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Making Home Affordable Program Performance Report Through May 2011 Report Highlights Inside: More Than 730,000 Permanent Modifications Started SUMMARY RESULTS: • The six-month rate of new trial modifications has consistently been about 30,000 per month for nearly a year, even as the overall population of eligible delinquent homeowners continues to decline. Homeowners who enter a trial modification now have a high likelihood of securing a permanent modification and realizing long-term success in the program. • Of homeowners who have begun trial modifications since June 1, 2010, 71% were granted permanent modifications with an average time to convert of 3.5 months – a higher conversion rate and shorter time to convert than earlier in the program. At the same time, the number of trials lasting six months or longer continues to decrease. • More than 32,000 new permanent modifications were reported in May, as homeowners continue to successfully complete the trial modification period. • Homeowners receiving permanent modifications have realized aggregate savings in monthly mortgage payments of more than $6.8 billion, program to date. Inside: Expanded Reporting on Additional MHA Programs • Treasury is committed to transparency in reporting on all aspects of Making Home Affordable programs. • New this month: summary data on the Principal Reduction Alternative (PRA). While servicers are not required to reduce principal under PRA, homeowners who qualify see significant benefits, with the median amount of principal reduced for active permanent modifications exceeding $69,000. • This month also features expanded detail on the Second Lien Modification and Home Affordable Foreclosure Alternative programs. First Lien Modification Activity Second Lien Modification Activity Additional MHA Program Activity Waterfall of Eligible Borrowers/ Characteristics of First Lien 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 Trial Length Conversion Rate Disposition of Homeowners Not in HAMP Homeowner Experience Modifications by Investor Type 9 10 11 12-13 14 15 APPENDICES: Participants in MHA Programs 16-17 Making Home Affordable: Summary Results Program Performance Report Through May 2011 HAMP Trials Started 1,800 HAMP is designed to lower monthly mortgage payments to help struggling homeowners stay in their homes and prevent avoidable foreclosure. Monthly Trial Starts (Right Axis) Total Eligible Delinquent 2,636,033 Eligible Delinquent Borrowers2 Trial Plan Offers Extended (Cumulative)3 All Trials Started Trial Modifications Permanent Modifications 1,050,403 1,849,627 1,614,723 Trials Reported Since April 2011 Report4 26,689 Trial Modifications Canceled (Cumulative) 756,521 Active Trials 126,751 All Permanent Modifications Started 731,451 Permanent Modifications Reported Since April 2011 Report 32,398 Permanent Modifications Canceled (Cumulative)5 97,992 Active Permanent Modifications 633,459 1 Estimated eligible 60+ day delinquent loans as reported by servicers as of April 30, 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, loans where the investor pooling and servicing agreements preclude modification, and trial and permanent modifications disqualified from HAMP. Exclusions for DTI and NPV results are estimated using market analytics. 3 As reported in the weekly servicer survey of large SPA servicers through June 2, 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 1,382 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. All Trials Started (000s) (As of Apr. 30, 2011) 1,500 1,208 1,200 1,256 1,283 1,305 1,329 1,353 1,384 1,414 1,445 1,479 1,509 1,541 1,571 1,598 1,615 200 1,137 1,049 955 900 100 600 300 0 Dec '09Jan '10 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan '11 Feb Mar Apr May Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 26,689 trials have entered the HAMP system of record since the prior report; of those, 16,317 were trials with a