Danielle Johnson-Kutch, Deputy Chief Homeownership Preservation Office U.S. Treasury

Transcription

1 August 15, 2017 To: Danielle Johnson-Kutch, Deputy Chief Homeownership Preservation Office U.S. Treasury From: Di Richardson, President CalHFA MAC Re: Quarterly Performance Data Report to U.S. Treasury, for period ending June 30, 2017 Attached please find a copy of the Quarterly Performance Data Report, for the period ending June 30, This report reflects the homeowner characteristics, results and outcomes for the Keep Your Home (KYHC) Hardest Hit Fund (HHF) program. The report describes several important milestones and accomplishments for the KYHC HHF Program. At the end of this quarter, KYHC had funded and committed over $1.84 billion in total benefit assistance helping more than 69,900 unique homeowners prevent foreclosure of their home since the program s inception. This represents 87% of the total program funds allocated to minus administrative expenses. The Principal Reduction Program (PRP) showed a marked improvement in the following key areas: The PRP transaction pipeline continues to represent a significant portion of the KYHC programs by volume, representing 26% of all transaction units and 51% of the total dollar value of all funded transactions for the quarter. The most popular PRP utility is PRP-Affordability (PRP-A) which provides principal assistance to eligible homeowners with an unaffordable payment (defined as a debt-to income ratio greater than 38% of the gross household income) that was caused by an eligible hardship even if their homes are not underwater. All PRP-A transactions are secured by a thirty-year lien. o PRP-A approved applicants for the quarter totaled 589 transactions or 80% of all approved PRP transactions for the period for a total of $38,963,092 benefit assistance. The second most popular PRP utility is PRP-Recast (PRP-K) which enables a homeowner to obtain an affordable payment and reduce the total debt associated with their negative equity first mortgage without use of a servicer-provided loan modification. All PRP-K transactions are secured with a five-year lien. o Of the 734 approved PRP transactions for the quarter, 131 (18%) homeowners received assistance through the PRP-K utility for a total of $8,145,323 in benefit assistance. 1

2 For the quarter, approved PRP transactions (includes all utilities Recast/Curtailment, Affordability and Modification) resulted in a median monthly payment reduction of $295 per month, from $1,579 to $1,284 a 19% reduction. The following chart contains pre- and postassistance metrics for each of the PRP utilities for Q Because the PRP utilities each comprise a subset of the total PRP transaction population reported in the Quarterly Performance Report, the per-utility details provided below differ from the total PRP production. Pre Assistance Recast/Curtailment Affordability Modification (2) Post Assistance (3) Change Pre Assistance Post Assistance (3) Change Pre Assistance Post Assistance (3) Change Median Principal Balance (1) $239,575 $204,942 -$34,633 $238,603 $175,807 -$62,796 $244,280 $266,113 $21,833 Median Monthly Payment $1,455 $1,275-12% $1,611 $1,284-20% $1,861 $1,293-31% Debt to Income % Median Assistance Homeowners Approved Homeowners Approved 35% 31% -11% 47% 38% -19% 47% 32% -32% $67,734 $69,300 $45, % 80% 2% (1) Median Principal Balance Change includes impact of KYHC assistance and investor forbearance (2) Post Assistance Principal Balance involving a loan modification includes impact of investor match and/or forbearance in addition to KYHC assistance. Median assistance reflects only KYHC contribution. (3) Post assistance results for each PRP utility are acquired from servicer reports that are provided to KYHC on a flow basis. As a result, postassistance results may not capture the entire population of the pre-assistance data reported for all approved homeowners. Of the 734 funded PRP transactions for the quarter, 318 had CDF "F" records submitted before the publication of this report. Of this population, 88 or 28% of these loans had a forbearance balance. Forbearance amounts total $8.9M with a median per loan balance of $67,182. KYHC combines the forbearance balance with the unpaid principal balance to calculate the loan to value (LTV) ratio of all PRP transactions. The following chart contains homeowner approval summary data for Q Program Homeowner Approvals - Q Units Dollars Unemployment Mortgage Assistance (UMA) 1,569 55% $35,777,675 38% Mortgage Reinstatement Assistance Program (MRAP) % $8,730,258 9% Principal Reduction Program (PRP) % $47,767,202 51% Transition Assistance Program (TAP) 13 0% $54,500 0% Reverse Mortgage Assistance Pilot Program (RevMAP) 49 2% $790,478 1% Total 2, % $93,120, % 2

