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Making Home Affordable Program Performance Report Through November 2011 Report Highlights Nearly 910,000 Homeowners Granted Permanent Modifications • Program to date, homeowners in permanent modifications have saved an estimated $9.9 billion in monthly mortgage payments. Homeowners in active first lien permanent modifications are currently saving a median of $530 per month – more than one-third of the median before-modification payment. • Eighty-three 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. • In addition, the Office of the Comptroller of the Currency (OCC) released its Third Quarter 2011 Mortgage Metrics Report which continues to report lower delinquency and re-default rates for HAMP as compared to other industry modifications. Inside: Expanded Reporting on the Second Lien Modification Program • This month, additional detail on the Second Lien Modification Program (2MP) is available, including servicer-level detail on eligible second liens. • Homeowners in 2MP save a median of $163 per month on their second mortgage, in addition to the savings realized from the modification of their first mortgage under HAMP. • Over one-third of 2MP borrowers reside in California (35%), followed by Florida (9%) and New York (6%). Inside: SUMMARY RESULTS: First Lien Modification Activity Waterfall of Eligible Borrowers/ First Lien Modification Characteristics Second Lien Modification Program (2MP) Activity for PRA, Treasury FHA-HAMP, HAFA and UP / Modifications by Investor Type HAMP Activity by State HAMP Activity by MSA/ Homeowner Outreach Aged Trials 2 3 4 5 6 7 8 SERVICER RESULTS: First Lien Modification Activity by Servicer First Lien, PRA, 2MP, and HAFA Activity by Servicer Trial Length Conversion Rate Homeowner Experience Disposition of Homeowners Not in HAMP APPENDICES: Participants in MHA Programs 9 10 11 12 13 14-15 16-17 Making Home Affordable: Summary Results Program Performance Report Through November 2011 HAMP Activity: First Lien Modifications HAMP Trials Started (As of Oct. 31, 2011) Eligible Delinquent Borrowers2 Trial Plan Offers Extended (Cumulative)3 All Trials Started Trial Modifications 1,700 2,539,502 891,542 1,984,196 1,754,516 All Trials Started (000s) HAMP Eligibility Eligible Delinquent Loans1 1,500 19,059 764,340 1,580 909,953 1,350 Permanent Modifications Reported Since October 2011 Report 26,877 Permanent Modifications Canceled (Cumulative)5 159,205 Active Permanent Modifications 750,748 1,511 1,400 All Permanent Modifications Started 50 1,545 1,450 80,223 1,707 1,742 1,639 1,550 Trials Reported Since October 2011 Report4 1,687 1,727 1,755 1,613 1,600 Active Trials Jan 2011 Feb Mar Apr May June July Aug Sep Oct 1,000 900 857 800 763 700 600 608 634 670 699 791 883 910 817 731 500 400 Jan 2011 Feb Mar Source: HAMP system of record. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. 0 Permanent Modifications Started (Cumulative) eligible 60+ day delinquent loans as reported by servicers as of October 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 monthly servicer survey of large SPA servicers through November 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 2,628 loans paid off. Nov Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 19,059 trials have entered the HAMP system of record since the prior report; 12,877 were trials with a first payment recorded in November 2011. All Permanent Modifications Started (000s) 1 Estimated 1,665 1,650 Trial Modifications Canceled (Cumulative) Permanent Modifications Monthly Trial Starts (Right Axis) 1,750 Total 100 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. Apr May June July Aug Sep Oct Nov 2 Making Home Affordable: Summary Results Program Performance Report Through November 2011 Homeowner Benefits and First Lien Modification Characteristics Waterfall of Estimated Eligible Homeowners For the First Lien Modification Program 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, about 900,000 homeowners are eligible for HAMP. As this represents a point-in-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that as homeowners become seriously delinquent between now and the end of 2012, 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 HAMP Estimated Eligible 60+ Day Delinquent Borrowers 3.4 3 2.5 2.9 2.5 