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Making Home Affordable Report Highlights Program Performance Report Through November 2013 More Than 1.9 Million Homeowner Assistance Actions Taken through Making Home Affordable • Nearly 1.3 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 before-modification payment – saving a total estimated $24.2 billion to date in monthly mortgage payments. • Homeowners currently in HAMP permanent modifications with some form of principal reduction have been granted an estimated $12.6 billion in principal reduction. Of all nonGovernment Sponsored Enterprise (GSE) loans eligible for principal reduction entering HAMP in November, 61% included a principal reduction feature. • Nearly 248,000 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). This Month’s Feature : The Second Lien Modification Program • More than 123,000 second lien modifications have been completed through the Second Lien Modification Program (2MP). • Homeowners in 2MP with an active permanent modification save a median of $153 per month on their second mortgage, resulting in a median total first and second lien monthly payment reduction of $784, or 41% of their median before-modification payment. Homeowners who receive a full extinguishment of their second lien receive a median total first and second lien monthly payment reduction of $1,047, or 53% of their beforemodification payment. • 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 the 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 AND PROGRAM RESULTS: Making Home Affordable Program Summary HAMP Summary PRA, Treasury FHA-HAMP and UP Summary HAFA and 2MP Summary 2MP Program Results HAMP Modification Characteristics HAMP Activity by State and MSA Homeowner Outreach 2 3 4 5 6 7 8 9 SERVICER RESULTS: HAMP, PRA, 2MP, and HAFA Activity HAMP Modification Activity Outreach to 60+ Day Delinquent Homeowners Average Delinquency at Trial Start Conversion Rate Disposition of Homeowners Not in HAMP APPENDICES: Terms and Methodology Program Notes End Notes Participants in MHA Programs 10 11 12 13 14 15 16 17 18 19-20 Making Home Affordable: Summary Results Program Performance Report Through November 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 more than 1.9 million first and second lien permanent modifications, HAFA transactions, and UP forbearance plans. Program-to-Date Reported Since Prior Period 1,491,754 22,814 2MP Modifications Started 123,714 2,462 HAFA Transactions Completed 247,624 9,937 UP Forbearance Plans Started (through October 2013) 37,191 656 1,900,283 35,869 MHA First Lien Permanent Modifications Started* Cumulative Activity1 *Program-to-Date Total Includes : • 1,298,014 GSE and Non-GSE HAMP permanent modifications • 24,214 FHA- and RD-HAMP modifications • 169,526 GSE Standard Modifications since October 2011 under the GSEs’ Servicer Alignment Initiative Cumulative MHA Activity (000s) MHA Program Activity Cumulative Transactions Completed 2,000 1,800 1,600 1,400 1,434 1,475 1,515 1,550 1,588 1,624 1,665 1,703 1,740 1,791 1,826 1,864 1,900 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. A short sale requires a third-party purchaser and cooperation of junior lienholders and mortgage insurers to complete the transaction. Unemployment Program (UP) Provides temporary forbearance of mortgage principal to enable unemployed borrowers to look for a new job without fear of foreclosure. 1,324 1,200 1,000 Purpose 800 Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov 2012 2013 Source: HAMP system of record for HAMP, 2MP, HAFA, FHA-HAMP, and RD-HAMP. UP participation is reported via servicer survey. GSE Standard Modification and GSE Standard HAFA data provided by Fannie Mae and Freddie Mac. See Appendix for Terms and Methodology, Program Notes, End Notes and additional information on servicer participants in Making Home Affordable programs. 