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Revised 5/11/2011 Making Home Affordable Program Servicer Performance Report Through February 2011 Report Highlights Inside: Snapshot of MHA Programs 2 Characteristics of First Lien Modifications 3 Servicer Activity 4 Disposition Path of Homeowners Canceled From HAMP Trials 5 New This Month: Second Lien and HAFA Program Results • Nearly 17,000 homeowners in a first lien HAMP modification received assistance through the Second Lien Modification Program (2MP). Since homeowners with first lien mortgage modifications under HAMP become automatically eligible when their second lien servicer participates in 2MP, this number will continue to grow. • More than 10,000 homeowners have agreements with their servicer to exit their home under the Home Affordable Foreclosure Alternatives (HAFA) Program through a short sale or deed-in-lieu of foreclosure transaction. • Nearly 4,500 homeowners have completed a short sale or deed-in-lieu under HAFA, which provides up to $3,000 for relocation assistance after a homeowner exits the home. Disposition Path of Homeowners Ineligible For HAMP Trials 6 Selected Outreach Measures 7 Waterfall of Eligible Borrowers 7 Results of Compliance Second-Look Reviews (Revised 5/11/2011) 8 Homeowner Experience 9 Quarterly Results of Compliance Second-Look Reviews • In Q3 2010, MHA-Compliance initially disagreed with the servicer’s actions 4.0% of the time, above the YTD 2010 average of 3.7%. After follow-up actions with the servicer, 43% of those “Disagrees” were cleared. • During the same time period, MHA-Compliance was unable to determine whether a servicer acted correctly 15.6% of the time, above the YTD 2010 average of 12.0%. After the servicer provided more information, 50% of those cases were cleared. • Beginning next month, Treasury will release a new quarterly compliance scorecard for the 10 largest HAMP servicers to increase transparency around program performance. This scorecard will grade these servicers on key performance metrics, and provide a peer comparison. HAMP Activity by State 10 HAMP Activity by Metropolitan Area 11 Modifications by Investor Type 11 List of Non-GSE Participants 12 Participants in Additional MHA Programs 13 Definitions of Compliance Activities 14 Areas of Compliance Emphasis 15 More Than 630,000 Permanent Modifications Started • Homeowners in active permanent modifications realize real savings, with median monthly savings of $528 or 37% of the median before-modification payment. Aggregate reductions in monthly mortgage payments are estimated to total nearly $5.4 billion, program to date. • New permanent modifications have averaged nearly 28,000 per month for the last six months. New trial modifications have averaged 28,000 per month over the same period. • More than 1.5 million homeowners have entered trial modifications since program inception. 1 Making Home Affordable Program Servicer Performance Report Through February 2011 HAMP Activity: First Lien Modifications Second Lien Modification Program (2MP) Activity HAMP is designed to lower monthly mortgage payments to help struggling homeowners stay in their homes and prevent avoidable foreclosure. Total HAMP Eligibility (As of Jan. 31, 2011) Trial Modifications Permanent Modifications Eligible Delinquent Loans1 2,862,627 Eligible Delinquent Borrowers2 1,374,980 Trial Plan Offers Extended (Cumulative)3 1,783,826 All Trials Started 1,522,196 The Second Lien Modification Program (2MP) provides assistance to homeowners in a first lien modification who have an eligible second lien with a participating servicer. All Second Lien Modifications Started 16,951 Note: Number of modifications is net of cancellations, primarily due to servicer data corrections. Home Affordable Foreclosure Alternatives (HAFA) Trials Reported Since January 2011 Report4 29,089 The Home Affordable Foreclosure Alternatives Program (HAFA) offers incentives for homeowners looking to exit their homes through a short sale or deed in lieu of foreclosure. Trial Modifications Canceled (Cumulative) 746,203 All HAFA Agreements Started1 10,177 Active Trials 142,239 