HOPE NOW: 319,000 Non-Foreclosure Solutions for Homeowners during Q1 2016

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1 May 25, 2016 Media Contact: Oliver Jakubos (202) HOPE NOW: 319,000 Non-Foreclosure Solutions for Homeowners during Q Permanent Loan Mods Total 86K for the Quarter (WASHINGTON, DC) HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its Q data, which shows that approximately 319,000 homeowners received non-foreclosure solutions from mortgage servicers in January, February and March. Permanent loan modifications totaled approximately 86,000 and formal repayment plans totaled 118,000. Other solutions (including short sales, deeds in lieu, other retention plans and liquidation plans) made up the rest of the total number. When homeowners do not qualify for long term permanent loan modifications, mortgage servicers continue to look for short term options that, in many cases, lead to a permanent solution. Of the 86,000 loan modifications completed for the first quarter of 2016, about 62,000 homeowners received proprietary loan modifications and 24,329 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP). For Q1 2016, the combination of total loan modifications, short sales, deeds in lieu and workout plans outpaced foreclosure sales by a significant margin (approximately 319,000 solutions vs. 91,000 foreclosure sales). For every one foreclosure sale completed on a property, there were approximately 3.5 solutions offered for other properties. Homeowners who are experiencing difficulties with their mortgage are being captured before the end of the foreclosure process and options are being offered to improve their situation.

2 Q vs. Q Loan Mods Increase 2%, Formal Repayment Plans Increase 6% During the first quarter of 2016, there were an estimated 86,000 loan modifications completed, compared to 85,000 during the previous quarter an increase of approximately 2%. Formal repayment plans increased from 112,000 in Q to 118,000 in Q an increase of approximately 6%. Here are some other key metrics for Q vs. Q4 2015: Total non-foreclosure solutions were approximately 319,000 in Q1 2016, compared to 303,000 in Q an increase of approximately 5%. Foreclosure starts were approximately 179,000 in Q1 2016, compared to 156,000 in Q4 2015, an increase of approximately 14%. Foreclosure sales in Q were approximately 91,000, compared to 76,000 in Q an increase of approximately 19%. Q vs. Q Foreclosure Starts Down 17% The 179,000 foreclosure starts in the first quarter of 2016 compares to an estimated 215,000 completed during the first quarter of 2015, representing a significant decline year over year. Here are some other key metrics for Q vs. Q1 2015: Total solutions for Q were approximately 319,000 vs. 432,000 for Q a decline of 26%. Loan mods for Q were approximately 86,000 vs. 117,000 for Q a decline of 26%. Foreclosure sales for Q were approximately 91,000 vs. 96,000 for Q a decline of 5%. Short sales completed for Q were approximately 19,000 vs. 23,000 for Q a decline of 19%. Deeds in lieu for Q were approximately 5,300 a decline of 9% from Q (5,800). Delinquencies of 60+ days were approximately 1.72 million for Q1 2016, compared to 1.92 million for Q a decline of 11%. March 2016 Key Data Points For the month of March, mortgage servicers offered approximately 119,000 total solutions. There were an estimated 32,000 permanent loan modifications completed. Of that total, approximately 24,000 were proprietary loan modifications and 8,551 were completed under HAMP. Total modifications for the month represented an 18% increase from the previous month (27,000). Other key metrics for the month of March 2016 compared to February 2016: Foreclosure sales were estimated at 29,000 in March vs. 28,000 in February an increase of 4%. Foreclosure starts were estimated at 59,000 in March vs. 62,000 in February a decrease of 5%.

3 Short sales completed were approximately 7,500 in March vs. 5,300 in February an increase of 40%. The full data set for Q can be found at Eric Selk, Executive Director, issued this statement: Activities to help families avoid foreclosure has remained strong during the first quarter of As mentioned in the data above 3.5 solutions are offered for every foreclosure. This points to a strong set of tools to address and cure delinquency. Permanent modifications increased slightly from the previous quarter while short term solutions such as repayment plans and retention plans increased significantly. Early intervention and direct contact with the borrower has clearly made a huge impact in the overall delinquency numbers. Our data indicates that both permanent and short term solutions remain available to those who are struggling with their mortgage. Mortgage servicers have remained aggressive in its outreach to at-risk borrowers, via face to face events, call centers and improved online technology. As HAMP sunsets at the end of the year, it is critical for all homeowners who are experiencing difficulty with their mortgage to reach out for assistance. We also applaud the Treasury for its announcement to extend the Hardest Hit Funds. These programs provide an important tool when helping families in local markets. HOPE NOW s members continue to make an effort to engage borrowers in communities that still lag behind in their housing and economic recovery. We have held community and borrower events in Florida Tampa and Jacksonville already this year, as well as Camden, New Jersey. Through our first three events of 2016, we have seen over 500 homeowners. Forty-seven percent of attendees were reaching out to their mortgage servicer for the first time and eighty-eight percent were in some form of delinquency. These high delinquency pockets of the country validate the need to continue outreach events. We plan to be in New York in the middle of July and additional outreach events in Atlanta, Miami and Riverside. With general market recovery and stability over the past year, HOPE NOW is concentrating efforts on streamlining the assistance process for homeowners. We have looked at communication between servicers and homeowners and provided suggestions on improving the customer process. HOPE NOW is also very active in conversations focusing on the loss mitigation world once HAMP expires.

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5 HOPE NOW is the industry-created alliance of mortgage servicers, investors, counselors, and other mortgage market participants, brought together by the Financial Services Roundtable, Housing Policy Council and Mortgage Bankers Association, that has developed and is implementing a coordinated plan to help as many homeowners as possible prevent foreclosure and stay in their homes. For more information, please visit ###