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Making Home Affordable Report Highlights Program Performance Report Through August 2013 Nearly 1.8 Million Homeowner Assistance Actions Taken through Making Home Affordable • More than 1.2 million homeowners have received a permanent modification through the Home Affordable Modification Program (HAMP). Homeowners have reduced their first lien mortgage payments by a median of approximately $546 each month – almost 40% of their median beforemodification payment – saving a total estimated $22.3 billion to date in monthly mortgage payments. • Homeowners currently in HAMP permanent modifications with some form of principal reduction have been granted an estimated $11.7 billion in principal reduction. Of all non-GSE loans eligible for principal reduction entering HAMP in August, 74% included a principal reduction feature. • Nearly 215,000 homeowners have exited their homes through a short sale or deed-in-lieu of foreclosure with assistance from the Home Affordable Foreclosure Alternatives Program (HAFA). Inside: Special Reporting on Making Home Affordable for the 5-year Anniversary of Troubled Asset Relief Program (TARP) • • • MHA has indirectly assisted millions of struggling homeowners by creating national standards for sustainable loan modifications, leading to more affordable private modifications. In total, nearly 7 million homeowners have received help through government and private sector efforts. Treasury's nationwide MHA outreach and awareness efforts have provided millions of homeowners the opportunity to connect face-to-face with mortgage servicers, housing counselors and other sources for mortgage help. MHA's policies and standards for protecting struggling homeowners served as the basis for the consumer relief requirements and servicing standards in the $25 billion National Mortgage Settlement of mortgage servicing deficiencies and for industry regulations adopted by the Consumer Financial Protection Bureau. Additional Reporting on Second Lien Modification Program (2MP) • • More than 117,000 second lien modifications have been completed through the Second Lien Modification Program (2MP). Effective September 2013, Treasury expanded the 2MP program to include qualifying first liens that have been modified under the GSE Standard Modification requirements. When a borrower’s first lien is modified under GSE Standard Modification requirements and the first lien satisfies the HAMP eligibility criteria, the 2MP servicer must offer to modify or extinguish the borrower’s second lien under 2MP. Note: 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. Inside: SUMMARY RESULTS: TARP 5-Year Retrospective 2-4 5 Making Home Affordable Program Activity 6 First Lien Modification Activity Activity for HAFA, PRA, Treasury FHA-HAMP 7 and UP Second Lien Modification Program (2MP) 8 First Lien Modification Characteristics 9 HAMP Activity by State 10 HAMP Activity by MSA 11 SERVICER RESULTS: First Lien Modification Activity First Lien, PRA, 2MP, and HAFA Activity Outreach to 60+ Day Delinquent Homeowners Average Delinquency at Trial Start Conversion Rate Time to Resolve Escalations/Homeowner Outreach Disposition of Homeowners Not in HAMP 12 13 14 15 16 17 18-20 APPENDICES: Participants in MHA Programs 21-22 Making Home Affordable Program Performance Report Through August 2013 TARP 5-year Retrospective: The Making Home Affordable Program In early 2009, the U.S. economy was facing the fallout from a financial crisis resulting in large part from the collapse of a housing bubble. Mortgage delinquency rates were rising and the inventory of seriously delinquent loans and home foreclosures were increasing. The servicing industry was ill-equipped to help the overwhelming number of homeowners needing assistance, with servicer business models focused primarily on collecting mortgage payments for investors instead of providing customer service to homeowners. The Federal government's policy response had been limited, largely leaving it to the private sector to decide when a foreclosure or modification was appropriate. When a modification did occur, it often increased the homeowner's monthly payments. In response, the Obama Administration launched Making Home Affordable (MHA) in March of 2009, a program designed to help struggling homeowners prevent avoidable foreclosures. MHA combined financial incentives, a standardized modification structure, prudent eligibility criteria and consumer protection guidelines to encourage homeowners, servicers, and investors to participate in the first nationwide mortgage modification program. Treasury's programs are part of a wider government response designed to help responsible struggling homeowners, preserve communities, and keep mortgage rates affordable for families. MHA Response 1.8 MILLION Homeowner assistance actions through MHA $22.3 BILLION Total estimated savings to date in monthly mortgage payments through HAMP • Created national standards for sustainable loan modifications. • Introduced important consumer protections on how mortgage servicers communicate and assist struggling homeowners. • Broadened use of principal reduction as a tool to help underwater homeowners (“HAMP PRA”). • Created 2nd lien modification model (“2MP”) to help homeowners reduce additional mortgage debt. $12 BILLION $18 BILLION In principal In debt relief reduction through through HAFA HAMP • Established process for homeowners to escalate problems and appeal decisions by mortgage companies, with clear standards for resolution timelines. • Provided a streamlined process for short sales and deeds-in-lieu of foreclosure (“HAFA”) that offers relocation assistance to provide a graceful exit. 2 Making Home Affordable Program Performance Report Through August 2013 Reaching Out to Homeowners 88 Treasury-sponsored Outreach Events, through September 2013, covering 57 cities, giving more than 75,000 homeowners the opportunity to meet face-to-face with their mortgage company and HUDapproved housing counselors. In addition, Treasury has partnered with the Ad Council on three different public service advertising campaigns featured in both English and Spanish, encouraging struggling homeowners nationwide to reach out for help with their mortgage. Number of Homeowner Events per State 2 1 OVER 2 MILLION homeowners referred to free housing counseling from a “HUDapproved” housing expert. OVER 9 MILLION 0% 3 or more solicitations of homeowners by participating mortgage servicers. 