HAFA Transactions Completed 4,488 All Permanent Modifications Started 633,754 1 Servicer Permanent Modifications Reported Since January 2011 Report 26,147 Permanent Modifications Canceled (Cumulative)5 76,678 Active Permanent Modifications 557,076 agreement with homeowner for terms of potential short sale, which lasts at least 120 days; or agreement for a deed-in-lieu transaction. A short sale requires a third-party purchaser and cooperation of junior lienholders to complete the transaction. Treasury FHA-HAMP Modification Activity 1 Estimated eligible 60+ day delinquent loans as reported by servicers as of January 31, 2011, 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. 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 March 3, 2011. 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 consecutive monthly payments. Includes 1,001 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. The Treasury FHA-HAMP program provides assistance to eligible homeowners with FHA-insured mortgages. All Treasury FHA-HAMP Trial Modifications Started Treasury FHA-HAMP Permanent Modifications Started 2,977 866 Homeowner Benefits for HAMP First Lien Modifications • Aggregate reductions in monthly mortgage payments for borrowers who received HAMP first lien permanent modifications are estimated to total nearly $5.4 billion, program to date. • The median monthly savings for borrowers in active permanent first lien modifications is $527.97, or 37% of the median monthly payment before modification. See Appendix A2 for servicer participants in additional Making Home Affordable programs. 2 Making Home Affordable Program Servicer Performance Report Through February 2011 HAMP Trials Started Cumulative Trial Starts (Left Axis) All Trials Started (000s) Monthly Trial Starts (Right Axis) 1,209 1,200 1,257 1,283 1,305 1,329 1,352 1,383 1,413 1,443 1,475 1,502 1,522 1,050 100 956 800 50 400 0 Feb Mar Apr May June July • For homeowners in active permanent modifications: 150 1,138 Dec '09 Jan '10 • Of trial modifications started, 78% of homeowners were at least 60 days delinquent at trial start. The rest were up to 59 days delinquent or in imminent default. 200 Aug Sep Oct Nov Dec Jan '11 New Trials Started (000s) 1,600 Modification Characteristics • 60.6% experienced loss of income (curtailment of income or unemployment) • 11.6% reported excessive obligation • 2.8% reported an illness of the principal borrower Active Permanent Modifications by Modification Step Interest Rate Reduction 100% Term Extension 58.8% Principal Forbearance 30.5% 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, 29,089 trials have entered the HAMP system of record since the prior report; of those, 19,782 were trials with a first payment recorded in February 2011. Permanent Modifications Started (Cumulative) Select Median Characteristics of Active Permanent Modifications All Permanent Modifications Started (000s) 700 600 500 398 400 435 468 496 520 550 580 608 634 347 299 300 231 200 170 117 100 67 0 Dec '09 Jan '10 Feb Source: HAMP system of record. Mar Apr May June July Aug Sep Oct Nov Dec Jan '11 Feb Loan Characteristic Before After Modification Modification Median Decrease Front-End Debt-to-Income Ratio1 45.3% 31.0% -14.3 pct pts Back-End Debt-to-Income Ratio2 79.1% 62.2% -14.8 pct pts Median Monthly Housing Payment3 $1,434.90 $834.73 -$527.97 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. 3 Making Home Affordable Program Servicer Performance Report Through February 2011 Conversion Rate1 HAMP Modification Activity by Servicer As of Jan. 31, 2011 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 All HAMP Trials Started3 American Home Mortgage Servicing Inc 50,896 34,154 29,927 21,966 4,553 19,499 Aurora Loan Services, LLC 28,278 50,191 39,407 14,962 1,857 13,358 393,553 493,042 365,962 111,601 43,410 96,607 CitiMortgage, Inc. 94,815 173,440 128,405 48,749 6,033 43,996 GMAC Mortgage, LLC 14,881 70,290 58,092 40,282 4,112 35,633 Green Tree Servicing LLC 7,627 8,220 9,756 5,051 1,137 4,666 J.P. Morgan Chase Bank, NA5 202,133 294,322 233,653 85,376 22,449 71,657 Litton Loan Servicing LP 41,142 