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Making Home Affordable Program Performance Report Through June 2011 Report Highlights Inside: More Than 760,000 Permanent Modifications Started SUMMARY RESULTS: • Program has shown steady entry to permanent modifications, averaging about 30,000 new permanent modifications each month for the past 12 months. • The conversion rate for homeowners entering trial modifications since June 1, 2010 continues to improve. Of homeowners eligible to convert, 74% 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. • Homeowners receiving permanent modifications save a median of $524 each month, or 37% of the median before-modification payment. Program to date, homeowners in permanent modifications have realized aggregate savings in monthly mortgage payments of approximately $7.3 billion. First Lien Modification Activity Performance of Permanent Modifications First Lien Modification Characteristics/ Treasury-FHA HAMP Activity Activity for HAFA, PRA and UP Second Lien Modification Activity HAMP Activity by State HAMP Activity by MSA/ Homeowner Outreach Aged Trials Permanent Modifications Continue to Perform Well Over Time • Homeowners in HAMP modifications continue to perform well over time, with redefault rates lower than experienced for industry modifications. • At six months, more than 93% of homeowners remain in permanent modifications, with just 10.5% of homeowners 60+ days delinquent. At one year, more than 84% of homeowners remain in the program. • Payment reduction is strongly correlated with permanent modification sustainability. At one year, more than 91% of homeowners with a payment reduction greater than 50% remain in the program, exceeding the performance of modifications with less substantial payment reductions. 2 3-4 5 6 7 8 9 10 SERVICER RESULTS: Modification Activity by Servicer Trial Length Conversion Rate Disposition of Homeowners Not in HAMP Homeowner Experience Modifications by Investor Type 11 12 13 14-15 16 17 APPENDICES: Participants in MHA Programs 18-19 Making Home Affordable: Summary Results Program Performance Report Through June 2011 HAMP Activity: First Lien Modifications HAMP Trials Started Monthly Trial Starts (Right Axis) Total 2,602,670 Eligible Delinquent Borrowers2 Trial Plan Offers Extended (Cumulative)3 All Trials Started Trial Modifications Permanent Modifications 1,033,471 1,871,442 1,639,382 Trials Reported Since May 2011 Report4 24,659 Trial Modifications Canceled (Cumulative) 760,796 Active Trials 115,515 All Permanent Modifications Started 763,071 Permanent Modifications Reported Since May 2011 Report 31,620 Permanent Modifications Canceled (Cumulative)5 106,027 Active Permanent Modifications 657,044 1 Estimated eligible 60+ day delinquent loans as reported by servicers as of May 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, 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 30, 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 1,582 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. All Trials Started (000s) (As of May 31, 2011) Eligible Delinquent Loans1 1,500 1,209 1,200 1,257 1,284 1,306 1,330 1,354 1,385 1,415 1,446 1,481 1,511 1,544 1,575 1,639 1,603 1,624 200 1,138 1,050 955 900 100 600 300 0 Dec 2009 Mar 2010 June Sep Dec Mar 2011 June Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 24,659 trials have entered the HAMP system of record since the prior report; of those, 14,962 were trials with a first payment recorded in June 2011. Permanent Modifications Started (Cumulative) 800 All Permanent Modifications Started (000s) HAMP Eligibility 300 Cumulative Trial Starts (Left Axis) New Trials Started (000s) 1,800 HAMP is designed to lower monthly mortgage payments to help struggling homeowners stay in their homes and prevent avoidable foreclosure. 