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Making Home Affordable Program Servicer Performance Report Through January 2011 Report Highlights Inside: More Than 600,000 Permanent Modifications Started HAMP Program Snapshot 2 • Homeowners in permanent modifications realize real savings, with aggregate reductions in monthly mortgage payments estimated to total nearly $5.0 billion, program to date. Homeowners in active permanent modifications realize median monthly savings of more than $527, or 37% of the median beforemodification monthly payment. • New permanent modifications have averaged nearly 29,000 per month for the last six months. New trial modifications have averaged 27,000 per month over the same period. • Nearly 1.5 million homeowners have entered trial modifications since program inception. 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 New This Month: Post-6/1 Conversion Rates • Most servicers significantly improved conversion rates upon accepting verified income documentation from homeowners. • Servicers average a 61% conversion rate for all eligible trials started with verified documentation on or after June 1, 2010. As servicers continue to convert their eligible trial modifications, the conversion rates will increase. For trial modifications that started in June 2010, 73% of them have converted through January 2011. For trial modifications begun before June 1, the conversion rate averages 41%. HAMP Activity by Metropolitan Area 10 Modifications by Investor Type 10 List of Non-GSE Participants 11 Participants in Additional MHA Programs 12 Definitions of Compliance Activities 13 Areas of Compliance Emphasis 14 1 Making Home Affordable Program Servicer Performance Report Through January 2011 HAMP Activity: All Servicers HAMP Trials Started 1,600 2,867,420 Eligible Delinquent Borrowers2 1,392,833 Trial Plan Offers Extended All Trials Trial Modifications Permanent Modifications (Cumulative)3 Started4 1,493,107 Trials Reported Since December 2010 Report5 26,659 Trial Modifications Canceled (Cumulative) 740,240 Active Trials 145,260 All Permanent Modifications Started 607,607 Permanent Modifications Reported Since December 2010 Report 27,957 68,114 Active Permanent Modifications 539,493 FHA-HAMP Permanent Modifications Started 1,329 1,352 1,382 1,412 1,493 1,441 150 1,209 1,200 1,138 1,050 100 956 800 50 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 February 3, 2011. 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 937 loans paid off. Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan '11 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, 26,659 trials have entered the HAMP system of record since the prior report; of those, 20,759 were trials with a first payment recorded in January 2011. Permanent Modifications Started (Cumulative) 923 eligible 60+ day delinquent loans as reported by servicers as of December 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. 0 Dec '09 Jan '10 2,531 1 Estimated 1,283 1,305 1,472 400 Permanent Modifications Canceled (Cumulative)6 FHA-HAMP Trial Modifications Started FHA-HAMP 1,751,883 1,257 All Trials Started (000s) (As of Dec. 31, 2010) Eligible Delinquent Loans1 700 608 All Permanent Modifications Started (000s) HAMP Eligibility 200 Bars: Cumulative Trial Starts (Left Axis) Line: Monthly Trial Starts (Right Axis) New Trials Started (000s) Total 580 600 550 520 500 468 398 400 496 435 347 299 300 231 200 170 117 100 67 0 Dec '09 Jan '10 Feb Mar Source: HAMP system of record. Apr May June July Aug Sep Oct Nov Dec Jan '11 2 Making Home Affordable Program Servicer Performance Report Through January 2011 Predominant Hardship Reasons for Active Permanent Modifications Modification Characteristics • Aggregate reductions in monthly mortgage payments for borrowers who received permanent modifications are estimated to total nearly $5.0 billion, program to date. Loss of Income 1 • The median monthly savings for borrowers in active permanent modifications is $527.68, or 37% of the median monthly payment before modification. 