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The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners August 2011 U.S. Department of Housing and Urban Development | Office of Policy Development Research U.S Department of Housing and Urban Development | U.S. Department of the and Treasury The Administration’s goal is to stabilize the housing market and provide security for homeowners. To meet these objectives in the context of a very challenging market, the Administration developed a broad approach implementing state and local housing agency initiatives, tax credits for homebuyers, neighborhood stabilization and community development programs, mortgage modifications and refinancing, housing counseling, continued Federal Housing Administration (FHA) engagement, support for Fannie Mae and Freddie Mac and increased consumer protections. In addition, Federal Reserve and Treasury MBS purchase programs have helped to keep mortgage interest rates at record lows over the past year. More detail on the Administration’s efforts can be found in the Appendix. August 2011 Scorecard on Administration’s Comprehensive Housing Initiative The President’s housing market recovery efforts began immediately after taking office in February 2009. The August 2011 housing scorecard includes the following key indicators of market health and results of the Administration’s comprehensive response, as outlined above: • The Administration’s efforts have helped millions of families deal with the worst economic crisis since the Great Depression. More than 5 million mortgage aid arrangements were started between April 2009 and the end of July 2011. While some homeowners may have received help from more than one program, the total number of aid offers is more than double the number of foreclosure completions for the same period (2.2 million). In July, more than 28,000 additional homeowners received a permanent modification through the Administration’s Home Affordable Modification Program (HAMP); more than 790,000 homeowners across the country have now received a HAMP permanent modification with a median payment reduction of 37 percent. To date, homeowners in permanent modifications have realized aggregate savings in monthly mortgage payments of nearly $7.8 billion. The July monthly report can be found at: http://www.treasury.gov/initiatives/financial-stability/results/ MHA-Reports/Pages/default.aspx • Housing market remains fragile as data through July paint a mixed picture of recovery. Home prices as reported by S&P/ Case-Shiller and FHFA were up for the third consecutive month in July after several previous months of decline. Foreclosure starts and completions continued a downward trend, as mortgage aid programs are helping homeowners, although some of the decline remains due to lender processing issues delaying some foreclosure actions. The fragility of the market is underscored by the fact mortgage delinquencies rose slightly in July. Given the current fragility and recognizing that recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market. August 2011 National Scorecard | Page 1 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S Department of Housing and Urban Development U.S. Department of the Treasury The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | August 2011 Expectations On House Prices Remain Above 2009 Projections House Prices Up For Third Consecutive Month, Presence Of Distressed Sales Key As Recovery Remains Fragile Existing And New Home Sales Existing Homes On The Market Below Peak, Number Of Units Held Off The Market Remains High August 2011 National Scorecard | Page 2 The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | August 2011 Mortgage Rates Remain Near Record Lows Affordability Index High But Declines 11.5 Million Homeowners Have Refinanced Since April 1, 2009 Mortgage Aid Has Been Extended 5 Million Times, Outpacing Foreclosures Mortgage Aid Helps Foreclosures Continue Downward Trend, Although Lender Processing Delays Continue August 2011 National Scorecard | Page 3 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S Department of Housing and Urban Development U.S. Department of the Treasury The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | August 2011 Homeowners Save From Reduced Mortgage Payments Home Equity Down From Prior Quarter and Close to First Quarter 2009 Housing Counselors Serve Millions Of Families FHA Supports Mortgage Lending During Crisis August 2011 National Scorecard | Page 4 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S. DepartmentEff of orts Housing and UrbanTh Development | Office and of Policy and Research | August 2011 The Obama Administration’s To Stabilize e Housing Market HelpDevelopment American