699 700 600 500 398 400 468 496 550 580 763 670 347 299 300 231 200 100 435 520 608 634 731 170 67 117 0 Dec 2009 Mar 2010 Source: HAMP system of record. June Sep Dec Mar 2011 June 2 Making Home Affordable: Summary Results Program Performance Report Through June 2011 Performance of Permanent Modifications (As of May 31, 2011) This table shows the performance of permanent HAMP modifications at 3, 6, 9, 12 and 15 months of age and includes modifications that have aged at least 3, 6, 9, 12, or 15 months, as applicable. For example: Of loans that became permanent in the 3rd quarter of 2010, 10.7% were 60+ days delinquent at six months’ seasoning. Delinquency: Months After Conversion to Permanent Modification Became Permanent in: 3 6 9 12 15 # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days Q3 2009 3,584 9.8% 3.5% 4,443 15.0% 9.8% 4,701 19.6% 15.0% 4,689 25.4% 20.7% 4,860 30.0% 25.2% Q4 2009 44,356 5.3% 1.4% 48,199 9.6% 5.7% 51,076 15.3% 10.6% 52,253 19.9% 15.3% 54,034 23.3% 19.3% Q1 2010 125,746 3.7% 1.0% 152,547 9.7% 5.3% 160,581 16.0% 11.2% 164,808 20.2% 16.0% 169,116 22.5% 19.1% Q2 2010 150,507 5.0% 1.4% 160,308 11.8% 7.0% 171,417 16.9% 12.4% 177,637 19.4% 15.9% Q3 2010 86,907 4.7% 1.4% 97,012 10.7% 6.7% 104,128 13.8% 10.3% Q4 2010 58,525 4.3% 1.4% 63,062 8.6% 5.5% Q1 2011 71,882 2.6% 0.8% ALL 541,507 4.3% 1.2% 525,571 10.5% 6.2% 491,903 15.8% 11.4% 399,387 19.9% 15.9% 22.8% 19.3% 228,010 • For permanent loans aged at least 3 months as of May 31, 2011, as reported by servicers through June 17, 2011. • The table stratifies the data by the quarter in which the permanent modification became effective and provides two separate performance metrics: • 60+ days delinquent: All loans that have missed two or more consecutive monthly payments, including 90+ days delinquent loans. • 90+ days delinquent: All loans that have missed three or more consecutive monthly payments. • Loan payment status is not reported by servicers after program disqualification (90+ days delinquent). Therefore, 90+ days delinquent loans are included in each of the 60+ days delinquent and 90+ days delinquent metrics for all future reporting periods, even though some loans may have cured or paid off following program disqualification. • This table reflects a total of 87,063 disqualified loans that have aged 3, 6, 9, 12 or 15 months through the May activity period as reported by servicers through June 17, 2011. • Servicers are required to report monthly payment information on HAMP modifications in the form of an Official Monthly Report (OMR). If a servicer does not report an OMR for a loan in a given month, the performance of that loan is not included in the table for that month. This table reflects improved servicer OMR reporting as the modification ages, causing the total loan count for each quarter in months 6 and beyond to be higher than the count in month 3. Reported loan counts may shift from prior reports due to servicer data corrections. • Once a loan is paid off, it is no longer reflected in future periods. • This table will be published quarterly. 3 Making Home Affordable: Summary Results Program Performance Report Through June 2011 Performance of Permanent Modifications by Homeowner Payment Reduction (As of May 31, 2011) This chart and the table that follows show the performance of permanent HAMP modifications at 3, 6, 9, 12 and 15 months of age as related to homeowner payment reduction. For example: Of loans that featured a payment reduction between 40% and 50%, 8.3% were 60+ days delinquent at six months’ seasoning. 60+ Day Delinquency Rate by Payment Reduction 40% 60+ Day Delinquency Rate Decreased by 20% or less Decreased above 20% up to and including 30% 30% Decreased above 30% up to and including 40% 20% Decreased above 40% up to and including 50% Decreased by more than 50% 10% Program Average 0% 3 6 9 12 15 Months After Conversion to Permanent Modification Decrease From BeforeModification Principal + Interest Payment: Delinquency: Months After Conversion to Permanent 3 6 9 12 15 # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days # 60+ Days 90+ Days ≤20% Decrease 105,893 7.4% 2.2% 101,284 17.7% 10.9% 95,265 26.0% 19.4% 77,504 31.7% 26.2% 42,809 35.6% 30.9% (20%-30%] Decrease 85,363 5.4% 1.6% 82,445 13.0% 7.8% 76,912 19.6% 14.3% 62,443 24.5% 19.8% 35,596 28.4% 24.2% (30%-40%] Decrease 96,248 4.1% 1.2% 93,099 10.3% 6.1% 87,080 15.8% 11.4% 70,902 20.2% 16.0% 41,158 23.4% 19.7% (40%-50%] Decrease 99,373 3.3% 0.9% 96,188 8.3% 4.7% 89,933 12.9% 8.9% 72,647 16.5% 12.9% 42,087 19.5% 16.3% >50% Decrease 154,630 2.4% 0.6% 152,555 5.8% 3.1% 142,713 8.8% 6.0% 115,891 11.5% 8.7% 66,360 13.4% 10.9% ALL 541,507 4.3% 1.2% 525,571 10.5% 6.2% 491,903 15.8% 11.4% 399,387 19.9% 15.9% 228,010 22.8% 19.3% Note: For permanent loans aged at least 3 months as of May 31, 2011, as reported by servicers through June 17, 2011. See previous page for technical notes. 