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Making Home Affordable Program Performance Report Through September 2011 Report Highlights Inside: More Than 850,000 Homeowners Granted Permanent Modifications SUMMARY RESULTS: • Program to date, homeowners in permanent modifications have saved an estimated $8.8 billion in monthly mortgage payments. Homeowners in active first lien permanent modifications save a median of $526 per month – more than onethird of the median before-modification payment. • The conversion rate for homeowners entering trial modifications since June 1, 2010 continues to improve. Eighty percent of eligible homeowners entering a HAMP trial modification since June 1, 2010 received a permanent modification, with an average trial period of 3.5 months. • Over 40,000 permanent modifications were reported in September. This includes activity from previous months which servicers were able to report as a result of an enhancement to the HAMP system of record. 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 • After six months in the program, more than 94% of homeowners remain in permanent modifications, with just 10.1% of homeowners 60+ days delinquent. • Payment reduction percentage is strongly correlated with permanent modification sustainability. For modifications seasoned 18 months, only 12.9% of modifications with a monthly payment reduction greater than 50% have been disqualified from the program due to missing three consecutive payments, compared to a disqualification rate of more than 35% where the payment had been cut by 20% or less. • HAMP modifications continue to exhibit lower delinquency and re-default rates than industry modifications as reported by Treasury’s Office of the Comptroller of the Currency. 2 3-4 5 6 7 8 9 10 SERVICER RESULTS: 11 12 13 Modification Activity by Servicer Trial Length Conversion Rate Disposition of Homeowners Not in HAMP Homeowner Experience Modifications by Investor Type 14-15 16 17 APPENDICES: Participants in MHA Programs 18-19 Making Home Affordable: Summary Results Program Performance Report Through September 2011 HAMP Activity: First Lien Modifications HAMP Trials Started 1,750 Total 1,700 2,533,137 1,650 Eligible Delinquent Loans1 (As of August 31, 2011) Eligible Delinquent Borrowers2 Trial Modifications Permanent Modifications Trial Plan Offers Extended (Cumulative)3 1,928,545 All Trials Started 1,714,012 Trials Reported Since August 2011 Report4 25,974 Trial Modifications Canceled (Cumulative) 766,203 Active Trials 90,835 All Permanent Modifications Started 856,974 1,662 40,141 Permanent Modifications Canceled (Cumulative)6 136,362 Active Permanent Modifications 720,612 1,580 1,500 Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. 50 1,546 1,550 1,512 1,450 1,400 0 Feb Mar Apr May June July Aug Sep Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 25,974 trials have entered the HAMP system of record since the prior report; 14,748 were trials with a first payment recorded in September 2011. Permanent Modifications Started (Cumulative) 900 eligible 60+ day delinquent loans as reported by servicers as of August 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. 3As reported in the monthly servicer survey of large SPA servicers through Sep. 30, 2011. 4 Servicers may enter new trial modifications into the HAMP system of record at anytime. 5 Due to a technological enhancement to the HAMP system of record, this amount includes HAMP-PRA permanent modifications that were previously reported as aged HAMP-PRA trial modifications that servicers were unable to report. 6 A permanent modification is canceled when the borrower has missed three consecutive monthly payments. Includes 2,204 loans paid off. 1,699 1,612 Jan 2011 Permanent Modifications Reported Since August 2011 Report5 1,682 1,714 1,638 1,600 All Permanent Modifications Started (000s) 1 Estimated 974,095 Monthly Trial Starts (Right Axis) All Trials Started (000s) HAMP Eligibility 100 Cumulative Trial Starts (Left Axis) New Trials Started (000s) HAMP is designed to lower monthly mortgage payments to help struggling homeowners stay in their homes and prevent avoidable foreclosure. 