2 Making Home Affordable: Summary Results Program Performance Report Through November 2013 HAMP (First Lien) Modifications Tier 1 2,088,769 Tier 2 49,002 Trials Reported Since Last Report2 14,986 Active Trials 58,251 Trial Modifications Cancelled since Verified Income Requirement* All Permanent Modifications Started Permanent Modifications 77,174 1,298,014 Tier 1 1,268,880 Tier 2 29,134 100 2,200 Cumulative Trial Starts (Left Axis) 2,150 Monthly Trial Starts (Right Axis) 2,100 2,050 2,000 1,950 1,900 1,879 1,893 1,911 1,926 1,943 1,960 1,973 1,986 2,000 2,017 2,035 2,055 2,071 2,087 2,101 2,114 2,126 2,138 50 1,850 New Trials Started (000s) Trial Modifications HAMP Trials Started 2,137,771 All Trials Started (000s) All Trials Started Total 1,800 Permanent Modifications Reported Since Last Report 12,996 Permanent Modifications Disqualified (Cumulative)** 353,073 Active Permanent Modifications 922,067 * When Treasury first launched HAMP in the spring of 2009, servicers were not required to verify a borrower’s income prior to commencing a trial modification. This was the policy because of the severity of the crisis, the number of homeowners already in default, and the fact that servicers had not yet built the systems to fully implement the program. However, this resulted in many trials being cancelled once income was verified. Treasury required all servicers to verify a borrower’s income as of June 10, 2010, which substantially lowered trial cancelations. Prior to that date, 704,332 trials were cancelled, for a cumulative of 781,506. ** Does not include 22,874 loans paid off. Estimated Eligible Loans and Borrowers 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 limit 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 3.1 million homeowners who are currently 60+ days delinquent, an estimated 500,000 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). 1,750 1,700 June July Aug Sep 2012 Oct Nov Dec Jan Feb 2013 Mar Apr May June July Aug Sept Oct Nov 0 Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 14,986 trials have entered the HAMP system of record since the prior report; 11,477 were trials with a first payment recorded in November 2013. HAMP Permanent Modifications Started (Cumulative) 1,400 All Permanent Modifications Started (000s) HAMP Activity Through November 2013 1,300 1,200 1,100 1,107 1,077 1,091 1,043 1,060 1,122 1,136 1,151 1,191 1,206 1,167 1,179 1,256 1,269 1,223 1,237 1,285 1,298 1,000 900 800 700 600 June July Aug 2012 Sep Oct Nov Dec Jan Feb 2013 Mar Apr May June July Aug Sep Oct Nov 3 Making Home Affordable: Summary Results Program Performance Report Through November 2013 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 eligible for principal reduction that started a trial in November 2013, 61% included a principal reduction feature, including 49% through the HAMP PRA program. All Trial Modifications Started Trials Reported Since Last Report HAMP Modifications with Earned Principal Reduction Under PRA3 HAMP Modifications with Upfront Principal Reduction Outside of PRA Total HAMP Modifications with Principal Reduction 157,933 49,296 207,229 4,396 838 5,234 Active Trial Modifications 14,716 3,255 17,971 All Permanent Modifications Started 130,968 42,449 173,417 3,192 999 4,191 Permanent Modifications Reported Since Last Report Active Permanent Modifications 109,581 36,109 145,690 Median Principal Amount Reduced for Active Permanent Modifications4 $72,257 $56,968 $67,321 Median Principal Amount Reduced for Active Permanent Modifications (%)5 Total Outstanding Principal Balance Reduced on Active Permanent Modifications4 Treasury FHA-HAMP Modification Activity 32.2% 18.0% 30.1% $10,124,838,950 $2,500,309,280 $12,625,148,230 Unemployment Program (UP) Activity The Treasury FHA-HAMP Program provides assistance to eligible homeowners with FHA-insured mortgages. 