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Making Home Affordable Program Performance Report Through March 2011 Report Highlights Inside: Over 670,000 Homeowners Granted Permanent Modifications SUMMARY RESULTS: • More than 36,000 new permanent modifications were reported in March; some began in prior months and were recently entered into the HAMP system of record. • Homeowners granted permanent modifications realize aggregate reductions in monthly mortgage payments of nearly $5.9 billion, program to date. • Additionally, servicers continue to start trial modifications at a steady pace, averaging about 29,000 new trial modifications for the last six months. • More than 1.5 million homeowners have entered trial modifications since program inception. Permanent Modifications Perform Well Over Time; Larger Payment Reductions Exhibit Stronger Performance • Homeowners whose housing payment was cut by more than 50% through a HAMP permanent modification performed significantly better than those with payment reductions of 20% or less. After one year, fewer than 12% of borrowers with a payment reduction greater than 50% were 60+ days delinquent. • At 12 months, more than 84% of homeowners remain in HAMP permanent modifications. The remaining 16% have been disqualified from the program for missing three consecutive payments. • HAMP permanent modifications continue to be sustained at better rates than industry modifications. Snapshot of MHA Programs Characteristics of First Lien Modifications Performance of Permanent Modifications HAMP Activity by State HAMP Activity by MSA/ Homeowner Outreach Aged Trials 2 3 4-5 6 7 8 SERVICER RESULTS: Modification Activity by Servicer 9 Trial Length 10 Conversion Rate 11 Disposition of Homeowners Not in HAMP 12-13 Homeowner Experience 14 Modifications by Investor Type 15 Inside: Improved Report Format APPENDICES: • Revamped presentation includes program-level data first, followed by servicer-specific performance data. • Expanded chart sizes for easier readability. Participants in MHA Programs Definitions of Compliance Activities Areas of Compliance Emphasis 16-17 18 19 Making Home Affordable: Summary Results Program Performance Report Through March 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 Feb. 28, 2011) Trial Modifications Permanent Modifications Eligible Delinquent Loans1 2,813,406 Eligible Delinquent Borrowers2 1,341,857 Trial Plan Offers Extended (Cumulative)3 1,820,372 All Trials Started 1,559,023 The Second Lien Modification Program (2MP) provides assistance to homeowners in a first lien permanent modification who have an eligible second lien with a participating servicer. All Second Lien Modifications Started 21,298 Note: Number of modifications is net of cancellations, which are primarily due to servicer data corrections. Home Affordable Foreclosure Alternatives (HAFA) Activity 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. Trials Reported Since February 2011 Report4 36,827 Trial Modifications Canceled (Cumulative) 751,474 All HAFA Agreements Started1 12,266 Active Trials 137,363 HAFA Transactions Completed 5,447 All Permanent Modifications Started 670,186 Permanent Modifications Reported Since February 2011 Report 36,432 Permanent Modifications Canceled (Cumulative)5 83,270 Active Permanent Modifications 586,916 1 Estimated eligible 60+ day delinquent loans as reported by servicers as of February 28, 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 31, 2011. 4 Servicers may enter new trial modifications into the HAMP system of record at anytime. 5 A permanent modification is canceled when the borrower has missed three consecutive monthly payments. Includes 1,126 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. 1 Servicer 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 and mortgage insurers to complete the transaction. All HAFA Agreements Started include HAFA Transactions Completed. Treasury FHA-HAMP Modification Activity The Treasury FHA-HAMP program provides assistance to eligible homeowners with FHA-insured mortgages. All Treasury FHA-HAMP Trial Modifications Started 3,860 Treasury FHA-HAMP Permanent Modifications Started 2,414 See Appendix A2 on Page 17 for servicer participants in additional Making Home Affordable programs. 