2.5 2 • Aggregate savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $9.9 billion, program to date, compared with unmodified mortgage obligations. • The median monthly savings for borrowers in active permanent first lien modifications is $529.75, or 37% of the median monthly payment before modification. • Of trial modifications started, 79% of homeowners were at least 60 days delinquent at trial start. The rest were up to 59 days delinquent or current and in imminent default. • The primary hardship reasons for homeowners in active permanent modifications are: • 64.3% experienced loss of income (curtailment of income or unemployment) • 11.4% reported excessive obligation • 3.2% reported an illness of the principal borrower • Active permanent modifications feature the following modification steps: 1.5 1.7 1 1.5 0.9 0.9 0.5 • 98.2% feature interest rate reductions • 58.8% offer term extension • 30.3% include principal forbearance 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 After Modification Median Decrease Ratio1 45.3% 31.0% -14.3 pct pts Back-End Debt-to-Income Ratio2 77.6% 60.5% -14.7 pct pts $1,429.75 $829.90 -$529.75 Front-End Debt-to-Income ** 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 loans eligible for the first lien modification program. Before Modification Loan Characteristic Median Monthly Housing Payment3 Sources: Fannie Mae; monthly survey of participating servicers for October 31, 2011. Total 60+ day 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) delinquency figure derived from 3rd Quarter 2011 MBA National Delinquency Survey. Excluded loans are as to monthly gross income. reported by large servicers by survey who have signed a servicer participation agreement for HAMP. 2 Ratio of total monthly debt payments (including mortgage principal and interest, taxes, insurance, homeowners association and/or condo fees, plus payments on installment debts, junior liens, alimony, car lease payments and investment property payments) to monthly gross income. Borrowers who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines. 3 Principal and interest payment. 3 Making Home Affordable: Summary Results Program Performance Report Through November 2011 Second Lien Modification Program (2MP) 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 HAMP servicer. This assistance can result in a modification of the second lien or a full or partial extinguishment of the second lien. 2MP requires that a participating servicer offer a second lien modification if that borrower also has a permanent and active first lien HAMP modification, and that the second lien has an unpaid balance of $5,000 or more and a pre-modification scheduled monthly payment of at least $100. Estimated Eligible 2nd Liens 2MP Activity 54,828 Second Lien Modifications Involving Full Lien Extinguishments 9,772 Second Lien Modifications Disqualified2 1,098 Active Second Lien Modifications3 43,958 60 Cumulative 2MP Modification Starts (Left Axis)1 Monthly 2MP Modification Starts (Right Axis)1 50 40 35 30 22 25 44 47 50 53 55 39 29 20 10 1 1 1 2 4 6 10 Eligible 2nd Liens5 2MP Modifications Started Bank of America, NA 42,224 20,431 CitiMortgage, Inc 15,179 7,529 GMAC Mortgage, LLC 4,652 3,178 JPMorgan Chase Bank, NA 28,682 10,700 Median Amount of Full Extinguishment $60,688 OneWest Bank 4,575 1,320 $6,325 Wells Fargo Bank, NA 17,774 9,891 Median Amount of Partial Extinguishment for Active 2MP Modifications Other Servicers 2,676 1,779 Median Payment Reduction for Active Modifications $163 115,762 54,828 20 18 16 14 12 10 8 6 4 2 0 New Modifications Started (000s) All Second Lien Modifications Started (Cumulative)1 All Modifications Started (000s) • Based on survey data as reported by servicers through November 30, 2011, 47% of eligible second liens have received a 2MP modification, with many of the remaining second liens either still in the evaluation process by the servicers, awaiting homeowner response to the 2MP offer, or awaiting conversion of the first lien HAMP trial to permanent modification. • Important factors affecting the size of the population of second liens eligible for 2MP modifications include: Servicer participation in 2MP is voluntary; current 2MP servicers represent approximately 69% of the homeowners with active, permanent HAMP first lien