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 Treasury FHA-HAMP Trial Modifications Started 42,654 All UP Forbearance Plans Started 37,191 All Treasury FHA-HAMP Permanent Modifications Started 24,082 UP Forbearance Plans With Some Payment Required 31,660 UP Forbearance Plans With No Payment Required 5,531 4 Making Home Affordable: Summary Results Program Performance Report Through November 2013 Home Affordable Foreclosure Alternatives (HAFA) Activity 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 deed-in-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 preapproved 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. Non-GSE Activity GSE Activity Total 138,219 91,987 230,206 4,347 13,071 17,418 142,566 105,058 247,624 Short Sale Deed-in-Lieu Total Transactions Completed 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. Second lien modifications follow a series of steps and may include capitalization, interest rate reduction, term extension and principal forbearance or forgiveness. Effective September 2013, Treasury expanded the 2MP program eligibility to include second liens with a qualifying first lien modified under the GSEs’ Standard Modification program. 2MP modifications and partial extinguishments require that the qualifying first lien 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)* 123,714 Second Lien Modifications Involving Full Lien Extinguishments 31,887 Second Lien Modifications Disqualified** 9,354 Active Second Lien Modifications*** 78,948 Active Second Lien Modifications Involving Partial Lien Extinguishments 9,847 Second Lien Extinguishment Details Median Amount of Full Extinguishment $60,776 Median Amount of Partial Extinguishment for Active Second Lien Modifications $9,927 * Includes 670 loans that have a qualifying GSE Standard Modification. **Does not include 3,525 loans paid off. *** Includes 7,146 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. 5 Making Home Affordable: Program Results Program Performance Report Through November 2013 Featured Program Results: The Second Lien Modification Program (2MP) Estimated Eligible 2nd Liens Modification Characteristics • Based on survey data as reported by servicers through November 2013, approximately 32,000 second liens may be eligible to receive a 2MP modification, many of them are 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: HAMP borrowers with an active 2MP modification, including those with a partial extinguishment of their second lien, save a median $784, or 41% of their combined total first and second lien monthly mortgage payment. Those who received a full extinguishment of their second lien have reduced their total monthly mortgage payment by a median amount of $1,047, or 53%. Servicer participation in 2MP is voluntary; current 2MP servicers represent approximately 62% of the homeowners with active, permanent HAMP first lien modifications. Median Monthly Payment Reduction for Active 2MP Modifications Total Outstanding Principal Balance Extinguished through partial or full extinguishment Under 2MP, participating servicers are notified when a match is found between one of their second liens and a qualifying first lien modification. Survey data indicates that program to date, 352,772 qualifying first lien modifications have been matched with a second lien. Of these matched second liens, approximately 56% are found to be ineligible for a 2MP modification. The most common reasons for ineligibility are: Current Estimated Eligible 2nd Liens Bank of America, N.A. 35,127 10,643 CitiMortgage, Inc. 14,928 4,820 JPMorgan Chase Bank, N.A. 35,458 4,454 Nationstar Mortgage, LLC 2,834 2,673 OneWest Bank 3,712 196 Wells Fargo Bank, N.A. 19,183 6,116 Other Servicers 12,472 3,276 Total 123,714 32,178 Note: Only six of the eight largest SPA servicers participate in 2MP. See Appendix A for servicer participants in 2MP and other programs. • California 36% • Florida 9% • New York 7% Cumulative 2MP Modifications Started 130 120 All Modifications Started (000s) 2MP Modifications Started $2.5 Billion Top three States by Activity, Percent of Total 2MP Modifications Started: • Cancellation or failure of a trial or permanent first lien HAMP modification, • Extinguishment of the second lien prior to evaluation for 2MP, • Failure of a 2MP trial modification, and • Some homeowners with eligible second liens decline to participate in 2MP. 2MP Participating Servicer Name $153 110 102 103 105 107 109 111 112 113 115 117 120 121 Sep Oct 124 100 90 