857 850 791 800 763 750 731 700 650 600 817 670 608 699 634 550 500 450 400 Jan 2011 Feb Source: HAMP system of record. Mar Apr May June July Aug Sep 2 Making Home Affordable: Summary Results Program Performance Report Through September 2011 Performance of Permanent Modifications (As of August 31, 2011) This table shows the performance of permanent HAMP modifications at 3, 6, 12 and 18 months of age and includes modifications that have aged at least 3, 6, 12 or 18 months, as applicable. For example: Of loans that became permanent in the 4th quarter of 2010, 8.6% were 60+ days delinquent at 6 months’ seasoning. Delinquency: Months After Conversion to Permanent Modification 3 Modification Became Permanent in: # 6 60+ 90+ Days Days # 12 60+ 90+ Days Days # 18 60+ 90+ Days Days # 60+ 90+ Days Days Q3 2009 3,583 9.7% 3.5% 4,442 14.9% 9.8% 4,688 25.4% 20.7% 5,031 32.1% 28.8% Q4 2009 44,343 5.3% 1.4% 48,165 9.6% 5.6% 52,161 19.8% 15.2% 55,700 25.0% 21.9% Q1 2010 125,696 3.7% 0.9% 152,423 9.7% 5.3% 164,556 20.1% 15.8% 169,942 26.0% 22.4% Q2 2010 150,493 5.0% 1.4% 160,238 11.8% 7.0% 177,490 19.3% 15.8% Q3 2010 86,905 4.7% 1.4% 96,968 10.7% 6.6% 105,463 17.9% 14.1% Q4 2010 58,525 4.3% 1.4% 63,019 8.6% 5.4% Q1 2011 71,848 2.6% 0.8% 76,756 7.7% 4.5% Q2 2011 80,878 3.4% 1.0% ALL 622,271 4.2% 1.2% 602,011 10.1% 5.9% 504,358 19.4% 15.5% 230,673 25.9% 22.4% • For permanent loans aged at least 3 months as of August 31, 2011, as reported by servicers through September 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 102,340 disqualified loans that have aged 3, 6, 12 or 18 months through the August activity period as reported by servicers through September 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. Effective October 2011, loan-level data with OMR status is included in the monthly MHA data file, available online at http://www.treasury.gov/initiatives/financial-stability/results/Pages/mha_publicfile.aspx. • Once a loan is paid off, it is no longer reflected in future periods. • This table will be published quarterly. Beyond 6 months, performance is noted in 6 month increments. 3 Making Home Affordable: Summary Results Program Performance Report Through September 2011 Performance of Permanent Modifications by Homeowner Payment Reduction (As of August 31, 2011) This chart and the table that follows show the performance of permanent HAMP modifications at 3, 6, 12 and 18 months of age as related to homeowner payment reduction. For example: Of loans that featured a payment reduction between 40% and 50%, 7.9% were 60+ days delinquent at 6 months’ seasoning. 60+ Day Delinquency Rate by Payment Reduction 60+ Day Delinquency Rate 40% 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% 10% Decreased by more than 50% Program Average 0% 3 6 - 12 - 18 Months After Conversion to Permanent Modification Decrease From Before-Modification Principal + Interest Payment: Delinquency: Months After Conversion to Permanent Modification 3 60+ Days 90+ Days 6 60+ Days 90+ Days # # 123,157 7.2% 2.2% 117,435 17.0% 10.5% (20%-30%] Decrease 98,110 5.2% 1.6% 94,764 12.5% (30%-40%] Decrease 110,462 4.0% 1.1% 106,809 (40%-50%] Decrease 114,302 3.1% 0.8% >50% Decrease 176,240 2.3% ALL 622,271 4.2% ≤20% Decrease # 12 60+ Days 90+ Days 18 60+ Days # 90+ Days 97,664 31.2% 25.6% 43,250 39.7% 35.3% 7.4% 78,716 24.0% 19.3% 35,933 32.2% 28.1% 9.9% 5.8% 89,303 19.7% 15.6% 41,617 26.5% 22.9% 110,349 7.9% 4.5% 92,203 16.1% 12.5% 42,669 22.3% 19.0% 0.6% 172,654 5.5% 3.0% 146,472 11.1% 8.4% 67,204 15.5% 12.9% 1.2% 602,011 10.1% 5.9% 504,358 19.4% 15.5% 230,673 25.9% 22.4% Note: For permanent loans aged at least 3 months as of August 31, 2011, as reported by servicers through September 17, 2011. See previous page for technical notes. 