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The Obama Administration’s Efforts
To Stabilize The Housing Market
and Help American Homeowners
September 2010
U.S. Department of Housing and Urban Urban Development | U.S. Department of theand Research
U.S Department of Housing and Development | Office of Policy Development Treasury

The Administration’s goal is to promote stability for both the housing
market and 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,
continued Federal Housing Administration (FHA) engagement, and
support for Fannie Mae and Freddie Mac. 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.

modifications under HOPE Now. The number of agreements
offered continued to more than double foreclosure completions for
the same period (1.24 million).
•

More than 468,000 permanent modifications granted to
homeowners; more than 33,000 homeowners received
a HAMP permanent modification in August: Homeowners
in permanent HAMP modifications saw a median monthly
payment reduction of 36 percent, or more than $500 per month.
Homeowners in permanent modifications saw their median
first-lien housing expenses fall from nearly 45 percent of their
monthly household income to 31 percent. Homeowners in active
permanent modifications realized a median monthly payment
reduction of 36%, or more than $500 per month. More than 1.3
million homeowners began a trial modification, up more than
26,000 from last month.

•

Backlog of HAMP trial modifications aged six months
or longer falls to fewer than 95,000: Of homeowners
whose trial modification was canceled, more than half
received alternative modifications or become current. Upfront
documentation requirements in place since June 1 are
expected to help servicers move more eligible homeowners
toward permanent modification. View the latest Making Home
Affordable program report at: http://www.financialstability.
gov/docs/AugustMHAPublic2010.pdf

September 2010 Scorecard on Administration’s
Comprehensive Housing Initiative
The President’s housing market recovery efforts began immediately after
taking office in February 2009. The September 2010 housing scorecard
includes the following key indicators of market health and results of the
Administration’s comprehensive response, as outlined above:
•

Families continued to benefit from the lowest rates
in history on 30-year fixed mortgages: Since April of
2009, record low rates have helped more than 7.1 million
homeowners to refinance, resulting in more stable home prices
and $12.7 billion in total borrower savings.

•

Existing and new home sales shifted downward in July,
though stabilizing housing prices drove improving
expectations in some regions: The latest housing figures
paint a mixed picture. As expected with the expiration of the
Homebuyer Tax Credit, new and existing home sales showed a dip
in July. At the same time, home prices have leveled off in the past
year after 30 straight months of decline and homeowners added
$95 billion in home equity in the second quarter.

•

More than twice as many modification arrangements
have begun compared to foreclosure completions:
More than 3.35 million modification arrangements were started
between April 2009 and the end of July 2010. These included
more than 1.3 million trial Home Affordable Modification
Program (HAMP) modification starts, more than 510,000 Federal
Housing Administration (FHA) loss mitigation and early
delinquency interventions, and nearly 1.6 million proprietary

Data in the scorecard show that the recovery in the housing market
continues to remain fragile, with some measures suggesting recovery
will take place over time. For example, foreclosure completions
continue to move upward as the volume of serious delinquencies
continues to work through the pipeline.
The impact of recent new and expanded resources is expected to
contribute to progress captured in future Housing Scorecards. For
example, in July the Federal Housing Administration (FHA) announced
a short refinance option targeted to help people who owe more on
their mortgage than their home is worth because their local markets
saw large declines in home values. The option will allow certain
underwater non-FHA borrowers – those current on their existing
mortgage and whose lenders agree to write off at least 10 percent of
the unpaid principal balance of the first mortgage – the opportunity to
qualify for a new FHA-insured mortgage.

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners | September 2010

Expectations on House Prices Have Shifted Up from 2009

House Prices Show Signs of Stabilizing

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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 | September 2010

7.1 Million Homeowners Have Refinanced Since April 1, 2009

Mortgage Rates Fall to Record Low and Affordability Index Remains High

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Foreclosure Starts and Completions Remain Elevated

Mortgage Aid Has Been Extended More Than 3 Million Times,
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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 | September 2010

Homeowners Save From Reduced Mortgage Payments

Home Equity Up More than $1 Trillion Since First Quarter 2009

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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 orts To Stabilize Th Development | Office of Policy Development and Research
The Obama Administration’s Effof Housing and Urbane Housing Market and Help American Homeowners | September 2010

HOUSING ASSISTANCE AND STABILIZATION PERFORMANCE METRICS
Indicator

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)

This Period

Last Period

Cumulative From Apr 1, 2009

Latest Release

26.6
33.3
39.2
120.4

24.6
36.7
56.1
120.8

1,334.1
468.1
511.8
1,559.8

August-10
August-10
August-10
July-10

713.5

839.4

4,272

2nd Q 10

----

----

2,313.3
2,407.5
12,737.3

2nd Q 10
2nd Q 10
2nd Q 10

3,033
1,041
1,147

2,537
667
1,094

95.4

201.1

9,249 [36,292] (b) 2nd Q 10
2,987 [8,252] (b) 2nd Q 10
3,768 [18,000] (b) 2nd Q 10
1,020.3

2nd Q 10

HOUSING MARKET FACT SHEET
Indicator

Mortgage Rates (30-Yr FRM, percent)

This Period

4.37

Last Period

4.35

Year Ago

5.04

As of Dec 2008

5.1

Latest Release
16-Sep-10

Housing Affordability (index)