2 Making Home Affordable: Summary Results Program Performance Report Through March 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 1,330 1,353 1,384 1,414 1,444 1,478 1,506 1,537 1,559 200 • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total nearly $5.9 billion, program to date, compared with unmodified mortgage obligations. 150 1,138 1,051 100 956 800 50 New Trials Started (000s) 1,600 Homeowner Benefits and Modification Characteristics • The median monthly savings for borrowers in active permanent first lien modifications is $525.94, or 37% of the median monthly payment before modification. • 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. • The primary hardship reasons for homeowners in active permanent modifications are: 400 0 Dec '09 Jan '10 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan '11 Feb • 61.0% experienced loss of income (curtailment of income or unemployment) • 11.5% reported excessive obligation • 2.8% reported an illness of the principal borrower Mar Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 36,827 trials have entered the HAMP system of record since the prior report; of those, 22,002 were trials with a first payment recorded in March 2011. Permanent Modifications Started (Cumulative) All Permanent Modifications Started (000s) 700 600 500 398 400 435 468 496 520 550 580 608 634 • Active permanent modifications feature the following modification steps: Select Median Characteristics of Active Permanent Modifications 347 Loan Characteristic 299 300 231 200 170 67 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 79.3% 62.5% -14.8 pct pts $1,430.76 $833.03 -$525.94 Median Monthly Housing Payment3 117 100 • 100% feature interest rate reductions • 59.5% offer term extension • 30.5% include principal forbearance 670 1 0 Dec '09Jan '10 Feb Mar Source: HAMP system of record. Apr May June July Aug Sep Oct Nov Dec Jan '11 Feb Mar 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: Summary Results Program Performance Report Through March 2011 Performance of Permanent Modifications (As of February 28, 2011) 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 3rd quarter of 2010, 10.8% 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 3,584 9.8% 3.5% 4,457 14.9% 9.8% 4,713 19.6% 14.9% 4,701 25.4% 20.6% Q4 2009 44,375 5.3% 1.4% 48,241 9.6% 5.7% 51,105 15.3% 10.6% 52,291 19.9% 15.3% Q1 2010 125,805 3.7% 1.0% 152,605 9.7% 5.3% 160,638 16.0% 11.1% 164,881 20.2% 16.0% Q2 2010 150,535 5.0% 1.4% 160,335 11.8% 7.0% 171,461 16.9% 12.4% Q3 2010 86,928 4.7% 1.4% 97,052 10.8% 6.7% Q4 2010 58,592 4.3% 1.5% ALL 469,819 4.6% 1.3% 462,690 10.7% 6.3% 387,917 16.4% 11.7% 221,873 20.3% 15.9% • For permanent loans aged at least 3 months as of Feb. 28, 2011, as reported by servicers through March 17, 2011. • 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. • 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 63,807 disqualified loans that have aged 3, 6, 9, or 12 months through the February activity period as reported by servicers through March 17, 2011. • 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. • Beyond 12 months, performance will be noted in 6-month increments, beginning next quarter. This table will be published quarterly. 4 Making Home Affordable: Summary Results Program Performance Report Through March 2011 Performance of Permanent Modifications by Homeowner Payment Reduction (As of February 28, 2011) This chart and the table that follows show the performance of permanent HAMP modifications at 3, 6, 9, and 12 months of age as related to homeowner payment reduction. For example: Of loans that featured a payment reduction between 40% and 50%, 8.5% were 60+ days delinquent at six months’ seasoning. 