3 Despite sustained improvement to s statewide unemployment figure (1), as of June 30, 2017, approximately 16.2% of the unemployed population have been out of work for more than 52 weeks, which is longer than the maximum unemployment benefit period provided by the state s Employment Development Department. This highlights the importance of the Unemployment Mortgage Assistance (UMA) program which provides up to 18 months of foreclosure prevention assistance. (1) s statewide unemployment rate decreased 0.1% to 4.7% from March to June 30, 2017, and still remains above the national average unemployment rate of 4.4% as of June 30, UMA program approved applicants for the quarter and from program inception were 1,569 and 55,134, respectively. For the quarter and program-to-date, 48% and 31% respectively, of UMA recipients ended their assistance as a result of re-employment. Fifty-five percent (55%) of the homeowners who became re-employed this quarter did so between the tenth and eighteenth months of receiving unemployment assistance benefits from KYHC. Mortgage Reinstatement Assistance Program (MRAP) approved applicants for the quarter and from program inception were 505 and 12,962, respectively. Homeowners for the quarter and from program inception received $8,730,257 and $195,943,862 in benefit assistance, respectively. The Reverse Mortgage Assistance Pilot Program (RevMAP) approved applicants for the quarter and from program inception were 64 and 601, respectively. Senior homeowners for the quarter and from program inception received $790,477 and $8,309,377 in benefit assistance, respectively. Seventy-two percent (72%) of homeowners who received KYHC benefit assistance since program inception are below 80% of the area median income (AMI) for their county of residence. Nearly 66% of households assisted have an annual income of less than $50,000. Since program inception, 85% of the homeowners who received program assistance did so because of unemployment (i.e., 68% of homeowners) and underemployment (i.e., 17% of homeowners) hardships. In order of magnitude, death, medical conditions and divorce were the other leading causes of homeowner hardship. The following chart provides the total, by-program servicer participation levels as of June 30, Servicer Participation - Q Program Count Unemployment Mortgage Assistance (UMA) 249 Mortgage Reinstatement Assistance Program (MRAP) 245 Principal Reduction Program (PRP) 203 Transition Assistance Program (TAP) 170 Reverse Mortgage Assistance Pilot Program (RevMAP) 14 Participating in All Programs * 153 *Excludes Reverse Mortgage Assistance Pilot Program 3