4 Making Home Affordable: Summary Results Program Performance Report Through September 2011 Homeowner Benefits and First Lien Modification Characteristics • The primary hardship reasons for homeowners in active permanent modifications are: • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $8.8 billion, program to date, compared with unmodified mortgage obligations. • The median monthly savings for borrowers in active permanent first lien modifications is $525.83, 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% -14.3 pct pts Back-End Debt-to-Income Ratio2 78.3% 61.5% -14.7 pct pts Median Monthly Housing Payment3 $1,426.99 $831.08 -$525.83 • 61.4% experienced loss of income (curtailment of income or unemployment) • 11.0% reported excessive obligation • 2.9% reported an illness of the principal borrower • Active permanent modifications feature the following modification steps: • 98.4% feature interest rate reductions • 58.7% offer term extension • 30.7% 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 6,468 Treasury FHA-HAMP Permanent Modifications Started 4,671 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 September 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 3,992 2,842 J.P. Morgan Chase Bank NA3 12,234 6,997 32,078 Litton Loan Servicing LP 1,303 704 HAFA Agreements Active 9,473 Select Portfolio Servicing, Inc. 1,739 873 HAFA Transactions Completed 18,557 Wells Fargo Bank, NA4 8,476 4,798 18,043 All Other Servicers 4,334 2,343 Total 32,078 18,557 Completed Transactions – Short Sale Completed Transactions – Deed-in-Lieu 514 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 47,614 PRA Trial Modifications Active 15,927 All PRA Permanent Modifications Started 29,342 PRA Permanent Modifications Active 28,903 Median Principal Amount Reduced for Active Permanent Modifications $65,200 Median Principal Amount Reduced for Active Permanent Modifications (%)2 31.4% 2 PRA amount as a percentage of 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. Under Treasury guidelines, unemployed homeowners must be considered for a minimum of 12 months’ forbearance. All UP Forbearance Plans Started (Through August 2011) 14,996 UP Forbearance Plans With Some Payment Required 12,224 UP Forbearance Plans With No Payment Required 2,772 Note: Data is as reported by servicers via survey for UP participation through August 31, 2011. See Appendix A2 for servicer participants in additional Making Home Affordable programs. 6 Making Home Affordable: Summary Results Program Performance Report Through September 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 45,705 Second Lien Modifications Involving Full Lien Extinguishments 6,332 Second Lien Modifications Disqualified2 Active Second Lien Modifications Second Lien Modifications Started (Cumulative) 50,000 40,000 1,528 Second Lien Loan Modifications3 37,130 Second Lien Extinguishment Details 28,783 25,203 21,485 20,000 9,727 10,000 0 38,658 Second Lien Partially Extinguished 36,811 33,433 30,000 715 Of the Active Second Lien Modifications: 45,705 43,624 41,126 674 992 1,455 2,121 3,953 5,686 Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct 2010 2011 Note: Includes second lien modifications reported into HAMP system of record through the end of cycle for September 2011 data, though the effective date may occur in October. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. Second Lien Modification Activity by Servicer Servicer Second Lien Modifications Started Full Ext. DQ1 Active Partial Ext./ Terms Modified Average Amount of Full Extinguishment $69,464 Bank of America, NA2 18,135 1,606 377 16,152 Average Amount of Partial Extinguishment $6,865 CitiMortgage, Inc 6,475 1,812 70 4,593 GMAC Mortgage, LLC 2,644 562 5 2,077 J.P. Morgan Chase Bank NA3 7,145 1,220 115 5,810 Wells Fargo Bank, NA4 8,832 322 132 8,378 Other SPA Servicers 2,474 810 16 1,648 Total 45,705 6,332 715 38,658 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for September 2011 data, though the effective date may occur in October. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Includes 63 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. 