80 70 60 Nov Dec Jan Feb 2012 2013 Mar April May June July Aug Nov 6 Making Home Affordable: Program Results Program Performance Report Through November 2013 HAMP Homeowner Benefits and First Lien Modification Characteristics Aggregate payment savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $24.2 billion, program to date, compared with unmodified mortgage obligations. The median monthly savings for homeowners in active permanent first lien modifications is $546.48, 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.6 Active permanent modifications reflect the following modification steps: Modification Step Tier 1 Tier 2 Interest Rate Reduction 96.2% 79.4% Term Extension 63.3% 72.3% Principal Forbearance 33.8% 28.9% Select Median Characteristics of Active Permanent Modifications Before Modification After Modification Median Decrease Tier 1 45.6% 31.0% -15.2 pct pts Tier 2 29.9% 24.4% -7.1 pct pts Tier 1 69.4% 51.0% -15.4 pct pts Tier 2 46.2% 37.9% -7.1 pct pts Tier 1 $1,413.79 $794.11 ($554.01) Tier 2 $1,141.98 $745.85 ($358.62) Loan Characteristic Front-End Debt-to-Income Ratio Back-End Debt-to-Income Ratio Median Monthly Housing Payment 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. 17% were previously evaluated for Tier 1 and did not meet eligibility requirements. • Of the Tier 2 trial modifications started, 7% were for non owner-occupied properties. • The median gross monthly income of homeowners in the program is $3,858. • The median credit score of homeowners in the program is 576. • The primary hardship reasons for homeowners in active permanent modifications are: 68.4% experienced loss of income (curtailment of income or unemployment) 10.3% reported excessive obligation 3.5% reported an illness of the principal borrower • 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. 7 Making Home Affordable: Program Results Program Performance Report Through November 2013 15 Metropolitan Areas With Highest HAMP Activity HAMP Activity by State State Active Trials Active Permanent Modifications State % of U.S. Total HAMP Active Activity State Active Trials Active Permanent Modifications State % of U.S. Total HAMP Active Activity AK 27 414 441 0.0% MT 66 1,054 1,120 0.1% AL 517 5,020 5,537 0.6% NC 1,279 16,387 17,666 1.8% AR 198 1,929 2,127 0.2% ND 8 138 146 0.0% AZ 1,001 34,086 35,087 3.6% NE 117 1,205 1,322 0.1% CA 9,954 239,985 249,939 25.5% NH 248 4,008 4,256 0.4% CO 663 12,924 13,587 1.4% NJ 2,497 29,659 32,156 3.3% CT 1,052 11,970 13,022 1.3% NM 220 3,142 3,362 0.3% DC 99 1,597 1,696 0.2% NV 971 19,459 20,430 2.1% DE 191 2,724 2,915 0.3% NY 4,204 47,477 51,681 5.3% FL 7,599 113,143 120,742 12.3% OH 1,687 19,032 20,719 2.1% GA 1,979 32,509 34,488 3.5% OK 242 2,149 2,391 0.2% HI 229 3,599 3,828 0.4% OR 509 10,397 10,906 1.1% IA 191 2,107 2,298 0.2% PA 2,108 19,234 21,342 2.2% ID 160 3,375 3,535 0.4% RI 333 4,360 4,693 0.5% IL 3,104 47,233 50,337 5.1% SC 685 8,383 9,068 0.9% IN 819 8,504 9,323 1.0% SD 22 303 325 0.0% KS 174 2,151 2,325 0.2% TN 977 9,082 10,059 1.0% KY 335 3,375 3,710 0.4% TX 2,473 25,419 27,892 2.8% LA 560 5,162 5,722 0.6% UT 306 7,945 8,251 0.8% MA 1,665 21,802 23,467 2.4% VA 1,244 21,774 23,018 2.3% MD 2,146 29,075 31,221 3.2% VT 87 818 905 0.1% ME 218 2,534 2,752 0.3% WA 1,190 19,697 20,887 2.1% MI 1,271 26,485 27,756 2.8% WI 706 8,475 9,181 0.9% MN 604 13,953 14,557 1.5% WV 81 1,206 1,287 0.1% MO 777 8,818 9,595 1.0% WY 27 417 444 0.0% MS 280 3,151 3,431 0.3% Other* 151 3,222 3,373 0.3% * Other includes Guam, Puerto Rico and the U.S. Virgin Islands. Median $ Median % Active % of U.S. Payment Payment Active Permanent MSA Total HAMP ReductionReduction 7 7 Metropolitan Statistical Area Trials Mods Active Activity Los Angeles-Long BeachSanta Ana, CA 3,406 77,816 81,222 8.3% $868.25 41% New York-Northern New Jersey-Long Island, NY-NJ-PA 5,143 62,494 67,637 6.9% $889.94 43% Miami-Fort LauderdalePompano Beach, FL 3,440 50,447 53,887 5.5% $581.89 45% Chicago-Joliet-Naperville, ILIN-WI 2,990 45,916 48,906 5.0% $569.92 44% Riverside-San BernardinoOntario, CA 1,684 45,253 46,937 4.8% $689.79 