60+ Day Delinquency Rate (Q3 2009) NEARLY 4 MILLION 5% calls taken at the Homeowner’s HOPE Hotline. 10% 15% OVER 175 MILLION See pages 10 and 11 for additional detail of activity by state and metropolitan statistical area. 20% 25% page views on MakingHome Affordable.gov. 3 Making Home Affordable Program Performance Report Through August 2013 MHA’s Impact on Industry Standards • Established streamlined policies and standards to protect homeowners which have been largely adopted by the Consumer Financial Protection Bureau. • Established new benchmarks for servicer accountability and transparency. • Established widely-used industry model to evaluate economics of mortgage modifications (NPV tool). • MHA programs and borrower protections served as the basis for the consumer relief requirements and servicing standards in the $25 billion National Mortgage Settlement of mortgage servicing deficiencies. Housing Progress Since April 2009, mortgage assistance programs have helped millions of homeowners stay in their homes-double the number of foreclosure completions in that same period. Nearly 7 million homeowners have received help through government programs and additional private sector efforts. The latest housing data show important progress across many key indicators, yet the overall recovery remains fragile and there are still many homeowners struggling to avoid foreclosure. Then (1Q09) 8 million 8 Now (2Q13) 12 7 10.2 10 6 4 Foreclosure Completions HAMP Modifications 8 5 3 2 Millions Private Modifications 6 Apr '09 Oct '09 Apr '10 Oct '10 Apr '11 Oct '11 Apr '12 Oct '12 Apr '13 0 4.9 4 2 1 FHA Loss Mitigations 7.1 6.9 0.7 0.3 0 Foreclosure Starts Delinquent Loans Negative Equity Sources: Foreclosure Starts and Delinquent Loans: MBA National Delinquency Survey Negative Equity “Then”: June 2010 Housing Scorecard “Now”: CoreLogic Negative Equity Report 4 Making Home Affordable Program Performance Report Through August 2013 Making Home Affordable Program Activity 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. In total, the MHA program has completed nearly 1.8 million first and second lien permanent modifications, HAFA transactions, and UP forbearance plans. Program-to-Date Reported Since Prior Period 1,423,728 27,973 2MP Modifications Started 117,481 2,239 HAFA Transactions Completed2 214,619 20,472 UP Forbearance Plans Started (through July 2013) 35,104 635 1,790,932 51,319 MHA First Lien Permanent Modifications Started1 Cumulative Activity3 MHA Program Activity Cumulative MHA Activity (000s) Cumulative Transactions Completed Program MHA First Lien Modifications The Home Affordable Modification Program (HAMP) provides eligible borrowers the opportunity to lower their first lien mortgage payment to affordable and sustainable levels through a uniform loan modification process. Effective June 2012, HAMP's eligibility requirements were expanded to include a "Tier 2" evaluation for non-GSE loans that is modeled after the GSE Standard Modification and includes properties that are currently occupied by a tenant as well as vacant properties the borrower intends to rent. FHA-HAMP and RD-HAMP provide first lien modifications for distressed borrowers in loans guaranteed through the Federal Housing Administration and Rural Housing Service. Second Lien Modification Program (2MP) Provides modifications and extinguishments on second liens when there has been an eligible first lien modification on the same property. Home Affordable Foreclosure Alternatives (HAFA) Provides transition alternatives to foreclosure in the form of a short sale or deed-in-lieu of foreclosure. Effective November 2012, the GSEs jointly streamlined their short sale and deed-in-lieu of foreclosure programs. The GSE Standard HAFA program is closely aligned with Treasury’s MHA HAFA program. Unemployment Program (UP) Provides temporary forbearance of mortgage principal to enable unemployed borrowers to look for a new job without fear of foreclosure. 2,000 1,800 1,600 1,434 1,400 1,244 1,277 1,299 1,475 1,515 1,550 1,588 1,624 1,665 1,703 1,740 1,791 1,324 1,200 1,000 800 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug 2012 2013 Source: HAMP system of record for HAMP, 2MP, HAFA, FHA-HAMP, and RD-HAMP. UP participation is reported via servicer survey through July 2013. GSE Standard Modification and GSE Standard HAFA data provided by Fannie Mae and Freddie Mac as of August 2013. Purpose 1 Includes (a) 1,255,751 GSE and Non-GSE HAMP permanent modifications, (b) 17,558 FHA- and RD-HAMP modifications, and (c) 150,419 GSE Standard Modifications since October 2011 under the GSEs’ Servicer Alignment Initiative. The GSEs and other government agencies also undertake other foreclosure prevention activities beyond their participation in MHA which is not reflected in this report. Per the Federal Housing Finance Agency’s Foreclosure Prevention Report for the Second Quarter of 2013, since 4Q 2008, the GSEs have completed more than 1.4 million permanent modifications and over 500,000 short sales and deed-in-lieu of foreclosure actions, which includes their activity under MHA. Please visit www.FHFA.gov for the complete FHFA report. As reported to Treasury, FHA has offered nearly 2 million loss mitigation and early delinquency interventions through August 31, 2013 since April 1, 2009, which includes their activity under MHA. 2 Includes the GSE and Non-GSE activity under the MHA program, in addition to the cumulative GSE Standard HAFA transactions completed since November 2012. Does not include other GSE short sale and deed-in-lieu activity prior to November 2012 outside the GSE Standard HAFA program. 3 This does not include trial modifications that have cancelled or not yet converted to permanent modifications, or HAFA transactions started but not yet completed. 5 Making Home Affordable Program Performance Report Through August 2013 HAMP (First Lien) Modifications Trial Modifications Tier 1 2,062,535 Tier 2 34,174 Trials Reported Since July 2013 Report1 13,589 Trial Modifications Canceled Since June 1, 20102 73,147 Active Trials 63,227 All Permanent Modifications Started Permanent Modifications HAMP Trials Started 2,096,709 1,255,751 Tier 1 1,238,279 Tier 2 17,472 Permanent Modifications Reported Since July 2013 Report 19,069 Permanent Modifications Disqualified (Cumulative)3 330,376 Active Permanent Modifications 905,663 Servicers may enter new trial modifications into the HAMP system of record at any time. 777,731 cumulative including 704,584 that had trial start dates prior to June 1, 2010 when Treasury implemented a verified income requirement. 