60+ Day Delinquency Rate by Payment Reduction 40% 60+ Day Delinquency Rate Decreased by 20% or less 30% Decreased above 20% up to and including 30% Decreased above 30% up to and including 40% 20% Decreased above 40% up to and including 50% 10% Decreased by more than 50% 0% 3 6 9 12 Months After Conversion to Permanent Modification Delinquency: Months After Conversion to Permanent Decrease From BeforeModification Principal + Interest Payment: 3 6 9 12 # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days ≤20% Decrease 91,083 7.9% 2.4% 89,511 18.1% 11.1% 75,272 26.7% 19.7% 41,780 32.1% 26.0% (20%-30%] Decrease 73,787 5.7% 1.7% 72,587 13.4% 7.9% 60,756 20.3% 14.7% 34,805 25.0% 20.0% (30%-40%] Decrease 83,334 4.4% 1.2% 82,038 10.5% 6.2% 68,907 16.3% 11.6% 40,158 20.7% 16.1% (40%-50%] Decrease 86,001 3.5% 0.9% 84,464 8.5% 4.8% 70,558 13.3% 9.2% 41,047 17.1% 13.1% >50% Decrease 135,614 2.6% 0.6% 134,090 5.9% 3.1% 112,424 9.2% 6.2% 64,083 11.7% 8.8% ALL 469,819 4.6% 1.3% 462,690 10.7% 6.3% 387,917 16.4% 11.7% 221,873 20.3% 15.9% Note: For permanent loans aged at least 3 months as of Feb. 28, 2011, as reported by servicers through March 17, 2011. See previous page for technical notes. 5 Making Home Affordable: Summary Results Program Performance Report Through March 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 54 251 305 0.0% MT 175 649 824 0.1% AL 868 3,393 4,261 0.6% NC 2,338 10,910 13,248 1.8% AR 302 1,285 1,587 0.2% ND 24 101 125 0.0% AZ 5,157 27,926 33,083 4.6% NE 201 794 995 0.1% 172,72 23.8% 8 NH 590 2,737 3,327 0.5% CA 33,459 139,269 CO 1,597 8,222 9,819 1.4% NJ 4,413 18,935 23,348 3.2% CT 1,585 7,464 9,049 1.2% NM 481 1,864 2,345 0.3% DC 231 999 1,230 0.2% NV 3,389 15,296 18,685 2.6% DE 429 1,817 2,246 0.3% NY 6,610 26,378 32,988 4.6% FL 17,866 69,194 87,060 12.0% OH 3,140 13,176 16,316 2.3% GA 5,075 21,408 26,483 OK 384 1,338 1,722 0.2% 3.7% HI 531 2,249 2,780 0.4% OR 1,439 6,421 7,860 1.1% IA 366 1,483 1,849 0.3% PA 2,838 12,245 15,083 2.1% ID 541 2,244 2,785 0.4% RI 674 3,079 3,753 0.5% IL 7,188 31,727 38,915 5.4% SC 1,268 5,580 6,848 0.9% IN 1,371 5,770 7,141 1.0% SD 52 226 278 0.0% KS 359 1,378 1,737 0.2% TN 1,516 6,030 7,546 1.0% KY 550 2,238 2,788 0.4% TX 4,048 15,027 19,075 2.6% LA 933 3,106 4,039 0.6% UT 1,191 5,540 6,731 0.9% MA 3,172 14,738 17,910 2.5% VA 2,923 14,513 17,436 2.4% MD 4,102 19,016 23,118 3.2% VT 119 484 603 0.1% ME 386 1,636 2,022 0.3% WA 2,879 11,470 14,349 2.0% MI 4,165 19,652 23,817 3.3% WI 1,408 5,785 7,193 1.0% MN 2,038 10,595 12,633 1.7% WV 178 903 1,081 0.1% MO 1,476 6,208 7,684 1.1% WY 63 308 371 0.1% MS 493 2,281 2,774 0.4% Other* 728 1,578 2,306 0.3% *Includes Guam, Puerto Rico and the U.S. Virgin Islands. Note: Total reflects active trials and active permanent modifications. HAMP Modifications 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 6 Making Home Affordable: Summary Results Program Performance Report Through March 2011 Call Center Volume 15 Metropolitan Areas With Highest HAMP Activity Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA New York-Northern New JerseyLong Island, NY-NJ-PA Riverside-San Bernardino-Ontario, CA Active Trials Total Permanent HAMP Modifications Activity Program to Date March Total Number of Calls Taken at 1-888-995-HOPE 2,136,421 81,379 Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,020,770 39,290 % of All HAMP Activity 9,874 40,538 50,412 7.0% 8,513 35,938 44,451 6.1% 6,716 31,053 37,769 5.2% Chicago-Joliet-Naperville, IL-IN-WI 6,913 30,686 37,599 5.2% Miami-Fort Lauderdale-Pompano Beach, FL 7,610 27,445 35,055 4.8% Phoenix-Mesa-Glendale, AZ 4,084 22,992 27,076 3.7% Washington-Arlington-Alexandria, DC-VA-MD-WV 4,037 20,433 24,470 3.4% Atlanta-Sandy Springs-Marietta, GA 4,058 17,306 21,364 2.9% Las Vegas-Paradise, NV 2,840 12,540 15,380 2.1% Detroit-Warren-Livonia, MI 2,537 11,870 14,407 2.0% Orlando-Kissimmee-Sanford, FL 2,621 11,075 13,696 1.9% Servicer Solicitation of Borrowers (cumulative)1 7,356,933 San Francisco-Oakland-Fremont, CA 2,991 10,638 13,629 1.9% 2,458,228 2,204 10,576 12,780 1.8% Page views on MakingHomeAffordable.gov (March 2011) 2,385 9,948 12,333 1.7% 2,267 9,971 12,238 1.7% Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-ArcadeRoseville, CA San Diego-Carlsbad-San Marcos, CA Source: Homeowner’s HOPETM Hotline. Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) Page views on MakingHomeAffordable.gov (cumulative) 52 52,229 115,426,330 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. Note: Total reflects active trials and active permanent modifications. A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ 7 Making Home Affordable: Summary Results Program Performance Report Through March 2011 Aged Trials1 200,000 190,412 The volume of trials lasting 6 months or longer has fallen to below 26,400. 