first payment recorded in May 2011. Permanent Modifications Started (Cumulative) 800 All Permanent Modifications Started (000s) HAMP Eligibility Loans1 300 Cumulative Trial Starts (Left Axis) New Trials Started (000s) HAMP Activity: First Lien Modifications 699 700 600 500 398 400 468 496 550 580 670 347 299 300 231 200 100 435 520 608 634 731 170 67 117 0 Dec '09 Jan '10 Feb Mar Source: HAMP system of record. Apr May June July Aug Sep Oct Nov Dec Jan '11 Feb Mar Apr May 2 Making Home Affordable: Summary Results Program Performance Report Through May 2011 Second Lien Modification Program (2MP) Activity 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 (Cumulative)1 Second Lien Modifications Started (Cumulative) 40,000 30,000 24,375 28,817 26,933 28,817 20,851 20,000 Second Lien Modifications Involving Full Lien Extinguishments 1,524 9,414 10,000 188 Second Lien Modifications Disqualified2 672 990 Aug 2010 Sep 1,444 2,106 3,928 5,526 0 Active Second Lien Modifications 27,105 Oct Nov Dec Jan 2011 Feb Mar Apr May June Note: Includes second lien modifications reported into HAMP system of record through the end of cycle for May 2011 data, though the effective date may occur in June. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. Of the Active Second Lien Modifications: Second Lien Partially Extinguished 1,168 Second Lien Loan Modifications3 25,937 Second Lien Modification Activity by Servicer Second Lien Modifications Started Full Ext. DQ1 Active Partial Ext./ Terms Modified Bank of America, NA2 12,315 1,341 80 10,894 CitiMortgage, Inc 4,003 0 9 3,994 624 0 0 624 Servicer Second Lien Extinguishment Details Average Amount of Full Extinguishment $65,268 GMAC Mortgage, LLC Average Amount of Partial Extinguishment $6,073 J.P. Morgan Chase Bank NA3 4,549 0 55 4,494 Wells Fargo Bank, NA4 6,604 106 41 6,457 722 77 3 642 28,817 1,524 188 27,105 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for May 2011 data, though the effective date may occur in June. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Includes 32 loans paid off. 3 Second lien modifications follow a series of steps and may include capitalization, interest rate reduction, term extension and principal forbearance or forgiveness. See Appendix A2 for servicer participants in additional Making Home Affordable programs. Other SPA Servicers Total Note: Number of modifications started is net of cancellations, which are primarily due to servicer data corrections. 1 Includes second liens paid off. 2 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 3 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 4 Wells Fargo Bank, NA includes Wachovia Mortgage, FSB. 3 Making Home Affordable: Summary Results Program Performance Report Through May 2011 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. HAFA has established important homeowner protections and an industry standard for streamlined transactions. Principal Reduction Alternative (PRA) Activity All HAFA Agreements Started1 17,781 The Principal Reduction Alternative (PRA) requires servicers of non-GSE loans to evaluate the benefit of principal reduction for mortgages with a loan-tovalue ratio of 115% or greater when evaluating a homeowner for a HAMP first lien modification. While servicers are required to evaluate homeowners for PRA, they are not required to reduce principal as part of the modification. PRA may be a feature of a HAMP trial or permanent modification. HAFA Agreements Active 7,652 PRA Trial Modifications Started (cumulative) 21,299 HAFA Transactions Completed 8,541 PRA Trial Modifications Active 16,017 PRA Permanent Modifications Started 4,938 PRA Permanent Modifications Active 4,911 Completed Transactions – Short Sale 8,309 Completed Transactions – Deed-in-Lieu 232 HAFA Activity by Servicer Agreements Started1 Agreements Completed 2,524 1,630 J.P. Morgan Chase Bank NA3 6,120 2,686 Litton Loan Servicing LP 1,044 424 Select Portfolio Servicing, Inc. 1,057 471 Wells Fargo Bank, NA4 5,328 2,478 All Other Servicers 1,708 852 Total 17,781 8,541 Servicer Bank of America, NA2 agreement with homeowner for terms of potential short sale, which lasts at least 120 days; or agreement for a deedin-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 Active, HAFA Transactions Completed, and HAFA Transactions canceled. 