3 A permanent modification disqualifies when the borrower has missed three consecutive monthly payments. Does not include 19,712 loans paid off. Cumulative Trial Starts (Left Axis) 2,100 Monthly Trial Starts (Right Axis) 2,050 2,000 1,950 1,900 1,850 1,826 1,844 1,862 1,880 1,895 1,913 1,927 1,945 2,054 1,961 1,975 1,987 2,001 2,018 2,069 2,084 2,097 2,036 50 1,800 1,750 1,700 1,650 1 2 100 2,150 New Trials Started (000s) All Trials Started Total All Trials Started (000s) HAMP Activity Through August 2013 Mar Apr May June July Aug Sep 2012 Oct Nov Dec Jan Feb 2013 Mar Apr May June July Aug 0 Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 13,589 trials have entered the HAMP system of record since the prior report; 12,809 were trials with a first payment recorded in August 2013. HAMP Permanent Modifications Started (Cumulative) Under the original HAMP program, launched in March 2009, now referred to as “Tier 1,” eligible loans include conventional loans more than 60 days delinquent (unless the borrower is in imminent default), that originated on or before January 1, 2009 with a current unpaid principal balance below the maximum conforming loan limit4 and were owner-occupied at origination. Homeowners who have HAMP-eligible loans may qualify for Tier 1 if they meet additional criteria including, but not limited to requiring: a debt-to-income ratio greater than 31%, occupancy, employment, and pooling and servicing agreement eligibility. Based on current estimates, of the 3.2 million homeowners who are currently 60+ days delinquent, an estimated 600,000 homeowners are potentially eligible for HAMP Tier 1. On January 27, 2012, Treasury announced an expansion of the eligibility for HAMP to reduce additional foreclosures and help stabilize neighborhoods. The eligibility was expanded for non-GSE loans to (1) allow for more flexible debt-to-income criteria and (2) include properties that are currently occupied by a tenant, as well as vacant properties which the borrower intends to rent. This expanded HAMP criteria, referred to as HAMP “Tier 2,” became effective on June 1, 2012 (although not all servicers began offering Tier 2 modifications on that date). There is insufficient program data at this time to estimate the number of homeowners who may qualify for HAMP Tier 2. 4 Current unpaid principal balance must be no greater than: $729,750 for a single-unit property, 2 units: $934,200, 3 Units: $1,129,250, 4 Units: $1,403,400. 1,300 All Permanent Modifications Started (000s) Estimated Eligible Loans and Borrowers 1,200 1,100 1,000 1,026 994 1,009 1,043 1,060 1,077 1,091 1,107 1,122 1,136 1,206 1,223 1,179 1,191 1,151 1,167 1,237 1,256 900 800 700 600 Mar Apr 2012 May June July Source: HAMP system of record. Aug Sep Oct Nov Dec Jan Feb 2013 Mar Apr May June July Aug 6 Making Home Affordable: Summary Results Program Performance Report Through August 2013 Home Affordable Foreclosure Alternatives (HAFA) Activity HAMP Principal Reduction Activity Servicers of non-GSE loans are required to evaluate the benefit of principal reduction under the HAMP Principal Reduction Alternative (PRA) for mortgages with a loan-to-value (LTV) ratio greater than 115% when evaluating a homeowner for a HAMP first lien modification. While servicers are required to evaluate homeowners for principal reduction, they are not required to reduce principal as part of the modification. The MHA Program allows servicers to provide principal reduction on HAMP modifications in two ways: •Under HAMP PRA, principal is reduced to lower the LTV, the investor is eligible to receive an incentive on the amount of principal reduced, and the reduction vests over a 3-year period. •Servicers can also offer principal reduction to homeowners on a HAMP modification outside the requirements of HAMP PRA. If they do, the investor receives no incentive payment for the principal reduction and the principal reduction can be recognized immediately. Of all non-GSE loans eligible1 for principal reduction that started a trial in August 2013, 74% included a principal reduction feature, including 62% through the HAMP PRA program. All Trial Modifications Started Trials Reported Since July 2013 Report HAMP Modifications with Earned Principal Reduction Under PRA2 HAMP Modifications with Upfront Principal Reduction Outside of PRA Total HAMP Modifications with Principal Reduction 147,004 46,718 193,722 3,873 1,089 4,962 Active Trial Modifications 16,187 3,950 20,137 All Permanent Modifications Started 119,428 39,285 158,713 6,107 1,348 7,455 Permanent Modifications Reported Since July 2013 Report Active Permanent Modifications Median Principal Amount Reduced for Active Permanent Modifications3 101,180 33,811 134,991 $72,793 $56,906 $67,598 Median Principal Amount Reduced for Active Permanent Modifications (%)4 32.1% 18.0% 29.9% $9,366,640,340 $2,336,700,832 $11,703,341,172 Total Outstanding Principal Balance Reduced on Active Permanent Modifications 3 1 Eligible loans include those receiving evaluation under HAMP PRA guidelines plus loans that did not require an evaluation but received principal reduction on their modification. Includes some modifications with additional principal reduction outside of HAMP PRA. 3 Under HAMP PRA, principal reduction vests over a 3-year period. The amounts noted reflect the entire amount that may be forgiven. 4 HAMP PRA amount as a percentage of before-modification UPB, excluding capitalization. 2 Treasury FHA-HAMP Modification Activity1 The Treasury FHA-HAMP Program provides assistance to eligible homeowners with FHA-insured mortgages. All Treasury FHA-HAMP Trial Modifications Started 31,515 All Treasury FHA-HAMP Permanent Modifications Started 17,494 1As reported in the September 2013 edition of the Obama Administration’s Housing Scorecard, FHA has offered nearly 2 million loss mitigation and early delinquency interventions, which includes their activity under MHA. The Home Affordable Foreclosure Alternatives Program (HAFA) offers incentives and a streamlined process for homeowners looking to exit their homes through a short sale or deedin-lieu of foreclosure. HAFA has established important homeowner protections and an industry standard for streamlined transactions. Effective November 2012, the GSEs revised their short sale and deed-in-lieu programs. The GSE Standard HAFA program is closely aligned with Treasury’s MHA HAFA program. In HAFA transactions, homeowners: • Follow a streamlined process for short sales and deed-in-lieu transactions that requires no verification of income (unless as