41% Washington-ArlingtonAlexandria, DC-VA-MD-WV 1,746 30,670 32,416 3.3% $699.53 39% Atlanta-Sandy SpringsMarietta, GA 1,489 26,192 27,681 2.8% $414.76 40% Phoenix-Mesa-Glendale, AZ 661 27,020 27,681 2.8% $503.29 41% San Francisco-OaklandFremont, CA 853 21,617 22,470 2.3% $928.20 40% San Diego-Carlsbad-San Marcos, CA 694 17,546 18,240 1.9% $809.76 39% Orlando-Kissimmee-Sanford, FL 939 16,235 17,174 1.8% $495.16 42% 1,113 15,695 16,808 1.7% $685.70 39% Las Vegas-Paradise, NV 786 15,835 16,621 1.7% $573.65 42% Detroit-Warren-Livonia, MI 696 15,855 16,551 1.7% $424.91 42% Philadelphia-CamdenWilmington, PA-NJ-DE-MD 1,414 14,721 16,135 1.6% $451.40 37% Boston-Cambridge-Quincy, MA-NH A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/ 8 Making Home Affordable: Program Results Program Performance Report Through November 2013 Reaching Out to Homeowners 90 Treasury-sponsored Outreach Events, through November 2013, covering 57 cities, giving more than 76,000 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 mortgages. 4 2.2 MILLION Homeowners referred to free housing counseling from a HUDapproved housing expert. 3 6 3 3 16 6 5 3 15 Total HAMP Modifications Active Number of Homeowner Events per State 1 OVER 3 2 OVER 9.8 MILLION 3 or more Solicitations of homeowners by participating mortgage servicers. OVER 4 MILLION 5,000 and lower 5,001-10,000 10,000-20,000 20,001-30,000 30,001 and higher Calls taken at the Homeowner’s HOPE Hotline. OVER 181 Page views on MakingHome Affordable.gov. MILLION See page 8 for additional detail of activity by state and metropolitan statistical area. 9 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 Making Home Affordable Programs by Servicer HAMP First Lien Modifications Principal Reduction Alternative (PRA)9 Second Lien Modification (2MP) Home Affordable Foreclosure Alternatives (HAFA)10 Trials Started8 Permanent Modifications Started8 Trials Started Permanent Modifications Started Second Lien Modifications Started Non-GSE Transactions Completed Bank of America, N.A. 246,647 112,841 9,667 8,143 35,127 43,959 CitiMortgage, Inc. 138,501 67,501 3,994 3,050 14,928 1,102 JPMorgan Chase Bank, N.A. 322,516 192,621 29,081 26,116 35,458 35,083 Nationstar Mortgage LLC 184,210 121,627 6,092 5,712 2,834 5,306 Ocwen Loan Servicing, LLC 363,977 258,208 63,960 50,178 N/A 13,537 OneWest Bank 20,524 10,415 2,461 2,131 3,712 5,858 Select Portfolio Servicing, Inc. 96,481 55,758 6,124 4,595 N/A 6,118 Wells Fargo Bank, N.A. 309,314 184,739 29,480 25,119 19,183 24,898 Other Servicers 455,601 294,304 7,074 5,924 12,472 6,705 2,137,771 1,298,014 157,933 130,968 123,714 142,566 Servicer Total N/A - Servicer does not participate in the program. See Appendix for Terms and Methodology, Program Notes, End Notes and additional information on servicer participants in Making Home Affordable programs. 10 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 HAMP Modification Activity by Servicer and Investor Type Total Active Modifications Active Trial Modifications12 Active Trial Modifications Lasting 6 Months or Longer12 Active Permanent Modifications GSE Private Portfolio Total Trial Plan Offers Extended11 All HAMP Trials Started8 HAMP Permanent Modifications Started8 Bank of America, N.A. 585,151 246,647 112,841 4,945 1,078 76,758 23,776 41,911 16,016 81,703 CitiMortgage, Inc. 223,545 138,501 67,501 2,836 810 49,189 32,246 6,069 13,710 52,025 JPMorgan Chase Bank, N.A. 437,016 322,516 192,621 4,644 868 145,822 66,819 52,825 30,822 150,466 Nationstar Mortgage LLC 76,876 184,210 121,627 6,185 1,131 89,024 57,560 35,588 2,061 95,209 Ocwen Loan Servicing, LLC 299,410 363,977 258,208 15,426 1,986 178,697 39,065 138,859 16,199 194,123 OneWest Bank* 102,139 20,524 10,415 348 17 6,268 0 3,632 2,984 6,616 Select Portfolio Servicing, Inc. 89,971 96,481 55,758 5,619 1,901 31,730 454 32,655 4,240 37,349 Wells Fargo Bank, N.A. 280,673 309,314 184,739 8,466 814 138,256 55,852 29,173 61,697 146,722 Other Servicers 274,906 455,601 294,304 9,782 1,816 206,323 170,103 18,171 27,831 216,105 2,369,687 2,137,771 1,298,014 58,251 