2 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 3 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 4 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. Median Principal Amount Reduced for Active Permanent Modifications $69,532 Median Principal Amount Reduced for Active Permanent Modifications (%)1 32.2% 1 Derived as the ratio of PRA amount to before-modification UPB, excluding capitalization. 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 4,952 Treasury FHA-HAMP Permanent Modifications Started 3,314 1 Servicer 4 Making Home Affordable: Summary Results Program Performance Report Through May 2011 Homeowner Benefits and First Lien Modification Characteristics Waterfall of Estimated Eligible Homeowners For the First Lien Modification Program • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total more than $6.8 billion, program to date, compared with unmodified mortgage obligations. Not all 60+ day delinquent loans are eligible for HAMP. Other characteristics may preclude homeowner eligibility. Based on the estimates, of the 4.6 million homeowners who are currently 60+ days delinquent, 1.05 million homeowners are eligible for HAMP. As this represents a point-in-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that more homeowners will become seriously delinquent between now and the end of 2012, and some of those homeowners will be eligible for HAMP. 5 HAMP-Eligible 60+ Day Delinquent Loans (GSE and SPA Servicers) 4.6 4.5 4 4.1 Loans (Millions) 3.5 • 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. HAMP Estimated Eligible 60+ Day Delinquent Borrowers 3.4 3 2.9 2.5 2.6 • The median monthly savings for borrowers in active permanent first lien modifications is $525.58, or 37% of the median monthly payment before modification. 2.6 • The primary hardship reasons for homeowners in active permanent modifications are: • 61.0% experienced loss of income (curtailment of income or unemployment) • 11.3% reported excessive obligation • 2.8% reported an illness of the principal borrower 2 1.9 1.5 1.7 1 1.05 • Active permanent modifications feature the following modification steps: 1.05 • 100% feature interest rate reductions • 59.6% offer term extension • 30.6% include principal forbearance 0.5 0 1st Lien, 60+ Days Delinquent Less: NonParticipating HAMP Servicer Less: FHA or VA Less: NonOwnerOccupied at Origination Less: Jumbo HAMPNonEligible Conforming Loans Loans and Loans Originated After 1/1/2009 Less: DTI Less Than 31% Less: Negative NPV Less: Vacant Properties And Other Exclusions** Estimated HAMPEligible Borrowers Select Median Characteristics of Active Permanent Modifications Loan Characteristic ** Other exclusions include: no longer owner-occupied; unemployed borrowers; investor’s pooling and servicing agreement precludes modification; manufactured housing loans with titling/chattel issues that exclude them from HAMP; and trial and permanent modifications disqualified from HAMP. Note: Chart refers only to borrowers eligible for the first lien modification program. Sources: Fannie Mae; monthly survey of participating servicers for April 30, 2011. Total 60+ day delinquency figure derived from 1st Quarter 2011 MBA National Delinquency Survey. Excluded loans are as reported by large servicers by survey who have signed a servicer participation agreement for HAMP. Before After Modification Modification Median Decrease Front-End Debt-to-Income Ratio1 45.2% 31.0% -14.2 pct pts Back-End Debt-to-Income Ratio2 79.0% 62.3% -14.7 pct pts $1,429.47 $833.10 -$525.58 Median Monthly Housing Payment3 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. 