40,143 35,884 10,159 1,929 8,443 Nationstar Mortgage LLC 30,934 30,456 53,704 25,310 4,162 23,060 Ocwen Loan Services LLC 44,479 45,486 42,519 31,122 5,194 25,385 OneWest Bank 40,064 66,416 49,835 25,487 3,642 23,145 PNC Mortgage6 12,874 24,133 19,227 5,487 837 4,988 Saxon Mortgage Services, Inc. 22,932 42,740 37,768 14,698 1,291 13,133 Select Portfolio Servicing 17,609 66,666 40,980 20,878 1,477 18,166 US Bank NA 14,263 16,043 16,120 10,427 2,912 9,368 Wells Fargo Bank, NA7 157,785 302,951 219,424 85,734 15,379 77,402 Other SPA Servicers8 20,728 25,133 23,630 14,242 2,360 12,457 Servicers9 179,987 NA 117,903 62,223 19,505 56,113 633,754 142,239 557,076 Servicer Bank of America, NA4 Other GSE Total 1,374,980 Cumulative 1,783,826 1,522,196 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of January 31, 2011, 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. As of Feb. 28, 2011 All HAMP Permanent Active Modifications Active Trial Permanent Started3 Modifications3 Modifications3 Of Eligible Trials Started Post-6/1/10: 41% Converted to Permanent Modification 2% Are Awaiting Decision 63% Converted to Permanent Modification 28% Are Awaiting Decision 80% 60% 40% 20% 0% Average Trial Length at Conversion (months): 3.6 3.3 3.6 3.2 3.1 4.4 3.0 5.0 6.4 3.3 6.3 4.3 3.7 4.4 3.6 7.7 4.0 4.7 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. Trial modifications transferred are reflected in the current servicer’s population. Aged Trials1 10,000 9,909 7,645 7,500 About 32,000 active trials were initiated at least six months ago. 5,000 2 As reported in the weekly servicer survey of large SPA servicers through March 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 January 31, 2011, 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. Of Trials Started Pre-6/1/10: 100% 3 2,500 2,441 2,003 1,897 1,733 1,696 946 814 0 1 As of February 28, 2011. Active trials initiated at least six months ago. 801 561 556 343 236 197 114 91 34 4 Making Home Affordable Program Servicer Performance Report Through February 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through January 2011 (8 Largest Servicers) Homeowners Whose HAMP Trial Modification Was Canceled Who Are in the Process of: Servicer American Home Mortgage Servicing Inc. Action Pending1 Action Not Allowed – Bankruptcy Borrower in Process Current Short Sale/ Alternative Payment Deed-in- Foreclosure Foreclosure Modification Plan2 Loan Payoff Lieu Starts Completions Total (As of January 2011) 385 34 210 1,982 18 63 158 408 41 3,299 Bank of America, NA3 46,624 5,416 21,637 72,282 456 2,953 21,834 28,449 4,392 204,043 CitiMortgage Inc. 17,480 3,792 5,764 30,034 1,029 1,509 1,803 9,821 2,133 73,365 GMAC Mortgage, LLC 1,590 387 1,070 5,668 229 318 744 1,767 1,149 12,922 JP Morgan Chase Bank NA4 9,381 782 3,498 59,420 353 3,659 5,613 22,962 9,087 114,755 Litton Loan Servicing LP 2,547 585 1,657 12,777 278 148 1,133 2,029 710 21,864 896 803 570 9,995 325 23 965 4,106 2,919 20,602 Wells Fargo Bank NA5 2,517 718 13,373 60,452 950 7,344 4,632 17,889 10,822 118,697 TOTAL (These 8 Servicers) 81,420 14.3% 12,517 2.2% 47,779 8.4% 252,610 44.4% 3,638 0.6% 16,017 2.8% 36,882 6.5% 87,431 15.4% 31,253 5.5% 569,547 100.0% OneWest Bank Note: Data is as reported by servicers for actions completed through January 31, 2011. 1 Trial loans that have been canceled, but no further action has yet been taken. 2 An arrangement with the borrower and servicer that does not involve a formal loan modification. 3 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 4 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 5 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: first lien housing expense is already below 31% of household income 5 Making Home Affordable Program Servicer Performance Report Through February 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through January 2011 (8 Largest Servicers) Homeowners Not Accepted for a HAMP Trial Modification Who Are in the Process of: Servicer Action Pending1 Action Not Allowed – Bankruptcy Borrower in Process Current Short Sale/ Alternative Payment Deed-in- Foreclosure Foreclosure Modification