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Making Home Affordable Report Highlights Program Performance Report Through April 2012 Over 1.1 Million Homeowner Assistance Actions Taken through Making Home Affordable • More than 1 million homeowners have received a permanent modification through the Home Affordable Modification Program (HAMP). These homeowners have reduced their mortgage payments by a median of approximately $535 each month – more than one-third of their median before-modification payment – saving a total estimated $12.7 billion to date in monthly mortgage payments. • For homeowners currently in HAMP permanent modifications with the Principal Reduction Alternative feature, the median amount of principal reduced is $68,267. To date, homeowners in PRA are further underwater and more are seriously delinquent at trial start than the overall population of HAMP participants. 88% of homeowners in the PRA program are at least 60 days delinquent at trial start (compared to 80% of the overall HAMP population) with a before-modification loan-to-value ratio of 157% (compared to 120% for the overall HAMP population). 70% of eligible non-GSE customers entering HAMP in recent months have received some form of principal reduction with their modification. This Month: Q1 2012 Servicer Assessment Results • For the first quarter of 2012, three servicers were found to need only minor improvement on the areas reviewed for program performance, while six servicers were found to need moderate improvement. All servicers will need to continue to demonstrate progress in areas identified in follow-up program reviews. Included this Month: Servicer Implementation Dates for HAMP Expansion • On January 27, 2012, Treasury announced program enhancements to expand program eligibility to include a “Tier 2” evaluation. HAMP Tier 2 is designed to provide help for borrowers with a financial hardship whose debt-to-income ratio is below 31 percent, who have properties occupied by a tenant or who have vacant properties that the borrower intends to rent. • As of June 1, 2012, servicers have informed Treasury that they have begun accepting HAMP Tier 2 modification requests from borrowers. For more detail, please refer to page 3. Notes: • This report reflects program activity for the Making Home Affordable Program. For information and quarterly updates about the Hardest Hit Fund, please visit the website for the Hardest Hit Fund or the TARP Monthly Report to Congress. • Effective May 29, 2012, American Home Mortgage Servicing, Inc. changed its name to Homeward Residential. Inside: SUMMARY RESULTS: Making Home Affordable Program Activity HAMP Expansion Servicer Implementation First Lien Modification Activity Activity for 2MP, Treasury FHA-HAMP, HAFA and UP Principal Reduction Alternative First Lien Modification Characteristics /Modifications by Investor Type HAMP Activity by State HAMP Activity by MSA/ Homeowner Outreach Aged Trials 2 3 4 5 6 7 8 9 10 SERVICER RESULTS: First Lien Modification Activity First Lien, PRA, 2MP, and HAFA Activity Outreach to 60+ Delinquent Homeowners Average Delinquency at Trial Start Conversion Rate Time to Resolve Escalations Disposition of Homeowners Not in HAMP 11 12 13 14 15 16 17-18 SERVICER ASSESSMENT RESULTS: Overview Servicer Results Description of Metrics 19-25 26-43 44 APPENDICES: Participants in MHA Programs 45-46 Making Home Affordable Program Performance Report Through April 2012 Making Home Affordable Program Activity In total, the MHA program has completed over 1.1 million first and second lien permanent modifications, HAFA transactions, and UP forbearance plans. Cumulative MHA Activity (000s) Cumulative MHA Activity1 1,400 1,200 Reported Since Prior Period 1,008,689 15,167 80,090 3,872 Program Purpose 44,749 4,497 • Home Affordable Modification Program (HAMP) 6,502 371 Provides eligible borrowers the opportunity to lower their first lien mortgage payment to affordable and sustainable levels through a uniform loan modification process. 22,193 1,791 • Second Lien Modification Program (2MP) Provides modifications and extinguishments on second liens when there has been a first lien HAMP modification on the same property. 1,162,223 25,698 • Home Affordable Foreclosure Alternatives (HAFA) Provides transition alternatives to foreclosure in the form of a short sale or deed-in-lieu of foreclosure. • FHA-HAMP and RD-HAMP modification programs Provides first lien modifications for distressed borrowers in loans guaranteed through the Federal Housing Administration and Rural Housing Service. • Unemployment Program (UP) Provides temporary forbearance of mortgage principal to enable unemployed borrowers to look for a new job without fear of foreclosure. • Principal Reduction Alternative (PRA) Provides principal forgiveness on eligible underwater loans that are modified under HAMP. Cumulative (Left Axis) Monthly (Right Axis) 50 1,000 40 800 30 600 20 400 10 200 0 0 July Aug Sep Oct Nov Dec Jan Feb Mar Apr 2011 2012 The Making Home Affordable Program was launched in March 2009 with the Home Affordable Modification Program (HAMP) which provides assistance to struggling homeowners by lowering monthly first lien mortgage payments to an affordable level. Additional programs were subsequently rolled out to expand the program reach. 60 Monthly MHA Activity (000s) HAMP Permanent Modifications Started 2MP Modifications Started HAFA Agreements Completed FHA-HAMP and RD-HAMP Permanent Modifications Started UP Forbearance Plans Started (through Mar. 2012) Program-to-Date Source: HAMP system of record for HAMP, 2MP, HAFA, FHA-HAMP, and RD-HAMP. UP participation is reported via servicer survey through Mar. 31, 2012. 1 Cumulative activity includes HAMP permanent modifications started, 2MP modifications started, HAFA transactions completed, FHA-HAMP and RD-HAMP permanent modifications started, and UP forbearance plans started. This does not include trial modifications that have cancelled or not yet converted to permanent modification and HAFA agreements started but not yet completed. 2 Making Home Affordable Program Performance Report Through April 2012 HAMP Tier 2 Servicer Implementation Timelines1 Feb ‘12 Mar ‘12 Apr ‘12 May ‘12 Jun ‘12 Jul ‘12 Aug ‘12 Sep ‘12 Oct ‘12 SD Effective Date Supplemental Directive (SD) Published Bank of America, NA Full Implementation 10/15/20122. Wells Fargo Bank, NA Full Implementation by 6/22/20122. JPMorgan Chase Bank, NA Full Implementation 8/31/20122 OneWest Full Implementation 6/1/2012 GMAC Mortgage, LLC Full Implementation 7/10/20122 Ocwen Loan Servicing, LLC Full Implementation 6/4/20122 Homeward Residential Full Implementation 6/29/20122 CitiMortgage, Inc. Full Implementation by 6/1/2012 Select Portfolio Servicing Full Implementation 6/1/2012 National City Bank/PNC Mortgage Full Implementation Nationstar Mortgage LLC3 Full Implementation 6/18/20122 Carrington Mortgage Services, LLC Full Implementation 6/1/2012 U.S. Bank National Association Full Implementation 6/1/2012 Green Tree Servicing, LLC Full Implementation 7/22/20122 Specialized Loan Servicing, LLC Full Implementation 6/1/2012 Bank United Full Implementation 6/1/2012 Midland Mortgage Company Full Implementation 6/1/2012 Bayview Loan Servicing, LLC Full Implementation 6/4/20122 6/15/20122 reported by servicers to Treasury. All servicers that are not ready to fully implement Tier 2 on June 1, 2012 will be accepting requests beginning June 1, 2012. 3 Aurora Loan Services, LLC will transfer all non-GSE loans to Nationstar Mortgage LLC on 7/1/2012. On January 27, 2012, Treasury announced program enhancements to expand MHA eligibility to include a HAMP Tier 2 evaluation. As of June 1, 2012, servicers have informed Treasury that they have begun accepting HAMP Tier 2 modification requests from borrowers. The chart to the left shows the date that the largest servicers have communicated to Treasury that they expect to achieve full program implementation. In some cases, servicers may implement some aspects of the program before that date. In order to ensure that no borrower is negatively impacted by a delay, Treasury has imposed additional requirements on all servicers that did not fully implement HAMP Tier 2 by the June 1 effective date. These servicers must: • develop a process to identify potentially eligible Tier 2 borrowers; • stop foreclosure referrals and foreclosure sales for those borrowers; and • ensure that a single point of contact is assigned to each of those borrowers. Additionally, servicers who are unable to fully implement HAMP Tier 2 by mid-July will be required to evaluate and offer borrowers proprietary modifications similar to HAMP Tier 2, and either automatically convert or re-evaluate those borrowers for HAMP Tier 2 modifications following implementation. Treasury will conduct compliance reviews to ensure all servicers appropriately implement HAMP Tier 2 and if applicable, adhere to these interim requirements. 