10,421 922,067 445,875 358,883 175,560 980,318 Servicer Total *OneWest Bank recently sold mortgage servicing rights to Ocwen Loan Servicing, LLC. The transfer is expected to occur in stages during the second half of 2013. Therefore, Ocwen Loan Servicing, LLC includes a portion of the loans previously reported under OneWest Bank. 11 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 Servicer Outreach to HAMP Eligible 60+ Day Delinquent Homeowners: Cumulative Servicer Results, November 2012 – October 2013 Per program guidance, servicers are directed to establish Right Party Contact (RPC) with homeowners of delinquent HAMP eligible loans 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% 92% 96% 92% 90% 89% 88% 85% 84% 80% 70% 66% 60% 50% 40% 81% 84% 86% 79% 76% 63% 62% 30% 67% 20% 10% 0% Bank of America CitiMortgage JPMorgan Chase Nationstar Right Party Contact Ratio Source: Survey of largest participating servicers as of October 31, 2013. Ocwen OneWest SPS Wells Fargo HAMP Evaluations Complete Ratio 12 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 HAMP Average Homeowner Delinquency at Trial Start 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 October 1, 2011, 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. Days Delinquent 250 200 150 100 50 0 Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen OneWest SPS Wells Fargo 13 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 HAMP Conversion Rate Per program guidelines, effective June 1, 2010, all trials must be started using verified income documentation. Servicers have converted a majority of eligible trials to permanent modifications. 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. Of eligible trials started on or after June 1, 2010, 88% have converted to permanent modifications* as of November 2013. 100% 90% 89% 96% 91% 80% 84% 75% 75% Conversion Rate 92% 50% 25% 0% Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen OneWest SPS Wells Fargo For trials started on or after June 1, 2010 the average length of a trial is 3.5 months. * With another 3% pending processing or decision. 14 Making Home Affordable: Servicer Results Program Performance Report Through November 2013 Disposition Path of Homeowners Not in HAMP Survey Data For Actions Completed Through October 2013 13 (Largest Servicers) • HAMP guidance requires that servicers evaluate homeowners with eligible loans for HAMP, before considering other foreclosure alternatives. For those homeowners that did not qualify for HAMP or did not successfully complete the trial period, 58% received an alternative modification or resolved their delinquency. Status of Homeowners Whose HAMP Permanent Modification Disqualified • • • • 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. The majority of homeowners who disqualify from a HAMP permanent modification receive an alternative to foreclosure or resolve their delinquency. Of the homeowners who have disqualified from HAMP, less than a quarter have been referred to foreclosure. % of Trials Cancelled and Not Approved • 100% 80% 28% 60% 19% 6% 4% 12% 4% 4% 5% 15% 14% 40% 10% 7% 16% 28% 23% 13% 12% 7% 9% 13% 18% 7% 10% 11% 35% 26% 15% 6% 12% 12% 41% 29% 50% 23% 19% 30% 5% 20% 0% Servicer Totals 19% 36% 25% 2% 3% 30% 11% 4% 2% 4% Bank of America CitiMortgage JPMorgan Chase Nationstar 435,986 236,219 721,784 100% 21% % of Permanent Modifications Disqualified Status of Homeowners Not Accepted for a HAMP Trial or Those Whose HAMP Trial was Cancelled 80% 7% 23% 60% 16% 11% 17% 12% 8% 18% 210,137 11% 10% 10% 40% 0% 11% 8% Ocwen OneWest SPS 516,259 101,933 88,377 7% 12% 33,861 21% 13,827 10% 13% 6% 18% 46% 21% 48% 12% 11% 4% 4% 6% 11% 12% 12% Nationstar Ocwen OneWest 27,318 65,983 6,492 10% Bank of America CitiMortgage JPMorgan Chase Servicer Totals 15% 3% 3% 12% 13% 3% 10% 34% 36% 11% 9% 4% 12% 2% 5% 26% 20% 31% 30% 5% 2% Wells Fargo 420,624 17% 4% 10% 28% Foreclosure Completions 4% 6% Foreclosure Starts Top Servicers 2,731,319 12% 9% 13% 13% 9% 24% 18% 38,348 46% 6% 6% 9% 7% SPS 21,658 Alternative Modification/ Payment Plan Borrower Current/ Loan Payoff Action Not Allowed – Bankruptcy in Process Action Pending 10% 6% 22% 35% Short Sale/ Deed in Lieu Wells Fargo 41,391 6% 16% Top Servicers 248,878 Action Pending: Includes homeowners who were not approved for a HAMP trial modification, trial loans that have been cancelled or permanent modifications that have been disqualified, but further action has yet to be taken at this time. Payment Plan: An arrangement with the borrower and servicer that does not involve a formal loan modification. 