required by investors) and allows for pre-approved short sale terms; • Receive a waiver of deficiency once the transaction is completed that releases the homeowner from remaining mortgage debt; • Receive at least $3,000 in relocation assistance at closing. Short Sale Deed-in-Lieu Total Transactions Completed Non-GSE Activity GSE Activity1 Total 126,435 75,679 202,114 3,824 8,681 12,505 130,259 84,360 214,619 1 Includes GSE activity under the MHA program in addition to the GSE Standard HAFA program implemented in November 2012. GSE Standard HAFA data provided by Fannie Mae and Freddie Mac as of August 2013. Does not include other GSE short sale and deed-in-lieu activity outside the HAFA program. Per the Federal Housing Finance Agency’s Foreclosure Prevention Report for the Second Quarter of 2013, since 4Q 2008 the GSEs have completed over 500,000 short sales and deed-in-lieu of foreclosure actions, which includes their activity under MHA. Please visit www.FHFA.gov for the complete FHFA report. Unemployment Program (UP) Activity 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 35,104 UP Forbearance Plans With Some Payment Required 29,881 UP Forbearance Plans With No Payment Required 5,223 Note: Data is as reported by servicers via survey for UP participation through July 31, 2013. See Appendix A2 for servicer participants in additional Making Home Affordable programs. 7 Making Home Affordable: Summary Results Program Performance Report Through August 2013 Second Lien Modification Program (2MP) The Second Lien Modification Program (2MP) provides assistance to homeowners in a first lien permanent modification who have an eligible second lien with a participating HAMP servicer. This assistance can result in a modification of the second lien or a full or partial extinguishment of the second lien. 2MP requires that a participating servicer offer a second lien modification if that borrower also has a permanent and active first lien HAMP modification, and that the second lien has an unpaid balance of $5,000 or more and a pre-modification scheduled monthly payment of at least $100. Effective September 2013, Treasury expanded the 2MP program to include qualifying first liens that have been modified under the GSE Standard Modification requirements. When a borrower’s first lien is modified under GSE Standard Modification requirements and the first lien satisfies the HAMP eligibility criteria, the 2MP servicer must offer to modify or extinguish the borrower’s second lien under 2MP. 2MP Activity Estimated Eligible 2nd Liens 2MP Participating Servicer Name4 All Second Lien Modifications Started (Cumulative)1 117,481 Second Lien Modifications Involving Full Lien Extinguishments 29,970 Second Lien Modifications Active Second Lien Disqualified2 90 75,762 Cumulative 2MP Modifications Started 110 100 8,493 Modifications3 120 All Modifications Started (000s) • Based on survey data as reported by servicers through August 2013, 86% of eligible second liens have received a 2MP modification, with many of the remaining second liens either still in the evaluation process by the servicers, awaiting homeowner response to the 2MP offer, or awaiting conversion of the first lien HAMP trial to permanent modification. • Important factors affecting the size of the population of second liens eligible for 2MP modifications include: Servicer participation in 2MP is voluntary; current 2MP servicers represent approximately 65% of the homeowners with active, permanent HAMP first lien modifications4. Under 2MP, participating servicers are notified when a match is found between one of their second liens and a HAMP first lien modification. Survey data indicates that approximately 338,612 HAMP modifications have been matched with a second lien5. Of these matched second liens, approximately 60% are found to be ineligible for a 2MP modification. The most common reasons for ineligibility are: • Cancellation or failure of a trial or permanent first lien HAMP modification, • Extinguishment of the second lien prior to evaluation for 2MP, • Failure of a 2MP trial modification, and • Some homeowners with eligible second liens decline to participate in 2MP. 90 94 97 99 102 103 105 107 109 111 1 112 113 115 80 Eligible 2nd Liens5 2MP Modifications Started Bank of America, N.A. 46,527 36,499 CitiMortgage, Inc. 19,978 14,287 JPMorgan Chase Bank, N.A. 35,829 33,946 445 686 OneWest Bank 4,538 3,807 Wells Fargo Bank, N.A. 19,891 17,935 Other Servicers 9,329 10,321 Median Amount of Full Extinguishment $61,002 136,537 117,481 Median Amount of Partial Extinguishment for Active 2MP Modifications $9,883 Median Payment Reduction for Active 2MP Modifications $153 Nationstar Mortgage, LLC Total 1 Includes second lien modifications reported into HAMP system of record through the end of cycle for August 2013 data, though the effective date may occur in September. Number of modifications is net of cancellations, which are primarily due to servicer data corrections. 2 Does not include 3,256 loans paid off. 3 Includes 6,571 loans in active non-payment status whereby the 1MP has disqualified from HAMP. As a result, the servicer is no longer required to report payment activity on the 2MP modification. 4 Only six of the eight largest SPA servicers participate in 2MP. See Appendix A for servicer participants in 2MP and other programs. 5 Data is as reported by servicers via survey as of August 31, 2013. Excludes eligible 2nd liens that have received a 2MP modification that was subsequently transferred to a servicer not participating in 2MP; non-participating servicers are not required to report via survey. 6 Borrowers with an active 1MP permanent modification who have also received a 2MP modification realize a higher monthly payment reduction on their first lien compared to the overall population of 1MP borrowers as the median first lien unpaid principal balance is higher. 