1 As 2 3 Making Home Affordable: Summary Results Program Performance Report Through April 2012 HAMP (First Lien) Modifications HAMP (First Lien) Trials Started Cumulative Trial Starts (Left Axis) 1,850 Total (As of Mar.31, 2012) Trial Modifications Eligible Delinquent Loans1 Eligible Delinquent Borrowers2 764,172 Trial Plan Offers Extended (Cumulative)3 2,026,291 All Trials Started 1,849,097 Trials Reported Since March 2012 Report4 19,363 Trial Modifications Canceled Since June 1, 20105 52,689 Active Trials 72,412 All Permanent Modifications Started Permanent Modifications 2,297,666 1,008,689 Permanent Modifications Reported Since March 2012 Report 15,167 Permanent Modifications Canceled (Cumulative)6 207,151 Active Permanent Modifications 801,538 All Trials Started (000s) HAMP Eligibility Monthly Trial Starts (Right Axis) 1,750 1,650 1,612 1,639 1,665 1,687 1,709 1,730 1,747 1,765 1,783 1,798 1,815 1,835 1,849 100 50 1,579 1,550 1,544 1,509 New Trials Started (000s) HAMP is designed to lower monthly mortgage payments to help struggling homeowners stay in their homes and prevent avoidable foreclosure. 1,450 1,350 Jan 2011 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan 2012 Feb Mar Apr 0 Source: HAMP system of record. Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 19,363 trials have entered the HAMP system of record since the prior report; 14,502 were trials with a first payment recorded in April 2012. HAMP Permanent Modifications Started (Cumulative) 1,100 Estimated eligible 60+ day delinquent loans as reported by servicers as of March 31, 2012, include conventional loans: 974 1,000 951 in foreclosure and bankruptcy. 933 with a current unpaid principal balance less than $729,750 on a one-unit property, $934,200 on a two-unit 910 883 property, $1,129,250 on a three-unit property and $1,403,400 on a four-unit property. 900 857 on a property that was owner-occupied at origination. 817 originated on or before January 1, 2009. 791 800 763 Estimated eligible 60+ day delinquent loans exclude: 731 FHA and VA loans. 699 700 loans that are current or less than 60 days delinquent, which may be eligible for HAMP if a borrower is in 670 634 imminent default. 608 2 The estimated eligible 60+ day delinquent borrowers are those in HAMP-eligible loans, minus estimated 600 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 500 agreements preclude modification, and trial and permanent modifications disqualified from HAMP. Exclusions for DTI and NPV results are estimated using market analytics. 400 3 As reported in the monthly servicer survey of large SPA servicers through April 30, 2012. Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb 4 Servicers may enter new trial modifications into the HAMP system of record at anytime. 2011 2012 5 767,996 cumulative including 715,307 that had trial start dates prior to June 1, 2010 when Treasury Source: HAMP system of record. implemented a verified income requirement. 6 A permanent modification is canceled when the borrower has missed three consecutive monthly payments. Includes 4,029 loans paid off. Note: Unless specified, exhibits in this report refer to HAMP first lien modification activity. All Permanent Modifications Started (000s) 1 994 1,009 Mar Apr 4 Making Home Affordable: Summary Results Program Performance Report Through April 2012 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 HAMP servicer. This assistance can result in a modification of the second lien and even full or partial extinguishment of the second lien. 2MP modifications and partial extinguishments require that the first lien HAMP modification be permanent and active and that the second lien have an unpaid balance of $5,000 or more and a monthly payment of at least $100. All Second Lien Modifications Started (Cumulative)1 80,090 Second Lien Modifications Involving Full Lien Extinguishments 17,270 Second Lien Modifications Disqualified2 2,946 Active Second Lien Modifications3 59,874 Of the Active Second Lien Modifications: Second Lien Partially Extinguished 3,457 Second Lien Loan Modifications4 56,417 Second Lien Extinguishment Details 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 20% 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 68,050 HAFA Agreements Active 12,438 HAFA Transactions Completed 44,749 Completed Transactions – Short Sale 43,480 Completed Transactions – Deed-in-Lieu 1,269 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. Unemployment Program (UP) Activity Median Amount of Full Extinguishment $61,274 Median Amount of Partial Extinguishment for Active Second Lien Modifications $7,554 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for April 2012 data, though the effective date may occur in May 2012. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Includes 148 loans paid off. 3 Includes 2,789 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 Second lien modifications follow a series of steps and may include capitalization, interest rate reduction, term extension and principal forbearance or forgiveness. 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. All UP Forbearance Plans Started (through Mar. 2012) 22,193 UP Forbearance Plans With Some Payment Required 19,287 UP Forbearance Plans With No Payment Required 2,906 Note: Data is as reported by servicers via survey for UP participation through Mar. 31, 2012. Treasury FHA-HAMP Modification Activity The Treasury FHA-HAMP Program provides assistance to eligible homeowners with FHAinsured mortgages. All Treasury FHA-HAMP Trial Modifications Started 10,527 All Treasury FHA-HAMP Permanent Modifications Started 6,501 See Appendix A2 for servicer participants in additional Making Home Affordable programs. 5 Making Home Affordable: Summary Results Program Performance Report Through April 2012 Principal Reduction Alternative (PRA) The Principal Reduction Alternative (PRA) was implemented in October 2010. PRA requires servicers of non-GSE loans to evaluate the benefit of principal reduction for mortgages with a loan-tovalue (LTV) ratio greater than 115% when evaluating a homeowner for a HAMP first lien modification. While servicers are required to evaluate homeowners for PRA, they are not required to offer principal reduction and generally may only do so when permitted by the mortgage investor. PRA pays investors incentives for every dollar of principal forgiven, according to a sliding scale and depending on the degree to which the homeowner's unmodified balance is greater than the market value of the home. To encourage investors to consider or expand the use of principal reduction, Treasury issued program guidance on February 16, 2012 tripling financial incentives under PRA for investors who agree to reduce principal for eligible underwater homeowners. The new program guidance applies to all permanent modifications of non-GSE loans under HAMP that include PRA and have a trial period plan effective date on or after March 1, 2012. PRA can be a feature of a HAMP trial or permanent modification. PRA Activity Modification Characteristics While both GSE and non-GSE loans are eligible for HAMP, at the present time due to GSE policy, servicers can only offer principal forgiveness on non-GSE modifications under HAMP. All PRA Trial Modifications Started 82,587 PRA Trial Modifications Active 16,986 All PRA Permanent Modifications Started 59,596 PRA Permanent Modifications Active 54,760 Median Principal Amount Reduced for Active Permanent Modifications1 $68,267 While the population of loan modifications with the PRA feature is still relatively small, the program data indicate that the PRA program is comprised of more homeowners seriously delinquent at the time of trial start than the overall population of HAMP homeowners. Overall, homeowners receiving permanent loan modifications with the PRA feature also have a higher before-modification LTV ratio than those without the PRA feature. All 1MP3 1MP with PRA - At least 60 days delinquent 80% 88% - Up to 59 days delinquent or current and in imminent default 20% 12% - California 25% 31% - Florida 12% 17% - Illinois 5% 6% Top three States’ Percent of Total 43% 53% Loan Characteristics Of trials started, delinquency at trial start: Median Principal Amount Reduced for Active Permanent Modifications (%)2 Top three States by Activity4, Percent of Total Activity: 31.3% Total Outstanding Principal Balance Reduced on Active Permanent Modifications under PRA $4,679,512,841 Active Permanent Modifications – Median Loan-to-Value (LTV) ratio: Due to the terms of the $25 billion settlement of mortgage servicing deficiencies between the five largest mortgage servicers, the Federal government, and 49 state attorneys general, the volume of non-incented principal forgiveness outside of the constructs of the PRA program has recently increased. Of non-GSE trials started in April 2012 that had an LTV greater than 115%, 70% included a principal forgiveness feature, including 60% through the PRA program. Trials Started with Principal Reduction as a % of Eligible Loans 6 PRA All Principal Forgiveness 80% 70% 60% 50% 44% 45% 47% 46% 46% 45% 37% 40% 30% 20% 10% 0% 28% 36% 43% 46% 46% 46% 45% 65% 61% 61% 62% 63% 62% 60% 56% 59% 120% 157% - After Modification5 121% 115% Active Permanent Modifications – Median before Modification Debt-to-Income (DTI) ratio: 7 68% 66% 70% 64% 61% 61% 63% 56% 59% - Before Modification - Front-End DTI 45.4% 45.3% - Back-End DTI 76.2% 66.3% Under the PRA program, principal reduction is vested over a 3 year period. The amounts noted reflect the entire amount that may be forgiven. 