2 Ratio of total monthly debt payments (including mortgage principal and interest, taxes, insurance, homeowners association and/or condo fees, plus payments on installment debts, junior liens, alimony, car lease payments and investment property payments) to monthly gross income. Borrowers who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines. 3 Principal and interest payment. 5 Making Home Affordable: Summary Results Program Performance Report Through May 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 50 273 323 0.0% MT 164 699 863 0.1% AL 816 3,640 4,456 0.6% NC 2,229 11,564 13,793 1.8% AR 291 1,362 1,653 0.2% ND 21 106 127 0.0% AZ 4,521 29,439 33,960 4.5% NE 204 860 1,064 0.1% CA 30,200 152,500 182,700 24.0% NH 560 2,932 3,492 0.5% CO 1,520 8,801 10,321 1.4% NJ 4,070 20,387 24,457 3.2% CT 1,554 7,976 9,530 1.3% NM 472 2,018 2,490 0.3% DC 193 1,082 1,275 0.2% NV 3,073 16,263 19,336 2.5% DE 392 1,969 2,361 0.3% NY 6,436 28,725 35,161 4.6% FL 16,500 75,032 91,532 12.0% OH 2,905 14,131 17,036 2.2% GA 4,828 22,956 27,784 3.7% OK 333 1,451 1,784 0.2% HI 485 2,434 2,919 0.4% OR 1,352 6,909 8,261 1.1% IA 355 1,607 1,962 0.3% PA 2,679 13,165 15,844 2.1% ID 494 2,411 2,905 0.4% RI 597 3,348 3,945 0.5% IL 6,583 34,109 40,692 5.4% SC 1,179 5,991 7,170 0.9% IN 1,273 6,164 7,437 1.0% SD 37 252 289 0.0% KS 318 1,514 1,832 0.2% TN 1,427 6,453 7,880 1.0% KY 493 2,392 2,885 0.4% TX 3,739 16,413 20,152 2.7% LA 873 3,385 4,258 0.6% UT 1,112 5,974 7,086 0.9% MA 2,846 15,920 18,766 2.5% VA 2,729 15,478 18,207 2.4% MD 3,829 20,371 24,200 3.2% VT 112 526 638 0.1% ME 386 1,738 2,124 0.3% WA 2,695 12,465 15,160 2.0% MI 3,882 20,869 24,751 3.3% WI 1,287 6,208 7,495 1.0% MN 1,802 11,201 13,003 1.7% WV 157 958 1,115 0.1% MO 1,404 6,597 8,001 1.1% WY 55 328 383 0.1% MS 473 2,433 2,906 0.4% Other2 766 1,680 2,446 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 6 Making Home Affordable: Summary Results Program Performance Report Through May 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 Jersey-Long Island, NY-NJ-PA Chicago-Joliet-Naperville, IL-IN-WI Riverside-San Bernardino-Ontario, CA Miami-Fort Lauderdale-Pompano Beach, FL Program to Date May Total Number of Calls Taken at 1-888-995-HOPE 2,267,618 62,980 Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,083,924 30,239 Total MSA % of U.S. HAMP HAMP Activity Activity Active Trials Permanent Modifications 9,058 44,747 53,805 7.1% 8,186 38,965 47,151 6.2% 6,363 32,985 39,348 5.2% 5,967 33,371 39,338 5.2% Source: Homeowner’s HOPETM Hotline. 6,975 30,197 37,172 4.9% Phoenix-Mesa-Glendale, AZ 3,509 24,153 27,662 3.6% Washington-Arlington-Alexandria, DC-VA-MD-WV 3,678 21,845 25,523 3.4% Atlanta-Sandy Springs-Marietta, GA 3,853 18,536 22,389 2.9% Las Vegas-Paradise, NV 2,589 13,338 15,927 2.1% Detroit-Warren-Livonia, MI 2,366 12,630 14,996 2.0% San Francisco-Oakland-Fremont, CA 2,692 12,021 14,713 1.9% Orlando-Kissimmee-Sanford, FL MSA 2,417 11,857 14,274 1.9% Boston-Cambridge-Quincy, MA-NH 2,021 11,410 13,431 1.8% San Diego-Carlsbad-San Marcos, CA 2,129 10,916 13,045 1.7% Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 53 52,817 Servicer Solicitation of Borrowers (cumulative)1 7,389,461 Page views on MakingHomeAffordable.gov (May 2011) 1,840,200 Page views on MakingHomeAffordable.gov (cumulative) 119,448,002 1 Sacramento-Arden-Arcade-Roseville, CA 2,203 10,765 12,968 1.7% 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 May 2011 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer has fallen below 23,600. 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 23,552 March April May 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 9 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. 