modifications4. Under 2MP, participating servicers are notified when a match is found between one of their second liens and a HAMP first lien modification. Survey data indicate that 308,341 HAMP modifications have been matched with a second lien5. Of these matched second liens, a number are found to be ineligible for a 2MP modification. The most common reasons for ineligibility are: • Cancellation or failure of a trial or permanent first lien HAMP modification, • Extinguishment of the second lien prior to evaluation for 2MP, • Failure of a 2MP trial modification, and • Some homeowners with eligible second liens decline to participate in 2MP. 2MP Participating Servicer Name4 Total 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for November 2011 data, though the effective date may occur in December. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Includes 77 loans paid off. 3 Includes 1,601 loans in active non-payment status whereby the 1MP has disqualified from HAMP. As a result, the servicer is no longer required to report payment activity on the 2MP modification 4 Only six of the 10 largest SPA servicers participate in 2MP. See Appendix A for servicer participants in 2MP and other programs. 5 Data is as reported by servicers via survey as of November 30, 2011. 0 Modification Characteristics Top three States by Activity, Percent of Total Activity: • California 35% • Florida 9% • New York 6% 4 Making Home Affordable: Summary Results Program Performance Report Through November 2011 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 57,656 PRA Trial Modifications Active 15,875 All PRA Permanent Modifications Started 38,243 PRA Permanent Modifications Active 36,454 Median Principal Amount Reduced for Active Permanent Modifications $66,308 Median Principal Amount Reduced for Active Permanent Modifications (%)2 31.3% 2 PRA 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 38,613 HAFA Agreements Active 8,309 HAFA Transactions Completed 24,365 Completed Transactions – Short Sale Completed Transactions – Deed-in-Lieu 23,666 699 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. amount as a percentage of before-modification UPB, excluding capitalization. Modifications by Investor Type (Large Servicers) Unemployment Program (UP) Activity GSE Private Portfolio Total Active Modifications 1,296 26,138 0 27,434 Bank of America, NA1 82,941 62,590 10,482 156,013 The Treasury MHA 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. CitiMortgage, Inc. 31,869 5,650 17,206 54,725 All UP Forbearance Plans Started (through Oct. 2011) 16,633 GMAC Mortgage, LLC 24,954 5,865 11,585 42,404 JPMorgan Chase NA2 60,394 52,639 23,943 136,976 UP Forbearance Plans With Some Payment Required 13,762 Ocwen Loan Servicing, LLC 3 7,005 35,050 121 42,176 UP Forbearance Plans With No Payment Required 2,871 OneWest Bank 14,829 15,151 2,601 32,581 Saxon Mortgage Services, Inc. 1,442 10,380 1,895 13,717 520 16,166 2,510 19,196 51,476 15,695 45,478 112,649 Servicer American Home Mortgage Servicing Inc. Select Portfolio Servicing Wells Fargo Bank, NA 4 Other HAMP Servicers 155,046 23,126 14,928 193,100 Total 431,772 268,450 130,749 830,971 1 Bank of America, NA includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 3 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 4 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. Note: Figures reflect active trials and active permanent modifications. 2 JPMorgan Note: Data is as reported by servicers via survey for UP participation through Oct. 31, 2011. 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 7,350 Treasury FHA-HAMP Permanent Modifications Started 4,659 See Appendix A2 for servicer participants in additional Making Home Affordable programs. 