2 PRA amount as a percentage of before-modification UPB, excluding capitalization. 3 Includes HAMP first lien modifications with and without the PRA feature. 4 Figures reflect active trials and active permanent modifications. 5 Because the first step of the standard HAMP waterfall includes the capitalization of accrued interest, out-of-pocket escrow advances to third parties, any escrow advances made to third parties during the trial period plan, and servicing advances that are made for costs and expenses incurred in performing servicing obligations, this can result in an increase in the principal balance after modification. As a result, the loan-to-value ratio can increase in the modification process. 6 PRA evaluation is required for non-GSE modifications with a before-modification post-arrearage LTV of greater than 115% and NPV evaluation date after 10/1/2010. Eligible loans include those receiving evaluation plus loans that did not require evaluation but received principal reduction on their modification. 7 All Principal Forgiveness population consists of trials that have any principal forgiveness, including those with PRA and without PRA. 1 6 Making Home Affordable: Summary Results Program Performance Report Through April 2012 Homeowner Benefits and First Lien Modification Characteristics • Aggregate payment savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $12.7 billion, program to date, compared with unmodified mortgage obligations. • The median monthly savings for borrowers in active permanent first lien modifications is $534.98, or 37% of the median monthly payment before modification. • Of trial modifications started, 80% 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. Modifications by Investor Type (Large Servicers) GSE Private Portfolio Total Active Modifications Bank of America, NA1 82,180 62,235 10,835 155,250 CitiMortgage, Inc. 32,399 5,529 17,078 55,006 GMAC Mortgage, LLC 25,563 6,088 12,490 44,141 Homeward Residential2 1,262 27,172 0 28,434 JPMorgan Chase NA3 67,239 53,029 25,511 145,779 Ocwen Loan Servicing, LLC 4 6,775 46,325 119 53,219 OneWest Bank 15,418 16,964 2,837 35,219 Saxon Mortgage Services, Inc. 1,391 9,859 1,557 12,807 514 16,659 2,688 19,861 54,990 16,733 49,237 120,960 Other HAMP Servicers 161,812 24,880 16,582 203,274 Total 449,543 285,473 138,934 873,950 Servicer Select Portfolio Servicing Wells Fargo Bank, NA 5 • The primary hardship reasons for homeowners in active permanent modifications are: • 66.9% experienced loss of income (curtailment of income or unemployment) • 11.4% reported excessive obligation • 3.4% reported an illness of the principal borrower • Active permanent modifications feature the following modification steps: • 97.5% feature interest rate reductions • 59.6% offer term extension • 31.0% include principal forbearance Select Median Characteristics of Active Permanent Modifications Before Modification After Modification Median Decrease Front-End Debt-to-Income Ratio1 45.4% 31.0% -14.5 pct pts Back-End Debt-to-Income Ratio2 76.2% 58.7% -14.8 pct pts $1,428.55 $824.00 -$534.98 Loan Characteristic Median Monthly Housing Payment3 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. 2 Ratio of total monthly debt payments (including mortgage principal and interest, taxes, insurance, homeowners association and/or condo fees, plus payments on installment debts, junior liens, alimony, car lease payments and investment property payments) to monthly gross income. Borrowers who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines. 3 Principal and interest payment. 1 Bank of America, NA includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 Effective May 29, 2012, American Home Mortgage Servicing, Inc. changed its name to Homeward Residential. 3 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 4 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 5 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. Note: Figures reflect active trials and active permanent modifications. 7 Making Home Affordable: Summary Results Program Performance Report Through April 2012 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 46 348 394 0.0% MT 78 923 1,001 0.1% AL 470 4,442 4,912 0.6% NC 1,417 14,199 15,616 1.8% AR 157 1,718 1,875 0.2% ND 11 129 140 0.0% AZ 2,036 33,459 35,495 4.1% NE 127 1,045 1,172 0.1% CA 17,155 203,131 220,286 25.2% NH 308 3,608 3,916 0.4% CO 994 11,096 12,090 1.4% NJ 2,626 25,630 28,256 3.2% CT 1,047 9,957 11,004 1.3% NM 265 2,614 2,879 0.3% DC 136 1,358 1,494 0.2% NV 1,275 19,148 20,423 2.3% DE 230 2,367 2,597 0.3% NY 4,492 38,615 43,107 4.9% FL 9,110 96,553 105,663 12.1% OH 1,712 16,891 18,603 2.1% GA 2,711 28,909 31,620 3.6% OK 217 HI 254 3,046 3,300 0.4% OR 809 IA 185 1,923 2,108 0.2% PA 1,611 ID 277 3,045 3,322 0.4% RI 299 IL 3,714 42,169 45,883 5.3% SC IN 697 7,461 8,158 0.9% SD KS 198 1,854 2,052 0.2% TN 878 KY 284 2,901 3,185 0.4% TX 2,359 LA 443 4,416 4,859 0.6% UT 490 1,818 2,035 0.2% 8,760 9,569 1.1% 16,183 17,794 2.0% 3,991 4,290 0.5% 730 7,294 8,024 0.9% 32 283 315 0.0% 7,990 8,868 1.0% 21,083 23,442 2.7% 7,474 7,964 0.9% MA 1,847 19,308 21,155 2.4% VA 1,610 18,953 20,563 2.4% MD 2,244 25,384 27,628 3.2% VT 69 688 757 0.1% ME 194 2,228 2,422 0.3% WA 1,631 16,448 18,079 2.1% MI 1,830 25,077 26,907 3.1% WI 775 7,539 8,314 1.0% MN 944 13,039 13,983 1.6% WV 89 1,089 1,178 0.1% MO 768 7,939 8,707 1.0% WY 30 390 420 0.0% MS 261 2,836 3,097 0.4% Other2 240 2,789 3,029 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 2012 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 8 Making Home Affordable: Summary Results Program Performance Report Through April 2012 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 Miami-Fort Lauderdale-Pompano Beach, FL Chicago-Joliet-Naperville, IL-IN-WI MSA Riverside-San Bernardino-Ontario, CA Washington-Arlington-Alexandria, DC-VA-MD-WV Total MSA % of U.S. HAMP HAMP Activity Activity Active Trials Permanent Modifications 5,838 62,712 68,550 7.8% 5,622 51,668 57,290 6.6% 4,177 41,252 45,429 5.2% 3,544 40,977 44,521 5.1% 41,313 44,257 5.1% 2,063 27,036 29,099 3.3% 1,469 26,961 28,430 3.3% Atlanta-Sandy Springs-Marietta, GA 2,173 23,377 25,550 2.9% San Francisco-Oakland-Fremont, CA 1,660 17,307 18,967 2.2% Las Vegas-Paradise, NV 1,047 15,718 16,765 1.9% Detroit-Warren-Livonia, MI 1,085 15,218 16,303 1.9% 1,185 14,837 16,022 1.8% 1,192 14,572 15,764 1.8% 1,296 13,950 15,246 1.7% 1,115 13,650 14,765 1.7% San Diego-Carlsbad-San Marcos, CA Orlando-Kissimmee-Sanford, FL MSA Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-Arcade-Roseville, CA April Total Number of Calls Taken at 1-888-995-HOPE 3,051,799 72,571 Borrowers Referred for Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 1,456,732 35,432 Source: Homeowner’s HOPETM Hotline. Numbers reflect calls that resulted in customer records. 2,944 Phoenix-Mesa-Glendale, AZ MSA Program to Date Selected Homeowner Outreach Measures Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) Homeowners Attending Treasury-Sponsored Events (cumulative) 69 64,968 Servicer Solicitation of Borrowers (cumulative)1 8,512,716 Page views on MakingHomeAffordable.gov (April 2012) 2,512,543 Page views on MakingHomeAffordable.gov (cumulative) 146,167,477 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 April 2012 Aged Trials1 200,000 190,412 The number of active trials lasting 6 months or longer is approximately 12,600. 165,543 Program guidance directs servicers to cancel or convert trial modifications after 3 or 4 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 27,345 26,362 25,390 23,552 23,014 23,061 19,793 18,359 20,332 21,002 21,211 15,815 13,177 12,601 0 May June 2010 July Aug Sept Oct Nov Dec Jan 2011 Feb March Apr May June July Aug Sep Oct Nov Dec Jan 2012 Feb March Apr 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, but not reported as such to the HAMP system of record. 10 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 HAMP Modification Activity by Servicer As of Mar. 31, 2012 Servicer Cumulative Estimated Eligible 60+ Day Delinquent Borrowers1 Trial Plan Offers Extended2 As of Apr. 30, 2012 All HAMP Trials Started3 All HAMP Permanent Modifications Started3 Active Trial Modifications3 Active Trial Modifications Lasting 6 Months or Longer4 Active Permanent Modifications3 Bank of America, NA5 143,079 539,396 382,492 183,081 13,027 5,854 142,223 CitiMortgage, Inc. 47,900 205,146 138,225 62,740 3,621 1,356 51,385 GMAC Mortgage, LLC 19,833 87,003 70,818 52,676 3,105 24 41,036 Homeward Residential 31,079 44,935 40,975 34,112 1,819 129 26,615 JPMorgan Chase Bank, NA6 113,219 360,939 309,171 161,638 16,019 1,507 129,760 LLC7 52,936 97,597 107,633 65,389 7,063 1,020 46,156 OneWest Bank 27,816 78,857 61,575 38,105 3,118 107 32,101 Ocwen Loan Servicing, Saxon Mortgage Services, Inc. 10,825 45,168 39,670 17,008 564 69 12,243 Select Portfolio Servicing 7,082 71,340 44,974 25,166 957 40 18,904 Wells Fargo Bank, NA8 97,731 301,179 262,620 133,856 11,509 1,229 109,451 Other SPA servicers9 63,690 194,731 202,903 114,100 5,774 571 91,511 Other GSE Servicers10 148,982 NA 188,041 120,818 5,836 695 100,153 Total 764,172 2,026,291 1,849,097 1,008,689 72,412 12,601 801,538 1 Estimated eligible 60+ day delinquent borrowers as reported by servicers as of Mar. 31, 2012, 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 Apr. 30, 2012. 