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Making Home Affordable Program Performance Report Through April 2011 Report Highlights Inside: Nearly 700,000 Permanent Modifications Started SUMMARY RESULTS: • Homeowners receiving permanent modifications have realized aggregate savings in monthly mortgage payments of more than $6.3 billion, program to date. • Nearly 29,000 new permanent modifications reported in April, in line with the sixmonth average. • Borrowers in active permanent modifications save a median of $526, or 37% of their before-modification monthly housing payment. • Servicers reported over 29,000 new trial modifications, in line with the average for the past six months. • Of trial modifications started since June 2010, 70% have been converted to permanent modifications. • Of trial modifications started since June 2010 that became permanent modifications, the average length of a trial modification was 3.5 months, down from 5.2 months for trials started before June 2010. New This Month: Servicer Assessments • The Obama Administration sets a new industry benchmark for disclosure on assistance to homeowners with the release of detailed Servicer Assessments. Beginning with this report, Treasury is publishing quarterly assessments of performance by the 10 largest program participants. • Going forward, Treasury hopes these assessments will also set the standard for transparency about mortgage servicer efforts to assist homeowners. • For the first quarter of 2011, four servicers have been determined to need substantial improvement. Treasury is withholding financial incentives from three servicers. Snapshot of MHA Programs Characteristics of First Lien Modifications HAMP Activity by State HAMP Activity by MSA/ Homeowner Outreach Aged Trials 2 3 4 5 6 SERVICER RESULTS: Modification Activity by Servicer Trial Length Conversion Rate Disposition of Homeowners Not in HAMP Homeowner Experience Modifications by Investor Type 7 8 9 10-11 12 13 SERVICER ASSESSMENT RESULTS: Overview Servicer Results Description of Metrics 14-16 17-36 37 APPENDICES: Participants in MHA Programs 38-39 Making Home Affordable: Summary Results Program Performance Report Through April 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 Mar. 31, 2011) Eligible Delinquent Loans1 2,684,832 Eligible Delinquent Borrowers2 Trial Plan Offers Extended Permanent Modifications Trials Reported Since March 2011 All Second Lien Modifications Started 25,478 Note: Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 1,095,151 (Cumulative)3 All Trials Started Trial Modifications 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. 1,819,480 1,588,034 Report4 29,011 Trial Modifications Canceled (Cumulative) 753,041 Active Trials 135,940 All Permanent Modifications Started 699,053 Permanent Modifications Reported Since March 2011 Report 28,867 Permanent Modifications Canceled (Cumulative)5 90,438 Active Permanent Modifications 608,615 1 Estimated eligible 60+ day delinquent loans as reported by servicers as of March 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, unemployed borrowers, 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. Effective March 2011, estimate excludes borrowers disqualified from active HAMP trial and permanent modifications. 3 As reported in the weekly servicer survey of large SPA servicers through April 28, 2011. Bank of America has restated number of trial offers extended from previous month. 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 1,242 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. 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. All HAFA Agreements Started1 14,893 HAFA Transactions Completed 7,113 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 4,261 Treasury FHA-HAMP Permanent Modifications Started 2,739 See Appendix A2 for servicer participants in additional Making Home Affordable programs. 2 Making Home Affordable: Summary Results Program Performance Report Through April 2011 HAMP Trials Started 1,539 Cumulative Trial Starts (Left Axis) All Trials Started (000s) Monthly Trial Starts (Right Axis) 1,208 1,200 1,256 1,282 1,304 1,329 1,352 1,383 1,413 1,444 1,478 1,568 1,588 200 • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total more than $6.3 billion, program to date, compared with unmodified mortgage obligations. 1,507 150 1,137 1,050 100 955 800 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 $526.06, or 37% of the median monthly payment before modification. • Of trial modifications started, 79% of homeowners were at least 60 days delinquent at trial start. The rest were up to 59 days delinquent or current and 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 Mar • 60.7% experienced loss of income (curtailment of income or unemployment) • 11.4% reported excessive obligation • 2.8% reported an illness of the principal borrower Apr Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 29,011 trials have entered the HAMP system of record since the prior report; of those, 20,531 were trials with a first payment recorded in April 2011. Permanent Modifications Started (Cumulative) All Permanent Modifications Started (000s) 700 600 500 398 400 435 468 496 520 550 580 608 634 670 • Active permanent modifications feature the following modification steps: 699 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 78.9% 62.1% -14.7 pct pts $1,430.35 $832.98 -$526.06 Median Monthly Housing Payment3 117 100 • 100% feature interest rate reductions • 59.5% offer term extension • 30.5% include principal forbearance 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 Apr 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 April 2011 HAMP Activity by State State % of U.S. Active Permanent State HAMP Trials Modifications Total1 Activity State Modification Activity by State % of U.S. Active Permanent State HAMP Trials Modifications Total1 Activity AK 51 261 312 0.0% MT 172 665 837 0.1% AL 869 3,496 4,365 0.6% NC 2,330 11,190 13,520 1.8% AR 305 1,319 1,624 0.2% ND 20 104 124 0.0% AZ 4,947 28,638 33,585 4.5% NE 208 826 1,034 0.1% CA 32,860 145,599 178,459 24.0% NH 585 2,826 3,411 0.5% CO 1,619 8,464 10,083 1.4% NJ 4,361 19,591 23,952 3.2% CT 1,592 7,703 