Homeowners Indicator HOUSING ASSISTANCE AND STABILIZATION PERFORMANCE METRICS Distressed Homeowners Assisted (thousands) HAMP Trial Modifications HAMP Permanent Modifications FHA Loss Mitigation Interventions HOPE Now Modifications Counseled Borrowers (thousands) Borrower Annual Savings ($ millions) HAMP Trial Modifications HAMP Permanent Modifications All Refinances Activities Completed Under NSP (housing units) New Construction or Residential Rehab Demolition or Clearance Direct Homeownership Assistance Change in Aggregate Home Equity ($ billions) Indicator Mortgage Rates (30-Yr FRM, percent) This Period Last Period Cumulative From Apr 1, 2009 22.1 28.3 39.3 51.6 24.7 31.6 45.7 56.4 1,661.5 791.4 978.0 2,422.5 404 607 5,805 ---- ---- 841 4,144 20,691 192 (p) 8,986 (p) 9,784 (p) –271 462 606 669 4.22 July-11 July-11 July-11 June-11 1st Q 11 2nd Q 11 2nd Q 11 2nd Q 11 10,137 [80,882] (b) 1st Q 11 12,667 [21,651] (b) 1st Q 11 14,745 [35,808] (b) 1st Q 11 –-176 (r) –82 HOUSING MARKET FACT SHEET This Period Latest Release Last Period Year Ago 4.15 4.36 As of Dec 2008 5.10 1st Q 11 Latest Release 25-Aug-11 Housing Affordability (index) 166.5 178.5 (r) Home Prices (indices) Case Shiller (NSA) FHFA (SA) CoreLogic - Excluding Distressed Sales (NSA) 141.3 183.7 153.5 139.8 (r) 182.0 (r) 151.2 (r) 148.0 191.9 155.2 150.5 June-11 197.6 (r) June-11 161.9 June-11 Home Sales (thousands, SA) New Existing First Time Buyers Distressed Sales (percent, NSA) 24.8 389.2 207.0 (p) 27 (p) 25.0 (r) 403.3 214.2 (r) 30 23.3 321.7 172.5 26 31.4 395.0 174.8 33 July-11 July-11 July-11 June-11 Housing Supply Existing Homes for Sale (thousands, NSA) Existing Homes - Months’ Supply (months) New Homes for Sale (thousands, SA) New Homes for Sale - Months’ Supply (months, SA) Vacant Units Held Off Market (thousands) 3,652 9.4 165 6.6 3,843 3,717 9.2 166 6.6 3,861 (r) (r) (r) (r) 4,007 12.5 210 9.0 3,725 3,700 9.4 353 11.2 3,511 July-11 July-11 July-11 July-11 2nd Q 11 2nd Q 11 2nd Q 11 Mortgage Originations (thousands) Refinance Originations Purchase Originations 161.7 166.3 June-11 851 (r) 593 (r) 919 524 1,021 750 767 986 FHA Originations (thousands) Refinance Originations Purchase Originations Purchases by First Time Buyers 23.6 (p) 75.7 (p) 56.4 (p) 19.1 77.2 53.2 38.5 66.5 47.9 62.9 72.7 56.2 July-11 July-11 July-11 Mortgage Delinquency Rates (percent) Prime Subprime FHA 4.5 33.2 12.2 4.4 32.9 11.5 5.4 36.4 12.5 4.4 34.1 14.3 July-11 July-11 July-11 1,742 1,817 560 913 1,642 333 July-11 July-11 July-11 11,277 -- Seriously Delinquent Mortgages (thousands) Prime Subprime FHA Underwater Borrowers (thousands) Foreclosure Actions (thousands) Notice of Default (Foreclosure Starts) Notice of Foreclosure Sale Foreclosure Completions Short Sales REO Sales 1,485 1,728 599 10,906 59.5 85.4 67.8 24.6 (p) 53.9 (p) 1,490 1,721 (r) 585 11,089 63.9 90.0 68.9 25.1 (r) 61.1 (r) 97.1 135.2 92.9 31.0 69.9 SA = seasonally adjusted, NSA = not SA, p = preliminary, r = revised, b = brackets include units in process. August 2011 National Scorecard | Page 5 121.5 103.0 78.9 13.9 73.8 (r) 1st Q 10 July-11 July-11 July-11 June-11 June-11 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S. DepartmentEff of orts Housing and UrbanTh Development | Office and of Policy and Research | August 2011 The Obama Administration’s To Stabilize e Housing Market HelpDevelopment American Homeowners A. Items in Tables SOURCES AND METHODOLOGY Description Distressed Homeowners Assisted HAMP Trial Modifications HAMP Permanent Modifications FHA Loss Mitigation Interventions HOPE Now Modifications Frequency Sources Notes on Methodology Monthly Monthly Monthly Monthly Treasury Treasury HUD Hope Now Alliance As reported. As reported. All FHA loss mitigation and early delinquency interventions. All proprietary modifications completed. Counseled Borrowers (thousands) Quarterly HUD Housing counseling activity reported by all HUD-approved housing counselors. Borrower Annual Savings HAMP Trial Modifications Quarterly HUD, Treasury, and Freddie Mac HAMP Permanent Modifications Quarterly HUD and Treasury All Refinances Quarterly HUD, and MBA HUD estimate of annualized savings based on Treasury reported active HAMP trial modifications and Freddie Mac monthly savings estimates. HUD estimate of annualized savings based on Treasury reported active HAMP permanent modifications and median monthly savings estimates. Refinance originations (see below) multiplied by HUD estimate of annualized savings per refinance. Quarterly HUD Demolition or Clearance Quarterly HUD Direct Homeownership Assistance Quarterly HUD Change in Aggregate Home Equity Quarterly Federal Reserve Board Mortgage Rates (30-Yr FRM) Weekly Freddie Mac Primary Mortgage Market Survey, as