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, but not reported as such 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 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 7 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 2 8 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 9 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. 10 Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac. Includes GSE loans previously transferred from SPA servicers. 11 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Making Home Affordable Programs by Servicer1 Trials Started3 Permanent Modifications Started3 Trials Started3 Permanent Modifications Started3 Second Lien Modification (2MP) Second Lien Modifications Started4 Bank of America, NA6 382,492 183,081 15,251 12,474 CitiMortgage, Inc. 138,225 62,740 2,328 GMAC Mortgage, LLC 70,818 52,676 1,820 Principal Reduction Alternative (PRA)2 HAMP First Lien Modifications Servicer Home Affordable Foreclosure Alternatives (HAFA) Agreements Started5 Agreements Completed 26,866 13,652 12,118 1,770 10,182 189 152 971 4,192 2,612 1,766 Homeward Residential 40,975 34,112 0 0 N/A 672 336 JPMorgan Chase Bank, NA7 309,171 161,638 19,039 12,655 21,215 26,313 16,027 Ocwen Loan Servicing, LLC8 107,633 65,389 18,708 11,957 N/A 2,245 1,053 OneWest Bank 61,575 38,105 4,606 3,273 2,269 2,401 1,121 Saxon Mortgage Services, Inc. 39,670 17,008 579 516 N/A 399 114 Select Portfolio Servicing 44,974 25,166 132 108 N/A 2,347 1,676 Wells Fargo Bank, NA9 262,620 133,856 18,126 14,173 12,696 13,409 7,355 Other Servicers 390,944 234,918 1,998 1,699 2,670 3,811 3,031 1,849,097 1,008,689 82,587 59,596 80,090 68,050 44,749 Total 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 7 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. 12 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Servicer Outreach to 60+ Day Delinquent Homeowners: Cumulative Servicer Results, Apr. 2011 – Mar. 2012 Per program guidance, servicers are directed to establish Right Party Contact (RPC) with homeowners of delinquent HAMP eligible loans1 and then evaluate the homeowners' eligibility for HAMP. There is a range of performance results across top program servicers with respect to making RPC and completing the evaluations. 100% 96% 92% 90% 99% 94% 90% 87% 90% 89% 87% 85% 80% 70% 60% 50% 40% 97% 75% 83% 80% 79% 70% 88% 79% 69% 64% 30% 20% 10% 0% Bank of America 1 Homeowners CitiMortgage GMAC Homeward Residential JPMorgan Chase Right Party Contact Ratio2 Ocwen OneWest Saxon SPS Wells Fargo HAMP Evaluations Complete Ratio3 with HAMP eligible loans, which include conventional loans that were originated on or before Jan. 1, 2009 and were owner-occupied at origination; excludes FHA and VA loans, loans where investor pooling and servicing agreements preclude modification, and manufactured housing loans with title/chattel issues that exclude them from HAMP. 2 Right Party Contact (RPC) is achieved when a servicer has successfully communicated directly with the homeowner obligated under the mortgage about resolution of their delinquency in accordance with program guidelines. The RPC ratio reflects the share of homeowners with which the servicer has established RPC as a percent of HAMP eligible loans, excluding homeowners where RPC or HAMP evaluation is no longer needed. 3 HAMP evaluations complete ratio reflects the share of homeowners who have been evaluated for HAMP as a percent of HAMP eligible loans, excluding homeowners where RPC or HAMP evaluation is no longer needed. Evaluated homeowners include those offered a trial plan, those that are denied or did not accept a trial plan and homeowners that failed to submit a complete HAMP evaluation package by program-specified timelines. Source: Survey of 10 largest participating servicers as of March 31, 2012. 13 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Average Homeowner Delinquency at Trial Start1 Servicers are instructed to follow a series of steps in order to evaluate homeowners for HAMP, including: • Identifying and soliciting the homeowners in the early stages of delinquency; • Making reasonable efforts to establish right party contact with the homeowners; • Gathering required documentation once contact is established in order to evaluate the homeowners for a HAMP trial; and, • Communicating decisions to the homeowners. Effective 10/1/11, a new servicer compensation structure exists to encourage servicers to work with struggling homeowners in the early stages of delinquency with the highest incentives paid for permanent modifications completed when the homeowner is 120 days delinquent or less at the trial start. 250 Maximum servicer incentive is paid for converting a permanent modification that was 120 days delinquent or less at trial start. 200 Days 150 100 50 0 Bank of America CitiMortgage GMAC Homeward Residential JPMorgan Chase Ocwen OneWest Saxon SPS Wells Fargo Other Servicers 1 For all permanent modifications started, the average number of days delinquent as of the trial plan start date. Delinquency is calculated as the number of days between the homeowner's last paid installment before the trial plan and the first payment due date of the trial plan. 14 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Conversion Rate1 Following the implementation of verified income documentation in June 2010, rates of converting trial modifications into permanent modifications have risen substantially. Of eligible trials started on or after June 1, 2010, 86% have converted to permanent modification with an average trial length of 3.5 months. Of Trials Started Before 6/1/10: 43% Converted to Permanent Modification 0.3% Pending Processing or Decision Of Eligible Trials Started On/After 6/1/10: 86% Converted to Permanent Modification 4.0% Pending Processing or Decision 100% 90% 89% 84% 84% 86% 84% 90% 90% 87% 88% 82% 81% Conversion Rate 80% 60% 40% 20% 0% Bank of America CitiMortgage GMAC Homeward Residential 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 (86%) 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. 15 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Servicer Time to Resolve Non-GSE Escalations: Average Resolution Time by Quarter in Which Escalations were Resolved1 Servicers are required to resolve borrower inquiries and disputes that are escalated by the MHA Support Centers. Escalated cases include allegations that the servicer did not properly assess the homeowner according to program guidelines, inappropriately denied the homeowner for applicable MHA program(s), or initiated or continued inappropriate foreclosure actions. Effective February 1, 2011, the servicers are directed to review and resolve non-GSE escalated cases within 30 calendar days from receipt of the case by the escalating party. In the last two quarters, most of the ten largest servicers’ non-GSE resolved cases have an average resolution time below the 30 day target. Q3 2011 Q4 2011 Q1 2012 Current QTD 50 Target: 30 Calendar Days2 45 40 35 Days 30 25 20 15 10 5 0 Bank of America CitiMortgage GMAC Bank of America GSE Cases Resolved Cases3 Non-GSE Cases Total Active Cases Total Homeward Residential CitiMortgage JPMorgan Chase GMAC Homeward Residential Ocwen JPMorgan Chase OneWest Ocwen Saxon OneWest SPS Saxon Wells Fargo SPS Wells Fargo 5,749 783 311 34 1,808 166 449 65 4 1,290 6,475 12,224 222 543 1,326 30 477 788 15 877 911 38 2,940 4,748 62 1,335 1,501 22 597 1,046 12 256 321 1 203 207 - 2,369 3,659 169 1 Non-GSE escalations only; excludes cases escalated to the MHA Support Centers but not yet escalated to servicers. Average resolution time calculation excludes cases referred to servicers prior to February 1, 2011, 'Investor denial' cases referred to servicers between February 1, 2011 and November 1, 2011, cases involving bankruptcy, and cases that did not require servicer actions. 2 Target of 30 calendar days includes an estimated 5 days of processing by MHA Support Centers. 3 Resolved cases include all escalations resolved on or after February 1, 2011 through April 30, 2012 and exclude those that did not require servicer actions. Source: MHA Support Centers. 