HOPE NOW Reports 122K Mortgage Solutions for Homeowners in July

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1 September 21, 2015 Media Contact: Brad Dwin (410) HOPE NOW Reports 122K Mortgage Solutions for Homeowners in July Mortgage Industry Completed 33K Loan Mods during the Month (WASHINGTON, DC) HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, has released its July 2015 loan modification data. For the month of July, total non-foreclosure solutions (the combination of total loan modifications, short sales, deeds in lieu and workout plans) were approximately 122,000. This compares to approximately 29,000 completed foreclosure sales for the month a ratio of more than four mortgage solutions for every foreclosure sale. For comparison purposes, in July 2014 there were 157,000 non-foreclosure solutions and 39,500 completed foreclosure sales which mirrors the current ratio of solutions to foreclosure sales Included in that total solutions figure were an estimated 33,000 permanent loan modifications. This total includes modifications completed under both proprietary programs and the government s Home Affordable Modification Program (HAMP). Of the permanent loan modifications completed in the month of July, an estimated 23,000 were through proprietary programs and 9,734 were completed via HAMP. Of the 23,000 proprietary modifications completed in July, 66% (15,450) reduced the monthly principal and interest payment by 10% or more. Since HOPE NOW began reporting data in 2007, the total number of nonforeclosure solutions is over 24 million and the number of permanent loan modifications is 7.5 million. Key Metrics: July 2015 vs. June 2015 Loan Modifications: Approximately 33,000 completed in July vs. 34,000 in June a decrease of approximately 3%. Short sales Approximately 8,100 completed in July vs. 8,200 in June virtually unchanged. Deed in-lieu: Approximately 1,600 completed in July vs. 1,800 in June a decrease of 11%.

2 Foreclosure starts Approximately 53,000 in July vs. 58,000 in June a decrease of 9%. Foreclosure sales Approximately 29,000 in July vs. 30,000 in June a decrease of 3%. Serious delinquencies Approximately 1.69 million in July vs million in June a decrease of 17%. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the second quarter of Key Metrics: July 2015 vs. July 2014 Loan Modifications: Approximately 33,000 completed in July 2015 vs. 38,000 in July 2014 a decrease of approximately 12%. Short sales Approximately 8,100 completed in July 2015 vs. 8,200 in July 2014 a decrease of 29%. Deed in-lieu: Approximately 1,600 completed in July 2015 vs. 2,500 in July 2014 a decrease of 26%. Foreclosure starts Approximately 53,000 in July 2015 vs. 71,000 in July 2014 a decrease of 25%. Foreclosure sales Approximately 29,000 in July 2015 vs. 40,000 in July 2014 a decrease of 26%. Serious delinquencies Approximately 1.69 million in July 2015 vs million in July 2014 a decrease of 13%. The full data set for July 2015 is available at Eric Selk, Executive Director, issued this statement: At the end of June, the mortgage industry hit significant milestones for loan solutions and proprietary loan mods 24 million and six million respectively. Based on July s data, it is clear that servicers continue to work with customers to offer the best options whether they are permanent, short term or liquidation. In fact, looking at the year over year comparison, it is notable that the decline in foreclosure sales is more than double the decline in permanent loan mods. Additionally, it s important to note that decisions are often driven by the customers requests. For example, if a customer wants to keep their home, there are many options beyond a traditional HAMP modification. HOPE NOW continues to work with our industry members, as well as our nonprofit and government partners, to insure that at-risk homeowners are properly educated on all options available to them as well as their specific next steps towards resolution. We have met with dozens of stakeholders at the local level who are interested, not only in loss mitigation solutions for their communities, but also in educating potential new home buyers on budgeting, saving, and credit to prepare for responsible home ownership. As part of that effort, HOPE NOW is working with local housing counseling groups in Los Angeles on a series of home buyer education fairs designed to

3 educate residents on the multitude of down payment assistance options available to low and moderate income families. Events are already scheduled for September 26 th in Inglewood and November 14 th in Monterey Park. We also remain committed to loss mitigation activities, with our signature multiservicer assistance events scheduled for Los Angeles on October 22 nd, Fort Lauderdale on November 19 th and Queens, New York on December 9 th.

4 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

5 as many homeowners as possible prevent foreclosure and stay in their homes. For more information, visit ###