60.4% Excessive Obligation 11.5% Active Permanent Modifications by Modification Step Interest Rate Reduction 100% Term Extension 58.5% Illness of Principal Borrower 2.8% 0% 20% 40% 60% 80% 1 Principal Forbearance 30.4% 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 17.0% of permanent modifications reported as category “Other”. Loan Status Upon Entering Trial At Risk of Default at Trial Start: 22.0% Median Decrease Front-End Debt-to-Income Ratio1 45.3% 31.0% -14.3 pct pts Back-End Debt-to-Income Ratio2 79.2% 62.4% -14.8 pct pts Median Monthly Housing Payment3 $1,436.82 $836.48 -$527.68 In Default at Trial Start: 78.0% 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 January 2011 Conversion Rate1 HAMP Modification Activity by Servicer As of Dec. 31, 2010 Cumulative As of Jan. 31, 2011 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 All HAMP Trials Started3 American Home Mortgage Servicing Inc 51,380 33,848 29,370 19,962 5,907 17,938 Aurora Loan Services, LLC 29,307 49,823 39,105 14,617 1,778 13,161 402,102 481,756 358,726 106,592 45,176 93,292 CitiMortgage, Inc. 96,302 171,604 128,649 47,668 5,897 43,286 GMAC Mortgage, LLC 14,601 68,985 56,867 39,090 4,418 34,915 J.P. Morgan Chase Bank, NA5 193,413 287,931 227,512 81,777 20,602 69,418 Litton Loan Servicing LP 44,847 39,864 34,712 9,757 1,895 8,228 Nationstar Mortgage LLC 35,868 29,753 52,152 23,601 4,309 21,844 Ocwen Loan Services LLC 46,180 44,500 41,526 30,082 5,254 24,814 OneWest Bank 40,055 65,605 49,035 24,665 3,699 22,616 PNC Mortgage6 14,244 23,907 19,089 5,260 876 4,809 Saxon Mortgage Services, Inc. 23,400 42,516 37,495 14,285 1,537 12,931 Select Portfolio Servicing 18,046 66,351 40,378 20,071 1,536 17,622 US Bank NA 14,809 15,819 15,539 9,856 2,911 8,918 161,191 297,545 215,718 81,724 15,675 74,434 Other SPA servicers8 25,273 32,076 33,739 20,173 3,807 18,232 Other GSE Servicers9 181,815 NA 113,495 58,427 19,983 53,035 607,607 145,260 539,493 Servicer Bank of America, NA4 Wells Fargo Bank, NA7 All HAMP Permanent Modifications Active Trial Started3 Modifications3 Pre-6/1/10 (Average: 41%) Post 6/1/10 (Average: 61%) 100% Active Permanent Modifications3 80% 60% 40% 20% 0% Average Trial Length at Conversion (months): 3.6 3.3 3.2 3.1 3.6 6.4 3.3 5.0 4.4 4.3 6.4 3.7 3.0 4.4 7.8 4.0 4.8 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 12,394 36,200 active trials were initiated at least six months ago. 10,000 8,045 Total 1,392,833 1,751,883 1,493,107 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of December 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. Exclusions for DTI and NPV are estimated using market analytics. 2 As reported in the weekly servicer survey of large SPA servicers through February 3, 2011. 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 December 31, 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 2,874 2,307 2,084 1,903 1,784 1,403 876 790 676 361 213 200 161 78 35 0 1 As of January 31, 2011. Active trials initiated at least six months ago. 4 Making Home Affordable Program Servicer Performance Report Through January 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through December 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 Total Short Sale/ (As of Alternative Payment Deed in Foreclosure Foreclosure December Modification Plan3 Loan Payoff Lieu Starts Completions 2010) 325 28 232 1,386 19 58 134 300 29 2,511 Bank of America, NA4 49,724 4,781 17,543 72,940 1,899 2,650 24,201 24,832 3,951 202,521 CitiMortgage Inc. 17,439 3,623 5,749 29,609 1,117 1,362 1,815 9,679 2,232 72,625 GMAC Mortgage, LLC 1,695 358 1,084 5,771 206 309 699 1,842 1,037 13,001 JP Morgan Chase Bank NA5 9,628 834 3,030 61,275 318 3,359 4,924 22,848 8,169 114,385 Litton Loan Servicing LP 2,405 598 1,652 13,454 264 142 1,091 2,054 741 22,401 OneWest Bank 1,027 807 547 10,259 315 22 848 4,138 2,552 20,515 Wells Fargo Bank NA6 2,437 716 13,352 60,344 989 6,236 4,878 18,255 9,892 117,099 TOTAL (These 8 Servicers) 84,680 15.0% 11,745 2.1% 43,189 7.6% 255,038 45.1% 5,127 0.9% 14,138 2.5% 38,590 6.8% 83,948 14.9% 28,603 5.1% 565,058 100.0% Note: Data is as reported by servicers for actions completed through December 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 all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes cancellations pending data corrections and loans otherwise removed from servicing portfolios. The most common causes of trial cancellations from all servicers are: • Insufficient documentation • Trial plan payment default • Ineligible borrower: firstlien housing expense is already below 31% of household income 5 Making Home Affordable