9,295 1.2% NM 478 1,936 2,414 0.3% DC 207 1,046 1,253 0.2% NV 3,411 15,676 19,087 2.6% DE 434 1,884 2,318 0.3% NY 6,737 27,513 34,250 4.6% FL 17,711 71,953 89,664 12.0% OH 3,080 13,626 16,706 2.2% GA 5,130 22,155 27,285 3.7% OK 368 1,395 1,763 0.2% HI 513 2,335 2,848 0.4% OR 1,445 6,628 8,073 1.1% IA 364 1,545 1,909 0.3% PA 2,826 12,675 15,501 2.1% ID 528 2,307 2,835 0.4% RI 673 3,203 3,876 0.5% IL 7,155 32,779 39,934 5.4% SC 1,270 5,758 7,028 0.9% IN 1,346 5,957 7,303 1.0% SD 43 237 280 0.0% KS 357 1,438 1,795 0.2% TN 1,486 6,235 7,721 1.0% KY 542 2,305 2,847 0.4% TX 4,080 15,637 19,717 2.6% LA 919 3,217 4,136 0.6% UT 1,155 5,750 6,905 0.9% MA 3,078 15,303 18,381 2.5% VA 2,908 14,932 17,840 2.4% MD 4,049 19,674 23,723 3.2% VT 115 498 613 0.1% ME 398 1,678 2,076 0.3% WA 2,852 11,889 14,741 2.0% MI 4,110 20,217 24,327 3.3% WI 1,370 5,985 7,355 1.0% MN 1,966 10,889 12,855 1.7% WV 172 929 1,101 0.1% MO 1,445 6,415 7,860 1.1% WY 54 317 371 0.0% MS 500 2,368 2,868 0.4% Other2 746 1,649 2,395 0.3% 1 Total reflects active trials and active permanent modifications. 2 Includes Guam, Puerto Rico and the U.S. Virgin Islands. 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: 1st Quarter 2011 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 4 Making Home Affordable: Summary Results Program Performance Report Through April 2011 Call Center Volume 15 Metropolitan Areas With Highest HAMP Activity Program to Date April Total Number of Calls Taken at 1-888-995-HOPE 2,204,638 68,217 Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,053,685 32,915 Total MSA % of U.S. HAMP HAMP Activity Activity Active Trials Permanent Modifications 9,838 42,493 52,331 7.0% 8,600 37,374 45,974 6.2% 6,619 32,109 38,728 5.2% 6,870 31,724 38,594 5.2% 7,511 28,766 36,277 4.9% Phoenix-Mesa-Glendale, AZ MSA 3,879 23,536 27,415 3.7% Washington-Arlington-Alexandria, DC-VA-MD-WV 3,944 21,125 25,069 3.4% Atlanta-Sandy Springs-Marietta, GA 4,109 17,891 22,000 3.0% Las Vegas-Paradise, NV 2,873 12,852 15,725 2.1% Detroit-Warren-Livonia, MI 2,488 12,244 14,732 2.0% San Francisco-Oakland-Fremont, CA 2,870 11,390 14,260 1.9% Servicer Solicitation of Borrowers (cumulative)1 7,341,705 Orlando-Kissimmee-Sanford, FL MSA 2,601 11,419 14,020 1.9% 2,181,472 Boston-Cambridge-Quincy, MA-NH 2,169 10,963 13,132 1.8% Page views on MakingHomeAffordable.gov (April 2011) San Diego-Carlsbad-San Marcos, CA 2,304 10,411 12,715 1.7% Sacramento-Arden-Arcade-Roseville, CA 2,336 10,336 12,672 1.7% Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA New York-Northern New Jersey-Long Island, NY-NJ-PA Riverside-San Bernardino-Ontario, CA Chicago-Joliet-Naperville, IL-IN-WI MSA Miami-Fort Lauderdale-Pompano Beach, FL 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) 53 52,817 117,607,802 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: Bank of America, NA, has restated solicitation numbers from previous month. 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/ 5 Making Home Affordable: Summary Results Program Performance Report Through April 2011 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer has fallen to below 25,400. 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 25,390 March April 0 May 2010 June July Aug Sept Oct Nov Dec Jan 2011 Feb Trials Lasting 6 Months or Longer At End of Month 1 Active trials initiated at least six months ago. See page 7 for number of aged trials by servicer. 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 plus some portion which may be canceled. 6 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 HAMP Modification Activity by Servicer As of March 31, 2011 Cumulative As of April 30, 2011 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Trial Modifications Reported Since March 2011 Report3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 35,443 32,206 24,739 609 3,183 812 21,709 283,445 488,979 386,308 71,845 176,545 130,438 127,554 7,724 45,809 9,695 109,827 50,980 893 5,811 1,544 45,459 GMAC Mortgage, LLC 30,381 72,901 60,569 43,051 1,092 3,512 82 37,580 J.P. Morgan Chase Bank, NA6 160,406 306,693 247,686 95,440 5,843 25,454 2,463 79,516 Litton Loan Servicing LP 36,369 41,701 36,846 11,187 735 2,297 166 9,205 Ocwen Loan Servicing, LLC 36,243 47,219 44,145 33,075 903 4,484 1,016 26,632 OneWest Bank 32,490 68,564 51,501 27,284 968 3,353 254 24,482 8,251 67,381 41,480 21,636 283 1,283 99 18,492 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc. 42,190 Bank of America, NA5 CitiMortgage, Inc. Servicer Select Portfolio Servicing Wells Fargo Bank, NA7 137,218 311,911 226,702 96,086 3,650 12,816 1,790 86,235 Other SPA Servicers8 102,039 202,143 205,669 97,459 3,376 11,825 2,247 86,383 Other GSE Servicers9 154,274 NA 124,484 70,562 2,935 16,113 5,222 63,095 1,095,151 1,819,480 1,588,034 699,053 29,011 135,940 25,390 608,615 Total 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of March 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 on or before 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. HAMP Trials and Permanent Modifications disqualified from HAMP (exclusion effective March 2011). Unemployed borrowers. Exclusions for DTI and NPV are estimated using market analytics. 2 As reported in the weekly servicer survey of large SPA servicers through April 28, 2011. Bank of America has restated number of trial offers extended from previous month. 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. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 7 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 8 Other SPA servicers are entities excluding the 10 largest servicers, by cap amount, that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A. New trials reported since March includes the impact of consolidating some servicers that were itemized in the March report. 9 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans transferred from SPA servicers. 6 J.P. 7 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Length of Trial Upon Conversion1 9 Servicers are directed to cancel or convert trial modifications after three or four monthly payments, depending on circumstances. 