15 Making Home Affordable Program Performance Report Through November 2013 Appendix A1: Terms and Methodology HAMP Terms and Methodology: Average Delinquency at Trial Start: 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. Back-End Debt-to-Income Ratio: 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. Conversion Rate: Ratio of permanent modifications to trials eligible to convert, defined as 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. Disqualification: A permanent modification disqualifies from HAMP when the borrower has missed the equivalent of three full monthly payments. Once disqualified, the borrower is no longer eligible to receive HAMP incentives. However, the terms of the permanent modification remain the same, and the servicer will continue to work with the borrower to cure the delinquency or identify other loss mitigation options. Eligible Loans: Homeowners with HAMP eligible loans, which include conventional loans that were originated on or before January 1, 2009; excludes loans with current unpaid principal balances greater than current conforming loan limits-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; 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. Evaluation Complete: 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. insurance and homeowners association and/or condo fees) to monthly gross income. Median Monthly Housing Payment: Principal and interest payment. Before modification payment is homeowner’s current payment at time of evaluation. RPC: 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. Total Active: Reflects active HAMP trials and permanent modifications. Trial Plan Offers Extended: 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. Front-End Debt-to-Income Ratio: Ratio of housing expenses (principal, interest, taxes, 16 Making Home Affordable Program Performance Report Through November 2013 Appendix A2: General Program Notes General MHA Program Notes: • • MHA Program Effective Dates: HAMP First Lien: April 6, 2009 PRA: October 1, 2010 2MP: August 13, 2009 HAFA: April 5, 2010 • MHA First Lien Permanent Modifications Started includes: HAMP Tier 1, HAMP Tier 2, GSE Standard Modifications and both Treasury FHA- and RDHAMP. HAMP Tier 1 includes both GSE and Non-GSE modifications. The GSEs do no participate in HAMP Tier 2, however the GSE Standard Modification is similar to HAMP Tier 2. FHA-HAMP and RD-HAMP are similar to HAMP Tier 1. GSE Standard Modification data is provided by Fannie Mae and Freddie Mac as of November 2013. The GSEs 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 Third Quarter of 2013, since 4Q 2008, the GSEs have completed nearly 1.5 million permanent modifications, which includes their activity under 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 November 2013. It 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 Third Quarter of 2013, since 4Q 2008 the GSEs have completed over 530,000 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. Treasury FHA-HAMP Program Notes: • 1MP, PRA, Treasury FHA-HAMP, RD-HAMP, 2MP, and HAFA Program Metrics: Data includes activity reported into the HAMP system of record through the end of cycle for the current reporting month, though the effective date may occur in the following month. MHA First Lien Program Notes: • MHA. Please visit www.FHFA.gov for the complete FHFA report. The FHA undertakes other foreclosure prevention activities beyond their participation in MHA which is not reflected in this report. As reported in the December 2013 edition of the Obama Administration’s