117 70 60 July Aug Sep Oct Nov Dec Jan Feb Mar April May June July Aug 2012 2013 Modification Characteristics HAMP Borrowers with an active 2MP modification, including those with a partial extinguishment of their second lien, save a median $781, or 41% of their combined total first and second lien mortgage payment. Those who received a full extinguishment of their second lien have reduced their total monthly mortgage payment by a median amount of $1,046, or 53%.6 Top three States by Activity, Percent of Total 2MP Modifications Started: • California 36% • Florida 9% • New York 7% 8 Making Home Affordable: Summary Results Program Performance Report Through August 2013 Homeowner Benefits and First Lien Modification Characteristics Aggregate payment savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $22.3 billion, program to date, compared with unmodified mortgage obligations. The median monthly savings for homeowners in active permanent first lien modifications is $546.02, or 39% of the median monthly payment before modification. Modification Steps of Active Permanent Modifications HAMP modifications follow a series of waterfall steps. The modification steps include interest rate adjustment, term extension and principal forbearance. • Under Tier 1, servicers apply the modification steps in sequence until the homeowner’s post modification front-end debt-to-income (DTI) ratio is 31%. The impact of each modification step can vary to achieve the target of 31%. • Under Tier 2, servicers apply consistent modification terms resulting in the homeowner’s post modification DTI falling within an allowable target range.1 Select Median Characteristics of Active Permanent Modifications Tier 1 Tier 2 Interest Rate Reduction 96.3% 78.9% Term Extension 62.8% 72.8% 33.3% 27.3% Principal Forbearance 1 Subject to investor restrictions. Effective February 1, 2013, Supplemental Directive 12-09 expanded the acceptable DTI range for Tier 2 to 10-55%. After Modification Median Decrease Tier 1 45.6% 31.0% -15.1 pct pts Tier 2 31.4% 25.9% -7.3 pct pts Tier 1 69.9% 51.5% -15.3 pct pts Tier 2 48.4% 39.6% -7.3 pct pts Tier 1 $1,415.70 $798.64 ($550.73) Tier 2 $1,152.97 $760.06 ($358.27) Front-End Debt-to-Income Ratio2 Back-End Debt-to-Income Ratio3 Active permanent modifications reflect the following modification steps: Modification Step Before Modification Loan Characteristic Median Monthly Housing Payment4 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. 3 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. Homeowners who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines. 4 Principal and interest payment. Before modification payment is homeowner’s current payment at time of evaluation. 2 Homeowner Characteristics • Tier 2 provides another modification opportunity for struggling homeowners who did not qualify for Tier 1 or received a Tier 1 trial or permanent modification but lost good standing. Of the Tier 2 trial modifications started: • 25% were previously in a Tier 1 trial or permanent modification. • 18% were previously evaluated for Tier 1 and did not meet eligibility requirements. • The primary hardship reasons for homeowners in active permanent modifications are: • Of the Tier 2 trial modifications started, 7% were for non owner-occupied properties. • Of all HAMP 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. • The median gross monthly income of homeowners in the program is $3,847.92. • The median credit score of homeowners in the program is 575. • 68.3% experienced loss of income (curtailment of income or unemployment) • 10.4% reported excessive obligation • 3.5% reported an illness of the principal borrower 9 Making Home Affordable: Summary Results Program Performance Report Through August 2013 HAMP Activity by State State % of U.S. Active Permanent State HAMP Trials Modifications Total1 Activity State Modification Activity by State % of U.S. Active Permanent State HAMP Trials Modifications Total1 Activity AK 30 410 440 0.0% MT 67 1,032 1,099 0.1% AL 500 4,948 5,448 0.6% NC 1,372 16,084 17,456 1.8% AR 200 1,898 2,098 0.2% ND 11 135 146 0.0% AZ 1,126 34,174 35,300 3.6% NE 101 1,181 1,282 0.1% CA 12,588 235,742 248,330 25.6% NH 309 3,909 4,218 0.4% CO 794 12,730 13,524 1.4% NJ 2,507 29,111 31,618 3.3% CT 1,023 11,693 12,716 1.3% NM 244 3,067 3,311 0.3% DC 118 1,575 1,693 0.2% NV 972 19,373 20,345 2.1% DE 244 2,639 2,883 0.3% NY 4,524 46,072 50,596 5.2% FL 8,158 110,398 118,556 12.2% OH 1,657 18,651 20,308 2.1% GA 2,085 32,164 34,249 3.5% OK 225 2,103 2,328 0.2% HI 248 3,558 3,806 0.4% OR 594 10,202 10,796 1.1% IA 185 2,076 2,261 0.2% PA 2,047 18,672 20,719 2.1% ID 181 3,351 3,532 0.4% RI 324 4,290 4,614 0.5% IL 3,314 46,537 49,851 5.1% SC 704 8,177 8,881 0.9% IN 805 8,309 9,114 0.9% SD 20 304 324 0.0% KS 185 2,112 2,297 0.2% TN 880 8,928 9,808 1.0% KY 384 3,246 3,630 0.4% TX 2,453 24,755 27,208 2.8% LA 531 5,026 5,557 0.6% UT 389 7,875 8,264 0.9% MA 1,738 21,510 23,248 2.4% VA 1,426 21,410 22,836 2.4% MD 2,187 28,639 30,826 3.2% VT 84 796 880 0.1% ME 230 2,473 2,703 0.3% WA 1,405 19,307 20,712 2.1% MI 1,355 26,300 27,655 2.9% WI 725 8,320 9,045 0.9% MN 692 13,866 14,558 1.5% WV 98 1,163 1,261 0.1% MO 702 8,715 9,417 1.0% WY 24 416 440 0.0% MS 309 3,073 3,382 0.3% Other2 153 3,168 3,321 0.3% Total reflects active trials and active permanent modifications. 2 Includes Guam, Puerto Rico and the U.S. Virgin Islands. 1 HAMP Modifications Note: Includes active trial and permanent modifications from the official HAMP system of record. 5,000 and lower 20,001 – 35,000 5,001 – 10,000 35,001 and higher 10,001 – 20,000 Mortgage Delinquency Rates by State Source: 2nd Quarter 2013 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 10 Making Home Affordable: Summary Results Program Performance Report Through August 2013 15 Metropolitan Areas With Highest HAMP Activity Active Trials Active Permanent Modifications Total MSA HAMP Activity1 % of U.S. HAMP Activity Median $ Payment Reduction2 Median % Payment Reduction2 Los Angeles-Long Beach-Santa Ana, CA 4,397 76,120 80,517 8.3% $871.84 41% New York-Northern New Jersey-Long Island, NY-NJ-PA 5,435 60,938 66,373 6.9% $888.92 43% Miami-Fort Lauderdale-Pompano Beach, FL 3,624 49,044 52,668 5.4% $582.43 45% Chicago-Joliet-Naperville, IL-IN-WI 3,217 45,177 48,394 5.0% $570.15 44% Riverside-San Bernardino-Ontario, CA 2,089 44,856 46,945 4.8% $689.84 41% Washington-Arlington-Alexandria, DC-VA-MD-WV 1,833 30,348 32,181 3.3% $697.68 38% 771 27,141 27,912 2.9% $502.40 41% Atlanta-Sandy Springs-Marietta, GA 1,575 25,927 27,502 2.8% $412.75 40% San Francisco-Oakland-Fremont, CA 1,145 21,205 22,350 2.3% $929.58 40% San Diego-Carlsbad-San Marcos, CA 896 17,244 18,140 1.9% $811.41 39% Orlando-Kissimmee-Sanford, FL 1,085 15,930 17,015 1.8% $495.80 42% Boston-Cambridge-Quincy, MA-NH 1,190 15,477 16,667 1.7% $684.04 39% Las Vegas-Paradise, NV 794 15,781 16,575 1.7% $574.23 42% Detroit-Warren-Livonia, MI 716 15,804 16,520 1.7% $419.97 41% Sacramento-Arden-Arcade-Roseville, CA 709 15,117 15,826 1.6% $654.19 39% Metropolitan Statistical Area Phoenix-Mesa-Glendale, AZ Total reflects active trials and active permanent modifications. For active permanent modifications. Median % reflects percent of the median monthly payment before modification. 