165,543 Program guidance directs servicers to cancel or convert trial modifications after three or four monthly payments, depending on circumstances. 150,000 117,574 94,269 100,000 76,502 69,418 49,229 50,000 39,753 36,184 32,017 26,362 0 May 2010 June July Aug Sept Oct Nov Dec Jan 2011 Feb March Trials Lasting 6 Months or Longer At End of Month 1 Active trials initiated at least six months ago. See page 9 for servicer volume of aged-trials. These figures include trial modifications that have been converted to permanent modifications by the servicer and are pending reporting to the HAMP system of record. 8 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 HAMP Modification Activity by Servicer As of Feb. 28, 2011 Servicer American Home Mortgage Servicing Inc. Aurora Loan Services, LLC Bank of America, NA5 CitiMortgage, Inc. GMAC Mortgage, LLC Green Tree Servicing LLC J.P. Morgan Chase Bank, NA6 Litton Loan Servicing LP Nationstar Mortgage LLC Ocwen Loan Services LLC OneWest Bank PNC Mortgage7 Saxon Mortgage Services, Inc. Select Portfolio Servicing US Bank NA Wells Fargo Bank, NA8 Other SPA Servicers9 Other GSE Servicers10 Total 1 Estimated Cumulative All HAMP Trials Started3 All HAMP Permanent Modifications Started3 34,748 31,597 23,472 50,633 509,907 174,885 71,699 8,274 299,987 41,072 31,173 46,364 67,493 24,310 43,010 66,986 16,254 307,687 25,890 NA 39,722 378,584 129,545 59,477 9,854 241,843 36,111 54,355 43,242 50,533 19,332 37,959 41,197 16,569 223,052 24,502 121,549 Trial Plan Offers Extended2 49,370 27,673 383,154 93,451 14,093 5,975 199,075 40,265 31,566 40,796 40,289 12,557 21,022 16,813 13,617 153,401 18,822 179,918 1,341,857 eligible 60+ day delinquent borrowers as reported by servicers as of February 28, 2011, include those in conventional loans: in foreclosure and bankruptcy. with a current unpaid principal balance less than $729,750 on a oneunit 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 As of March 31, 2011 Trial Modifications Reported Since February 2011 Report3 Estimated Eligible 60+ Day Delinquent Borrowers1 1,820,372 1,559,023 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 1,670 4,035 1,085 20,762 15,319 123,296 49,886 41,688 5,606 90,782 10,767 26,191 32,136 26,438 5,782 15,061 21,193 11,148 89,134 15,220 67,067 315 12,622 1,140 1,385 98 8,190 227 651 723 698 105 191 217 449 3,628 872 3,646 1,908 43,439 6,032 3,761 678 24,688 1,874 2,501 4,816 3,250 707 1,057 1,441 2,546 15,536 1,995 17,099 195 9,364 1,740 75 170 2,315 200 552 940 453 38 312 145 699 1,709 472 5,898 13,619 107,010 44,736 36,650 5,175 75,973 8,924 23,629 26,058 23,879 5,244 13,473 18,254 9,888 80,111 13,244 60,287 670,186 36,827 137,363 26,362 586,916 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 March 31, 2011. 3 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. Servicers may enter new trial modifications into the HAMP system of record at any time. 4 These figures include trial modifications that have been converted to permanent modifications by the servicer and are pending reporting to the HAMP system of record. 5 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 6 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 7 Formerly National City Bank. 8 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 9 Other SPA servicers are entities with less than 5,000 estimated eligible 60+ day delinquent borrowers as of February 28, 2011, that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A. 10 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans transferred from SPA servicers. 9 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Length of Trial Upon Conversion1 8 7.6 7 Servicers are directed to cancel or convert trial modifications after three or four monthly payments, depending on circumstances. 6.3 6.3 6 Months 5 Program Average: 4.8 Months 4.9 4.6 3.9 4 3.3 3 4.4 4.4 4.2 3.6 3.6 3.3 3.0 3.7 3.6 Other GSE servicers Other SPA Servicers 3.2 3.1 2 1 0 Am. Home Servicing 1 Aurora Bank of America CitiMortgage GMAC Green Tree JP Morgan Chase Litton Nationstar Ocwen OneWest PNC Mortgage Saxon SPS US Bank Wells Fargo For all permanent modifications started. 