reported for 30-Year fixed rate mortgages (FRM). Housing Affordability Monthly National Association of Realtors ® NAR’s composite housing affordability index as reported. A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify. Home Prices Case-Shiller (NSA) Monthly Standard and Poor’s Monthly Monthly Federal Housing Finance Agency CoreLogic Case-Shiller 20-metro composite index, January 2000 = 100. Standard and Poor’s recommends use of not seasonally adjusted index when making monthly comparisons. FHFA monthly (purchase-only) index for US, January 1991 = 100. CoreLogic national combined index, distressed sales excluded, January 2000 = 100. (Only available as NSA). Monthly HUD and Census Bureau Existing Monthly National Association of Realtors ® First Time Buyers Monthly NAR, Census Bureau, and HUD Distressed Sales (NSA) Monthly CoreLogic Monthly Monthly Monthly Monthly Quarterly National Association of Realtors ® National Association of Realtors ® HUD and Census Bureau HUD and Census Bureau Census Bureau As reported. As reported. As reported. As reported. As reported. Quarterly Mortgage Bankers Association and HUD Mortgage Bankers Association and HUD HUD estimate of refinance originations based on MBA estimate of dollar volume of refinance originations. HUD estimate of home purchase originations based on MBA estimate of dollar volume of home purchase originations. Completed Activities Under NSP (housing units) New Construction or Residential Rehab FHFA (SA) CoreLogic - Excluding Distressed Sales (NSA) Home Sales (SA) New Housing Supply Existing Homes for Sale (NSA) Existing Homes - Months’ Supply New Homes for Sale (SA) New Homes for Sale - Months’ Supply (SA) Vacant Units Held Off Market Mortgage Originations Refinance Originations Purchase Originations Quarterly Housing units constructed/rehabilitated using Neighborhood Stabilization Program. Bracketed numbers include units in process, to be completed by 3/2013. Housing units demolished/cleared using Neighborhood Stabilization Program. Bracketed numbers as above. Completed downpayment assistance or non-amortizing second mortgages by grantee to make purchase of NSP unit affordable. Bracketed numbers as above. Difference in aggregate household owners’ equity in real estate as reported in the Federal Reserve Board’s Flow of Funds Accounts of the United States for stated time period. Seasonally adjusted annual rates divided by 12. A newly constructed house is considered sold when either a sales contract has been signed or a deposit accepted, even if this occurs before construction has actually started. Seasonally adjusted annual rates divided by 12. Existing-home sales, which include singlefamily, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Sum of seasonally adjusted new and existing home sales (above) multiplied by National Association of Realtors ® annual estimate of first time buyer share of existing home sales. Short sales and REO (Real Estate Owned) sales as a percent of total existing home sales (current month subject to revision). FHA Originations Refinance Originations Purchase Originations Purchases by First Time Buyer Monthly Monthly Monthly HUD HUD HUD FHA originations reported as of date of loan closing. Estimate for current month scaled upward due to normal reporting lag and shown as preliminary. Mortgage Delinquency Rates (NSA) Prime Subprime FHA Monthly Monthly Monthly LPS Applied Analytics LPS Applied Analytics HUD Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages actively serviced. Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages actively serviced. Total FHA mortgages past due (30+ days) but not in foreclosure, divided by FHA’s insurance in force. Seriously Delinquent Mortgages Prime Subprime FHA Monthly Monthly Monthly LPS Applied Analytics, MBA, and HUD LPS Applied Analytics, MBA, and HUD HUD Mortgages 90+ days delinquent or in foreclosure, scaled up to market. Mortgages 90+ days delinquent or in foreclosure, scaled up to market. Mortgages 90+ days delinquent or in foreclosure. Underwater Borrowers Quarterly CoreLogic As reported. Foreclosure Actions Notice of Default (Foreclosure Starts) Monthly Realty Trac Monthly Monthly Monthly Monthly Realty Trac Realty Trac CoreLogic CoreLogic Reported counts of notice of default plus lis pendens. Some foreclosure starts may be omitted in states where the filing of a notice of default is optional. Notice of sale (auctions). Real Estate Owned (REO). Count of Short Sales for the month as reported (current month subject to revision). Count of REO (Real Estate Owned) Sales for the month as reported (current month subject to revision). Notice of Foreclosure Sale Foreclosure Completions Short sales REO Sales August 2011 National Scorecard | Page 6 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S. DepartmentEff of orts Housing and UrbanTh Development | Office and of Policy and Research | August 2011 The Obama Administration’s To Stabilize e Housing Market HelpDevelopment American Homeowners SOURCES AND METHODOLOGY B. Notes on Charts. 