8 7 Months 6 4.8 5 4 3 3.0 3.5 3.3 3.7 3.3 3.0 3.2 3.0 3.5 3.3 3.2 2 1 0 Am. Home Servicing Bank of America CitiMortgage Trials Started Before 6/1/10 1 GMAC JP Morgan Chase Litton Trials Started On/After 6/1/10 Ocwen OneWest SPS Before 6/1/10 Average (5.2) Wells Fargo Other GSE servicers Other SPA Servicers On/After 6/1/10 Average (3.5) For all permanent modifications started. 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. 8 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Conversion Rate1 Of Trials Started Before 6/1/10: 42% Converted to Permanent Modification 1% Pending Processing or Decision 100% 80% Following the implementation of verified income documentation in June 2010, rates of converting trial modifications into permanent modifications have risen. Of Eligible Trials Started On/After 6/1/10: 70% Converted to Permanent Modification 22% Pending Processing or Decision 85% 81% 81% 76% 77% 72% 72% 72% Conversion Rate 84% 75% 59% 60% 51% 40% 20% 0% Am. Home Servicing Bank of America CitiMortgage GMAC JPMorgan Chase Litton Average of Trials Started Before 6/1/10 (42%) Ocwen OneWest SPS Wells Fargo Other GSE Servicers Other SPA Servicers Average of Trials Started On/After 6/1/10 (70%) 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 9 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through March 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 March 2011) 431 64 165 2,237 31 115 223 546 67 3,879 43,395 6,408 29,114 71,745 475 3,347 14,661 31,844 7,076 208,065 CitiMortgage Inc. 17,140 3,718 5,656 29,450 1,008 1,480 1,767 9,631 2,091 71,941 GMAC Mortgage, LLC 1,640 440 1,113 5,941 217 364 863 1,676 1,326 13,580 JP Morgan Chase Bank NA4 8,230 803 4,185 58,227 531 4,475 6,045 22,964 10,529 115,989 Litton Loan Servicing LP 1,853 577 1,869 13,454 273 157 1,211 1,502 804 21,700 Ocwen Loan Servicing, LLC 387 108 377 2,474 383 32 301 1,698 530 6,290 OneWest Bank 612 859 645 10,148 369 26 993 3,998 3,131 20,781 Select Portfolio Servicing 1,428 520 1,485 5,657 414 959 631 2,098 2,551 15,743 Wells Fargo Bank NA5 1,823 760 13,481 58,539 983 10,376 4,353 17,222 11,142 118,679 TOTAL (These 10 Largest Servicers) 76,939 12.9% 14,257 2.4% 58,090 9.7% 257,872 43.2% 4,684 0.8% 21,331 3.6% 31,048 5.2% 93,179 15.6% 39,247 6.6% 596,647 100.0% Bank of America, NA3 Note: Data is as reported by servicers for actions completed through March 31, 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 10 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through March 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 March 2011) American Home Mortgage Servicing Inc. 1,319 758 6,136 24,488 680 725 1,337 5,126 830 41,399 Bank of America, NA3 37,259 6,919 69,968 66,672 1,460 3,777 29,543 54,897 19,218 289,713 CitiMortgage Inc. 22,016 8,079 23,181 27,441 5,504 13,085 1,859 7,759 5,787 114,711 GMAC Mortgage, LLC 23,436 6,650 36,764 41,115 4,234 3,140 7,422 20,572 12,393 155,726 JP Morgan Chase Bank NA4 77,269 4,542 88,997 118,608 1,583 38,996 17,731 51,057 15,017 413,800 Litton Loan Servicing LP 6,312 3,270 9,685 20,051 1,022 650 4,129 5,889 3,727 54,735 Ocwen Loan Servicing, LLC 8,000 1,972 18,551 32,056 7,260 1,547 5,222 16,362 6,156 97,126 OneWest Bank 5,290 3,187 25,228 11,709 2,310 975 3,270 13,569 7,291 72,829 Select Portfolio Servicing 2,405 331 2,676 3,497 371 417 444 1,638 1,095 12,874 Wells Fargo Bank NA5 14,320 4,229 44,548 56,702 1,910 13,053 12,038 17,768 13,941 178,509 TOTAL (These 10 Largest Servicers) 197,626 13.8% 39,937 2.8% 325,734 22.8% 402,339 28.1% 26,334 1.8% 76,365 5.3% 82,995 5.8% 194,637 13.6% 85,455 6.0% 1,431,422 100.0% Note: Data is as reported by servicers for actions completed through March 31, 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 11 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Homeowner Experience (10 Largest Servicers) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through April) Average Speed to Answer Homeowner Calls (March) 40 Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for March: 13.3 Seconds 35 30 11% 20 15 10 9% 8% 7% 6% 5% 5 4% 0 3% Calls to Servicer: Program to Date Average: 6.6% 10% % of Calls for Specific Servicer Seconds 25 Program to date, there have been 1,084,223 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.6% included complaints. Below shows specific complaint rates. Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo Source: Survey data through March 31, 2011 from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Call Abandon Rate (March) Bank of America CitiMortgage 24,033 6,015 GMAC JP Morgan Chase 2,820 14,325 Litton Ocwen 1,504 2,026 OneWest 233 SPS Wells Fargo 566 9,373 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.) Servicer Time to Resolve Third-Party Escalations (Program to Date, Through April) Homeowner’s HOPETM Hotline Average Call Abandon Rate for March: 2.1% 3% Am. Home Servicing Complaints (PTD): 1,969 Target: 30 Calendar Days 60 50 Calendar Days 2% 1% 40 30 20 10 0 0% Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest Source: Survey data through March 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. SPS Wells Fargo Am. Home Servicing Resolved: 436 Cases (PTD) Bank of America 5,535 CitiMortgage 1,118 GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo 785 3,259 557 577 791 183 2,836 Source: HAMP Solutions Center. Target of 30 calendar days, effective Feb. 1, 2011, includes an estimated 5 days of processing by HAMP Solutions Center. 12 Making Home Affordable: Servicer Results Program Performance Report Through April 2011 Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications American Home Mortgage Servicing Inc. 1,299 23,590 3 24,892 Bank of America, NA1 91,283 55,510 8,843 155,636 CitiMortgage, Inc. 30,013 4,517 16,740 51,270 GMAC Mortgage, LLC 23,800 6,042 11,250 41,092 JP Morgan Chase NA2 48,123 38,574 18,273 104,970 87 11,404 11 11,502 Ocwen Loan Servicing, LLC 7,145 23,835 136 31,116 OneWest Bank 13,279 12,423 2,133 27,835 510 16,750 2,515 19,775 Wells Fargo Bank, NA 3 48,380 14,029 36,642 99,051 Other HAMP Servicers 130,388 32,942 14,086 177,416 Total 394,307 239,616 110,632 744,555 Servicer Litton Loan Servicing LP Select Portfolio Servicing 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. 