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 September 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 49 309 358 0.0% MT 92 825 917 0.1% AL 542 4,060 4,602 0.6% NC 1,537 13,010 14,547 1.8% AR 190 1,583 1,773 0.2% ND 14 119 133 0.0% AZ 2,851 32,054 34,905 4.3% NE 112 985 1,097 0.1% CA 22,108 177,527 199,635 24.6% NH 408 3,277 3,685 0.5% CO 1,121 9,917 11,038 1.4% NJ 3,110 23,014 26,124 3.2% CT 1,108 8,970 10,078 1.2% NM 335 2,332 2,667 0.3% DC 158 1,203 1,361 0.2% NV 1,934 18,225 20,159 2.5% DE 296 2,190 2,486 0.3% NY 5,070 33,263 38,333 4.7% FL 11,986 86,228 98,214 12.1% OH 1,998 15,743 17,741 2.2% GA 3,353 26,129 29,482 3.6% OK 245 1,641 1,886 HI 306 2,757 3,063 0.4% OR 958 7,834 8,792 1.1% IA 214 1,817 2,031 0.3% PA 1,914 14,728 16,642 2.1% ID 324 2,762 3,086 0.4% RI 427 3,761 4,188 0.5% IL 4,773 38,485 43,258 5.3% SC 862 6,712 7,574 0.9% IN 883 6,923 7,806 1.0% SD 28 268 296 0.0% KS 249 1,687 1,936 0.2% TN 1,023 7,384 8,407 1.0% KY 327 2,717 3,044 0.4% TX 2,817 18,696 21,513 2.7% LA 657 3,918 4,575 0.6% UT 694 6,790 7,484 0.9% MA 2,136 17,666 19,802 2.4% VA 1,844 17,322 19,166 2.4% 0.2% MD 2,793 22,965 25,758 3.2% VT 91 594 685 0.1% ME 285 1,983 2,268 0.3% WA 2,105 14,304 16,409 2.0% MI 2,512 23,333 25,845 3.2% WI 862 6,918 7,780 1.0% MN 1,147 12,271 13,418 1.7% WV 107 1,040 1,147 0.1% MO 918 7,377 8,295 1.0% WY 39 366 405 0.0% MS 341 2,664 3,005 0.4% Other2 582 1,966 2,548 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: 2nd Quarter 2011 National Delinquency Survey, Mortgage Bankers Association. 60+ Day Delinquency Rate 5.0% and lower 10.01% - 15.0% 5.01% - 10.0% 15.01% - 20.0% 20.01% and higher 8 Making Home Affordable: Summary Results Program Performance Report Through September 2011 Homeowner’s HOPETM Hotline 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 Chicago-Joliet-Naperville, IL-IN-WI Riverside-San Bernardino-Ontario, CA Miami-Fort Lauderdale-Pompano Beach, FL Total MSA % of U.S. HAMP HAMP Activity Activity Active Trials Permanent Modifications 7,391 52,891 60,282 7.4% 6,485 44,836 51,321 6.3% 4,621 37,276 41,897 5.2% 3,844 37,810 41,654 5.1% Program to Date September Total Number of Calls Taken at 1-888-995-HOPE 2,537,944 68,354 Borrowers Receiving Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,205,835 31,509 Source: Homeowner’s HOPETM Hotline. Numbers reflect calls that resulted in customer records. 5,467 35,380 40,847 5.0% Phoenix-Mesa-Glendale, AZ 2,159 26,086 28,245 3.5% Washington-Arlington-Alexandria, DC-VA-MD-WV 2,628 24,504 27,132 3.3% Atlanta-Sandy Springs-Marietta, GA 2,636 21,120 23,756 2.9% San Francisco-Oakland-Fremont, CA 2,180 14,477 16,657 2.1% Las Vegas-Paradise, NV 1,573 14,997 16,570 2.0% Detroit-Warren-Livonia, MI 1,519 14,150 15,669 1.9% Orlando-Kissimmee-Sanford, FL MSA 1,605 13,429 15,034 1.9% San Diego-Carlsbad-San Marcos, CA 1,618 12,731 14,349 1.8% Boston-Cambridge-Quincy, MA-NH 1,509 12,696 14,205 1.8% Sacramento-Arden-Arcade-Roseville, CA 1,477 12,339 13,816 1.7% Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 59 59,002 Servicer Solicitation of Borrowers (cumulative)1 7,882,679 Page views on MakingHomeAffordable.gov (September 2011) 1,971,889 Page views on MakingHomeAffordable.gov (cumulative) 126,837,141 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 September 2011 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer is below 19,8002. 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 23,061 27,345 19,793 0 May 2010 June July Aug Sept Oct Nov Dec Jan 2011 Feb March April May June July Aug Sept 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 or cancelled by the servicer and are pending reporting to the HAMP system of record. 2 The decline in aged trials reported this month is in part due to trials that effectively converted to permanent modifications in prior months which servicers were able to report as permanent this month due to an enhancement to the HAMP system of record. 10 Making Home Affordable: Servicer Results Program Performance Report Through September 2011 HAMP Modification Activity by Servicer As of August 31, 2011 Cumulative As of Sep. 30, 2011 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Trial Modifications Reported Since August 2011 Report3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 40,078 36,037 28,342 909 2,978 231 23,470 227,868 505,416 413,450 174,611 3,475 17,434 6,130 148,033 CitiMortgage, Inc. 70,400 189,195 134,439 57,691 2,533 4,692 1,642 49,822 GMAC Mortgage, LLC 26,050 78,250 64,541 47,636 807 2,522 49 39,624 J.P. Morgan Chase Bank, NA6 155,376 330,472 281,257 126,400 9,135 26,274 6,058 103,160 Litton Loan