5 Making Home Affordable: Summary Results Program Performance Report Through November 2011 HAMP Activity by State State % of U.S. State HAMP Active Permanent Trials Modifications Total1 Activity State Modification Activity by State % of U.S. Active Permanent State HAMP Trials Modifications Total1 Activity AK 52 316 368 0.0% MT 85 860 945 0.1% AL 481 4,173 4,654 0.6% NC 1,335 13,420 14,755 1.8% AR 185 1,641 1,826 0.2% ND 16 123 139 0.0% AZ 2,421 32,718 35,139 4.2% NE 108 999 1,107 0.1% CA 19,103 187,620 206,723 24.9% NH 387 3,381 3,768 0.5% CO 995 10,324 11,319 1.4% NJ 2,828 23,992 26,820 3.2% CT 1,032 9,337 10,369 1.2% NM 293 2,426 2,719 0.3% DC 155 1,257 1,412 0.2% NV 1,573 18,699 20,272 2.4% DE 240 2,271 2,511 0.3% NY 4,940 35,028 39,968 4.8% FL 10,709 89,853 100,562 12.1% OH 1,806 16,176 17,982 2.2% GA 2,946 27,057 30,003 3.6% OK 225 HI 277 2,841 3,118 0.4% OR 824 IA 200 1,851 2,051 0.2% PA 1,650 ID 276 2,899 3,175 0.4% RI 357 IL 4,171 39,862 44,033 5.3% SC IN 754 7,107 7,861 0.9% SD KS 212 1,757 1,969 0.2% TN 864 KY 298 2,793 3,091 0.4% TX 2,473 LA 542 4,108 4,650 0.6% UT 584 1,698 1,923 0.2% 8,229 9,053 16,903 2.0% 3,867 4,224 0.5% 765 6,933 7,698 266 294 7,613 8,477 2.6% 7,065 7,649 35,001 and higher 1.0% 21,977 20,001 – 35,000 5,001 – 10,000 0.0% 19,504 5,000 and lower 0.9% 28 Note: Includes active trial and permanent modifications from the official HAMP system of record. 1.1% 15,253 HAMP Modifications 0.9% MA 2,006 18,234 20,240 2.4% VA 1,680 17,904 19,584 2,459 23,906 26,365 3.2% VT 86 626 712 0.1% ME 275 2,051 2,326 0.3% WA 1,816 15,131 16,947 2.0% MI 2,184 24,030 26,214 3.2% WI 816 7,108 7,924 1.0% MN 988 12,582 13,570 1.6% WV 91 1,065 1,156 0.1% MO 819 7,611 8,430 1.0% WY 31 379 410 0.0% MS 286 2,719 3,005 0.4% Other2 496 2,085 2,581 0.3% Mortgage Delinquency Rates by State 2.4% MD 10,001 – 20,000 1 Total reflects active trials and active permanent modifications. 2 Includes Guam, Puerto Rico and the U.S. Virgin Islands. Source: 3rd Quarter 2011 National Delinquency Survey, Mortgage Bankers Association. 60+ Day Delinquency Rate 5.0% and lower 5.01% - 10.0% 10.01% - 15.0% 15.01% - 20.0% 20.01% and higher 6 Making Home Affordable: Summary Results Program Performance Report Through November 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 6,455 56,597 63,052 47,183 53,398 38,671 42,694 3,289 39,374 42,663 65,838 Borrowers Referred for Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 5.1% 2,671,193 1,269,686 32,189 6.4% 4,023 November Total Number of Calls Taken at 1-888-995-HOPE 7.6% 6,215 Program to Date 5.1% Source: Homeowner’s HOPETM Hotline. Numbers reflect calls that resulted in customer records. 4,986 37,434 42,420 5.1% Phoenix-Mesa-Glendale, AZ 1,793 26,552 28,345 3.4% Washington-Arlington-Alexandria, DC-VA-MD-WV 2,395 25,487 27,882 3.4% Atlanta-Sandy Springs-Marietta, GA 2,356 21,874 24,230 2.9% San Francisco-Oakland-Fremont, CA 1,839 15,558 17,397 2.1% Las Vegas-Paradise, NV 1,303 15,360 16,663 2.0% Detroit-Warren-Livonia, MI 1,315 14,604 15,919 1.9% Orlando-Kissimmee-Sanford, FL MSA 1,405 13,832 15,237 1.8% San Diego-Carlsbad-San Marcos, CA 1,409 13,543 14,952 1.8% Boston-Cambridge-Quincy, MA-NH 1,415 13,150 14,565 1.8% Sacramento-Arden-Arcade-Roseville, CA 1,212 12,877 14,089 1.7% Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 61 59,950 Servicer Solicitation of Borrowers (cumulative)1 8,261,201 Page views on MakingHomeAffordable.gov (November 2011) 2,634,683 Page views on MakingHomeAffordable.gov (cumulative) 131,879,674 1 Source: Survey data provided by SPA servicers. Servicers are encouraged by HAMP to solicit information from borrowers 60+ days delinquent, regardless of eligibility for a HAMP modification. Note: Total reflects active trials and active permanent modifications. A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ 7 Making Home Affordable: Summary Results Program Performance Report Through November 2011 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer is approximately 20,300. 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 18,359 20,332 0 May 2010 June July Aug Sept Oct Nov Dec Jan 2011 Feb March April May June July Aug Sep Oct Nov 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 or cancelled by the servicer and are pending reporting to the HAMP system of record. 