4 Making Home Affordable: Summary Results Program Performance Report Through June 2011 Homeowner Benefits and First Lien Modification Characteristics • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $7.3 billion, program to date, compared with unmodified mortgage obligations. • The median monthly savings for borrowers in active permanent first lien modifications is $524.28, 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. Select Median Characteristics of Active Permanent Modifications Loan Characteristic 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 78.6% 61.7% -14.7 pct pts $1,427.90 $832.77 -$524.28 Median Monthly Housing Payment3 • The primary hardship reasons for homeowners in active permanent modifications are: • 61.2% experienced loss of income (curtailment of income or unemployment) • 11.3% reported excessive obligation • 2.9% reported an illness of the principal borrower • Active permanent modifications feature the following modification steps: • 100% feature interest rate reductions • 59.7% offer term extension • 30.5% include principal forbearance 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 5,376 Treasury FHA-HAMP Permanent Modifications Started 3,762 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 June 2011 HAFA Activity by Servicer 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. In 22% of HAFA agreements started, the homeowner began a HAMP trial modification but later requested a HAFA agreement or was disqualified from HAMP. All HAFA Agreements Started1 Agreements Started1 Agreements Completed Bank of America, NA2 2,824 1,873 J.P. Morgan Chase Bank NA3 7,722 3,596 21,412 Litton Loan Servicing LP 1,119 483 HAFA Agreements Active 8,724 Select Portfolio Servicing, Inc. 1,223 591 HAFA Transactions Completed 10,754 Wells Fargo Bank, NA4 6,229 3,123 10,438 All Other Servicers 2,295 1,088 Total 21,412 10,754 Completed Transactions – Short Sale Completed Transactions – Deed-in-Lieu 316 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 Agreements Active, HAFA Transactions Completed, and HAFA Transactions Canceled. Principal Reduction Alternative (PRA) Activity The Principal Reduction Alternative (PRA) requires servicers of non-GSE loans to evaluate the benefit of principal reduction for mortgages with a loan-to-value 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. All PRA Trial Modifications Started 26,258 PRA Trial Modifications Active 18,195 All PRA Permanent Modifications Started 7,009 PRA Permanent Modifications Active 6,941 Median Principal Amount Reduced for Active Permanent Modifications $67,751 Median Principal Amount Reduced for Active Permanent Modifications (%)2 30.7% 2 Derived as the ratio of PRA amount to before-modification UPB, excluding capitalization. Servicer 1 Servicer agreement with homeowner for terms of potential short sale, which lasts at least 120 days; or agreement for a deed-inlieu 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 Agreements 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. Unemployment Program (UP) Activity The Treasury Unemployment Program (UP) provides a temporary forbearance to homeowners who are unemployed. Treasury recently announced that unemployed homeowners must be considered for a minimum of 12 months’ forbearance. All UP Forbearance Plans Started (Through May 2011) 12,399 UP Forbearance Plans With Some Payment Required 9,886 UP Forbearance Plans With No Payment Required 2,513 Note: Data is as reported by servicers via survey for UP participation through May 31, 2011. 6 Making Home Affordable: Summary Results Program Performance Report Through June 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. This assistance can result in a modification of the second lien and even full or partial extinguishment of the second lien. 2MP requires that the first lien modification be permanent and active and that the second lien have an unpaid balance of more than $5,000 and a monthly payment of $100 or greater. All Second Lien Modifications Started (Cumulative)1 Second Lien Modifications Involving Full Lien Extinguishments Second Lien Modifications Disqualified2 Active Second Lien Modifications Second Lien Modifications Started (Cumulative) 40,000 31,586 Second Lien Loan Modifications3 27,887 30,000 24,582 20,998 20,000 33,715 2,564 672 991 1,452 2,117 3,951 5,568 0 288 30,863 9,514 10,000 Aug Sep 2010 Oct Nov Dec Jan Feb Mar Apr May June July 2011 Note: Includes second lien modifications reported into HAMP system of record through the end of cycle for June 2011 data, though the effective date may occur in July. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. Second Lien Modification Activity by Servicer Of the Active Second Lien Modifications: Second Lien Partially Extinguished 33,715 Second Lien Modifications Started Full Ext. DQ1 Active Partial Ext./ Terms Modified Bank of America, NA2 14,734 1,377 135 13,222 CitiMortgage, Inc 4,944 791 21 4,132 GMAC Mortgage, LLC 1,141 32 0 1,109 1,279 29,584 Second Lien Extinguishment Details Servicer Average Amount of Full Extinguishment $67,371 J.P. Morgan Chase Bank NA3 4,710 0 65 4,645 Average Amount of Partial Extinguishment $6,181 Wells Fargo Bank, NA4 7,143 111 62 6,970 Other SPA Servicers 1,043 253 5 785 Total 33,715 2,564 288 30,863 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for June 2011 data, though the effective date may occur in July. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Includes 45 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. 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. 7 Making Home Affordable: Summary Results Program Performance Report Through June 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 59 279 338 0.0% MT 134 750 884 0.1% AL 721 3,762 4,483 0.6% NC 1,981 12,001 13,982 1.8% AR 262 1,415 1,677 0.2% ND 22 111 133 0.0% AZ 4,014 30,209 34,223 4.4% NE 153 904 1,057 0.1% CA 28,189 158,636 186,825 24.2% NH 508 3,030 3,538 0.5% CO 1,378 9,093 10,471 1.4% NJ 3,704 21,240 24,944 3.2% CT 1,446 8,234 9,680 1.3% NM 432 2,114 2,546 0.3% DC 178 1,126 1,304 0.2% NV 2,844 16,748 19,592 2.5% DE 333 2,055 2,388 0.3% NY 5,890 30,021 35,911 4.6% FL 15,094 77,826 92,920 12.0% OH 2,600 14,558 17,158 2.2% GA 4,329 23,832 28,161 3.6% OK 288 1,507 1,795 0.2% HI 431 2,521 2,952 0.4% OR 1,221 7,156 8,377 1.1% IA 332 1,660 1,992 0.3% PA 2,421 13,687 16,108 2.1% ID 461 2,500 2,961 0.4% RI 547 3,477 4,024 0.5% IL 5,966 35,306 41,272 5.3% SC 1,100 6,214 7,314 0.9% IN 1,142 6,386 7,528 1.0% SD 33 258 291 0.0% KS 274 1,581 1,855 0.2% TN 1,309 6,711 8,020 1.0% KY 461 2,489 2,950 0.4% TX 3,326 17,105 20,431 2.6% LA 767 3,557 4,324 0.6% UT 951 6,237 7,188 0.9% MA 2,578 16,471 19,049 2.5% VA 2,413 16,031 18,444 2.4% MD 3,415 21,094 24,509 3.2% VT 107 553 660 0.1% ME 345 1,806 2,151 0.3% WA 2,414 13,021 15,435 2.0% MI 3,603 21,399 25,002 3.2% WI 1,128 6,421 7,549 1.0% MN 1,628 11,499 13,127 1.7% WV 140 977 1,117 0.1% MO 1,302 6,820 8,122 1.1% WY 53 337 390 0.1% MS 416 2,512 2,928 0.4% Other2 672 1,807 2,479 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 8 Making Home Affordable: Summary Results Program Performance Report Through June 2011 Call Center Volume 15 Metropolitan Areas With Highest HAMP Activity Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA New York-Northern New JerseyLong Island, NY-NJ-PA Riverside-San Bernardino-Ontario, CA Chicago-Joliet-Naperville, IL-IN-WI Total MSA % of U.S. HAMP HAMP Activity Activity Active Trials Permanent Modifications 8,564 46,860 55,424 7.2% 7,503 40,678 48,181 6.2% 5,453 34,520 39,973 5.2% 5,767 34,154 39,921 5.2% Program to Date June Total Number of Calls Taken at 1-888-995-HOPE 2,331,176 63,558 Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,113,349 29,425 Source: Homeowner’s HOPETM Hotline. Miami-Fort Lauderdale-Pompano Beach, FL 6,428 31,469 37,897 4.9% Phoenix-Mesa-Glendale, AZ 3,113 24,707 27,820 3.6% Washington-Arlington-Alexandria, DC-VA-MD-WV 3,340 22,558 25,898 3.4% Atlanta-Sandy Springs-Marietta, GA 3,435 19,248 22,683 2.9% Las Vegas-Paradise, NV 2,377 13,746 16,123 2.1% Detroit-Warren-Livonia, MI 2,216 12,937 15,153 2.0% San Francisco-Oakland-Fremont, CA 2,572 12,567 15,139 2.0% Orlando-Kissimmee-Sanford, FL MSA 2,217 12,211 14,428 1.9% Boston-Cambridge-Quincy, MA-NH 1,835 11,824 13,659 1.8% San Diego-Carlsbad-San Marcos, CA 1,947 11,369 13,316 1.7% Sacramento-Arden-Arcade-Roseville, CA 1,993 11,159 13,152 1.7% Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 55 55,591 Servicer Solicitation of Borrowers (cumulative)1 7,561,726 Page views on MakingHomeAffordable.gov (June 2011) 1,737,548 Page views on MakingHomeAffordable.gov (cumulative) 121,185,550 1 Source: Survey data provided by SPA servicers. Servicers are encouraged by HAMP to solicit information from borrowers 60+ days delinquent, regardless of eligibility for a HAMP modification. Note: Total reflects active trials and active permanent modifications. A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ 9 Making Home Affordable: Summary Results Program Performance Report Through June 2011 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer has fallen to 23,000. 