1 A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ 2 11 Making Home Affordable: Summary Results Program Performance Report Through August 2013 HAMP Modification Activity by Servicer and Investor Type Total Active Modifications4 Active Trial Modifications2 Active Trial Modifications Lasting 6 Months or Longer3 Active Permanent Modifications2 GSE Private Portfolio Total Trial Plan Offers Extended1 All HAMP Trials Started2 HAMP Permanent Modifications Started2 Bank of America, N.A. 581,060 258,122 119,482 6,171 1,661 82,512 28,926 43,964 15,793 88,683 CitiMortgage, Inc. 221,306 141,653 69,555 3,218 1,041 52,399 32,648 6,059 16,910 55,617 JPMorgan Chase Bank, N.A. 433,624 328,802 195,234 6,602 1,095 149,217 67,498 57,723 30,598 155,819 Nationstar Mortgage LLC 69,664 172,448 113,895 4,100 496 84,631 56,042 30,741 1,948 88,731 Ocwen Loan Servicing, LLC 290,528 323,324 223,998 15,580 906 154,621 39,409 114,307 16,485 170,201 OneWest Bank5 101,537 43,805 28,326 1,353 45 21,426 2 19,596 3,181 22,779 Select Portfolio Servicing, Inc. 85,275 90,949 51,533 5,235 791 29,776 480 30,537 3,994 35,011 Wells Fargo Bank, N.A. 273,342 303,139 176,590 10,419 1,167 133,629 55,756 27,882 60,410 144,048 Other Servicers 267,162 434,467 277,138 10,549 1,645 197,452 170,930 15,936 21,135 208,001 2,323,498 2,096,709 1,255,751 63,227 8,847 905,663 451,691 346,745 170,454 968,890 Servicer Total As reported in the monthly servicer survey of large SPA servicers through August 31, 2013. Includes all HAMP mortgage modification requests approved where trial plan offers were sent to the borrowers, including multiple offers made on a loan. All Trial Plan Offers Extended do not become HAMP Trials Started because some borrowers do not accept the trial or fail to make the first trial payment. Figures do not reflect the impact of servicing transfers. 2 These figures include trial modifications that have been converted to permanent modifications, but not reported as such in the HAMP system of record. Additionally, servicers may process cancellations of permanent modifications for reasons, including but not limited to, data corrections, loan repurchase agreements, etc. This process requires reverting the impacted permanent modifications to trials in the HAMP system of record with re-boarding of some of these permanent modifications in subsequent reporting periods. Prior to being re-boarded as permanent modifications, these modifications are reported as Active Trials. These modifications may be 6 months or more beyond their first trial payment due date resulting in their classification as an Aged Trials. As a result, fluctuations are expected in this population. 1 3 These figures include trial modifications that have been converted to permanent modifications, but not reported as such to the HAMP system of record. 4 Total active modifications reflects active trial and active permanent HAMP modifications. 5 OneWest Bank recently sold mortgage servicing rights to Ocwen Loan Servicing, LLC. The transfer will close in stages during the second half of 2013. Therefore, beginning with this report, Ocwen Loan Servicing, LLC includes a portion of the loans previously reported under OneWest Bank. See Appendix A1 and A2 for additional information on servicer participants in Making Home Affordable programs. 12 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Making Home Affordable Programs by Servicer1 Principal Reduction Alternative (PRA)2 HAMP First Lien Modifications Second Lien Modification (2MP) Home Affordable Foreclosure Alternatives (HAFA)5 Trials Started3 Permanent Modifications Started3 Trials Started3 Permanent Modifications Started3 Second Lien Modifications Started4 Transactions Completed Bank of America, N.A. 258,122 119,482 10,472 8,762 36,499 41,773 CitiMortgage, Inc. 141,653 69,555 3,470 2,614 14,287 974 JPMorgan Chase Bank, N.A. 328,802 195,234 30,164 26,710 33,946 33,385 Nationstar Mortgage LLC 172,448 113,895 5,187 4,789 686 4,536 Ocwen Loan Servicing, LLC6 323,324 223,998 50,989 38,027 N/A 12,158 OneWest Bank7 43,805 28,326 7,699 6,746 3,807 5,330 Select Portfolio Servicing, Inc. 90,949 51,533 5,641 4,150 N/A 4,733 Wells Fargo Bank, N.A. 303,139 176,590 27,891 23,296 17,935 22,378 Other Servicers 434,467 277,138 5,491 4,334 10,321 4,992 2,096,709 1,255,751 147,004 119,428 117,481 130,259 Servicer 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. 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 Number of second lien modifications started is net of cancellations, which are primarily due to servicer data corrections. 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. Includes NonGSE activity under the MHA program only. Servicer GSE program data not available. 6 Ocwen Loan Servicing, LLC includes loans previously reported under Litton Loan Servicing LP, Homeward Residential, Inc. and GMAC Mortgage, LLC. Ocwen Loan Servicing, LLC is not a participant in the 2MP program. 2MP activity previously attributed to GMAC Mortgage, LLC is reflected in “Other Servicers.” 7 OneWest Bank recently sold mortgage servicing rights to Ocwen Loan Servicing, LLC. The transfer will close in stages during the second half of 2013. Therefore, beginning with this report, Ocwen Loan Servicing, LLC includes a portion of the loans previously reported under OneWest Bank. 5 N/A – Servicer does not participate in the program. See Appendix A1 and A2 for additional information on servicer participants in Making Home Affordable programs. 13 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Servicer Outreach to 60+ Day Delinquent Homeowners: Cumulative Servicer Results, August 2012 – July 2013 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% 95% 95% 90% 88% 90% 83% 81% 72% 74% 81% 80% 70% 60% 50% 40% 81% 80% 80% 30% 70% 68% SPS Wells Fargo Servicer Unable to Report Comprehensive Data 20% 10% 0% Bank of America CitiMortgage JPMorgan Chase Nationstar Right Party Contact Ratio2 Ocwen OneWest HAMP Evaluations Complete Ratio3 1 Homeowners with HAMP eligible loans, which include conventional loans that were originated on or before Jan. 1, 2009; excludes loans with current unpaid principal balances greater than current conforming loan limits, 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 largest participating servicers as of July 31, 2013. 14 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 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. 300 Maximum servicer incentive is paid for converting a permanent modification that was 120 days delinquent or less at trial start. 