10 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Conversion Rate1 Of Trials Started Pre-6/1/10: 41% Converted to Permanent Modification 1% Pending Processing or Decision 100% Following the implementation of verified income documentation in June 2010, rates of converting trial modifications into permanent modifications rose for most servicers. Of Eligible Trials Started Post-6/1/10: 68% Converted to Permanent Modification 23% Pending Processing or Decision 80% 78% 79% 78% 74% 73% 84% 82% 76% 81% 75% 75% 70% 67% Conversion Rate 65% 60% 61% 57% 54% 55% 40% 20% 0% Am. Home Servicing Aurora Bank of America CitiMortgage GMAC Green Tree JPMorgan Chase Litton Nationstar Average of Post 6/1/10 Starts Ocwen OneWest PNC Mortgage Saxon SPS U.S. Bank Wells Fargo Other GSE Servicers Other SPA Servicers Average of Pre-6/1/10 Starts 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. As measured against trials eligible to convert – those three months in trial, or four months if the borrower was at risk of imminent default at trial modification start. Permanent modifications transferred among servicers are credited to the originating servicer. Trial modifications transferred are reflected in the current servicer’s population. 1 11 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through February 2011 (10 Largest Servicers) Homeowners Whose HAMP Trial Modification Was Canceled Who Are in the Process of: Action Pending1 Servicer American Home Mortgage Servicing Inc. 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 February 2011) 392 36 145 1,906 17 76 171 409 50 3,202 39,876 5,591 24,671 77,006 1,931 3,143 23,632 26,454 5,025 207,329 CitiMortgage Inc. 17,139 3,718 5,654 29,449 1,009 1,480 1,767 9,630 2,090 71,936 GMAC Mortgage, LLC 1,628 417 1,086 5,776 220 334 790 1,766 1,231 13,248 JP Morgan Chase Bank NA4 8,740 795 3,809 59,416 446 4,056 5,652 22,824 9,819 115,557 Litton Loan Servicing LP 2,618 599 1,725 12,430 298 152 1,176 2,059 743 21,800 Ocwen Loan Services LLC 382 106 372 2,434 378 32 297 1,679 523 6,203 OneWest Bank 707 813 596 9,762 352 27 1,010 4,153 3,231 20,651 Select Portfolio Servicing 1,607 519 1,462 5,582 426 301 1,219 2,317 2,363 15,796 Wells Fargo Bank NA5 2,354 738 13,292 59,224 943 8,630 4,485 17,528 11,194 118,388 TOTAL (These 10 Largest Servicers) 75,443 12.7% 13,332 2.2% 52,812 8.9% 262,985 44.3% 6,020 1.0% 18,231 3.1% 40,199 6.8% 88,819 14.9% 36,269 6.1% 594,110 100.0% Bank of America, NA3 Note: Data is as reported by servicers for actions completed through February 28, 2011. Survey data is not subject to the same data quality checks as data uploaded into the HAMP system of record. 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 12 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through February 2011 (10 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 February 2011) American Home Mortgage Servicing Inc. 1,585 734 6,148 24,533 674 465 1,237 5,307 751 41,434 Bank of America, NA3 35,331 6,170 49,230 79,003 3,312 3,332 31,154 47,625 15,775 270,932 CitiMortgage Inc. 36,202 8,157 11,746 29,503 6,234 13,367 1,876 8,176 5,472 120,733 GMAC Mortgage, LLC 24,754 6,294 33,942 38,500 4,323 2,802 6,541 21,805 11,344 150,305 JP Morgan Chase Bank NA4 73,530 4,237 87,100 109,228 1,325 34,995 14,081 47,468 12,917 384,881 Litton Loan Servicing LP 8,576 3,748 8,006 15,884 998 613 4,422 8,439 3,495 54,181 Ocwen Loan Services LLC 7,647 1,886 17,805 30,597 6,935 1,488 4,988 15,653 5,899 92,898 OneWest Bank 5,665 2,985 24,722 10,318 2,198 809 2,767 13,892 6,277 69,633 Select Portfolio Servicing 2,741 336 2,431 3,141 342 148 606 1,732 966 12,443 Wells Fargo Bank NA5 16,130 4,139 45,151 55,183 1,758 10,542 11,613 17,993 13,629 176,138 TOTAL (These 10 Largest Servicers) 212,161 15.4% 38,686 2.8% 286,281 20.8% 395,890 28.8% 28,099 2.0% 68,561 5.0% 79,285 5.8% 188,090 13.7% 76,525 5.6% 1,373,578 100.0% Note: Data is as reported by servicers for actions completed through February 28, 2011. Survey data is not subject to the same data quality checks as data uploaded into the HAMP system of record. 