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 23,014 March April May June 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 11 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. 10 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 HAMP Modification Activity by Servicer As of May 31, 2011 Cumulative As of June 30, 2011 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Trial Modifications Reported Since May 2011 Report3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 37,107 33,588 26,228 734 2,762 538 22,585 258,357 505,921 401,251 148,211 6,617 35,920 9,390 127,355 CitiMortgage, Inc. 70,953 179,919 130,347 52,833 -- 3 5,227 1,791 46,634 GMAC Mortgage, LLC 27,916 75,089 62,119 44,463 893 3,525 48 38,076 J.P. Morgan Chase Bank, NA6 164,213 316,070 256,560 107,842 5,141 20,708 3,485 89,231 Litton Loan Servicing LP 34,560 42,563 37,589 11,695 318 2,615 266 9,409 Ocwen Loan Servicing, LLC 39,317 48,489 45,451 34,840 572 3,326 599 27,404 OneWest Bank 32,379 70,505 53,669 28,923 1,263 3,973 236 26,006 Select Portfolio Servicing 4,973 67,930 41,947 22,457 218 1,009 48 18,860 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc. 40,571 Bank of America, NA5 Servicer Wells Fargo Bank, NA7 129,039 320,236 234,666 103,188 3,933 13,472 1,476 91,392 Other SPA Servicers8 98,065 207,613 211,307 104,474 1,941 9,942 1,471 91,186 Other GSE Servicers9 133,128 NA 130,888 77,917 3,629 13,036 3,666 68,906 1,033,471 1,871,442 1,639,382 763,071 24,659 115,515 23,014 657,044 Total 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of May 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 exclude: 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 30, 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. In cases where servicing transfers exceed new trial modifications reported, negative numbers are not presented. 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 plus some portion which may be canceled. 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. 11 Making Home Affordable: Servicer Results Program Performance Report Through June 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 5 4.7 4 3 3.0 3.5 3.3 3.7 3.3 3.0 3.2 3.0 3.5 3.3 3.3 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. 12 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 Conversion Rate1 Of Trials Started Before 6/1/10: 42% Converted to Permanent Modification 1% Pending Processing or Decision 100% 85% 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: 74% Converted to Permanent Modification 16% Pending Processing or Decision 88% 84% 80% 80% 79% 75% 79% 77% 80% 72% Conversion Rate 66% 62% 60% 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 (74%) 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 13 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through May 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 May Modification Plan2 Loan Payoff Lieu Starts Completions 2011) 364 67 182 2,483 33 131 277 573 95 4,205 41,364 7,802 29,550 69,950 1,944 3,694 14,283 31,566 11,096 211,249 CitiMortgage Inc. 17,090 3,707 5,635 29,364 1,006 1,476 1,763 9,603 2,085 71,729 GMAC Mortgage, LLC 1,541 411 1,074 5,886 170 497 921 1,620 1,480 13,600 JP Morgan Chase Bank NA4 7,581 781 4,227 56,406 476 5,297 6,591 23,905 11,395 116,659 Litton Loan Servicing LP 1,593 576 1,876 13,298 247 168 1,332 1,504 887 21,481 Ocwen Loan Servicing, LLC 402 114 395 2,586 400 34 316 1,777 555 6,579 OneWest Bank 452 744 645 10,437 313 37 1,068 3,526 3,519 20,741 Select Portfolio Servicing 1,340 520 1,456 5,481 373 1,095 600 1,941 2,867 15,673 Wells Fargo Bank NA5 1,587 802 13,128 56,892 1,510 12,993 3,506 16,834 10,962 118,214 TOTAL (These 10 Largest