250 Days 200 150 100 50 0 Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen OneWest SPS Wells Fargo 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. 1 15 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Conversion Rate1 Per program guidelines, effective June 1, 2010, all trials must be started using verified income documentation. Of eligible trials started on or after June 1, 2010, 88% have converted to permanent modifications with an average trial length of 3.5 months. Prior to June 1, 2010, some servicers initiated trials using stated income information. Of trials started prior to June 1, 2010, 44% have converted to permanent modifications. Average Of Eligible Trials Started On/After 6/1/10 88% Converted to Permanent Modification 3% Pending Processing or Decision 100% 89% 89% 94% 90% 91% 87% 80% 73% Conversion Rate 75% 50% 25% 0% Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen OneWest SPS Wells Fargo 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. 1 16 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Select Measures of Homeowners’ Experience with MHA Homeowner’s HOPETM Hotline Volume1 Program to Date August Total Number of Calls Taken at 1-888-995-HOPE 3,986,666 47,469 Borrowers Referred for Free Housing Counseling Assistance Through the Homeowner’s HOPETM Hotline 2,191,059 26,105 Selected Homeowner Outreach Measures Program to Date Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) 87 Homeowners Attending Treasury-Sponsored Events (cumulative) 1 Source: Homeowner’s HOPETM Hotline. Numbers reflect calls that resulted in customer records. 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. 2 Source: 74,614 Servicer Solicitation of Borrowers (cumulative)2 9,502,203 Page views on MakingHomeAffordable.gov (August 2013) 1,242,867 Page views on MakingHomeAffordable.gov (cumulative) 178,312,655 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. Over the last four quarters, all of the largest servicers’ non-GSE resolved cases have an average resolution time below the 30 -day target. Target: 30 Calendar Days2 Q4 2012 Q1 2013 Q2 2013 Current Quarter 35 30 Days 25 20 15 10 5 0 Bank of America CitiMortgage JPMorgan Chase Bank of America CitiMortgage Nationstar JPMorgan Chase Ocwen Nationstar OneWest SPS Ocwen OneWest Wells Fargo SPS Wells Fargo GSE Cases 7,150 1,122 2,474 796 784 599 10 1,941 Resolved Cases3 Non-GSE Cases 9,240 847 3,802 721 4,391 894 462 4,182 Active Cases Total Total 16,390 82 1,969 18 6,276 44 1,517 77 5,175 32 1,493 10 472 23 6,123 53 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 August 31, 2013 and exclude those that did not require servicer actions. Source: MHA Support Centers. 17 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Disposition Path Homeowners in Disqualified HAMP Permanent Modifications Survey Data Through July 2013 (Largest Servicers) • HAMP guidance requires that a servicer work with a delinquent homeowner in a permanent modification to cure the delinquency. • In the event the homeowner cannot bring a delinquent HAMP modification current without additional assistance, the servicer is prevented from commencing foreclosure proceedings until the borrower is evaluated for any other loss mitigation action, including other types of modifications or short sales. • The majority of homeowners who fall out of HAMP receive an alternative to foreclosure, including but not limited to HAMP Tier 2, an unemployment forbearance, assistance through the Hardest Hit Fund, an alternative modification, or a short sale or deed-in-lieu of foreclosure. • Less than a quarter of homeowners who have disqualified from HAMP have been referred to foreclosure. Status of Homeowners Whose HAMP Permanent Modification Disqualified: Action Pending1 Action Not Allowed – Bankruptcy in Process Borrower Became Current Bank of America, N.A. 4,217 1,561 2,738 9,345 CitiMortgage, Inc. 1,237 1,832 1,234 JPMorgan Chase Bank, N.A. 4,091 1,580 Nationstar Mortgage LLC 9,955 Ocwen Loan Servicing, LLC Alternative Modification Payment Plan2 Loan Payoff Short Sale/ Deed-in-Lieu Foreclosure Starts Foreclosure Completions Total 1,446 527 7,532 2,287 6,859 36,512 2,629 628 135 2,053 1,524 2,025 13,297 3,813 13,297 1,288 317 7,170 4,496 4,237 40,289 1,865 4,006 839 1 153 2,242 2,863 69 21,993 7,416 2,233 3,757 26,257 4,650 782 3,553 6,540 4,270 59,458 OneWest Bank 1,184 589 1,091 1,376 1,038 34 1,491 1,655 1,603 10,061 Select Portfolio Servicing, Inc. 4,095 1,000 878 4,800 1,200 49 1,815 2,477 1,807 18,121 Wells Fargo Bank, N.A. 2,589 3,270 1,274 16,445 1,158 866 3,837 1,826 6,651 37,916 34,784 13,930 18,791 74,988 11,409 2,863 29,693 23,668 27,521 237,647 14.6% 5.9% 7.9% 31.6% 4.8% 1.2% 12.5% 10.0% 11.6% 100.0% Servicer TOTAL (These Largest Servicers) Note: Data is as reported by servicers for actions completed through July 31, 2013 and reflects the status of homeowners as of that date; a homeowner's status may change over time. Survey data is not subject to the same data quality checks as data uploaded into the HAMP system of record. 1 Permanent modifications that have been disqualified, but no further action has yet been taken. 2 An arrangement with the borrower and servicer that does not involve a formal loan modification. Note: Excludes disqualifications pending data corrections and loans otherwise removed from servicing portfolios. 18 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Disposition Path Homeowners in Canceled HAMP Trial Modifications Survey Data Through July 2013 (Largest Servicers) Status of Homeowners Whose HAMP Trial Modification Was Canceled: Servicer Action Pending1 Action Not Allowed – Bankruptcy in Borrower Process Became Current Alternative Modification Payment Plan2 Loan Payoff Short Sale/ Deed-in-Lieu Foreclosure Starts Foreclosure Completions Total Bank of America, N.A. 4,296 2,356 7,850 31,009 706 9,193 22,840 5,901 40,611 124,762 CitiMortgage, Inc. 2,651 6,603 6,035 21,238 1,463 3,628 7,032 3,048 12,773 64,471 JPMorgan Chase Bank, N.A. 4,487 2,727 21,103 32,073 1,290 4,362 16,469 6,126 21,500 110,137 Nationstar Mortgage LLC 8,529 2,091 20,766 2,486 4 1,793 2,497 3,908 277 42,351 Ocwen Loan Servicing, LLC 2,711 1,975 3,423 35,417 2,901 2,440 3,809 6,186 8,794 67,656 709 611 551 6,166 580 261 2,370 2,720 6,359 20,327 3,174 934 2,283 9,356 502 419 2,786 3,771 5,929 29,154 436 4,840 8,159 43,381 274 11,241 8,461 6,589 31,491 114,872 26,993 22,137 70,170 181,126 7,720 33,337 66,264 38,249 127,734 573,730 4.7% 3.9% 12.2% 31.6% 1.3% 5.8% 11.5% 6.7% 22.3% 100% OneWest Bank Select Portfolio Servicing, Inc. Wells Fargo Bank, N.A. TOTAL (These Largest Servicers) Note: Data is as reported by servicers for actions completed through July 31, 2013 and reflects the status of homeowners as of that date; a homeowner's status may change over time. 