Servicing LP 32,742 43,864 38,295 13,525 369 1,643 302 10,604 Ocwen Loan Servicing, LLC 35,554 50,565 48,065 37,273 763 3,006 379 27,989 OneWest Bank 33,456 73,051 56,192 31,477 875 4,074 186 27,477 Select Portfolio Servicing 3,790 68,553 42,391 23,341 125 622 32 18,899 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc. 39,064 Bank of America, NA5 Servicer Wells Fargo Bank, NA7 123,501 330,845 244,435 116,076 3,396 10,271 1,249 100,357 Other SPA Servicers8 94,964 218,256 217,803 113,196 1,417 7,831 1,137 95,891 Other GSE Servicers9 131,330 NA 137,107 87,406 2,170 9,488 2,398 75,286 Total 974,095 1,928,545 1,714,012 856,974 25,974 90,835 19,793 720,612 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as August 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 monthly servicer survey of large SPA servicers through Sep. 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 September 2011 Length of Trial Upon Conversion1 9 The average length of the trial period for those converted to a permanent HAMP modification has decreased from 5.3 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 4.6 4 3.5 3.4 3 3.6 3.3 3.0 3.0 3.2 3.5 3.3 3.3 3.0 2 1 0 Am. Home Servicing Bank of America CitiMortgage Trials Started Before 6/1/10 GMAC JP Morgan Chase Litton Trials Started On/After 6/1/10 Ocwen OneWest SPS Before 6/1/10 Average (5.3) Wells Fargo Other GSE servicers Other SPA Servicers On/After 6/1/10 Average (3.5) 1 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, 2010, some servicers initiated trials using stated income information. 12 Making Home Affordable: Servicer Results Program Performance Report Through September 2011 Conversion Rate1 Following the implementation of verified income documentation in June 2010, rates of converting trial modifications into permanent modifications have substantially risen. Of Trials Started Before 6/1/10: 42% Converted to Permanent Modification 0.4% Pending Processing or Decision 100% 86% Of Eligible Trials Started On/After 6/1/10: 80% Converted to Permanent Modification 10% Pending Processing or Decision 81% Conversion Rate 80% 90% 84% 81% 88% 83% 82% 84% 77% 76% 72% 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 (80%) 1 Per program guidelines, effective June 1, 2010 all trials must be started using verified income. Prior to June 1, 2010, some servicers initiated trials using stated income information. Chart depicts conversion rates 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. 13 Making Home Affordable: Servicer Results Program Performance Report Through September 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through August 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 August 2011) 233 74 183 2,566 50 190 308 704 135 4,443 30,097 8,681 30,134 75,005 2,314 4,167 16,875 32,224 16,459 215,956 CitiMortgage Inc. 16,747 3,633 5,525 28,776 986 1,446 1,726 9,410 2,043 70,292 GMAC Mortgage, LLC 1,690 394 1,037 5,728 214 480 1,049 1,757 1,694 14,043 JP Morgan Chase Bank NA4 6,605 786 4,319 54,966 546 6,655 7,412 23,236 12,620 117,145 Litton Loan Servicing LP 554 218 606 12,157 64 194 1,189 628 1,013 16,623 Ocwen Loan Servicing, LLC 633 132 456 2,989 464 38 366 2,047 640 7,765 OneWest Bank 420 611 718 10,368 188 43 1,152 3,276 3,831 20,607 Select Portfolio Servicing 1,263 462 1,343 5,477 330 398 1,324 1,741 3,260 15,598 Wells Fargo Bank NA5 1,701 799 12,447 55,208 1,148 18,161 3,078 16,230 9,314 118,086 TOTAL (These 10 Largest Servicers) 59,943 10.0% 15,790 2.6% 56,768 9.5% 253,240 42.2% 6,304 1.0% 31,772 5.3% 34,479 5.7% 91,253 15.2% 51,009 8.5% 600,558 100.0% Bank of America, NA3 Note: Data is as reported by servicers for actions completed through August 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 September 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through August 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 August 2011) American Home Mortgage Servicing Inc. 1,851 1,257 10,161 35,592 1,108 1,424 2,118 7,859 1,588 62,958 Bank of America, NA3 65,198 17,007 119,064 87,883 9,322 8,256 37,975 87,916 37,143 469,764 CitiMortgage Inc. 22,511 9,175 20,974 24,654 4,645 15,971 1,431 6,955 7,397 113,713 GMAC Mortgage, LLC 