8 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 HAMP Modification Activity by Servicer As of Oct. 31, 2011 Cumulative As of Nov. 30, 2011 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Trial Modifications Reported Since October 2011 Report3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 42,123 37,957 29,904 899 3,235 209 24,199 184,227 527,819 384,211 171,166 -32,7146 16,038 9,015 139,975 CitiMortgage, Inc. 53,745 189,961 135,074 59,110 315 4,416 1,702 50,309 GMAC Mortgage, LLC 23,271 80,734 66,230 49,209 906 2,415 58 39,989 JPMorgan Chase Bank, NA7 140,248 342,865 295,566 142,688 6,750 20,870 3,710 116,106 Ocwen Loan Servicing, LLC8 58,605 95,200 87,149 51,936 305 4,065 947 38,111 OneWest Bank 31,204 74,818 57,751 33,191 880 3,996 223 28,585 Saxon Mortgage Services, Inc. 12,685 44,407 39,901 16,970 401 652 89 13,065 Select Portfolio Servicing 2,812 68,914 42,657 23,706 131 509 16 18,687 Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 American Home Mortgage Servicing Inc 35,260 Bank of America, NA5 Servicer NA9 110,807 338,712 248,910 121,434 2,172 9,761 1,362 102,888 Other SPA servicers10 73,774 178,643 182,416 101,559 1,612 5,505 815 84,717 Other GSE Servicers11 164,904 NA 176,694 109,080 37,4026 8,761 2,186 94,117 Total 891,542 1,984,196 1,754,516 909,953 19,059 80,223 20,332 750,748 Wells Fargo Bank, 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of Oct. 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. As reported in the monthly servicer survey of large SPA servicers through Nov. 30, 2011. 3 As reported into the HAMP system of record by servicers. Excludes FHAHAMP 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 or cancelled by the servicer and are pending reporting to the HAMP system of record. 5 Bank of America, NA includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 6 Reported activity for Bank of America, NA and other GSE servicers reflects the transfer of approximately 35K modifications from Bank of America, NA to Seterus, Inc. 2 7 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 8 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 9 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 10 Other SPA servicers are entities excluding the 10 largest servicers that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A1. 11 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans previously transferred from SPA servicers. 9 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 Making Home Affordable Programs by Servicer1 Principal Reduction Alternative (PRA)2 HAMP First Lien Modifications Second Lien Modification (2MP) Home Affordable Foreclosure Alternatives (HAFA) Trials Started3 Permanent Modifications Started3 Trials Started3 Permanent Modifications Started3 Second Lien Modifications Started4 Agreements Started5 Agreements Completed American Home Mortgage Servicing Inc. 37,957 29,904 0 0 N/A 516 203 NA6 384,211 171,166 13,683 10,940 20,431 6,121 4,975 135,074 59,110 2,022 1,470 7,529 32 24 Servicer Bank of America, CitiMortgage, Inc. GMAC Mortgage, LLC 66,230 49,209 941 542 3,178 1,497 928 JPMorgan Chase Bank, NA7 295,566 142,688 12,381 5,728 10,700 13,757 8,556 Ocwen Loan Servicing, LLC8 87,149 51,936 10,353 6,975 N/A 1,585 821 OneWest Bank 57,751 33,191 3,034 1,795 1,320 1,106 529 Saxon Mortgage Services, Inc. 39,901 16,970 578 513 N/A 356 101 Select Portfolio Servicing Wells Fargo Bank, Other Servicers Total NA9 42,657 23,706 1 1 N/A 1,933 1,055 248,910 121,434 13,594 9,441 9,891 9,640 5,733 359,110 210,639 1,069 838 1,779 2,070 1,440 1,754,516 909,953 57,656 38,243 54,828 38,613 24,365 1 MHA Program Effective Dates: HAMP First Lien: April 6, 2009 PRA: October 1, 2010 2MP: August 13, 2009 HAFA: April 5, 2010 2 While both GSE and non-GSE loans are eligible for HAMP, at the present time due to GSE policy, servicers can only offer PRA on non-GSE modifications under HAMP. Servicer volume can vary based on the investor composition of the servicer’s portfolio and respective policy with regards to PRA. See page 5 for additional servicer detail on HAMP activity by investor type. 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 See Appendix A1 and A2 for servicer participants in Making Home Affordable programs. N/A – Servicer does not participate in the program. Number of second lien modifications started is net of cancellations, which are primarily due to servicer data corrections. 5 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 thirdparty purchaser and cooperation of junior lienholders and mortgage insurers to complete the transaction. 