2 J.P. Note: Figures reflect active trials and active permanent modifications. 13 MHA Servicer Assessment Overview Background Since the Making Home Affordable Program’s (MHA) inception in the spring of 2009, Treasury has monitored the performance of participating mortgage servicers. Treasury has been publicly reporting information about servicer performance through two types of data: compliance data, which reflects servicer compliance with specific MHA guidelines; and program results data, which reflects how timely and effectively servicers assist eligible homeowners and report program activity. When MHA began, most servicers did not have the staff, procedures, or systems in place to respond to the volume of homeowners struggling to pay their mortgages, or to respond to the housing crisis generally. Very few mortgage modifications were even occurring. Treasury sought to get servicers to join MHA and to improve their operations quickly, so as to implement a national mortgage modification program. Through ongoing compliance reviews, Treasury has required participating servicers to take specific actions to improve their servicing processes. While the servicers have improved their performance, they still have more progress to make. Toward that end, Treasury is publishing servicer assessments for each of the 10 largest servicers participating in MHA. Not only will the assessments provide more transparency to the public about servicer performance in the program, but the assessments are also intended to encourage servicers to correct identified instances of non-compliance. Servicer participation in MHA is voluntary, based on a contract with Treasury. Although Treasury does not regulate these institutions and does not have the authority to impose fines or penalties, Treasury can, pursuant to the contract, take certain remedial actions against servicers not in compliance with MHA guidelines. Such remedial actions include requiring servicers to correct identified instances of non-compliance, as noted above. In addition, Treasury can implement financial remedies such as withholding incentive payments owed to servicers. Such incentive payments, which are the only payments Treasury makes for the benefit of servicers under the program, include payments for every successful permanent modification under the Home Affordable Modification Program, and payments for completed short sale/deed-in-lieu pursuant to the Home Affordable Foreclosure Alternative Program. It is important to note that Treasury’s compliance work related to MHA applies only to those servicers that have agreed to participate in MHA for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (Government Sponsored Enterprises, or GSEs). Treasury cannot and does not perform compliance reviews of (1) mortgage loans or activities that fall outside of MHA, (2) GSE loans or (3) those loans insured through the Federal Housing Administration. For each servicer, the loans that are eligible for MHA represent only a portion of that servicer’s overall mortgage servicing operation. Treasury’s foremost goal is to assist struggling homeowners who may be eligible for MHA. These servicer assessments set a new benchmark for providing detailed information about how mortgage servicers are performing against key metrics. But, in addition to this direct effect, MHA has had an important indirect effect on the market as well. MHA has established standards that have improved mortgage modifications across the industry, and has led to important changes in the way mortgage servicers assist struggling homeowners generally. These changes include standards for how mortgage modifications should be designed so that they are sustainable, standards for communications with homeowners so that the process is as efficient and as understandable as possible, and a variety of standards for protecting homeowners, such as prohibitions on “dual tracking” – simultaneously evaluating a homeowner for a modification while proceeding to foreclose. Going forward, Treasury hopes these assessments will also set the standard for transparency about mortgage servicer efforts to assist homeowners. Below are general descriptions of the data, the evaluation process, and the consequences for servicers needing improvement. (Continued on next page) 14 MHA Servicer Assessment Overview The Performance Data: Compliance and Program Results Freddie Mac, acting as Treasury’s compliance agent for MHA, has created a separate division known as Making Home Affordable–Compliance (MHA-C) to evaluate servicer performance through audits of program compliance. MHA-C tests and evaluates a range of servicer activities for compliance with MHA guidelines. Once MHA-C’s reviews are complete, MHA-C shares its results with the servicers and identifies areas that need remediation. Each compliance activity tested falls into one of three overall compliance categories – Identifying and Contacting Homeowners, Homeowner Evaluation and Assistance, and Program Management, Reporting and Governance. The compliance results shared with the servicers are then used to generate the servicer assessments. The assessments highlight particular compliance activities tested by MHA-C that had significant impact on homeowners and include for those highlighted activities a one-star, two-star, or three-star rating for the most recent evaluations. One star means the servicer did not meet Treasury’s benchmark required for that particular activity, and the servicer needs substantial improvement in its performance of that activity. Two stars mean the servicer did not meet Treasury’s benchmark required for that particular activity, and the servicer needs moderate improvement in its performance of that activity. Three stars mean the servicer met Treasury’s benchmark required for that particular activity, but the servicer may nonetheless need minor improvement in its performance of that activity. Although the compliance reviews emphasize objective measurements and observed facts, compliance reviews still involve a certain level of judgment. Compliance reviews are also retrospective in nature – looking backward, not forward, which means that activities identified as needing improvement in a given