23,829 5,728 35,189 36,586 3,025 4,307 8,260 17,392 13,577 147,893 JP Morgan Chase Bank NA4 85,566 6,242 83,041 140,061 2,218 62,395 27,927 72,140 23,361 502,951 Litton Loan Servicing LP 2,995 1,256 4,057 16,407 282 857 4,537 2,860 4,438 37,689 Ocwen Loan Servicing, LLC 6,335 1,479 30,504 32,682 4,745 133 422 4,493 2,168 82,961 OneWest Bank 5,045 2,954 24,725 18,683 1,578 1,432 4,406 12,028 10,150 81,001 Select Portfolio Servicing 2,650 460 2,946 4,441 390 286 1,077 1,871 1,709 15,830 Wells Fargo Bank NA5 17,492 5,055 51,741 50,124 2,012 24,512 15,557 22,072 15,080 203,645 TOTAL (These 10 Largest Servicers) 233,472 13.6% 50,613 2.9% 382,402 22.3% 447,113 26.0% 29,325 1.7% 119,573 7.0% 103,710 6.0% 235,586 13.7% 116,611 6.8% 1,718,405 100.0% Note: Data is as reported by servicers for actions completed through August 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 September 2011 Homeowner Experience (10 Largest Servicers) Average Speed to Answer Homeowner Calls (August) Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through September) 100 Program to date, there have been 1,249,657 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.7% included complaints. Below shows specific complaint rates. 90 70 60 Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for August: 18.5 Seconds 11% Seconds 50 40 30 9% 8% 7% 6% 20 5% 10 4% 0 3% Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo Source: Survey data through August 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. 12% Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest SPS Wells Fargo 29,166 6,684 3,315 16,913 1,680 2,418 266 652 10,776 Source: Homeowner’s HOPETM Hotline. Numbers reflect calls that resulted in customer records. Note: Complaint rate is the share of a specific servicer’s call volume that are complaints (e.g., for all calls about OneWest, 10.0% included complaints.) 60 Homeowner’s HOPETM Hotline Average Call Abandon Rate for August: 2.7% Target: 30 Calendar Days 50 Calendar Days 8% Am. Home Servicing Complaints (PTD): 2,413 Servicer Time to Resolve Third-Party Escalations (Cases Reported Feb. 1, 2011 – Sep. 30, 2011) Call Abandon Rate (August) 10% Program to Date Average: 6.7% 10% % of Calls for Specific Servicer 80 6% 4% 40 30 20 10 2% 0 0% Am. Home Servicing Bank of America CitiMortgage GMAC JP Morgan Chase Litton Ocwen OneWest Source: Survey data through August 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. SPS Wells Fargo Am. Home Servicing Resolved Cases 582 Post-2/1/11 Bank of America 8,248 CitiMortgage 921 GMAC JP Morgan Chase Litton Ocwen OneWest SPS 529 3,435 281 646 742 134 Source: MHA Support Centers. Escalations resolved on or after Feb. 1, 2011. Investor denial cases, cases involving bankruptcy and those that did not require servicer actions are not included in calculation of servicer time to resolve escalations. Target of 30 calendar days, effective Feb. 1, 2011, includes an estimated 5 days of processing by MHA Support Centers. Wells Fargo 2,109 16 Making Home Affordable: Servicer Results Program Performance Report Through September 2011 Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications American Home Mortgage Servicing Inc. 1,285 25,163 - 26,448 Bank of America, NA1 96,142 59,337 9,988 165,467 CitiMortgage, Inc. 31,484 5,643 17,387 54,514 GMAC Mortgage, LLC 24,739 5,815 11,592 42,146 JP Morgan Chase NA2 57,260 49,078 23,096 129,434 82 12,155 10 12,247 Ocwen Loan Servicing, LLC 7,102 23,794 99 30,995 OneWest Bank 14,535 14,547 2,469 31,551 522 16,446 2,553 19,521 Wells Fargo Bank, NA 3 50,573 15,903 44,152 110,628 Other HAMP Servicers 138,867 33,603 16,026 188,496 Total 422,591 261,484 127,372 811,447 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 September 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 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. 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 Community Bank Mission Federal Credit Union Mortgage Center, LLC Nationstar Mortgage LLC Navy Federal 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 September 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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