8 Making Home Affordable: Servicer Results Program Performance Report Through May 2011 HAMP Modification Activity by Servicer As of April 30, 2011 Cumulative As of May 31, 2011 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Trial Modifications Reported Since April 2011 Report3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 36,390 32,854 25,728 648 2,677 591 22,373 269,399 500,154 394,634 138,300 8,326 41,069 8,926 119,142 CitiMortgage, Inc. 69,605 178,215 130,947 51,831 509 5,705 1,718 45,976 GMAC Mortgage, LLC 29,268 73,261 61,226 43,843 657 3,453 57 37,928 J.P. Morgan Chase Bank, NA6 162,719 312,113 251,419 100,951 3,733 23,052 2,652 83,774 Litton Loan Servicing LP 35,385 42,106 37,271 11,543 425 2,475 210 9,410 Ocwen Loan Servicing, LLC 40,406 47,873 44,879 34,032 734 4,268 1,197 27,112 OneWest Bank 31,630 69,843 52,406 28,042 905 3,555 258 25,062 5,318 67,730 41,729 22,205 249 1,007 90 18,857 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc. 40,563 Bank of America, NA5 Servicer Select Portfolio Servicing Wells Fargo Bank, NA7 130,035 316,603 230,733 99,046 4,031 13,565 1,654 88,269 Other SPA Servicers8 99,293 205,339 209,366 101,326 3,697 11,668 1,899 89,184 Other GSE Servicers9 136,782 NA 127,259 74,604 2,775 14,257 4,300 66,372 1,050,403 1,849,627 1,614,723 731,451 26,689 126,751 23,552 633,459 Total 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of April 30, 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. 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 June 2, 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 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. 9 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 May 2011 Length of Trial Upon Conversion1 9 The average months to convert an eligible trial modification into a permanent HAMP modification has decreased from 5.2 months for trials started prior to June 1, 2010, to 3.5 months for trials started June 1, 2010 or later. 8 7 Months 6 4.7 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. 10 Making Home Affordable: Servicer Results Program Performance Report Through May 2011 Conversion Rate1 Of Trials Started Before 6/1/10: 42% 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 have substantially risen. Of Eligible Trials Started On/After 6/1/10: 71% Converted to Permanent Modification 20% Pending Processing or Decision 84% 87% 83% 83% 80% 76% 78% 76% 74% 71% 78% Conversion Rate 63% 60% 55% 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 (71%) 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 May 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through April 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/ Total Alternative Payment Deed-in- Foreclosure Foreclosure (As of April Modification Plan2 Loan Payoff Lieu Starts Completions 2011) 404 68 178 2,387 34 96 252 562 90 4,071 41,677 7,197 29,759 69,523 1,960 3,520 14,021 32,692 8,992 209,341 CitiMortgage Inc. 17,144 3,719 5,657 29,459 1,009 1,480 1,767 9,634 2,091 71,960 GMAC Mortgage, LLC 1,542 417 1,092 5,945 172 378 902 1,671 1,418 13,537 JP Morgan Chase Bank NA4 8,049 799 4,186 57,264 512 4,935 6,375 23,172 10,980 116,272 Litton Loan Servicing LP 1,694 577 1,910 13,398 260 159 1,265 1,458 857 21,578 Ocwen Loan Servicing, LLC 419 113 394 2,582 401 34 315 1,774 554 6,586 OneWest Bank 509 849 623 10,515 348 33 1,021 3,560 3,341 20,799 Select Portfolio Servicing 1,386 511 1,472 5,682 403 1,037 609 1,920 2,701 15,721 Wells Fargo Bank NA5 1,639 790 13,245 57,416 1,380 11,584 3,771 16,875 11,172 117,872 TOTAL (These 10 Largest Servicers) 74,463 12.5% 15,040 2.5% 58,516 9.8% 254,171 42.5% 6,479 1.1% 23,256 3.9% 30,298 5.1% 93,318 15.6% 42,196 7.1% 597,737 100.0% Bank of America, NA3 Note: Data is as reported by servicers for actions completed through April 30, 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 May 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through April 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/ Total Alternative Payment Deed-in- Foreclosure Foreclosure (As of April Modification Plan2 Loan Payoff Lieu Starts Completions 2011) American Home Mortgage Servicing Inc. 1,727 939 7,522 29,059 787 641 1,599 6,100 1,039 49,413 Bank of America, NA3 53,563 10,228 