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. Note: Excludes cancellations pending data corrections and loans otherwise removed from servicing portfolios. See Appendix A1 and A2 for additional information on servicer participants in Making Home Affordable programs. 19 Making Home Affordable: Servicer Results Program Performance Report Through August 2013 Disposition Path Homeowners Not Accepted for HAMP Trial Modifications Survey Data Through July 2013 (Largest Servicers) Status of Homeowners Not Accepted for a HAMP Trial Modification: Servicer Action Pending1 Action Not Allowed – Bankruptcy in Borrower Process Became Current Alternative Modification Payment Plan2 Loan Payoff Short Sale/ Deed-in-Lieu Foreclosure Starts Foreclosure Completions Total Bank of America, N.A. 12,250 8,255 57,500 76,739 3,090 38,007 49,008 16,576 76,600 338,025 CitiMortgage, Inc. 6,892 19,533 27,204 44,295 6,171 7,666 22,223 11,125 29,548 174,657 JPMorgan Chase Bank, N.A. 20,905 15,485 140,556 159,902 9,521 87,746 83,403 33,389 61,029 611,936 Nationstar Mortgage LLC 45,918 5,808 62,924 8,177 10 14,393 7,800 4,620 385 150,035 Ocwen Loan Servicing, LLC 15,382 8,479 51,379 186,827 16,026 26,226 29,175 27,553 40,964 402,011 OneWest Bank 4,371 3,474 34,893 32,096 5,413 10,112 10,981 9,995 20,088 131,423 Select Portfolio Servicing, Inc. 7,533 1,068 5,760 15,411 894 835 4,878 4,348 4,275 45,002 Wells Fargo Bank, N.A. 8,605 14,262 62,138 65,361 1,663 35,601 36,397 25,328 43,746 293,101 121,856 76,364 442,354 588,808 42,788 220,586 243,865 132,934 276,635 2,146,190 5.7% 3.6% 20.6% 27.4% 2.0% 10.3% 11.4% 6.2% 12.9% 100.0% TOTAL (These Largest Servicers) Data is as reported by servicers for actions completed through July 31, 2013 and reflects the status of homeowners as of that date; a homeowner's status may change over time. 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. Note: Excludes loans removed from servicing portfolios. See Appendix A1 and A2 for additional information on servicer participants in Making Home Affordable programs. 20 Making Home Affordable Program Performance Report Through August 2013 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 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 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 Glass City Federal Credit Union Great Lakes Credit Union Greater Nevada Mortgage Services Bank of America, N.A. includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, N.A. includes all loans previously reported under EMC Mortgage Corporation. 3 Ocwen Loan Servicing, LLC includes loans previously reported under Litton Loan Servicing LP, Homeward Residential, Inc. and GMAC Mortgage, LLC. 1 PennyMac Loan Services, LLC PNC Bank, National Association PNC Mortgage4 Purdue Employees Federal Credit Union QLending, Inc. Quantum Servicing Corporation Residential Credit Solutions RG Mortgage Corporation RoundPoint Mortgage Servicing Corporation Schools Financial Credit Union Select Portfolio Servicing, Inc. Servis One Inc., dba BSI Financial Services, Inc. Specialized Loan Servicing, LLC Sterling Savings Bank 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. Green Tree Servicing LLC Hartford Savings Bank Hillsdale County National Bank HomEq Servicing Horicon Bank IC Federal Credit Union Idaho Housing and Finance Association iServe Residential Lending LLC iServe Servicing Inc. JPMorgan Chase Bank, N.A.2 Lake City Bank Liberty Bank and Trust Co. Los Alamos National Bank Magna Bank Marix Servicing, LLC Midland Mortgage Company Midwest Community Bank Mission Federal Credit Union Mortgage Center, LLC Nationstar Mortgage LLC Navy Federal Credit Union Ocwen Loan Servicing, LLC3 OneWest Bank ORNL Federal Credit Union Pathfinder Bank 4 5 Wells Fargo Bank, N.A.5 Yadkin Valley Bank Formerly National City Bank. Wells Fargo Bank, N.A. includes all loans previously reported under Wachovia Mortgage, FSB. 21 Making Home Affordable Program Performance Report Through August 2013 Appendix A2: Participants in Additional Making Home Affordable Programs Second Lien Modification Program (2MP) Bank of America, N.A.1 Bayview Loan Servicing, LLC CitiMortgage, Inc. Green Tree Servicing LLC iServe Residential Lending, LLC iServe Servicing, Inc. JPMorgan Chase Bank, N.A.2 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, N.A. 4 FHA First Lien Program (Treasury FHA-HAMP) Amarillo National Bank American Financial Resources Inc. Aurora Financial Group, Inc. Banco Popular de Puerto Rico Bank of America, N.A.1 Capital International Financial, Inc. CitiMortgage, Inc. CU Mortgage Services, Inc. First Federal Bank of Florida First Mortgage Corporation Franklin Savings Gateway Mortgage Group, LLC Green Tree Servicing, LLC Guaranty Bank iServe Residential Lending, LLC iServe Servicing, Inc. James B. Nutter & Company JPMorgan Chase Bank, N.A. 2 M&T Bank Marix Servicing, LLC Marsh Associates, Inc. Midland Mortgage Company Nationstar Mortgage LLC Ocwen Loan Servicing, LLC5 PennyMac Loan Services, LLC PNC Mortgage3 Residential Credit Solutions Schmidt Mortgage Company Select Portfolio Servicing, Inc. Servis One Inc., dba BSI Financial Services, Inc. Stockman Bank of Montana Wells Fargo Bank, N.A. 4 Weststar Mortgage, Inc. Residential Credit Solutions Select Portfolio Servicing, Inc. Wells Fargo Bank, N.A. 4 Rural Housing Service Modification Program (RD-HAMP) Banco Popular de Puerto Rico Bank of America, N.A.1 Horicon Bank JPMorgan Chase Bank, N.A.2 Magna Bank Marix Servicing, LLC Midland Mortgage Company Nationstar Mortgage LLC Wells Fargo Bank, N.A.4 FHA Second Lien Program (FHA 2LP) Bank of America, N.A.1 Bayview Loan Servicing, LLC CitiMortgage, Inc. Flagstar Capital Markets Corporation Green Tree Servicing, LLC JPMorgan Chase Bank, N.A.2 Nationstar Mortgage LLC PNC Bank, National Association PNC Mortgage 3 Bank of America, N.A. includes all loans previously reported under BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, N.A. includes all loans previously reported under EMC Mortgage Corporation. 3 Formerly National City Bank. 4 Wells Fargo Bank, N.A. includes all loans previously reported under Wachovia Mortgage FSB. 5 Ocwen Loan Servicing, LLC includes loans previously reported under Litton Loan Servicing LP and GMAC Mortgage, LLC. 1 22