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 13 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Homeowner Experience (10 Largest Servicers) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through March) Average Speed to Answer Homeowner Calls (February) 80 70 Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for February: 16.6 Seconds 50 11% Program to Date Average: 6.5% 10% % of Calls for Specific Servicer 60 Seconds Program to date, there have been 1,048,710 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.5% included complaints. Below shows specific complaint rates. 40 30 20 9% 8% 7% 6% 5% 10 4% 0 3% Calls to Servicer: Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo Source: Survey data through February 28, 2011 from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Call Abandon Rate (February) Bank of America CitiMortgage 22,982 5,882 GMAC JP Morgan Chase 2,743 13,789 Litton Ocwen 1,465 1,961 OneWest 224 SPS Wells Fargo 556 9,110 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, 10.3% included complaints.) Servicer Time to Resolve Third-Party Escalations (Program to Date, Through March) 6% Homeowner’s HOPETM Hotline Average Call Abandon Rate for February: 3.4% 5% Am. Home Servicing Complaints (PTD): 1,901 Target: 30 Calendar Days 60 50 Calendar Days 4% 3% 2% 40 30 20 10 1% 0 0% Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Source: Survey data through February 28, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Wells Fargo Am. Home Servicing Resolved: 407 Cases (PTD) Bank of America 4,966 CitiMortgage 1,044 GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo 747 3,015 529 516 709 173 2,694 Source: HAMP Solutions Center. Target of 30 calendar days, effective Feb. 1, 2011, includes an estimated 5 days of processing by HAMP Solutions Center. 14 Making Home Affordable: Servicer Results Program Performance Report Through March 2011 Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications Bank of America, NA1 88,716 53,453 8,280 150,449 JP Morgan Chase NA2 46,116 36,962 17,583 100,661 Wells Fargo Bank, NA 3 47,253 13,928 34,466 95,647 CitiMortgage, Inc. 29,638 4,460 16,670 50,768 GMAC Mortgage, LLC 23,525 5,955 10,931 40,411 Ocwen Loan Services LLC 7,065 23,676 133 30,874 OneWest Bank 13,023 12,070 2,036 27,129 Nationstar Mortgage LLC 19,264 5,571 1,295 26,130 American Home Mortgage Servicing Inc. 1,317 23,477 3 24,797 510 16,713 2,472 19,695 Aurora Loan Services, LLC 7,321 7,987 219 15,527 Saxon Mortgage Services Inc. 1,505 11,299 1,726 14,530 US Bank NA 8,311 20 4,103 12,434 92 10,694 12 10,798 PNC Mortgage4 5,157 296 498 5,951 Green Tree Servicing LLC 5,427 408 18 5,853 Other HAMP Servicers 80,209 6,636 5,780 92,625 Total 384,449 233,605 106,225 724,279 Servicer Select Portfolio Servicing Litton Loan Servicing LP 1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan 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 active permanent modifications. 15 Making Home Affordable Program Performance Report Through March 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). 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 CitiMortgage, Inc. Citizens 1st National 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 Franklin Credit Management Corporation Franklin Savings Fresno County 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 Marix Servicing, LLC Midland Mortgage Company Midwest Bank & Trust Co. Midwest Community Bank Mission Federal Credit Union 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. MorEquity, Inc. Mortgage Center, LLC 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 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 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 16 Making Home Affordable Program Performance Report Through March 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. 17 Making Home Affordable Program Performance Report Through March 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) 18 Making Home Affordable Program Performance Report Through March 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. 19
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