16 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through March 2012 (10 Largest Servicers) Status of Homeowners Whose HAMP Trial Modification Was Canceled: Servicer Bank of America, NA3 Action Not Allowed – Action Bankruptcy Borrower Pending1 in Process Current Short Sale/ Alternative Payment Deed-in- Foreclosure Foreclosure Modification Plan2 Loan Payoff Lieu Starts Completions Total (As of March 2012) 11,488 7,384 17,483 67,019 2,048 5,367 19,965 23,026 28,465 182,245 CitiMortgage Inc. 695 6,165 7,444 28,904 1,960 4,897 5,791 5,564 10,163 71,583 GMAC Mortgage, LLC 960 490 1,699 5,675 110 621 1,189 1,704 2,189 14,637 Homeward Residential 148 89 193 2,612 54 407 360 674 189 4,726 JPMorgan Chase Bank NA4 4,931 2,886 24,226 44,948 292 1,631 13,273 17,552 12,487 122,226 Ocwen Loan Services LLC5 1,613 1,015 1,490 16,163 2,194 201 451 4,179 1,794 29,100 219 273 540 12,074 66 107 1,210 1,627 4,233 20,349 Saxon Mortgage Services, Inc. 1,931 902 2,142 3,543 405 495 1,108 3,896 4,220 18,642 Select Portfolio Servicing 934 334 1,283 5,588 234 479 1,395 1,153 3,910 15,310 6,579 4,698 9,993 42,833 638 3,986 7,393 16,410 23,842 116,372 29,498 24,236 66,493 229,359 8,001 18,191 52,135 75,785 91,492 595,190 5.0% 4.1% 11.2% 38.5% 1.3% 3.1% 8.8% 12.7% 15.4% 100.0% OneWest Bank Wells Fargo Bank NA6 TOTAL (These 10 Largest Servicers) Note: Data is as reported by servicers for actions completed through March 31, 2012. 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. 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 17 Making Home Affordable: Servicer Results Program Performance Report Through April 2012 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through March 2012 (10 Largest Servicers) Status of Homeowners Not Accepted for a HAMP Trial Modification: Servicer Action Pending1 Action Not Allowed – Bankruptcy Borrower in Process Current Short Sale/ Alternative Payment Deed-in- Foreclosure Foreclosure Modification Plan2 Loan Payoff Lieu Starts Completions Total (As of March 2012) Bank of America, NA3 32,344 18,057 95,771 157,538 9,974 13,601 48,253 64,061 56,618 496,217 CitiMortgage Inc. 3,005 14,392 28,039 58,150 7,481 18,530 17,793 17,313 19,729 184,432 GMAC Mortgage, LLC 12,464 6,371 53,321 41,061 1,476 7,937 10,519 17,344 18,439 168,932 Homeward Residential 2,598 1,835 16,161 43,988 1,435 3,807 3,172 9,906 2,096 84,998 JPMorgan Chase Bank NA4 24,893 12,487 167,676 132,529 2,088 45,437 56,133 64,504 28,856 534,603 Ocwen Loan Services LLC5 12,032 5,203 19,244 81,354 9,612 3,113 3,146 15,753 9,302 158,759 OneWest Bank 5,246 2,486 27,087 32,320 992 2,569 5,689 8,400 12,073 96,862 Saxon Mortgage Services, Inc. 4,192 1,353 6,996 8,128 708 1,220 1,070 5,095 3,768 32,530 Select Portfolio Servicing 2,376 439 3,548 6,415 328 449 1,617 1,516 2,402 19,090 Wells Fargo Bank NA6 20,983 8,310 48,780 48,032 1,335 13,706 26,606 24,087 29,085 220,924 120,133 70,933 466,623 609,515 35,429 110,369 173,998 227,979 182,368 1,997,347 6.0% 3.6% 23.4% 30.5% 1.8% 5.5% 8.7% 11.4% 9.1% 100% TOTAL (These 10 Largest Servicers) Note: Data is as reported by servicers for actions completed through March 31, 2012. 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. 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 • Offer Not Accepted by Borrower/Request Withdrawn 18 MHA Servicer Assessment Overview Background Since the Making Home Affordable Program’s (MHA) inception in the spring of 2009, Treasury has monitored the performance of participating mortgage servicers. Treasury has been publicly reporting information about servicer performance through two types of data: compliance data, which reflects servicer compliance with specific MHA guidelines; and program results data, which reflects how timely and effectively servicers assist eligible homeowners and report program activity. When MHA began, most servicers did not have the staff, procedures, or systems in place to respond to the volume of homeowners struggling to pay their mortgages, or to respond to the housing crisis generally. Very few mortgage modifications were even occurring. Treasury sought to get servicers to join MHA and to improve their operations quickly, so as to implement a national mortgage modification program. Through ongoing compliance reviews, Treasury has required participating servicers to take specific actions to improve their servicing processes. While the servicers have improved their performance, they still have more progress to make. Toward that end, Treasury is publishing servicer assessments for the largest servicers participating in MHA. During the fourth quarter of 2011, Litton Loan Servicing, LP transferred its loan portfolio to Ocwen Loan Servicing, LLC, and therefore there is no servicer assessment for Litton Loan Servicing, LP for this quarter nor will there be for future quarters. Subsequent servicer assessments will be published for the remaining largest servicers, who comprise the majority of MHA activity. Not only will the assessments provide more transparency to the public about servicer performance in the program, but the assessments are also intended to encourage servicers to correct identified instances of non-compliance. Servicer participation in MHA is voluntary, based on a contract with Fannie Mae as financial agent on behalf of Treasury. Although Treasury does not regulate these institutions and does not have the authority to impose fines or penalties, Treasury can, pursuant to the contract, take certain remedial actions against servicers not in compliance with MHA guidelines. Such remedial actions include requiring servicers to correct identified instances of non-compliance, as noted above. In addition, Treasury can implement financial remedies such as withholding incentive payments owed to servicers. Such incentive payments, which are the only payments Treasury makes for the benefit of servicers under the program, include payments for every successful permanent modification under the Home Affordable Modification Program, and payments for completed short sale/deed-in-lieu transactions pursuant to the Home Affordable Foreclosure Alternative Program. It is important to note that Treasury’s compliance work related to MHA applies only to those servicers that have agreed to participate in MHA for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (Government Sponsored Enterprises, or GSEs). Treasury cannot and does not perform compliance reviews of (1) mortgage loans or activities that fall outside of MHA, (2) GSE loans or (3) those loans insured through the Federal Housing Administration. For each servicer, the loans that are eligible for MHA represent only a portion of that servicer’s overall mortgage servicing operation. Treasury’s foremost goal is to assist struggling homeowners who may be eligible for MHA. These servicer assessments set a new benchmark for providing detailed information about how mortgage servicers are performing against key metrics. But, in addition to this direct effect, MHA has had an important indirect effect on the market as well. MHA has established standards that have improved mortgage modifications across the industry, and has led to important changes in the way mortgage servicers assist struggling homeowners generally. These changes include standards for how mortgage modifications should be designed so that they are sustainable, standards for communications with homeowners so that the process is as efficient and as understandable as possible, and a variety of standards for protecting homeowners, such as prohibitions on “dual tracking” – simultaneously evaluating a homeowner for a modification while proceeding to foreclose. Going forward, Treasury hopes these assessments will also set the standard for transparency about mortgage servicer efforts to assist homeowners. Below are general descriptions of the data, the evaluation process, and the consequences for servicers needing improvement. 19 (Continued on next page) MHA Servicer Assessment Overview The Performance Data: Compliance and Program Results Freddie Mac, acting as Treasury’s compliance agent for MHA, has created a separate division known as Making Home Affordable–Compliance (MHA-C) to evaluate servicer performance through reviews of program compliance. MHAC tests and evaluates a range of servicer activities for compliance with MHA guidelines. Once MHA-C’s reviews are complete, MHA-C shares its results with the servicers and identifies areas that need remediation. Each compliance activity tested falls into one of three overall compliance categories – Identifying and Contacting Homeowners, Homeowner Evaluation and Assistance, and Program Management, Reporting and Governance. The compliance results shared with the servicers are then used to generate the servicer assessments. The assessments highlight particular compliance activities tested by MHA-C that had significant impact on homeowners and include for those highlighted activities a one-star, two-star, or three-star rating for the most recent evaluations. One star means the servicer did not meet Treasury’s benchmark required for that particular activity, and the servicer needs substantial improvement in its performance of that activity. Two stars mean the servicer did not meet Treasury’s benchmark required for that particular activity, and the servicer needs moderate improvement in its performance of that activity. Three stars mean the servicer met Treasury’s benchmark required for that particular activity, but the servicer may nonetheless need minor improvement in its performance of that activity. Although the compliance reviews emphasize objective measurements and observed facts, compliance reviews still involve a certain level of judgment. Compliance reviews are also retrospective in nature – looking backward, not forward, which means