Program Servicer Performance Report Through January 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through December 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 Total Short Sale/ (As of Alternative Payment Deed in Foreclosure Foreclosure December Modification Plan3 Loan Payoff Lieu Starts Completions 2010) American Home Mortgage Servicing Inc. 1,963 640 5,792 23,439 721 274 1,015 4,904 491 39,239 Bank of America, NA4 32,064 5,297 31,557 33,981 2,636 2,498 25,066 46,377 13,755 193,231 CitiMortgage Inc. 39,008 7,491 9,968 29,145 5,408 11,012 1,910 8,138 4,650 116,730 GMAC Mortgage, LLC 24,870 5,661 31,269 35,983 3,613 2,259 5,418 21,593 9,427 140,093 JP Morgan Chase Bank NA5 64,234 3,964 89,863 102,739 957 29,643 10,954 42,517 9,951 354,822 Litton Loan Servicing LP 8,213 3,739 7,648 15,192 955 540 4,245 8,818 3,365 52,715 OneWest Bank 5,762 2,703 20,810 8,180 1,622 644 2,205 12,342 4,569 58,837 Wells Fargo Bank NA6 14,225 3,996 47,233 54,682 1,589 8,252 11,781 18,467 12,053 172,278 TOTAL (These 8 Servicers) 190,339 16.9% 33,491 3.0% 244,140 21.6% 303,341 26.9% 17,501 1.6% 55,122 4.9% 62,594 5.5% 163,156 14.5% 58,261 5.2% 1,127,945 100.0% The most common causes of trials not accepted from all servicers are: • Insufficient documentation • Ineligible borrower: firstlien housing expense is already below 31% of household income • Ineligible mortgage Note: Data is as reported by servicers for actions completed through December 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 all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes loans removed from servicing portfolios. 6 Making Home Affordable Program Servicer Performance Report Through January 2011 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 (January 2011) Call Center Volume 50 50,450 7,082,967 2,895,000 Total Number of Calls Taken at 1-888-995HOPE Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline Program to Date January 1,981,629 88,390 947,210 40,212 Source: Homeowner’s HOPETM Hotline. Page views on MakingHomeAffordable.gov (cumulative) Percentage to Goal of 3-4 Million Modification Offers2 109,405,859 44-58% 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. 7 Making Home Affordable Program Servicer Performance Report Through January 2011 Homeowner Experience (8 Largest Servicers*) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through January) Average Speed to Answer Homeowner Calls (December) Program to date, there have been 969,416 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.4% included complaints. Below shows specific complaint rates. 40 35 Average of Calls to Homeowner’s HOPETM Hotline for December: 0.4 Seconds Seconds 25 11% Program to Date Average: 6.4% 10% % of Calls for Specific Servicer 30 20 15 9% 8% 7% 6% 5% 10 4% 5 3% OneWest 0 Calls to OneWest Servicer: Bank of America NA Litton CitiMortgage GMAC Wells Fargo JP Morgan Chase NA Am. Home Servicing Source: Survey data through December 31, 2010, from servicers on call volume to loss mitigation lines. Call Abandon Rate (December) 5% Complaints (PTD): 208 12,496 Bank of America NA 20,540 Litton GMAC Am. Home Servicing 1,352 2,535 1,754 CitiMortgage 5,465 Wells Fargo 8,365 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, 10.4% included complaints.) Servicer Time to Resolve Third-Party Escalations (Program to Date, Through January) Homeowner’s HOPETM Hotline Average for December: 1.1% 4% JP Morgan Chase NA 60 Target: 25 Calendar Days Calendar Days 50 3% 2% 1% 40 30 20 10 0 0% Bank of America Litton OneWest Wells Fargo JP Morgan Chase NA CitiMortgage Am. Home Servicing Source: Survey data through December 31, 2010, from servicers on call volume to loss mitigation lines. *As defined by cap amount. GMAC Bank of America NA Resolved: 3,744 Cases (PTD) JP Morgan Chase NA Am. Home Servicing OneWest 2,400 344 578 CitiMortgage Wells Fargo 910 2,281 Source: HAMP Solutions Center. Target of 25 calendar days includes an estimated 5 days processing by HAMP Solutions Center. Litton GMAC 481 650 8 Making Home Affordable Program Servicer Performance Report Through January 2011 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 63 228 291 0.0% MT 176 588 764 0.1% AL 927 3,109 4,036 0.6% NC 2,649 10,014 12,663 1.8% AR 337 1,190 1,527 0.2% ND 26 90 116 0.0% AZ 5,837 26,322 32,159 4.7% NE 198 719 917 0.1% CA 32,617 128,564 