Housing Scorecard, FHA has offered more than 2.1 million loss mitigation and early delinquency interventions through November 30, 2013 since April 1, 2009, which includes their activity under MHA. • 2MP Program Notes: • Number of modifications started is net of cancellations, which are primarily due to servicer data corrections. • 2MP loans previously reported under top servicers that were transferred to or acquired by nonparticipating 2MP servicers are reflected in “Other Servicers.” • 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. HAFA Program Notes: • The debt relief represents the obligation relieved by the short sale or deed-in-lieu transaction and is calculated as the unpaid principal balance and allowable transactions costs less the property sales price. The allowable transaction costs may include release of any subordinate lien, borrower relocation assistance, sales commission, and closing costs for taxes, title, and attorney fees. PRA Program Notes: • 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. UP Program Notes: • Data is as reported by servicers via survey for UP participation through October 31, 2013. Unless otherwise noted, HAFA Transactions Completed includes GSE activity under the MHA 17 Making Home Affordable Program Performance Report Through November 2013 Appendix A3: End Notes SUMMARY AND PROGRAM RESULTS: 1. This does not include trial modifications that have cancelled or not yet converted to permanent modifications, or HAFA transactions started but not yet completed. 2. Servicers may enter new trial modifications into the HAMP system of record at any time. 3. Includes some modifications with additional principal reduction outside of HAMP PRA. 4. Under HAMP PRA, principal reduction vests over a 3-year period. The amounts noted reflect the entire amount that may be forgiven. 5. Principal amount reduced as a percentage of before-modification UPB, excluding capitalization. 6. Subject to investor restrictions. Effective February 1, 2013, Supplemental Directive 12-09 expanded the acceptable DTI range for Tier 2 to 10-55%. 7. For active permanent modifications. Median % reflects percent of the median monthly payment before modification. SERVICER RESULTS: 8. As reported into the HAMP system of record by servicers. Excludes Treasury FHA-HAMP modifications. Totals reflect impact of servicing transfers. Servicers may enter new trial modifications into the HAMP system of record at any time. 9. 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. 10. Includes Non-GSE activity under the MHA program only. Servicer GSE program data not available. 11. As reported in the monthly servicer survey of large SPA servicers through November 30, 2013. Figures do not reflect the impact of servicing transfers. 12. 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. 13. Data is as reported by servicers for actions completed through October 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. Excludes cancellations and disqualifications pending data corrections and loans otherwise removed from servicing portfolios. 18 Making Home Affordable Program Performance Report Through November 2013 Appendix A4: 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 Glass City Federal Credit Union Great Lakes Credit Union Greater Nevada Mortgage Services Green Tree Servicing LLC 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 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. Wells Fargo Bank, N.A.5 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 PennyMac Loan Services, LLC 4 5 Yadkin Valley Bank Formerly National City Bank. Wells Fargo Bank, N.A. includes all loans previously reported under Wachovia Mortgage, FSB. 19 Making Home Affordable Program Performance Report Through November 2013 Appendix A5: 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 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. 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 Residential Credit Solutions 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 20
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