Servicers) 73,314 12.2% 15,524 2.6% 58,168 9.7% 252,783 42.1% 6,472 1.1% 25,422 4.2% 30,657 5.1% 92,849 15.5% 44,941 7.5% 600,130 100.0% Bank of America, NA3 Note: Data is as reported by servicers for actions completed through May 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 14 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through May 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 May Modification Plan2 Loan Payoff Lieu Starts Completions 2011) American Home Mortgage Servicing Inc. 1,807 1,002 8,294 31,276 865 901 1,697 6,690 1,133 53,665 Bank of America, NA3 64,881 11,694 117,177 75,757 5,739 5,388 26,182 63,037 23,941 393,796 CitiMortgage Inc. 21,549 8,641 22,522 25,983 5,159 14,538 1,753 7,151 6,574 113,870 GMAC Mortgage, LLC 21,397 5,449 34,359 35,492 2,815 3,311 7,121 16,064 11,569 137,577 JP Morgan Chase Bank NA4 84,787 5,202 85,933 128,618 1,689 49,327 22,145 62,922 17,632 458,255 Litton Loan Servicing LP 6,714 3,139 10,712 19,943 924 732 4,693 6,273 4,013 57,143 Ocwen Loan Servicing, LLC 5,748 1,345 27,726 29,705 4,313 121 384 4,084 1,971 75,397 OneWest Bank 5,064 3,187 24,486 14,607 2,205 1,170 3,810 12,894 8,992 76,415 Select Portfolio Servicing 2,623 400 2,876 3,792 389 534 466 1,844 1,330 14,254 Wells Fargo Bank NA5 14,686 4,000 50,446 42,560 2,682 15,233 13,617 21,378 13,994 178,596 TOTAL (These 10 Largest Servicers) 229,256 14.7% 44,059 2.8% 384,531 24.7% 407,733 26.2% 26,780 1.7% 91,255 5.9% 81,868 5.3% 202,337 13.0% 91,149 5.8% 1,558,968 100.0% Note: Data is as reported by servicers for actions completed through May 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 15 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 Homeowner Experience (10 Largest Servicers) Average Speed to Answer Homeowner Calls (May) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through June) 40 35 25 11% 20 15 10 9% 8% 7% 6% 5% 5 4% 0 3% Calls to Servicer: Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo Source: Survey data through May 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Call Abandon Rate (May) Am. Home Servicing Complaints (PTD): 2,133 Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS 26,174 6,240 3,014 15,319 1,589 2,166 240 600 Wells Fargo 9,905 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 June) 4% Homeowner’s HOPETM Hotline Average Call Abandon Rate for May: 0.9% Target: 30 Calendar Days 60 50 Calendar Days 3% Program to Date Average: 6.6% 10% % of Calls for Specific Servicer 30 Seconds Program to date, there have been 1,148,681 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 May: 2.3 Seconds 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 May 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Am. Home Servicing Resolved: 492 Cases (PTD) Bank of America 6,553 CitiMortgage 1,252 GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo 849 3,708 600 645 916 207 3,082 Source: HAMP Solutions Center. Target of 30 calendar days, effective Feb. 1, 2011, includes an estimated 5 days of processing by HAMP Solutions Center. Effective this month, total resolved cases exclude those which were resolved with no further action needed or taken by the servicer. 16 Making Home Affordable: Servicer Results Program Performance Report Through June 2011 Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications American Home Mortgage Servicing Inc. 1,292 24,053 2 25,347 Bank of America, NA1 95,620 58,082 9,573 163,275 CitiMortgage, Inc. 30,595 4,593 16,673 51,861 GMAC Mortgage, LLC 24,363 5,772 11,466 41,601 JP Morgan Chase NA2 50,886 39,810 19,243 109,939 88 11,926 10 12,024 Ocwen Loan Servicing, LLC 7,186 23,428 116 30,730 OneWest Bank 14,102 13,530 2,347 29,979 519 16,791 2,559 19,869 Wells Fargo Bank, NA 3 49,869 15,229 39,766 104,864 Other HAMP Servicers 134,113 33,888 15,069 183,070 Total 408,633 247,102 116,824 772,559 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. 17 Making Home Affordable Program Performance Report Through June 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 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 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. 18 Making Home Affordable Program Performance Report Through June 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. 19
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