102,453 55,854 4,888 4,570 25,906 64,799 23,496 345,757 CitiMortgage Inc. 22,408 8,079 22,541 26,572 5,302 13,971 1,809 7,364 6,165 114,211 GMAC Mortgage, LLC 24,117 6,900 37,531 42,407 3,545 3,451 8,112 20,226 13,507 159,796 JP Morgan Chase Bank NA4 81,936 4,838 87,336 124,452 1,676 42,741 20,519 56,416 16,446 436,360 Litton Loan Servicing LP 6,053 3,177 10,109 20,173 963 687 4,389 5,858 3,873 55,282 Ocwen Loan Servicing, LLC 8,237 2,030 19,098 33,000 7,474 1,592 5,375 16,844 6,337 99,987 OneWest Bank 5,145 3,315 24,093 13,872 2,241 1,081 3,435 12,793 7,904 73,879 Select Portfolio Servicing 2,266 345 2,689 3,630 371 479 468 1,625 1,198 13,071 Wells Fargo Bank NA5 14,904 3,806 50,024 42,968 2,492 13,765 12,342 21,586 13,890 175,777 TOTAL (These 10 Largest Servicers) 220,356 14.5% 43,657 2.9% 363,396 23.9% 391,987 25.7% 29,739 2.0% 82,978 5.4% 83,954 5.5% 213,611 14.0% 93,855 6.2% 1,523,533 100.0% Note: Data is as reported by servicers for actions completed through April 30, 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 May 2011 Homeowner Experience (10 Largest Servicers) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through May) Average Speed to Answer Homeowner Calls (April) 40 35 25 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 30 Seconds Program to date, there have been 1,116,574 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.6% included complaints. Below shows specific complaint rates. Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for April: 1.3 Seconds Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo Source: Survey data through April 30, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Call Abandon Rate (April) Am. Home Servicing Complaints (PTD): 2,036 Bank of America CitiMortgage GMAC 25,127 6,127 2,916 JP Morgan Chase 14,775 Litton Ocwen 1,542 2,083 OneWest SPS 235 584 Wells Fargo 9,620 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, 10.2% included complaints.) Servicer Time to Resolve Third-Party Escalations (Program to Date, Through May) 3% Target: 30 Calendar Days 60 Homeowner’s HOPETM Hotline Average Call Abandon Rate for April: 0.7% 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 SPS Wells Fargo Source: Survey data through April 30, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Am. Home Servicing Resolved: 463 Cases (PTD) Bank of America 6,279 CitiMortgage 1,245 GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo 844 3,531 588 633 891 199 3,045 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 May 2011 Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications American Home Mortgage Servicing Inc. 1,295 23,753 2 25,050 Bank of America, NA1 94,330 56,563 9,318 160,211 CitiMortgage, Inc. 30,300 4,578 16,803 51,681 GMAC Mortgage, LLC 24,132 5,763 11,486 41,381 JP Morgan Chase NA2 48,987 39,080 18,759 106,826 87 11,787 11 11,885 Ocwen Loan Servicing, LLC 7,207 24,045 128 31,380 OneWest Bank 13,527 12,866 2,224 28,617 513 16,807 2,544 19,864 Wells Fargo Bank, NA 3 49,568 14,313 37,953 101,834 Other HAMP Servicers 133,094 33,773 14,614 181,481 Total 403,040 243,328 113,842 760,210 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. 15 Making Home Affordable Program Performance Report Through May 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). Effective October 3, 2010, the ability to make new financial commitments under the Troubled Asset Relief Program (TARP) terminated, and consequently no new Servicer Participation Agreements may be executed. In addition, effective June 25, 2010, no new housing programs may be created under TARP. 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 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 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 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. 16 Making Home Affordable Program Performance Report Through May 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. 17
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