6 Bank of America, NA includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 7 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 8 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 9 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 10 Making Home Affordable: Servicer Results Program Performance Report Through November 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 4.5 4 3.5 3.4 3 3.6 3.3 3.0 3.0 3.0 3.2 3.5 3.3 3.3 2 1 0 Am. Home Servicing Bank of America CitiMortgage Trials Started Before 6/1/10 GMAC JP Morgan Chase Ocwen Trials Started On/After 6/1/10 OneWest Saxon SPS Before 6/1/10 Average (5.3) Wells Fargo Other SPA Servicers Other GSE 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. 11 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 Conversion Rate1 Following the implementation of verified income documentation in June 2010, rates of converting trial modifications into permanent modifications have risen substantially. Of Trials Started Before 6/1/10: 43% Converted to Permanent Modification 0.5% Pending Processing or Decision 100% 88% Of Eligible Trials Started On/After 6/1/10: 83% Converted to Permanent Modification 7.2% Pending Processing or Decision 83% Conversion Rate 84% 80% 80% 80% 90% 79% 80% 89% 85% 82% 83% 60% 40% 20% 0% Am. Home Servicing Bank of America CitiMortgage GMAC JPMorgan Chase Ocwen Average of Trials Started Before 6/1/10 (43%) OneWest Saxon SPS Wells Fargo Other SPA Servicers Other GSE Servicers Average of Trials Started On/After 6/1/10 (83%) 1 Per program guidelines, effective June 1, 2010 all trials must be started using verified income. Before 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. 12 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 Homeowner Experience (10 Largest Servicers) Average Speed to Answer Homeowner Calls (October) 60 Servicer Complaint Rate to Homeowner’s HOPETM Hotline (Program to Date, Through November) Program to date, there have been 1,316,463 calls to the Homeowner’s HOPETM Hotline regarding a specific SPA servicer, of which 6.7% included complaints. Below shows specific complaint rates. Average Speed to Answer Calls to Homeowner’s HOPETM Hotline for October: 29.5 Seconds 50 11% 40 % of Calls for Specific Servicer Seconds 30 20 9% 8% 7% 6% 5% 10 0 Program to Date Average: 6.7% 10% 4% 3% Am. Home Servicing Bank of America CitiMortgage GMAC JPMorgan Chase Ocwen OneWest Saxon SPS Wells Fargo Source: Survey data through October 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. Bank of America CitiMortgage GMAC JPMorgan Chase Ocwen 30,531 6,906 3,434 17,523 4,356 OneWest 280 Saxon 1,195 SPS 678 Wells Fargo 11,271 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, 9.7% included complaints.) Ocwen Loan Servicing, LLC includes Litton Loan Servicing, LP. Servicer Time to Resolve Third-Party Escalations (Cases Reported Feb. 1, 2011 – Nov. 30, 2011) Call Abandon Rate (October) 12% 60 Homeowner’s HOPETM Hotline Average Call Abandon Rate for October: 5.1% 10% Am. Home Complaints Servicing (PTD): 2,568 Target: 30 Calendar Days 50 Calendar Days 8% 6% 4% 40 30 20 10 2% 0% 0 Am. Home Servicing Bank of America CitiMortgage GMAC JPMorgan Chase Ocwen OneWest Saxon Source: Survey data through October 31, 2011, from servicers on call volume to loss mitigation lines; Homeowner’s HOPETM Hotline. SPS Wells Fargo Am. Home Servicing Resolved Cases 643 Post-2/1/11 Bank of America CitiMortgage GMAC JPMorgan Chase Ocwen OneWest Saxon SPS Wells Fargo 9,600 1,069 612 3,893 1,085 858 247 160 2,501 Source: MHA Support Centers. GSE and Non-GSE escalations resolved on or after Feb. 1, 2011. Investor denial cases escalated prior to Nov.1, 2011, 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. Ocwen Loan Servicing, LLC includes Litton Loan Servicing, LP. 13 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through October 2011 (10 Largest Servicers) Homeowners Whose HAMP Trial Modification Was Canceled Who Are in the Process of: Action Not Allowed – Action Bankruptcy Borrower Pending1 in Process Current Servicer American Home Mortgage Servicing Inc. Short Sale/ Alternative Payment Deed-in- Foreclosure Foreclosure Modification Plan2 Loan Payoff Lieu Starts Completions Total (As of October 2011) 190 77 169 2,581 51 288 321 654 135 4,466 Bank of America, NA 20,868 8,303 26,621 78,463 2,669 4,675 17,263 34,145 19,908 212,915 CitiMortgage Inc. 2,630 3,350 6,558 31,224 1,138 8,839 634 7,741 9,694 71,808 GMAC Mortgage, LLC 1,899 392 1,008 5,639 116 509 1,096 1,725 1,818 8,296 812 4,873 50,572 182 1,305 11,712 26,921 13,363 793 882 9,269 3,427 1,634 151 376 4,667 1,160 22,359 OneWest Bank 313 399 703 