Plan2 Loan Payoff Lieu Starts Completions Total (As of January 2011) American Home Mortgage Servicing Inc. 1,820 689 6,034 25,087 712 363 1,148 5,004 630 41,487 Bank of America, NA3 33,694 6,517 40,772 57,457 1,790 2,965 26,162 51,419 15,677 236,453 CitiMortgage Inc. 40,693 8,898 8,533 30,047 6,078 12,413 1,908 8,463 5,067 122,100 GMAC Mortgage, LLC 24,444 5,959 32,143 36,833 4,281 2,553 5,969 21,375 10,464 144,021 JP Morgan Chase Bank NA4 72,116 4,119 88,176 108,089 1,044 32,357 13,429 46,402 11,624 377,356 Litton Loan Servicing LP 8,701 3,793 7,809 15,974 945 576 4,348 8,656 3,406 54,208 OneWest Bank 5,906 2,954 24,190 9,650 1,934 723 2,541 13,326 5,608 66,832 Wells Fargo Bank NA5 15,774 4,225 46,583 54,917 1,628 9,442 10,954 18,313 13,500 175,336 TOTAL (These 8 Servicers) 203,148 16.7% 37,154 3.1% 254,240 20.9% 338,054 27.8% 18,412 1.5% 61,392 5.0% 66,459 5.5% 172,958 14.2% 65,976 5.4% 1,217,793 100.0% Note: Data is as reported by servicers for actions completed through January 31, 2011. 1 Homeowners who were not approved for a HAMP trial modification, but no further action has yet been taken. 2 An arrangement with the borrower and servicer that does not involve a formal loan modification. 3 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 4 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 5 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes loans removed from servicing portfolios. The most common causes of trials not accepted from all servicers are: • Insufficient documentation • Ineligible borrower: first lien housing expense is already below 31% of household income • Ineligible mortgage 6 Making Home Affordable Program Servicer Performance Report Through February 2011 Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) Waterfall of Estimated Eligible Borrowers 51 51,515 Not all 60+ day delinquent loans are eligible for HAMP. Other characteristics may preclude homeowner eligibility. Based on the estimates, of the 5.0 million homeowners who are currently 60+ days delinquent, 1.4 million homeowners are eligible for HAMP. As this represents a pointin-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that more homeowners will become seriously delinquent between now and the end of 2012, and some of those homeowners will be eligible for HAMP. 6 Servicer Solicitation of Borrowers (cumulative)1 7,212,168 3,562,243 Page views on MakingHomeAffordable.gov (cumulative) 112,968,102 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. Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline Source: Homeowner’s HOPETM Hotline. 4.5 4 3.7 3 3.1 HAMP Estimated Eligible 60+ Day Delinquent Borrowers 2.9 2.9 2 2.1 1.9 Program to Date February 2,055,042 73,413 981,480 34,270 1.4 1.4 1 Call Center Volume Total Number of Calls Taken at 1-888995-HOPE Loans (Millions) 5 Page views on MakingHomeAffordable.gov (February 2011) HAMP-Eligible 60+ Day Delinquent Loans (GSE and SPA Servicers) 5.0 0 1st Lien, 60+ Days Delinquent Less: NonParticipating HAMP Servicer Less: FHA or VA Less: NonOwnerOccupied at Origination Less: Jumbo HAMPNonEligible Conforming Loans Loans and Loans Originated After 1/1/2009 Less: DTI Less Than 31% Less: Negative NPV Less: Vacant Properties And Other Exclusions** Estimated HAMPEligible Borrowers ** Other exclusions include: no longer owner-occupied; unemployed borrowers; investor’s pooling and servicing agreement precludes modification; and manufactured housing loans with titling/chattel issues that exclude them from HAMP. Note: Chart refers only to borrowers eligible for the first lien modification program. Sources: Fannie Mae; monthly survey of participating servicers for January 31, 2011. Total 60+ day delinquency figure derived from 4th Quarter 2010 MBA National Delinquency Survey. Excluded loans are as reported by large servicers by survey who have signed a servicer participation agreement for HAMP. 7 Revised 5/11/2011 Making Home Affordable Program Servicer Performance Report Through February 2011 Results of Compliance Second-Look Reviews (Q3 2010) Making Home Affordable-Compliance (MHA-C) conducts Second Look1 reviews of homeowner loan