that activities identified as needing improvement in a given quarter may already be under remediation by the servicer. In addition, not every compliance activity is evaluated every quarter, which means that a rating from one quarter might carry forward to the subsequent quarter’s assessment if that activity was not retested in that subsequent quarter. Finally, the compliance reviews use “sampling” as a testing methodology. Sampling, an industry-accepted auditing technique, looks at a subset of a particular population of activity transactions, rather than the entirety of the population of activity transactions, to extrapolate a servicer’s overall performance in that particular activity. In addition to the ratings for compliance data, the assessments also include program results metrics. Fannie Mae, acting as Treasury’s program administrator for MHA, collects servicer data used to measure program results. These metrics are key indicators of how timely and effectively servicers assist eligible homeowners under MHA guidelines and report program data. Although the servicers are not given an overall rating for this data, the results metrics nonetheless compare a servicer’s performance for a given quarter against the “best” and “worst” performing servicer of the largest servicers participating in the program. The results metrics provide a snapshot of how each of those servicers compares in specific areas under MHA. The Determination Process: Results of the Data Treasury reviews the compliance data and ratings, the program results metrics, and other relevant factors affecting servicer performance (including, but not limited to, a servicer’s progress in implementing previously identified improvements) in determining whether a servicer needs substantial improvement, moderate improvement, or minor improvement to its performance under MHA guidelines. The assessments summarize the significant factors impacting those decisions. Based on those assessments, Treasury may take remedial action against servicers. Page 21 summarizes the overall level of improvement needed for each servicer. Consequences for Servicers For servicers in need of substantial improvement, Treasury will, absent extenuating circumstances, withhold financial incentives owed to those servicers until they make certain identified improvements. In certain cases, particularly where there is a failure to correct identified problems within a reasonable time, Treasury may also permanently reduce the financial incentives. Servicers in need of moderate improvement may be subject to withholding in the future if they fail to make certain identified improvements. All withholdings apply only to incentives owed to servicers for their participation in MHA; these withholdings do not apply to incentives paid to servicers for the benefit of homeowners or investors. Additional Information See the “Metrics Description” on page 44 for a description of each of the compliance and results metrics presented in the assessments. For more information on the assessments, please visit: www.FinancialStability.gov. 20 MHA Servicer Assessment Overview 1st Quarter 2012 Servicer Assessment Results The following table details the results of the Servicer Assessments, based on compliance and program results: Improvement Needed Servicer Name Substantial --- Moderate Minor Bank of America, NA CitiMortgage, Inc. GMAC Mortgage, LLC Homeward Residential JPMorgan Chase Bank, NA Ocwen Loan Servicing, LLC OneWest Bank Select Portfolio Servicing Wells Fargo Bank, NA For the first quarter of 2012, OneWest Bank, Select Portfolio Servicing and Wells Fargo Bank, NA were determined to need minor improvement in their performance under MHA guidelines. CitiMortgage, Inc. and GMAC Mortgage, LLC, were determined to need moderate improvement and their compliance results for the first quarter approached the level required for a determination of minor improvement. Homeward Residential and Ocwen Loan Servicing, LLC were also found to need moderate improvement. Bank of America, NA and JPMorgan Chase Bank, NA were found to need moderate improvement and successfully remediated previously identified items. Treasury released all currently withheld incentives as part of the $25 billion settlement of mortgage servicing deficiencies between the five largest mortgage servicers, the Federal government, and 49 state attorneys general . Treasury continues to retain the right to withhold incentives in future periods. Please refer to the following MHA Servicer Assessment pages for further detail on the First Quarter 2012 servicer assessment results. 21 MHA Servicer Assessment Overview MHA Compliance Results, Loan File Review: Second Look % Disagree, 4th Quarter 2010-1st Quarter 2012 Second Look % Disagree: Percentage of loans reviewed where MHA-C did not concur with the servicer’s MHA determination. Treasury’s required benchmark is that the second look % disagree must be less than 4%. Bank of America CitMortgage GMAC Homeward Residential JPMorgan Chase Litton Ocwen OneWest Select Porfolio Servicing Wells Fargo Average 8.0% 7.0% 6.0% Benchmark: 4% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 22 MHA Servicer Assessment Overview MHA Compliance Results, Loan File Review: Second Look % Unable to Determine, 4th Quarter 2010-1st Quarter 2012 Second Look % Unable to Determine: Percentage of loans reviewed where MHA-C was not able to conclude on the servicer’s MHA determination. Treasury’s required benchmark is that the second look % unable to determine must be less than 10%. Bank of America CitMortgage GMAC Homeward Residential JPMorgan Chase Litton Ocwen OneWest Select Porfolio Servicing Wells Fargo Average 30% 25% 20% Benchmark: 10% 15% 10% 5% 0% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 23 MHA Servicer Assessment Overview MHA Compliance Results, Loan File Review: Income Calculation Error %, 4th Quarter 2010-1st Quarter 2012 Income Calculation Error %: Percentage of loans for which MHA-C’s income calculation differs from the servicer’s by more than 5%. Treasury’s required benchmark is that the income calculation error % must be less than 5%. Correctly calculating homeowner monthly income is a critical component of evaluating eligibility for MHA, as well as establishing an accurate modification payment. Bank of America CitMortgage GMAC Homeward Residential JPMorgan Chase Litton Ocwen OneWest Select Porfolio Servicing Wells Fargo Average 35% 30% 25% 20% 15% Benchmark: 5% 10% 5% 0% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 24 MHA Servicer Assessment Overview MHA Compliance Results, Loan File Review: 4th Quarter 2010 - 1st Quarter 2012 Second Look % Disagree1 Second Look % Unable to Determine2 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Bank of America, NA 2.4% 1.5% 0.8% 1.0% 1.0% 2.0% 19.6% 18.8% 8.2% 1.5% 1.0% 1.0% CitiMortgage, Inc. 4.0% 2.0% 0.5% 1.5% 1.0% 1.0% 12.3% 13.3% 5.5% 0.5% 1.0% GMAC Mortgage, LLC Homeward Residential JPMorgan Chase Bank, NA Litton Loan Servicing, LP4 Ocwen Loan Servicing, LLC 4.0% 4.7% 1.7% 1.0% 0.5% 0.0% 22.7% 8.3% 0.7% 0.0% 5.3% 1.0% 0.7% 0.0% 1.5% 1.0% 29.3% 5.3% 1.0% 3.9% 1.6% 1.2% 0.0% 0.7% 0.2% 6.0% 3.7% 3.3% 1.0% N/A 6.3% 6.7% 2.7% 0.0% OneWest Bank 4.7% 6.7% 0.7% Select Portfolio Servicing Wells Fargo Bank, NA8 2.0% 0.0% 1.7% 1.2% Servicer Q4 2010 Q1 2011 Income Calculation Error Rate3 Q3 2011 Q4 2011 Q1 2012 22.0% 22.0% 13.2% 6.0% 6.0% 5.0% 0.5% 8.0% 10.0% 12.0% 6.0% 3.0% 4.0% 0.0% 0.0% 29.0% 6.0% 4.2% 4.2% 6.5% 4.0% 0.0% 0.0% 1.0% 30.0% 14.0% 5.3% 2.0% 1.0% 2.0% 16.0% 11.3% 3.2% 0.9% 1.0% 0.7% 31.0% 31.0% 20.6% 6.0% 10.0% 9.0% N/A 5.7% 2.7% 2.0% N/A N/A 6.0% 6.0% 2.0% 1.0% N/A N/A 0.7% 1.0% 24.7% 10.3% 3.0% 2.4% 0.0% 0.0% 18.0% 33.0% 2.0% 2.0% 2.0% 3.0% 0.0% 0.0% 0.0% 12.3% 3.7% 1.0% 0.0% 0.0% 0.0% 11.0% 11.0% 2.0% 2.0% 0.0% 3.0% 0.0% 0.8% 0.0% 0.0% 17.0% 2.3% 0.3% 0.8% 0.0% 3.0% 22.0% 15.0% 10.0% 3.2% 1.0% 3.0% 0.4% 0.4% 0.0% 0.3% 6.8% 1.3% 1.3% 0.0% 0.0% 27.0% 27.0% 5.5% 4.0% 2.0% 6.3% 6.0% Q4 2010 Q1 2011 Q2 2011 4.4% 1 Second Look % Disagree: Percentage of loans reviewed where MHA-C did not concur with the servicer’s MHA determination. Look % Unable to Determine: Percentage of loans reviewed where MHA-C was not able to conclude on the servicer’s MHA determination. Income Calculation Error %: Percentage of loans for which MHA-C’s income calculation differs from the servicer’s by more than 5%. Correctly calculating homeowner monthly income is a critical component of evaluating eligibility for MHA, as well as establishing an accurate modification payment. 