161.8

159.5

158.4

166.3

July-10

Home Prices (indices)
Case Shiller (NSA)
FHFA (SA)

148.0
195.2

146.5
195.7

142.0
198.6

150.5
198.9

June-10
June-10

Home Sales (thousands, SA)
New
Existing
First Time Buyers

23.0
319.2
160.8 (p)

26.3
438.3
218.4

34.0
428.3
217.3

31.4
395.0
174.8

July-10
July-10
July-10

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)

3,984
12.5
210
9.1
3,743

3,887
8.9
210
8.0
3,628

4,062
9.5
270
7.9
3,501

3,700
9.4
353
11.2
3,508

July-10
July-10
July-10
July-10
2nd Q 10

1,132.7
925.0

1,050.9
614.7

1,941.0
992.4 (r)

767.2
986.4

2nd Q 10
2nd Q 10

Mortgage Originations (thousands)
Refinance Originations
Purchase Originations
FHA Originations (thousands)
Refinance Originations
Purchase Originations
Purchases by First Time Buyers

48.4 (p)
70.8 (p)
53.1 (p)

37.2 (r)
65.3 (r)
43.7 (r)

57.7
101.1
81.1

62.9
72.7
56.2

August-10
August-10
August-10

Mortgage Delinquency Rates (percent)
Prime
Subprime
FHA

5.2
36.2
12.4

5.4
36.4 (r)
12.5

5.6
35.2
14.7

4.4
34.1
14.3

August-10
August-10
August-10

1,782.3
1,960.6
558.0

1,832.8 (r)
1,963.8 (r)
559.6

1,645.1
1,879.3
453.0

912.8
1,642.1
333.1

August-10
August-10
August-10

--

2nd Q 10

121.5
103.0
78.9

August-10
August-10
August-10

Seriously Delinquent Mortgages (thousands)
Prime
Subprime
FHA
Underwater Borrowers (thousands)
Foreclosure Actions (thousands)
Foreclosure Starts
Notice of Foreclosure Sale
Foreclosure Completions

10,971.2

11,276.9

96.5
147.0
95.4

97.1
135.2
92.9

10,155.6 (a)
138.2
144.1
76.1

SA = seasonally adjusted, NSA = not SA, p = preliminary, a = adjusted for methodology change, r = revised, b = brackets include units in process.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department orts To Stabilize Th Development | Office of Policy Development and Research
The Obama Administration’s Effof Housing and Urbane Housing Market and Help American Homeowners | September 2010

A. Items in Tables

SOURCES AND METHODOLOGY

Description

Frequency

Sources

Notes on Methodology

Distressed Homeowners Assisted
HAMP Trial Modifications
HAMP Permanent Modifications
FHA Loss Mitigation Interventions
HOPE Now Modifications

Monthy
Monthy
Monthy
Monthy

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

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.

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)

Monthy

Standard and Poor’s

Monthy

Federal Housing Finance Agency

Monthy

HUD and Census Bureau

Completed Activities under NSP (housing units)
New Construction or Residential Rehab

FHFA (SA)
Home Sales (SA)
New
Existing

Monthy

First Time Buyers

Monthy

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.

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.

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.
National Association of Realtors ® 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
NAR, Census Bureau, and HUD
Association of Realtors ® annual estimate of first time buyer share of existing home sales.

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

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.

Mortgage Originations
Refinance Originations

Quarterly

Purchase Originations

Quarterly

Mortgage Bankers Association
and HUD
Mortgage Bankers Association
and HUD

HUD estimate of refinance originations based on MBA estimate of dollar volume of refiance
originations.
HUD estimate of home purchase originations based on MBA estimate of dollar volume of home
purchase originations.

FHA Originations
Refinance Originations
Purchase Originations
Purchases by First Time Buyers

Monthy
Monthy
Monthy

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

Monthy
Monthy
Monthy

LPS-McDash Analytics
LPS-McDash 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-McDash, MBA, and HUD
LPS-McDash, 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

First American CoreLogic

As reported. Due to change in reporting methodology, underwater borrower estimates prior to
the third quarter of 2009 are adjusted to be compatible with current estimates.

Foreclosure Actions
Foreclosure Starts
Notice of Foreclosure Sale
Foreclosure Completions

Monthy
Monthy
Monthy

Realty Trac
Realty Trac
Realty Trac

Notice of default plus lis pendens.
Notice of sale (auctions).
Real Estate Owned (REO).

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department orts To Stabilize Th Development | Office of Policy Development and Research
The Obama Administration’s Effof Housing and Urbane Housing Market and Help American Homeowners | September 2010

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, and FHFA monthly (purchase-only) index for US (SA), January 1991 = 100.
2. S&P/Case-Shiller 20 metro composite index (SA) as reported monthly. Futures index figures report forward expectations of the level of the S&P/Cash 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. 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.
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.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department orts To Stabilize Th Development | Office of Policy Development and Research
The Obama Administration’s Effof Housing and Urbane Housing Market and Help American Homeowners | September 2010

Appendix
The Administration has taken a broad set of actions to stabilize the housing market and help American
homeowners. A year 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 has helped 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 $4.1 billion HFA Hardest Hit Fund for innovative foreclosure prevention programs in the
nation’s hardest hit housing markets.

•

Supported home purchase and refinance activity through the FHA to provide access to affordable
mortgage capital and help homeowners prevent foreclosures.
###


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102