files that were not in HAMP modifications, to ensure that the servicers’ actions were appropriate. Results of Q3 2010 Second Look Reviews 100% 90% 80% 70% 60% 50% Average of Q3 Unable To Determine: 15.6% (YTD Average: 12.0%) 40% 30% 20% 10% Average of Q3 Disagrees: 4.0% (YTD Average: 3.7%) 0% AHMSI Bank Of America Citi MHA-C Disagrees Chase 2 GMAC Litton MHA‐C Unable To Determine 3 OneWest Wells GROUP AVERAGE MHA-C Agrees *Results for servicers with multiple operating platforms are averages across all platforms sampled. • MHA-C initially disagreed with the servicer’s actions (Disagree) related to 4.0% of the loans reviewed during the quarter (as compared to 3.7% YTD). • An average of 15.6% of initial loan file reviews resulted in an Unable to Determine status, above the YTD average of 12.0%. MHA-C is conducting targeted reviews to assess the reason for the increase. Additionally, American Home Mortgage Servicing Inc.’s increasing trend of loans in the Disagree category has been the subject of targeted follow-up; subsequent months have indicated improvement. Half of Litton Loan Servicing’s Disagrees for the month of August were resolved with additional documentation, and one of the drivers of the remaining disagrees relates to timing of borrower communications. • For Disagree or Unable to Determine results, actions typically required of servicers are: reevaluating loans not offered HAMP modifications; submitting additional documentation to support the initial denial reason; clarifying loan status; engaging in process remediation or other actions as directed by Treasury. For such results, servicers are reminded of their obligation to forestall foreclosure of the loan until the items are resolved. 1 Second • The results of MHA-C’s follow-up activities for Disagree and Unable to Determine loans are shown in the table below. Historically, 88% of Disagrees and 91% of Unable to Determine loans had outcomes commensurate with Program compliance objectives. Cleared Remediated Positive Outcome Negative Outcome Disagree 43% 17% 28% 12% Unable to Determine 50% 9% 32% 7% Note: Chart figures will not total 100%, as items currently being reviewed are omitted. • The results of Second Look reviews help determine the types of other compliance activities and the frequency with which those activities will be conducted. Please see Appendix B for a detailed description of compliance activities. Look Results are derived from a statistical sample of loan files for borrowers not in a HAMP modification (typically 100 loan files). Chart shows results for largest servicers; an additional 50 servicers were evaluated in the 3rd quarter of 2010. 2 Cases where the borrower was not appropriately solicited or evaluated for HAMP. 3 Cases where MHA-C was unable to determine if the servicer’s actions were appropriate without further information from the servicer. 8 Making Home Affordable Program Servicer Performance Report Through February 2011 Homeowner Experience (8 Largest Servicers) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through February) Average Speed to Answer Homeowner Calls (January) 60 Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for January: 5.1 Seconds 40 11% Program to Date Average: 6.5% 10% % of Calls for Specific Servicer 50 Seconds Program to date, there have been 1,007,086 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.5% included complaints. Below shows specific complaint rates. 30 20 9% 8% 7% 6% 5% 10 4% 3% 0 Calls to Bank of Servicer: America NA OneWest Am. Home Servicing GMAC CitiMortgage Wells Fargo Litton JP Morgan Chase NA Source: Survey data through January 31, 2011 from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. 