4 Effective November 1, 2011 Litton Loan Servicing, LP transferred its loan portfolio to Ocwen Loan Servicing, LLC. 2 Second 3 25 MHA Servicer Assessment: Bank of America, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 2.0% < 10% 1.0% - < 5% 5.0% - < 5% 0.9% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results Did not meet benchmark; substantial improvement needed Bank of America, NA has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, Bank of America, NA servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 26 MHA Servicer Assessment: Bank of America, NA Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials 2% 4% 1% Best Servicer Performance 35% Bank of America, NA 56% 35% Worst Servicer Performance 56% 0% 20% 40% 60% 67% Bank of America, NA 67% Worst Servicer Performance 80% Average Calendar Days to Resolve Escalated Cases 9 8 7 Best Servicer Performance 76% 81% 84% 32 29 27 0% 20 20% 40 Dec. 2011 Mar. 2012 40% 60% 80% 100% 0.0% 0.0% 0.0% 3.6% 3.7% 1.7% Worst Servicer Performance 60 Sep. 2011 Missing Modification Status Reports (%) Bank of America, NA 39 36 34 Worst Servicer Performance Results as of: 72% 79% 82% Best Servicer Performance Bank of America, NA 0 90% 90% 90% Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 27 MHA Servicer Assessment: CitiMortgage, Inc. Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 1.0% < 10% 0.5% - < 5% 4.0% - < 5% 4.7% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results Did not meet benchmark; substantial improvement needed CitiMortgage, Inc. has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, CitiMortgage, Inc. servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 28 MHA Servicer Assessment: CitiMortgage, Inc. Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance 35% 43% 37% CitiMortgage, Inc. 56% 20% 40% 60% 80% 9 8 7 28 27 26 20 40 20% Mar. 2012 40% 60% 80% 100% 0.0% 0.0% 0.0% 2.3% 2.1% 0.5% Worst Servicer Performance 60 Dec. 2011 Missing Modification Status Reports (%) CitiMortgage, Inc. 39 36 34 Worst Servicer Performance 0 0% Best Servicer Performance CitiMortgage, Inc. Sep. 2011 72% 79% 82% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 81% 83% 84% CitiMortgage, Inc. 35% Worst Servicer Performance 0% 90% 90% 90% Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 29 MHA Servicer Assessment: GMAC Mortgage, LLC Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 0.0% < 10% 0.0% - < 5% 4.0% - < 5% 1.0% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Benchmark Q1 Results Did not meet benchmark; substantial improvement needed GMAC Mortgage, LLC. has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, GMAC Mortgage, LLC servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 30 MHA Servicer Assessment: GMAC Mortgage, LLC Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: Best Servicer Performance 2% 4% 1% Best Servicer Performance GMAC Mortgage, LLC 2% 4% 1% GMAC Mortgage, LLC 35% Worst Servicer Performance 56% 0% 20% 40% 60% 80% 9 8 7 39 36 34 0 0% 20 40 20% Mar. 2012 40% 60% 80% 100% 0.0% 0.0% 0.0% 0.1% 0.1% 0.0% Worst Servicer Performance 60 Dec. 2011 Missing Modification Status Reports (%) GMAC Mortgage, LLC Worst Servicer Performance Sep. 2011 72% 79% 82% Best Servicer Performance 12 12 12 GMAC Mortgage, LLC 84% 84% 84% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 90% 90% 90% 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 31 MHA Servicer Assessment: Homeward Residential Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 1.0% < 10% 1.0% - < 5% 2.0% - < 5% 2.6% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Benchmark Q1 Results Did not meet benchmark; substantial improvement needed Homeward Residential has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, Homeward Residential servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 32 MHA Servicer Assessment: Homeward Residential Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials 2% 4% 1% Best Servicer Performance 8% 6% 8% Homeward Residential 35% Worst Servicer Performance 56% 0% 20% 40% 60% 80% 9 8 7 Homeward Residential 86% 88% 89% 28 0% 39 36 34 Worst Servicer Performance 20 40 20% Dec. 2011 Mar. 2012 40% 60% 80% 100% 0.0% 0.0% 0.0% 0.2% 0.1% 0.1% Worst Servicer Performance 60 Sep. 2011 Missing Modification Status Reports (%) Homeward Residential 31 32 Results as of: 72% 79% 82% Best Servicer Performance Homeward Residential 0 90% 90% 90% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 33 MHA Servicer Assessment: JPMorgan Chase Bank, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 0.2% < 10% 0.7% - < 5% 9.0% - < 5% 2.2% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results Did not meet benchmark; substantial improvement needed JPMorgan Chase Bank, NA has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, JPMorgan Chase Bank, NA servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 34 MHA Servicer Assessment: JPMorgan Chase Bank, NA Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance JPMorgan Chase Bank, NA 13% 10% 23% 56% 20% 40% 60% 80% 9 8 7 0% 39 36 34 JPMorgan Chase Bank, NA Worst Servicer Performance 39 36 34 Worst Servicer Performance 40 60 Mar. 2012 83% 86% 20% 40% 60% 80% 100% 0.0% 0.0% 0.0% Best Servicer Performance 20 Dec. 2011 Missing Modification Status Reports (%) JPMorgan Chase Bank, NA 0 Sep. 2011 72% 79% 82% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 72% JPMorgan Chase Bank, NA 35% Worst Servicer Performance 0% 90% 90% 90% Best Servicer Performance 0.2% 0.2% 0.2% 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 35 MHA Servicer Assessment: Ocwen Loan Servicing, LLC Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend 1.0% < 10% 0.0% - < 5% 3.0% - < 5% 0.7% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results Did not meet benchmark; substantial improvement needed Ocwen Loan Servicing, LLC has areas requiring moderate improvement. Did not meet benchmark; moderate improvement needed After considering all relevant factors, Ocwen Loan Servicing, LLC servicer incentives will not be withheld at this time. Met benchmark; minor improvement may be indicated 36 MHA Servicer Assessment: Ocwen Loan Servicing, LLC1 Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance 13% Ocwen Loan Servicing, LLC 21% 17% 35% Worst Servicer Performance 56% 0% 20% 40% 60% 67% 80% Average Calendar Days to Resolve Escalated Cases 9 8 7 Best Servicer Performance 82% 79% 82% Worst Servicer Performance 72% 79% 82% 0% 39 36 34 20 40 20% 60% 80% Dec. 2011 Mar. 2012 100% 0.0% 0.0% 0.0% 0.5% 0.5% 0.5% Worst Servicer Performance 60 40% Sep. 2011 Missing Modification Status Reports (%) Ocwen Loan Servicing, LLC Worst Servicer Performance 0 Ocwen Loan Servicing, LLC Best Servicer Performance 11 11 10 Ocwen Loan Servicing, LLC 90% 90% 90% Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 1Beginning in Q4 2011, Litton Loan Servicing, LP is reported with Ocwen Loan Servicing, LLC on a consolidated basis. 37 MHA Servicer Assessment: OneWest Bank Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend Did not meet benchmark; substantial improvement needed 0.0% < 10% 0.0% - < 5% 3.0% - < 5% 0.5% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results OneWest Bank has areas requiring minor improvement. Did not meet benchmark; moderate improvement needed Met benchmark; minor improvement may be indicated 38 MHA Servicer Assessment: OneWest Bank Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance 5% 10% 4% OneWest Bank 35% 56% 20% 40% 60% 80% 9 8 7 19 17 16 OneWest Bank 39 36 34 Worst Servicer Performance 0 20 40 0% 20% Dec. 2011 Mar. 2012 40% 60% 80% 100% Missing Modification Status Reports (%) Best Servicer Performance 0.0% 0.0% 0.0% OneWest Bank 0.0% 0.0% 0.0% Worst Servicer Performance 60 Sep. 2011 72% 79% 82% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance 77% 82% 89% OneWest Bank Worst Servicer Performance 0% 90% 90% 90% Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 39 MHA Servicer Assessment: Select Portfolio Servicing Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend Did not meet benchmark; substantial improvement needed 0.0% < 10% 3.0% - < 5% 3.0% - < 5% 0.5% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Homeowner Evaluation and Assistance Benchmark Q1 Results Select Portfolio Servicing has areas requiring minor improvement. Did not meet benchmark; moderate improvement needed Met benchmark; minor improvement may be indicated 40 MHA Servicer Assessment: Select Portfolio Servicing Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance 5% 4% 7% Select Portfolio Servicing 35% Worst Servicer Performance 56% 0% 20% 40% 60% Best Servicer Performance 90% 90% 90% Select Portfolio Servicing 90% 90% 89% 80% Average Calendar Days to Resolve Escalated Cases 0% 9 8 7 Best Servicer Performance Select Portfolio Servicing 9 8 7 Select Portfolio Servicing 39 36 34 0 20 40 20% 40% 60% 80% 100% 0.0% 0.0% 0.0% 0.1% 0.0% 0.2% Worst Servicer Performance 60 Mar. 2012 Missing Modification Status Reports (%) Best Servicer Performance Worst Servicer Performance Dec. 2011 72% 79% 82% Worst Servicer Performance 67% Sep. 2011 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 41 MHA Servicer Assessment: Wells Fargo Bank, NA Compliance Results Overview These metrics reflect the results of compliance reviews of the servicer's adherence to MHA Program Requirements. Quantitative results reflect percentages of tests that did not have a desired outcome. Servicers are rated qualitatively on the effectiveness of their internal control in the three Performance Categories as well as for each quantitative result. First Quarter 2012 Performance Category Identifying and Contacting Homeowners Metric Second Look % Disagree Percentage of loans reviewed where MHA-C did not concur with the servicer's MHA