1. Monthly house price trends shown as changes in respective house price indices applied to a common base price set equal to the median price of an existing home sold in January 2003 as reported by the National Association of Realtors. Indices shown: S&P/Case Shiller 20-metro composite index (NSA), January 2000 = 100, FHFA monthly (purchase-only) index for US (SA), January 1991 = 100, and CoreLogic-Distressed Sales Excluded (Monthly) for US (NSA), January 2000 =100. 2. S&P/Case-Shiller 20 metro composite index (NSA) as reported monthly. Futures index figures report forward expectations of the level of the S&P/Case Shiller index as of the date indicated, estimated from prices of futures contracts reported by Radar Logic. 3. Reported seasonally adjusted annual rates for new and existing home sales divided by 12. 4. HUD estimate of refinance originations based on MBA estimate of dollar volume of refinance originations. 5. Cumulative HAMP modifications started, FHA loss mitigation and early delinquency interventions, plus proprietary modifications completed as reported by Hope Now Alliance. Some homeowners may be counted in more than one category. Foreclosure completions are properties entering Real Estate Owned (REO) as reported by Realty Trac. 6. Foreclosure starts include notice of default and lis pendens, completions are properties entering REO. Both as reported by Realty Trac. See “Foreclosure Actions” above. 7. See “Borrower Annual Savings” above. 8. FHA market shares as FHA purchase and refinance originations divided by HUD estimates of purchase and refinance mortgage originations as noted in “Mortgage Originations” above. August 2011 National Scorecard | Page 7 U.S Department of Housing and Urban Development U.S. Department of the Treasury U.S. DepartmentEff of orts Housing and UrbanTh Development | Office and of Policy and Research | August 2011 The Obama Administration’s To Stabilize e Housing Market HelpDevelopment American Homeowners Appendix The Administration has taken a broad set of actions to stabilize the housing market and help American homeowners. Two years ago, stress in the financial system had severely reduced the supply of mortgage credit, limiting the ability of Americans to buy homes or refinance mortgages. Millions of responsible families who had made their monthly payments and had fulfilled their obligations saw their property values fall. They also found themselves unable to refinance at lower mortgage rates. In February 2009, less than one month after taking office, President Obama announced the Homeowner Affordability and Stability Plan. As part of this plan and through other housing initiatives, the Administration has taken the following actions to strengthen the housing market: • Supported Fannie Mae and Freddie Mac to ensure continued access to affordable mortgage credit; • The Federal Reserve and the U.S. Treasury purchased more than $1.4 trillion in agency mortgage backed securities through independent MBS purchase programs, helping to keep mortgage rates at historic lows; • Launched a modification initiative to help homeowners reduce mortgage payments to affordable levels and to prevent avoidable foreclosures; • Launched a $23.5 billion Housing Finance Agencies Initiative to increase sustainable homeownership and rental resources; • Supported the First Time Homebuyer Tax Credit, which helped more than 2.5 million American families purchase homes; • Provided more than $5 billion in support for affordable rental housing through low income housing tax credit programs and $6.92 billion in support for the Neighborhood Stabilization Program to restore neighborhoods hardest hit by the concentrated foreclosures; • Created the $7.6 billion HFA Hardest Hit Fund for innovative foreclosure prevention programs in the nation’s hardest hit housing markets. • Launched the $1 billion Emergency Homeowners Loan Program, as part of the DoddFrank Wall Street Reform and Consumer Protection Act, to help unemployed and underemployed homeowners pay a portion of their monthly mortgage. • Created an FHA Short Refinance Option that helps underwater borrowers refinance into a new, stable, FHA-insured mortgage that is more aligned with actual property values. • Supported home purchase and refinance activity through the FHA to provide access to affordable mortgage capital and help homeowners prevent foreclosures. ### August 2011 National Scorecard | Page 8