13,202 Bank of America NA 21,707 Litton GMAC Am. Home Servicing 1,417 2,634 1,827 CitiMortgage Wells Fargo 5,685 8,759 Source: Homeowner’s HOPETM Hotline. Note: Complaint rate is the share of a specific servicer’s call volume that are complaints (e.g., for all calls about OneWest, 10.4% included complaints.) Homeowner’s HOPETM Hotline Average Call Abandon Rate for January: 1.5% 60 Target: 30 Calendar Days 50 Calendar Days 4% JP Morgan Chase NA Servicer Time to Resolve Third-Party Escalations (Program to Date, Through February) Call Abandon Rate (January) 5% OneWest Complaints (PTD): 217 3% 2% 1% 40 30 20 10 0 0% Bank of America Wells Fargo Litton Am. Home Servicing JP Morgan Chase NA CitiMortgage OneWest Source: Survey data through January 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. GMAC Bank of America NA Resolved: 4,250 Cases (PTD) JP Morgan Chase NA Am. Home Servicing OneWest 2,606 362 637 CitiMortgage Wells Fargo 959 Litton GMAC 500 696 2,471 Source: HAMP Solutions Center. Target of 30 calendar days, effective Feb. 1, 2011, includes an estimated 5 days processing by HAMP Solutions Center. 9 Making Home Affordable Program Servicer Performance Report Through February 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 60 235 295 0.0% MT 172 606 778 0.1% AL 866 3,218 4,084 0.6% NC 2,479 10,337 12,816 1.8% AR 311 1,224 1,535 0.2% ND 28 94 122 0.0% AZ 5,547 26,943 32,490 4.6% NE 207 750 957 0.1% CA 32,910 132,881 165,791 23.7% NH 649 2,577 3,226 0.5% CO 1,658 7,827 9,485 1.4% NJ 4,597 17,938 22,535 3.2% CT 1,664 7,080 8,744 1.3% NM 476 1,763 2,239 0.3% DC 240 945 1,185 0.2% NV 3,507 14,632 18,139 2.6% DE 454 1,717 2,171 0.3% NY 6,875 24,841 31,716 4.5% FL 18,606 65,555 84,161 12.0% OH 3,218 12,525 15,743 2.3% GA 5,387 20,257 25,644 3.7% OK 387 1,258 1,645 0.2% HI 586 2,111 2,697 0.4% OR 1,481 6,112 7,593 1.1% IA 391 1,412 1,803 0.3% PA 2,971 11,570 14,541 2.1% ID 574 2,114 2,688 0.4% RI 707 2,908 3,615 0.5% IL 7,586 30,089 37,675 5.4% SC 1,355 5,297 6,652 1.0% IN 1,457 5,473 6,930 1.0% SD 56 223 279 0.0% KS 359 1,302 1,661 0.2% TN 1,544 5,703 7,247 1.0% KY 557 2,119 2,676 0.4% TX 4,229 14,117 18,346 2.6% LA 973 2,903 3,876 0.6% UT 1,247 5,261 6,508 0.9% MA 3,412 13,947 17,359 2.5% VA 3,175 13,753 16,928 2.4% MD 4,446 17,951 22,397 3.2% VT 127 455 582 0.1% ME 437 1,522 1,959 0.3% WA 2,887 10,831 13,718 2.0% MI 4,385 18,652 23,037 3.3% WI 1,450 5,507 6,957 1.0% MN 2,110 10,179 12,289 1.8% WV 190 867 1,057 0.2% MO 1,484 5,918 7,402 1.1% WY 62 293 355 0.1% MS 533 2,155 2,688 0.4% Other* 1,170 1,129 2,299 0.3% HAMP Modifications * 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 10 Making Home Affordable Program Servicer Performance Report Through February 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 9,606 38,492 48,098 6.9% 8,854 33,966 42,820 6.1% 6,728 29,751 36,479 5.2% 7,307 29,082 36,389 5.2% Servicer GSE Private Portfolio Total 83,755 48,823 7,439 140,017 42,871 35,243 15,992 94,106 46,883 13,782 32,116 92,781 CitiMortgage, Inc. 29,127 4,376 16,526 50,029 GMAC Mortgage, LLC 23,056 5,881 10,808 39,745 Ocwen Loan Services LLC 6,954 23,490 135 30,579 Bank of America, NA1 JP Morgan Chase NA2 Wells Fargo Bank, NA 3 Miami-Fort Lauderdale-Pompano Beach, FL 7,764 25,863 33,627 4.8% Nationstar Mortgage LLC 20,380 5,523 1,319 27,222 Phoenix-Mesa-Glendale, AZ 4,427 22,209 26,636 3.8% OneWest Bank 12,881 11,914 1,992 26,787 Washington-Arlington-Alexandria, DC-VA-MD-WV 4,431 19,339 23,770 3.4% American Home Mortgage Servicing Inc. 1,325 22,727 0 24,052 Atlanta-Sandy Springs-Marietta, GA 4,305 16,386 20,691 3.0% Select Portfolio Servicing 501 16,705 2,437 19,643 Las Vegas-Paradise, NV 2,931 12,015 14,946 2.1% Aurora Loan Services, LLC 7,307 7,693 215 15,215 Detroit-Warren-Livonia, MI 2,704 11,255 13,959 2.0% Saxon Mortgage Services Inc. 1,475 11,363 1,586 14,424 US Bank NA 8,332 20 3,928 12,280 Orlando-Kissimmee-Sanford, FL 2,860 10,514 13,374 1.9% 87 10,266 19 10,372 San Francisco-Oakland-Fremont, CA 2,823 10,152 12,975 1.9% PNC Mortgage4 5,041 284 500 5,825 2,416 9,981 12,397 1.8% Green Tree Servicing LLC 5,386 400 17 5,803 Remainder of HAMP Servicers 78,464 6,436 5,535 90,435 Total 373,825 224,926 100,564 699,315 Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-ArcadeRoseville, CA San Diego-Carlsbad-San Marcos, CA 2,342 9,495 11,837 1.7% 2,262 9,491 11,753 1.7% A complete list of HAMP activity for all MSAs is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ Litton Loan Servicing LP 1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loans Services and Wilshire Credit Corporation. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 4 Formerly National City Bank. 2 J.P. Note: Figures reflect active trials and permanent modifications. 11 Making Home Affordable Program Servicer Performance Report Through February 2011 Appendix A1: Non-GSE Participants in HAMP Servicers participating in the HAMP First Lien Modification Program may also offer additional support for homeowners, including Home Affordable Foreclosure Alternatives (HAFA), a forbearance for unemployed borrowers through the Unemployment Program (UP), 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 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 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 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. 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 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 Vantium Capital, Inc. Vist Financial Corp. Wealthbridge Mortgage Corp. Wells Fargo Bank, NA4 Wescom Central Credit Union Yadkin Valley Bank 12 Making Home Affordable Program Servicer Performance Report Through February 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. 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. 13 Making Home Affordable Program Servicer Performance Report Through February 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, in their servicing of 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 HAMP. Areas covered include, but are not limited to, 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 or 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 guidance. 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, and conducts on-site reviews as necessary to evaluate data submission issues. 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. (See next page for Areas of Compliance Emphasis) 14 Making Home Affordable Program Servicer Performance Report Through February 2011 Appendix B2: Areas of Compliance Emphasis The past two years have seen substantive change in MHA programs as well as in the MHA operations of participating servicers. As new programs have been implemented and guidance has matured, Treasury’s compliance goal first and foremost has been to ensure that homeowners are appropriately treated in accordance with MHA guidelines and have the opportunity to avoid foreclosure. In 2011, Treasury will focus more intently on ensuring that servicers are maturing their MHA processes, accurately and timely processing MHA transactions, and employing appropriate internal governance efforts. Treasury will accomplish this by conducting more targeted or focused reviews, assessing servicer Quality Assurance or Internal Audit coverage of MHA activities, and enhancing the level of compliance-related information included in the MHA monthly reports. The following are current areas of emphasis for MHA‐C. Cancellations Servicers are required to comply with HAMP guidance when canceling loans in HAMP trials. The Second Look review process conducted by MHA-C has, and will continue to include, a focus on evaluating servicers’ cancellation activities, especially those around servicers’ timely and appropriate decisioning and borrower communications. MHA-C has performed targeted reviews of the cancellations of aged trials and will continue these reviews over the course of the next several months. MHA-C is evaluating 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. Servicers are required to maintain documentation supporting cancellation decisions and evidence that borrower notifications are provided timely with all required information. Pre-Foreclosure Certification Due to recent concerns around foreclosures and the issuance of related guidance in June 2010, MHA-C is focusing 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 MHA programs 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’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 continue to be a focus. MHA-C 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 continue to review servicers’ calculations for accuracy and consistency with HAMP guidelines. 15
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