HOPE NOW: Mortgage Servicers Completed 1.76 Million Loan Modifications for Homeowners in 2010

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1 February 2, 2011 Media Contacts: Brad Dwin (202) Faith Schwartz (202) HOPE NOW: Mortgage Servicers Completed 1.76 Million Loan Modifications for Homeowners in 2010 Industry Has Offered Over 3 Million Permanent Mods in Last Two Years (WASHINGTON, DC) HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its final 2010 loan modification data, which shows that an estimated 1.76 million homeowners received permanent, affordable loan modifications from mortgage servicers in The reported data for December shows that, for the year, mortgage servicers completed approximately 1.24 million proprietary loan modifications for homeowners and 512,712 Home Affordable Modification Program (HAMP) modifications (as reported by US Treasury Department), for an estimated total of 1.76 million. This compares with 1.24 million total loan modifications in 2009, which included 66,938 permanent HAMP loan modifications. Of particular note in the December 2010 data is that 60+ day delinquencies totaled 2.87 million, which represented a 30% decrease from the December 2009 figure of 4.13 million. Here are some of the highlights of the 2010 data: Total permanent loan modifications were approximately 1.76 million, compared to 1.24 million in Loan modifications with reduced principal and interest payments accounted for approximately 81% (1 million) of all proprietary

2 modifications. Fixed-rate modifications (initial fixed period of 5 years or more) accounted for 84% (609,000) of all proprietary modifications. Completed foreclosure sales were approximately 1.07 million, compared with 947,000 in days delinquencies for December 2010 were 2.87 million, which represented a 30% drop since December 2009 (4.13 million). Faith Schwartz, Executive Director, issued this statement: 2010 was a very challenging year for the housing market, but HOPE NOW s data continues to support the fact that significant strides have been made to avail homeowners of all options before going to foreclosure. Our top priority in 2011 will be to advance execution and implementation of these options, while focusing on improving the customer experience for homeowners who are going through the foreclosure prevention process. The industry was able to offer almost 2 million permanent solutions for homeowners in 2010, which outpaced foreclosure sales of just over one million. We hope that the trend continues going forward as servicers and housing counselors remain committed to achieving sustainable mortgage solutions for atrisk homeowners. Since 2007, our members have been engaged in a very aggressive homeowner outreach agenda, which has included over one hundred face to face events, a massive letter campaign and participation in the Homeowner s HOPE Hotline, HOPE. We will continue to participate in large-scale outreach events, along with Treasury, NeighborWorks America and our local partners, where homeowners have the ability to meet face to face with their servicer. These events will focus on the regions most impacted by foreclosure and delinquency. HOPE NOW, and its partners, recently hosted an event in Las Vegas that saw almost 1,000 families and we are in the final stages of planning for a similar event in San Jose, California in February. Additionally, our members are always looking for ways to streamline loan modification processes and incorporate innovative technology for faster decisions. To that end, HOPE NOW will continue to support the use of HOPE LoanPort and we encourage all servicers and non-profit HUD-approved counseling agencies to participate in this effort for 2011 and beyond.

3 "Year to Date" Snapshot Industry Extrapolations and HAMP Metrics (January 2010 December 2010) Q Q Q Q Oct 2010 Nov 2010 Dec 10 Year to Date Total or Average Total Completed Modifications 469, , , , , , ,763 1,755,656 HAMP Permanent Modifications 1 163, ,220 97,877 83,752 23,750 29,972 30, ,712 Proprietary Modifications Completed 2 305, , , , ,850 82,050 75,733 1,242,944 Proprietary Modifications Completed Reduced P&I Modifications 234, , , ,339 84,692 68,761 61,886 1,007,283 % of Proprietary Modifications 77% 79% 85% 83% 84% 84% 82% 81% Fixed Rate Modifications 3 (initial fixed period of 5 years or more) N/A N/A 284, ,676 90,785 73,722 70, ,057 % of Proprietary Modifications N/A N/A 82% 91% 90% 90% 93% 84% Reduced P&I Modifications 3 (10% or greater) N/A N/A 185, ,002 70,581 56,287 49, ,371 % of Proprietary Modifications N/A N/A 53% 68% 70% 69% 65% 59% Foreclosure Starts 684, , , , , , ,181 2,618,406 Foreclosure Sales 288, , , ,680 69,197 55,137 56,346 1,069, Days Delinquency 4 3,944,479 3,605,377 3,202,259 3,028,199 3,130,875 3,079,238 2,874,485 3,445,079 1 Source Making Home Affordable. Estimated. 2 Extrapolated. Modifications Completed was revised in December 2009 to include Current Modifications and specifically exclude HAMP. 3 Year to Date Total for this field begins in June Monthly average.

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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 go to or call the free Homeowner s HOPE Hotline at (888) 995-HOPE. The following companies are members of the HOPE NOW Alliance: Acqura Loan Services American Home Mortgage Servicing, Inc. Assurant, Inc. Aurora Loan Services Bank of America Bayview Financial Carrington Mortgage Services, LLC Citigroup, Inc. Fannie Mae First Horizon Home Loans and First Tennessee Home Loans Freddie Mac Genworth Mortgage Insurance Corporation GMAC Mortgage Home Loan Services, Inc. HomEq Servicing HSBC IBM Lender Business Process Services JP Morgan Chase Litton Loan Servicing LoanCare Servicing Center MetLife Home Loans NationPoint Nationstar Mortgage, LLC Ocwen Loan Servicing, LLC OneWest Bank PMI Mortgage Insurance Co. PNC Mortgage Quicken Loans Radian Guaranty, Inc. Residential Credit Solutions RoundPoint Mortgage Servicing Corporation Saxon Mortgage Services / Morgan Stanley Select Portfolio Servicing, Inc. State Farm Strategic Recovery Group SunTrust Mortgage, Inc.

6 Vericrest Financial Inc. Wells Fargo and Company ###