LLC PNC Bank, National Association PNC Mortgage 3 Residential Credit Solutions Saxon Mortgage Services, Inc. Select Portfolio Servicing Wells Fargo Bank, NA 4 Rural Housing Service Modification Program (RD‐HAMP) Banco Popular de Puerto Rico Bank of America, N.A. 1 Horicon Bank J.P.Morgan Chase Bank, NA 2 Magna Bank Marix Servicing, LLC Midland Mortgage Company Nationstar Mortgage LLC Wells Fargo Bank, NA 4 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 Formerly National City Bank. 4 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage FSB. 14 Making Home Affordable Program Servicer Performance Report Through December 2010 Appendix B1: Description of Compliance Activities Note: Areas of compliance emphasis and servicer‐specific compliance data will be updated 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 for those servicers that have signed a servicer participation agreement with Treasury and for those loans for which Treasury pays incentives (non‐GSE loans), as described below. On Site Reviews: Implementation – Reviews to assess 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. MHA‐C performs reviews of larger servicers on not less than a semi‐annual schedule and reviews smaller servicers on at least an annual schedule. On Site Reviews: Readiness & Governance – Reviews to assess the servicer’s preparedness for complying with new/future HAMP requirements or to research a trend or potential implementation risk. MHA‐C performs such reviews as needed, determined by frequency of new program additions. NPV Reviews – Reviews to assess 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), MHA‐C assesses whether the servicer’s recoded NPV model is accurately calculating NPV and whether the servicer’s model usage is consistent with HAMP guidelines. Recoders are subject to off‐site testing at least quarterly and to on‐site reviews at least semi‐annually. For servicers using the Treasury NPV Web Portal, MHA‐C reviews data submissions to the Portal on a monthly basis. Loan File Reviews – Reviews of samples of the servicer’s non‐performing loan portfolio primarily to assess whether required steps in the modification process have been documented in the loan files and whether loan modification decisions were appropriate. This includes reviews of loans that have successfully converted to a permanent modification, to ensure they meet the HAMP guidelines. It also includes reviews of loans that have not been offered HAMP modifications, to ensure that their exclusion was appropriate (“Second Look” reviews). MHA‐C conducts these Loan File reviews on a statistical sample for each servicer (typically 100 loan files per larger servicer). Larger servicers’ non‐performing loan portfolios are sampled and reviewed on a monthly cycle. MHA‐C statistically samples and reviews smaller servicers’ non‐performing loan portfolios on a quarterly or semi‐annual cycle. Incentive Payment Reviews – Reviews to assess the accuracy and validity of Treasury incentive payments to borrowers and investors, including whether borrower payments are appropriately allocated to borrowers’ loan principal in accordance with HAMP guidelines. MHA‐C performs such reviews at least annually on the largest servicers. As stated in the August report, beginning in the 3rd quarter of the 2010 sampling period, MHA‐ C revised its sampling strategy to sample monthly from all servicers to provide more consistent trending by servicer and greater comparability of results across servicers. Results from this new sampling strategy will be included in the next publication of Compliance results. (See next page for Areas of Compliance Emphasis) 15 Making Home Affordable Program Servicer Performance Report Through December 2010 Appendix B2: Areas of Compliance Emphasis In the coming months MHA‐C will focus on the following areas of emphasis, to ensure ongoing compliance. Cancellations Servicers are required to comply with HAMP guidance when canceling loans in HAMP trials. The Second Look review process conducted by MHA‐C will continue to include an evaluation of servicers’ cancellation activities, especially those around servicers’ timely and appropriate decisioning and borrower communications. MHA‐C will conduct targeted reviews of the cancellations of aged trials over the course of the next several months. MHA‐C will evaluate whether servicers are making appropriate cancellation decisions, with a specific focus on those loans where the cancellation reason indicates that the borrower had not made timely payments. MHA‐C expects servicers to provide documentation supporting cancellation decisions and evidence that borrower notifications are timely and include all necessary information. Pre‐Foreclosure Certification Due to recent concerns around foreclosures and the issuance of new HAMP guidance effective in June, MHA‐C will specifically focus on pre‐ foreclosure activities and certification requirements. Servicers may not refer any loan to foreclosure or conduct a scheduled foreclosure sale without first satisfying the "reasonable effort" solicitation standard and borrower communication requirements described in HAMP guidelines. In addition, within seven business days of a scheduled foreclosure sale, servicers must provide the foreclosure attorney or trustee with a written certification that the servicer has satisfied the requirements to solicit and evaluate eligible borrowers as defined by HAMP guidelines, and that all other available loss mitigation alternatives have been exhausted and a non‐ foreclosure outcome could not be reached. These reviews will include: •Processes for satisfying the "reasonable effort" standard and for ensuring that consideration of HAMP and borrower notifications are executed and appropriately documented; and •Processes for completing consideration of HAMP and other foreclosure alternatives, as appropriate, prior to any foreclosure referral or foreclosure sale; and •Processes for providing foreclosure attorneys or trustees with accurate and timely certifications prior to a scheduled foreclosure sale. IR2 Reporting and Data Integrity Servicers are required to submit HAMP loan‐ level data to the Program Administrator’s system of record (IR2), and that data is required to be accurate and consistent with source documentation. IR2 data is used to monitor and report on HAMP activity levels and to calculate servicer, borrower, and investor incentive payments. As stated in prior reports, reporting and data integrity controls will continue to be a focus. MHA‐C has recently conducted preliminary data mapping exercises with the Program Administrator and will be assessing servicers' information technology (IT) controls over IR2 reporting over the coming months, with an emphasis on system interfaces and reconciliations of data between systems. MHA‐C will continue testing IR2 data against source documentation, including loan files, with particular attention on the data elements used in the establishment of borrower payments and the calculation of incentives. MHA‐C will also review servicers’ calculations for accuracy and consistency with HAMP guidelines. 16
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