161,181 23.5% NH 670 2,505 3,175 0.5% CO 1,762 7,587 9,349 1.4% NJ 4,738 17,367 22,105 3.2% CT 1,759 6,845 8,604 1.3% NM 476 1,714 2,190 0.3% DC 247 919 1,166 0.2% NV 3,697 14,163 17,860 2.6% DE 454 1,676 2,130 0.3% NY 7,022 23,933 30,955 4.5% FL 18,570 63,660 82,230 12.0% OH 3,325 12,054 15,379 2.2% GA 5,553 19,567 25,120 3.7% OK 401 1,223 1,624 0.2% HAMP Modifications HI 607 2,049 2,656 0.4% OR 1,547 5,905 7,452 1.1% IA 388 1,373 1,761 0.3% PA 3,124 11,178 14,302 2.1% ID 602 2,038 2,640 0.4% RI 719 2,820 3,539 0.5% IL 7,803 29,104 36,907 5.4% SC 1,377 5,149 6,526 1.0% IN 1,505 5,280 6,785 1.0% SD 66 207 273 0.0% KS 379 1,260 1,639 0.2% TN 1,601 5,523 7,124 1.0% KY 556 2,066 2,622 0.4% TX 4,381 13,580 17,961 2.6% LA 977 2,797 3,774 0.6% UT 1,330 5,075 6,405 0.9% MA 3,542 13,497 17,039 2.5% VA 3,364 13,374 16,738 2.4% MD 4,545 17,483 22,028 3.2% VT 125 440 565 0.1% ME 452 1,473 1,925 0.3% WA 2,927 10,460 13,387 2.0% MI 4,651 18,065 22,716 3.3% WI 1,474 5,319 6,793 1.0% MN 2,201 9,907 12,108 1.8% WV 209 831 1,040 0.2% MO 1,536 5,748 7,284 1.1% WY 61 288 349 0.1% MS 571 2,070 2,641 0.4% Other* 1,136 1,097 2,233 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: 4th 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 9 Making Home Affordable Program Servicer Performance Report Through January 2011 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 9,470 37,092 46,562 6.8% 9,071 32,785 41,856 6.1% 6,766 28,919 35,685 5.2% 7,504 28,125 35,629 5.2% Servicer GSE Private Portfolio Total Bank of America, NA1 85,113 46,497 6,858 138,468 Wells Fargo Bank, NA 2 46,285 13,416 30,408 90,109 40,731 33,848 15,441 90,020 CitiMortgage, Inc. 28,662 4,506 16,015 49,183 GMAC Mortgage, LLC 22,766 5,841 10,726 39,333 Ocwen Loan Services LLC 6,867 23,062 139 30,068 JP Morgan Chase NA3 Miami-Fort Lauderdale-Pompano Beach, FL 7,642 24,997 32,639 4.8% OneWest Bank 12,749 11,633 1,933 26,315 Phoenix-Mesa-Glendale, AZ 4,692 21,720 26,412 3.9% Nationstar Mortgage LLC 20,697 5,440 16 26,153 Washington-Arlington-Alexandria, DC-VA-MD-WV 4,593 18,854 23,447 3.4% American Home Mortgage Servicing Inc. 1,317 22,528 0 23,845 Atlanta-Sandy Springs-Marietta, GA 4,458 15,827 20,285 3.0% Select Portfolio Servicing 502 16,583 2,073 19,158 Las Vegas-Paradise, NV 3,087 11,623 14,710 2.1% Aurora Loan Services, LLC 7,301 7,427 211 14,939 Detroit-Warren-Livonia, MI 2,845 10,915 13,760 2.0% Saxon Mortgage Services Inc. 1,490 11,499 1,479 14,468 Orlando-Kissimmee-Sanford, FL 2,891 10,278 13,169 1.9% US Bank NA 8,056 19 3,754 11,829 San Francisco-Oakland-Fremont, CA 86 10,022 15 10,123 2,781 9,743 12,524 1.8% PNC Mortgage4 4,919 280 486 5,685 2,488 9,671 12,159 1.8% Remainder of HAMP Servicers 81,334 6,664 7,059 95,057 Total 368,875 219,265 96,613 684,753 2,345 9,243 11,588 1.7% Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-ArcadeRoseville, CA San Diego-Carlsbad-San Marcos, CA Litton Loan Servicing LP 1 Bank 2,256 9,173 A complete list of HAMP activity for all MSAs is available at http://www.treasury.gov/initiatives/financial-stability/results/MHAReports/Documents/MSA%20Data%20Jan%202011.pdf 11,429 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. 10 Making Home Affordable Program Servicer Performance Report Through January 2011 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 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 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 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 Loan Services LLC 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. 11 Making Home Affordable Program Servicer Performance Report Through January 2011 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 Loan Services LLC 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. 12 Making Home Affordable Program Servicer Performance Report Through January 2011 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, MHAC 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) 13 Making Home Affordable Program Servicer Performance Report Through January 2011 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 preforeclosure 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 nonforeclosure 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 loanlevel 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. 14
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