quarter may already be under remediation by the servicer. In addition, not every compliance activity is evaluated every quarter, which means that a rating from one quarter might carry forward to the subsequent quarter’s assessment if that activity was not retested in that subsequent quarter. Finally, the compliance reviews use “sampling” as a testing methodology. Sampling, an industry-accepted auditing technique, looks at a subset of a particular population of activity transactions, rather than the entirety of the population of activity transactions, to extrapolate a servicer’s overall performance in that particular activity. In addition to the ratings for compliance data, the assessments also include program results metrics. Fannie Mae, acting as Treasury’s program administrator for MHA, collects servicer data used to measure program results. These metrics are key indicators of how timely and effectively servicers assist eligible homeowners under MHA guidelines and report program data. Although the servicers are not given an overall rating for this data, the results metrics nonetheless compare a servicer’s performance for a given quarter against the “best” and “worst” performing servicer of the 10 largest servicers participating in the program. The results metrics provide a snapshot of how each of those servicers compares in specific areas under MHA. The Determination Process: Results of the Data Treasury reviews the compliance data and ratings, the program results metrics, and other relevant factors affecting servicer performance in determining whether a servicer needs substantial improvement, moderate improvement, or minor improvement to its performance under MHA guidelines. The assessments summarize the significant factors impacting those decisions. Based on those assessments, Treasury takes remedial action against servicers. Page 16 summarizes the overall level of improvement needed for each servicer. Consequences for Servicers For servicers in need of substantial improvement, Treasury will, absent extenuating circumstances, withhold financial incentives owed to those servicers until they make certain identified improvements. In certain cases, particularly where there is a failure to correct identified problems within a reasonable time, Treasury may also permanently reduce the financial incentives. Servicers in need of moderate improvement will be subject to withholding in the future if they fail to make certain identified improvements. All withholdings apply only to incentives owed to servicers for their participation in MHA; these withholdings do not apply to incentives paid to servicers for the benefit of homeowners or investors. Additional Information See the “Metrics Description” on page 37 for a description of each of the compliance and results metrics presented in the assessments. For more information on the assessments, please visit: www.FinancialStability.gov. 15 MHA Servicer Assessment Overview Servicer Assessment Results The following table details the results of the Servicer Assessments, based on compliance and program results: Improvement Needed Servicer Name Substantial Bank of America, NA J.P. Morgan Chase Bank, NA Ocwen Loan Servicing, LLC Wells Fargo Bank, NA Moderate American Home Mortgage Servicing, Inc. CitiMortgage, Inc. GMAC Mortgage, LLC Litton Loan Servicing LP OneWest Bank Select Portfolio Servicing Beginning this month, Treasury will withhold servicer incentives owed to three of the four servicers requiring substantial improvement until those servicers make certain identified improvements.1 For those servicers requiring moderate improvement, Treasury is not withholding servicer incentives for this quarter. However, those servicers that fail to improve those areas identified will be subject to servicer incentive withholding in the future. No servicer has been identified as needing only minor improvement for this quarter. Please refer to the following MHA Servicer Assessment pages for further detail on the First Quarter 2011 servicer assessment results. 1 Treasury will not withhold servicer incentives owed to Ocwen Loan Servicing, LLC for this quarter. Because Ocwen’s compliance results for the first quarter 2011 were substantially and negatively affected by its acquisition of a large servicing portfolio during the compliance testing period, Treasury determined that withholding servicer incentives was not warranted for this quarter. Treasury will withhold servicer incentives from Ocwen if future compliance results do not indicate improvements. 16 MHA Servicer Assessment: American Home Mortgage Servicing Inc. Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Metric Identifying and Contacting Homeowners Second Look % Disagree Second Look % Unable to Determine Internal Controls for Identifying and Contacting Homeowners Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Incentive Payment Data Errors Internal Controls for Program Management, Reporting, and Governance Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Servicer Result Rating < 4% 1.0% < 10% 5.3% - 1 < 5% 14.0% - 1 < 5% 4.0% - 1 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result American Home Mortgage Servicing Inc. has areas requiring moderate improvement. After considering all relevant factors, American Home Mortgage Servicing Inc. servicer incentives will not be withheld at this time. Withholding may commence next quarter if American Home Mortgage Servicing Inc. fails to demonstrate improvement in the next assessment. Did not meet benchmark; substantial improvement needed 17 MHA Servicer Assessment: American Home Mortgage Servicing Inc. Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% American Home Mortgage Servicing Inc. Worst Servicer Performance 29% 0% 20% 40% 58 40 50% 100% 0.0% 0.0% 60 0.1% 0.6% Worst Servicer Performance 46 20 54% American Home Mortgage Servicing Inc. 38 41 0 26% Best Servicer Performance 19 Worst Servicer Performance 78% Missing Modification Status Reports (%) 24 American Home Mortgage Servicing Inc. 59% 0% 60% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% American Home Mortgage Servicing Inc. 31% 27% Results as of: 80 19.1% 3.9% 0% 10% 20% 30% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 18 MHA Servicer Assessment: Bank of America, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. < 10% 18.8% - < 5% 22.0% 1 - < 5% 11.5% 1 - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1.5% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Bank of America, NA has areas requiring substantial improvement. After considering all relevant factors, Bank of America, NA servicer incentives will be withheld at this time. Permanent reductions of incentives may commence in subsequent quarters if Bank of America, NA fails to demonstrate improvement. Did not meet benchmark; substantial improvement needed 19 MHA Servicer Assessment: Bank of America, NA Program Results Aged Trials as a Percentage of Active Trials Best Servicer Performance Conversion Rate for Trials Started On or After 6/1/2010 Best Servicer Performance 2% 2% 22% Worst Servicer Performance 29% 20% 40% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 26% 54% Best Servicer Performance 19 46 Bank of America, NA Worst Servicer Performance 58 Bank of America, NA 58 Worst Servicer Performance 46 20 54% 40 50% 100% Missing Modification Status Reports (%) 24 0 26% 0% 60% Dec. 2010 March 2011 Worst Servicer Performance 49% 0% 78% 84% Bank of America, NA 28% Bank of America, NA Results as of: 60 80 0.0% 0.0% 19.1% 3.9% 19.1% 3.9% 0% 10% 20% 30% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 20 MHA Servicer Assessment: CitiMortgage, Inc. Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed < 10% 13.3% - < 5% 10.0% - < 5% 9.3% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 2.0% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Result Did not meet benchmark; substantial improvement needed CitiMortgage, Inc. has areas requiring moderate improvement. After considering all relevant factors, CitiMortgage, Inc. servicer incentives will not be withheld at this time. Withholding may commence next quarter if CitiMortgage, Inc. fails to demonstrate improvement in the next assessment. 21 MHA Servicer Assessment: CitiMortgage, Inc. Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% CitiMortgage, Inc. 49% CitiMortgage, Inc. 49% Worst Servicer Performance 29% Worst Servicer Performance 29% 0% 20% 40% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 78% 84% 70% 73% 26% 54% 24 Best Servicer Performance 40 Worst Servicer Performance 58 20 40 60% 80% 100% 3.2% 1.0% CitiMortgage, Inc. 46 0 40% 0.0% 0.0% 35 Worst Servicer Performance 20% Missing Modification Status Reports (%) 19 CitiMortgage, Inc. Dec. 2010 March 2011 0% 60% Results as of: 60 80 19.1% 3.9% 0% 5% 10% 15% 20% 25% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 22 MHA Servicer Assessment: GMAC Mortgage, LLC Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. < 10% 8.3% - 1 < 5% 6.0% - 1 < 5% 7.6% - 1 Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 4.7% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed GMAC Mortgage, LLC has areas requiring moderate improvement. After considering all relevant factors, GMAC Mortgage, LLC servicer incentives will not be withheld at this time. Withholding may commence next quarter if GMAC Mortgage, LLC fails to demonstrate improvement in the next assessment. 23 MHA Servicer Assessment: GMAC Mortgage, LLC Program Results Aged Trials as a Percentage of Active Trials Best Servicer Performance 2% 2% GMAC Mortgage, LLC 2% 2% Conversion Rate for Trials Started On or After 6/1/2010 Best Servicer Performance 29% 0% 10% 20% 30% 40% 50% 60% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 78% 79% 24 0% Worst Servicer Performance 46 60 40% 60% 80% 100% 1.7% 1.4% Worst Servicer Performance 58 40 20% 0.0% 0.0% GMAC Mortgage LLC 29 20 54% Best Servicer Performance 24 GMAC Mortgage LLC 26% Missing Modification Status Reports (%) 19 0 March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% GMAC Mortgage LLC Worst Servicer Performance Results as of: 80 19.1% 3.9% 0% 5% 10% 15% 20% 25% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 24 MHA Servicer Assessment: J.P. Morgan Chase Bank, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% 1.6% < 10% 11.3% - < 5% 31.0% 1 - < 5% 5.6% 1 - Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed J.P. Morgan Chase Bank, NA has areas requiring substantial improvement. After considering all relevant factors, J.P. Morgan Chase Bank, NA servicer incentives will be withheld at this time. Permanent reductions of incentives may commence in subsequent quarters if J.P. Morgan Chase Bank, NA fails to demonstrate improvement. 25 MHA Servicer Assessment: J.P. Morgan Chase Bank, NA Program Results Aged Trials as a Percentage of Active Trials Best Servicer Performance Conversion Rate for Trials Started On or After 6/1/2010 Best Servicer Performance 2% 2% 16% JP Morgan Chase Bank, NA Worst Servicer Performance 29% 0% 10% 20% 30% 40% 50% 60% 26% 54% 0% Best Servicer Performance 19 55 Worst Servicer Performance 58 60 40% 60% 80% 100% 0.3% 0.7% Worst Servicer Performance 46 40 20% 0.0% 0.0% JP Morgan Chase Bank, NA 45 JP Morgan Chase Bank, NA 20 57% . 24 0 40% Missing Modification Status Reports (%) Average Calendar Days to Resolve Escalated Cases Best Servicer Performance March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% JP Morgan Chase Bank, NA 9% Results as of: 80 19.1% 3.9% 0% 5% 10% 15% 20% 25% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 26 MHA Servicer Assessment: Litton Loan Servicing, LP Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. < 10% 6.3% - 1 < 5% 6.0% 1 - < 5% 8.1% 1 - 1 Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 3.7% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed Litton Loan Servicing LP has areas requiring moderate improvement. After considering all relevant factors, Litton Loan Servicing LP servicer incentives will not be withheld at this time. Withholding may commence next quarter if Litton Loan Servicing LP fails to demonstrate improvement in the next assessment. 