11,866 122 60 1,172 1,912 4,011 20,558 Saxon Mortgage Services, Inc. 1,740 891 2,355 2,055 358 1,568 845 4,210 3,747 17,769 Select Portfolio Servicing 1,162 396 1,289 5,459 303 427 1,309 1,589 3,473 15,407 Wells Fargo Bank NA6 2,600 787 11,807 52,904 956 21,280 2,884 16,505 7,930 117,653 40,491 6.6% 16,289 2.6% 64,652 10.5% 244,190 39.7% 7,529 1.2% 39,102 6.4% 37,612 6.1% 100,069 16.3% 65,239 10.6% • Trial plan payment default 118,036 Ocwen Loan Services LLC5 • Insufficient documentation 14,202 JP Morgan Chase Bank NA4 The most common causes of trial cancellations from all servicers are: 615,173 100.0% 3 TOTAL (These 10 Largest Servicers) Note: Data is as reported by servicers for actions completed through October 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 all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 4 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 5 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 6 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. • Ineligible borrower: first lien housing expense is already below 31% of household income 14 Making Home Affordable: Servicer Results Program Performance Report Through November 2011 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through October 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 October 2011) American Home Mortgage Servicing Inc. 2,086 1,399 11,893 39,293 1,399 2,536 2,375 8,619 1,482 71,082 Bank of America, NA3 47,032 16,829 109,801 108,297 10,738 9,705 38,691 90,415 42,746 474,254 CitiMortgage Inc. 12,690 12,056 20,264 38,506 2,973 35,085 1,884 24,970 17,778 166,206 GMAC Mortgage, LLC 25,893 5,875 36,587 37,304 1,747 4,986 8,985 16,914 14,729 96,090 6,652 80,579 130,408 348 38,218 45,102 89,919 26,038 7,971 2,200 32,938 42,170 4,940 599 2,856 6,041 4,668 104,383 OneWest Bank 5,134 2,754 24,528 23,767 1,339 1,708 4,693 9,333 10,759 84,015 Saxon Mortgage Services, Inc. 3,482 1,381 3,124 6,134 930 3,113 1,161 6,472 2,299 28,096 Select Portfolio Servicing 2,647 429 3,010 4,782 387 334 1,239 1,776 1,930 16,534 Wells Fargo Bank NA6 17,496 5,012 50,494 50,661 1,754 28,656 15,563 22,654 15,373 207,663 220,521 12.1% 54,587 3.0% 373,218 20.5% 481,322 26.5% 26,555 1.5% 124,940 6.9% 122,549 6.7% 277,113 15.2% 137,802 7.6% • Ineligible borrower: first lien housing expense is already below 31% of household income 513,354 Ocwen Loan Services LLC5 • Insufficient documentation 153,020 JP Morgan Chase Bank NA4 The most common causes of trials not accepted from all servicers are: 1,818,607 100.0% TOTAL (These 10 Largest Servicers) Note: Data is as reported by servicers for actions completed through October 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 all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 4 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 5 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 6 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. Note: Excludes loans removed from servicing portfolios. • Ineligible mortgage 15 Making Home Affordable Program Performance Report Through November 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. JPMorgan Chase Bank, NA2 Lake City Bank Lake National Bank Liberty Bank and Trust Co. 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, LLC3 OneWest Bank ORNL Federal Credit Union Park View Federal Savings Bank Pathfinder Bank PennyMac Loan Services, LLC PNC Bank, National Association PNC Mortgage4 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, NA5 Yadkin Valley Bank 1 Bank of America, NA includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 3 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 4 Formerly National City Bank. 5 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 16 Making Home Affordable Program Performance Report Through November 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. JPMorgan 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 JPMorgan 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 JPMorgan 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 JPMorgan 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 all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, NA includes all loans previously reported under 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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