determination Assesses whether the servicer identifies and communicates appropriately with potentially eligible MHA homeowners. Second Look % Unable to Determine Percentage of loans reviewed where MHA-C was not able to conclude on the servicer's MHA determination Homeowner Evaluation and Assistance Assesses whether servicer correctly evaluates homeowners' eligibility for MHA programs, communicates decisions in a timely manner, and accurately executes appropriate MHA activities. Program Management, Reporting, and Governance Assesses whether the servicer has effective program management, governance processes, and timely and correct submission of program reports and program information. Internal Controls for Program Management, Reporting, and Governance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Legend Did not meet benchmark; substantial improvement needed 0.3% < 10% 0.0% - < 5% 2.0% - < 5% 0.2% - Incentive Payment Data Errors Average percentage of difference in calculated incentives resulting from data discrepancies between servicer files and the MHA system of record < 4% Internal Controls for Homeowner Evaluation and Assistance MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Rating Income Calculation Error % Percentage of loans for which MHA-C's income calculation differs from the servicer's by more than 5% Servicer Result Internal Controls for Identifying and Contacting Homeowners MHA-C assesses whether servicer business processes are conducted effectively and in accordance with MHA guidelines Benchmark Q1 Results Wells Fargo Bank, NA has areas requiring minor improvement. Did not meet benchmark; moderate improvement needed Met benchmark; minor improvement may be indicated 42 MHA Servicer Assessment: Wells Fargo Bank, NA Program Results Conversion Rate for Trials Started On or After 6/1/2010 Aged Trials as a Percentage of Active Trials Results as of: 2% 4% 1% Best Servicer Performance 12% 14% 12% Wells Fargo Bank, NA 35% Worst Servicer Performance 56% 0% 20% 40% 60% 80% 9 8 7 Wells Fargo Bank, NA 88% 89% 90% 25 24 25 0% 20 40 20% Mar. 2012 40% 60% 80% 100% 0.0% 0.0% 0.0% 0.5% 0.2% 0.1% Worst Servicer Performance 60 Dec. 2011 Missing Modification Status Reports (%) Wells Fargo Bank, NA 39 36 34 Worst Servicer Performance Sep. 2011 72% 79% 82% Best Servicer Performance Wells Fargo Bank, NA 0 90% 90% 90% Worst Servicer Performance 67% Average Calendar Days to Resolve Escalated Cases Best Servicer Performance Best Servicer Performance 3.6% 3.7% 1.7% 0% 1% 2% 3% 4% Note: The best and worst performance reflect the best and worst result of the largest servicers for the period. See appendix for descriptions of the metrics. 43 MHA Servicer Assessment Metrics Descriptions Appendix conducting staff training on income calculation. Incentive Payment Data Errors: Treasury pays incentives to servicers, investors, and homeowners Second Look % Disagree: Second Look is a process in for permanent modifications completed under MHA. which MHA-C reviews loans not in a permanent Although intended for different recipients, all modification, to assess the accuracy of the servicer’s incentives are paid through the servicer. Data that determination of whether the homeowner is eligible servicers upload to the program system of record is for a modification. This metric measures the used to calculate the incentives paid to servicers, percentage of loans reviewed in Second Look with investors, and homeowners. This metric measures which MHA-C disagrees with a servicer’s how data anomalies between servicer loan files and determination. the reported information affect incentive payments. For Incentive Payment Data Error results, remedial Second Look % Unable to Determine: This metric actions Treasury requires servicers to take include, measures the percentage of loans reviewed in Second but are not limited to: correcting the identified errors Look for which MHA-C is not able to determine, based and correcting system and operational processes such on the documentation provided, how the servicer that accurate data is mapped to its appropriate places reached its loan-modification decision. in the program system of record. For both Second Look Disagree and Unable to Determine results, remedial actions Treasury requires Compliance Metrics (qualitative) servicers to take include, but are not limited to: Servicers establish processes and internal controls to reevaluating loans not offered HAMP modifications, help ensure their compliance with Program guidance. submitting additional documentation to support the For each of the performance categories, Treasury initial reason for denial of the modification, clarifying performs a qualitative assessment of those internal loan status, and engaging in systemic process controls based on MHA-C’s compliance reviews. That remediation. For such results, servicers are also assessment evaluates the nature, scope, and reminded of their obligation to suspend foreclosure of potential or actual impact on homeowners resulting the loan until the unresolved items are remediated. from instances of servicer non-compliance with its own internal controls. For ineffective internal Income Calculation Errors: Correctly calculating homeowner monthly income is a critical component controls, remedial actions Treasury requires servicers to take include, but are not limited to: identifying and of evaluating eligibility for MHA, as well as establishing an accurate modification payment. This reevaluating any affected loans, enhancing the metric measures how often MHA-C disagrees with a effectiveness of internal controls, and conducting servicer’s calculation of a borrower’s Monthly Gross staff training on servicer procedures. Compliance Metrics (quantitative) Income, allowing for up to a 5% differential from MHA-C’s calculations. For Income Calculation Error results, remedial actions Treasury requires servicers to take include, but are not limited to: correcting income errors exceeding the 5% differential, requiring the servicer to review their own income calculation accuracy, enhancing policies and procedures, and Program Metrics Conversion Rate: This cumulative metric looks at the rate of conversion to permanent modification for trials started on or after June 1, 2010, when all servicers were required to verify income documentation at trial start. Conversion rate is measured against all 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. Aged Trials as % of Active Trials: This monthly metric measures trials lasting six months or longer as a share of all active trials. These figures include trial modifications that have been converted to permanent modifications by the servicer and are pending reporting to the program system of record, plus some portion which may be canceled. Days to Resolve Escalated Cases: This cumulative metric measures servicer response time for homeowner inquiries escalated to MHA Support Centers. Effective Feb. 1, 2011, a target of 30 calendar days was established for non-GSE escalation cases, including an estimated 5 days processing by the MHA Support Centers. The methodology for calculating average days to respond to escalated cases was updated to only include non-GSE cases escalated on or after 2/1/2011. The Q4 2011 and Q1 2012 figures exclude investor denial cases escalated prior to 11/1/2011; Q3 figures exclude all investor denial cases. Cases involving bankruptcy and those that did not require servicer actions are not included in the calculation of servicer time to resolve escalations. % of Missing Modification Status Reports: This monthly metric measures the servicer’s ability to promptly report on modification status. Inconsistent and untimely reporting of modification status reports may impact incentive compensation and loan performance analysis. For more information on the assessments, please visit: www.FinancialStability.gov. 44 Making Home Affordable Program Performance Report Through April 2012 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. AMS Servicing, LLC Aurora Loan Services, LLC Bank of America, N.A.1 Bank United 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 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 Homeward Residential2 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, NA3 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, LLC4 OneWest Bank ORNL Federal Credit Union Park View Federal Savings Bank Pathfinder Bank PennyMac Loan Services, LLC PNC Bank, National Association PNC Mortgage5 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 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, NA6 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 Formerly American Home Mortgage Servicing, Inc. 3 JPMorgan Chase Bank, NA includes all loans previously reported under EMC Mortgage Corporation. 4 Ocwen Loan Servicing, LLC includes Litton Loan Servicing LP. 5 Formerly National City Bank. 6 Wells Fargo Bank, NA includes all loans previously reported under Wachovia Mortgage, FSB. 45 Making Home Affordable Program Performance Report Through April 2012 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. 46
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