27 MHA Servicer Assessment: Litton Loan Servicing, LP Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% 12% 11% Litton Loan Servicing, LP 29% 0% 10% 20% 30% 40% 50% 60% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 19 29 32 Worst Servicer Performance 58 20 40 60 26% 54% 0% 20% Best Servicer Performance 0.0% 0.0% Litton Loan Servicing, LP 0.0% 0.2% Worst Servicer Performance 46 0 68% 74% 40% 60% 80% 100% Missing Modification Status Reports (%) 24 Litton Loan Servicing, LP March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% Litton Loan Servicing, LP Worst Servicer Performance Results as of: 80 19.1% 3.9% 0% 5% 10% 15% 20% 25% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 28 MHA Servicer Assessment: Ocwen Loan Servicing, LLC Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed < 10% 10.3% - < 5% 33.0% - < 5% 11.5% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record 6.7% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines < 4% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Rating Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Servicer Result Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Benchmark Second Look % Disagree Result Did not meet benchmark; substantial improvement needed Ocwen Loan Servicing, LLC has areas requiring substantial improvement. After considering all relevant factors, including the acquisition of a large servicing portfolio during the compliance testing period, Ocwen Loan Servicing, LLC servicer incentives will not be withheld at this time. Treasury will withhold servicer incentives from Ocwen Loan Servicing, LLC if future compliance results do not indicate improvement. 29 MHA Servicer Assessment: Ocwen Loan Servicing, LLC Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% 30% Ocwen Loan Servicing, LLC Worst Servicer Performance 29% 0% 10% 20% 30% 40% 50% 26% 54% Best Servicer Performance 24 19 55 Worst Servicer Performance 58 40 60 80% 100% 19.1% 3.9% 0% 20 60% 0.5% 0.4% Worst Servicer Performance 46 0 40% 0.0% 0.0% Ocwen Loan Servicing, LLC N/A 20% Missing Modification Status Reports (%) Note: December 2010 data is unavailable for this servicer. Ocwen Loan Servicing, LLC 77% 76% 0% 60% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% Ocwen Loan Servicing, LLC 20% Results as of: 5% 10% 15% 20% 25% 80 Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 30 MHA Servicer Assessment: One West Bank Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. < 10% 3.7% - 1 < 5% 11.0% 1 - < 5% 6.7% 1 - 1 Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 6.7% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed OneWest Bank has areas requiring moderate improvement. After considering all relevant factors, OneWest Bank servicer incentives will not be withheld at this time. Withholding may commence next quarter if OneWest Bank fails to demonstrate improvement in the next assessment. 31 MHA Servicer Assessment: One West Bank Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% 23% OneWest Bank Worst Servicer Performance 29% 0% 10% 20% 30% 40% 50% 67% 26% 54% 20% 40% 60% 80% 100% Missing Modification Status Reports (%) 24 19 38 OneWest Bank 46% 0% 60% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance March 2011 Worst Servicer Performance 49% Dec. 2010 78% 84% OneWest Bank 14% Results as of: Best Servicer Performance 0.0% 0.0% OneWest Bank 0.0% 0.3% 42 Worst Servicer Performance Worst Servicer Performance 46 58 19.1% 3.9% 0% 0 20 40 60 5% 10% 15% 20% 25% 80 Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 32 MHA Servicer Assessment: Select Portfolio Servicing Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. < 10% 2.3% - 1 < 5% 15.0% - 1 < 5% 2.6% - 1 Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 0.0% Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% < 4% Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Servicer Result Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed Select Portfolio Servicing has areas requiring moderate improvement. After considering all relevant factors, Select Portfolio Servicing servicer incentives will not be withheld at this time. Withholding may commence next quarter if Select Portfolio Servicing fails to demonstrate improvement in the next assessment. 33 MHA Servicer Assessment: Select Portfolio Servicing Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance 2% 2% 10% 10% Select Portfolio Servicing Worst Servicer Performance 29% 0% 10% 20% 30% 40% 50% Average Calendar Days to Resolve Escalated Cases Note: December 2010 data is unavailable for this servicer. Best Servicer Performance Select Portfolio Servicing Worst Servicer Performance Best Servicer Performance 78% 84% Select Portfolio Servicing 77% 84% 60% Dec. 2010 March 2011 Worst Servicer Performance 49% Results as of: 26% 54% 0% 20% 40% 60% 80% 100% Missing Modification Status Reports (%) Best Servicer Performance 0.0% 0.0% 19 Select Portfolio Servicing 0.1% 0.0% 19 Worst Servicer Performance 24 N/A 19.1% 3.9% 46 58 0% 5% 10% 15% 20% 25% 0 20 40 60 80 Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 34 MHA Servicer Assessment: Wells Fargo Bank, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal controls in the three Performance Categories as well as for each quantitative result. First Quarter 2011 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% 1.2% < 10% 6.0% - -1 < 5% 27.0% 2 - < 5% 11.1% 2 - 2 Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines 1 - Internal controls testing was not performed for two consecutive quarters due to the cyclical nature of the audit process. To accommodate more consistent reporting in the servicer assessments, MHA-C will adjust the review testing schedule to ensure coverage in each six-month period. 2 - Rating carried forward from prior quarter Rating Legend Met benchmark; minor improvement may be indicated Did not meet benchmark; moderate improvement needed Result Did not meet benchmark; substantial improvement needed Wells Fargo Bank, NA has areas requiring substantial improvement. After considering all relevant factors, Wells Fargo Bank, NA servicer incentives will be withheld at this time. Permanent reductions of incentives may commence in subsequent quarters if Wells Fargo Bank, NA fails to demonstrate improvement. 35 MHA Servicer Assessment: Wells Fargo Bank, NA Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Best Servicer Performance Best Servicer Performance 2% 2% 14% 11% Wells Fargo Bank, NA Worst Servicer Performance 0% 10% 20% 30% 40% 50% 60% 19 31 35 Worst Servicer Performance 54% 0% 40 60 20% 40% 60% 80% 100% 0.0% 0.0% 0.5% 1.3% Worst Servicer Performance 58 20 26% Wells Fargo Bank, NA 46 0 75% Best Servicer Performance 24 Wells Fargo Bank, NA 65% Missing Modification Status Reports (%) Average Calendar Days to Resolve Escalated Cases Best Servicer Performance March 2011 Worst Servicer Performance 29% Dec. 2010 78% 84% Wells Fargo Bank, NA 49% Results as of: 80 19.1% 3.9% 0% 5% 10% 15% 20% 25% Note: the best and worst performance reflect the best and worst result of the largest 10 servicers for the period. See appendix for descriptions of the metrics. 36 MHA Servicer Assessment Appendix Metrics Descriptions income errors exceeding the 5% differential, requiring Program Metrics the servicer to review their own income calculation Conversion Rate: This cumulative metric looks at the accuracy, enhancing policies and procedures, and Compliance Metrics (quantitative) rate of conversion to permanent modification for conducting staff training on income calculation. Second Look % Disagree: Second Look is a process in trials started on or after June 1, 2010, when all Incentive Payment Data Errors: Treasury pays which MHA-C reviews loans not in a permanent servicers were required to verify income modification, to assess the accuracy of the servicer’s incentives to servicers, investors, and homeowners documentation at trial start. Conversion rate is determination of whether the homeowner is eligible for permanent modifications completed under MHA. measured against all trials eligible to convert – those Although intended for different recipients, all for a modification. This metric measures the three months in trial, or four months if the borrower incentives are paid through the servicer. Data that percentage of loans reviewed in Second Look with was at risk of imminent default at trial modification servicers upload to the program system of record is which MHA-C disagrees with a servicer’s start. Permanent modifications transferred among used to calculate the incentives paid to servicers, determination. servicers are credited to the originating servicer; trial investors, and homeowners. This metric measures modifications transferred are reflected in the current Second Look % Unable to Determine: This metric how data anomalies between servicer loan files and servicer’s population. measures the percentage of loans reviewed in Second the reported information affect incentive payments. Look for which MHA-C is not able to determine, based For Incentive Payment Data Error results, remedial Aged Trials as % of Active Trials: This monthly metric on the documentation provided, how the servicer measures trials lasting six months or longer as a share actions Treasury requires servicers to take include, reached its loan-modification decision. but are not limited to: correcting the identified errors of all active trials. These figures include trial and correcting system and operational processes such modifications that have been converted to For both Second Look Disagree and Unable to Determine results, remedial actions Treasury requires that accurate data is mapped to its appropriate places permanent modifications by the servicer and are pending reporting to the program system of record. in the program system of record. servicers to take include, but are not limited to: reevaluating loans not offered HAMP modifications, Days to Resolve Escalated Cases: This program-toCompliance Metrics (qualitative) submitting additional documentation to support the date metric measures servicer response time for initial reason for denial of the modification, clarifying Servicers establish processes and internal controls to homeowner inquiries escalated to the HAMP loan status, and engaging in systemic process help ensure their compliance with Program guidance. Solutions Center. Effective Feb. 1, 2011, a target of 30 remediation. For such results, servicers are also For each of the performance categories, Treasury calendar days was established for non-GSE escalation reminded of their obligation to suspend foreclosure of performs a qualitative assessment of those internal cases, including an estimated 5 days processing by the loan until the unresolved items are remediated. controls based on MHA-C’s compliance reviews. That HAMP Solutions Center. These figures include both assessment evaluates the nature, scope, and GSE and non-GSE escalation results. Income Calculation Errors: Correctly calculating homeowner monthly income is a critical component potential or actual impact on homeowners resulting % of Missing Modification Status Reports: This from instances of servicer non-compliance with its of evaluating eligibility for MHA, as well as monthly metric measures the servicer’s ability to own internal controls. For ineffective internal establishing an accurate modification payment. This promptly report on modification status. Inconsistent controls, remedial actions Treasury requires servicers metric measures how often MHA-C disagrees with a and untimely reporting of modification status reports to take include, but are not limited to: identifying and servicer’s calculation of a borrower’s Monthly Gross may impact incentive compensation and loan reevaluating any affected loans, enhancing the Income, allowing for up to a 5% differential from performance analysis. effectiveness of internal controls, and conducting MHA-C’s calculations. For Income Calculation Error results, remedial actions Treasury requires servicers staff training on servicer procedures. For more information on the assessments, please to take include, but are not limited to: correcting visit: www.FinancialStability.gov. 37 Making Home Affordable Program Performance Report Through April 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 Servicing, 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 38 Making Home Affordable Program Performance Report Through April 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 Servicing, 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. 39
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