4 The following tables provide summaries of the statistical reporting data for U.S. Treasury including explanations of trends and program results. Homeowners Assisted by Program Through June 30, 2017, sixty-nine thousand eight hundred seventy-six (69,876) unique homeowners have received assistance from the KYHC program. Eleven thousand four hundred ninety-eight (11,498) homeowners have received secondary assistance from KYHC including seven thousand one hundred eighty-four (7,184) homeowners that received UMA program assistance more than once, twelve (12) homeowners received additional MRAP program assistance **, eight-four (84) homeowners received additional PRP program assistance and four thousand two hundred eighteen (4,218) homeowners received assistance from a unique, second KYHC program. **MRAP funds were provided, returned in error by the Servicer, and provided again. None of these homeowners received reinstatement assistance from MRAP more than once. A breakdown by program of non-unique homeowners assisted, assistance provided to date and remaining assistance committed is illustrated in the following chart. Program Non Unique Homeowners Assisted - Program to Date Q Count Amount Disbursed Future Commitment Total Assistance Committed Allocation ( as of 12/31/16) Unemployment Mortgage Assistance (UMA) 55,134 68% $838,766,316 $98,726,200 $937,492,517 $1,001,965, % Mortgage Reinstatement Assistance Program (MRAP) 12,962 16% $195,943,863 $0 $195,943,863 $204,072, % Principal Reduction Program (PRP) 11,564 14% $701,911,752 $0 $701,911,752 $895,968, % Transition Assistance Program (TAP) 1,030 1% $3,664,495 $0 $3,664,495 $4,180, % Reverse Mortgage Assistance Pilot Program (RevMAP) 650 1% $8,309,378 $0 $8,309,378 $10,000, % Community Second Mortgage Principal Reduction Program 34 0% $589,210 $0 $589,210 $589, % % Total 81, % $1,749,185,014 $98,726,200 $1,847,911,214 $2,116,774, % * Future Commitment consists of scheduled assistance to homeowners contingent on homeowner remaining unemployed. Definition of an Approved Borrower Application and its Impact on Program Withdrawal Rates In SIGTARP s recent quarterly reports, it compared s HHF program withdrawal rates to other HHF states and asserted that, the state agency had one of the highest rates of withdrawn HHF applications as compared to other HHF states. However, because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. 4

5 One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states(1). currently defines an approved borrower application, for purposes of Treasury s Quarterly Performance Report submission, as the successful completion of a homeowner counseling session before any documents have been submitted by the homeowner to the state and before any program reserves have been set for the household. (1) surveyed other Hardest Hit Fund states to determine which states do/don t include document collection in their definition of an approved borrower application. Sixteen of nineteen states provided survey responses. Of the sixteen respondents, 10 states include document collection in their definition of an approved borrower application and six states do not including. The following tables provide a comparison of the actual, Reported Unique Borrower Count as of Q and the Adjusted Unique Borrower Count for the same period. The Adjusted Unique Borrower Count table shows what s HHF withdrawn rates would have been if it had included document collection in its definition of an approved borrower application for the Q and cumulative periods. As of Q2 2017, Keep Your Home would have reported 1,157 and 19,403 fewer withdrawn applications for the quarter and cumulative reporting period, respectively. The cumulative percentage of approved borrower applications would have improved from 41.8% to 47.5%. Reported Unique Borrower Count - Q Status Qtr Cumulative % of Total Approved 2,333 69, % Deni ed 1,862 46, % Wi thdra wn 1,626 46, % In Proces s 3, % Tota l 9, ,969 Adjusted Unique Borrower Count - Q Status Qtr Cumulative % of Total Approved 2,333 69, % Deni ed 1,862 46, % Wi thdra wn , % In Proces s 2, % Tota l 6, ,349 Transaction Processing Time The chart below reflects the quarter ending June 30, 2017 and program-to-date transaction processing times (in days) for each program. CalHFA MAC continually monitors processing time performance to ensure that homeowners obtain the assistance they need in a timely and efficient manner. 5

6 Median Transaction Processing Time (in days) - Q Program Quarter Program to Date Unemployment Mortgage Assistance (UMA) Mortgage Reinstatement Assistance Program (MRAP) Principal Reduction Program (PRP) ** Transition Assistance Program (TAP) Reverse Mortgage Assistance Pilot Program (RevMAP) * Total * KYHC allows senior applicants for RevMAP assistance additional time to provide their documentation which increases the overall processing time of these transactions. Transaction processing includes communication with the loan servicer to obtain approval on behalf of the homeowner. ** The transaction processing times are extended for PRP whenever assistance is combined with a loan modification. These transactions often require the homeowner to complete a trial payment plan with their servicer, which can increase the time to approve and fund a transaction by an additional three to four months. Scheduled Assistance Disbursements The following chart shows the scheduled benefit disbursements for the UMA program. Unemployment Mortgage Assistance (UMA) Period Amount Program to Date (a) $838,766,316 July 2017 $11,512,040 August 2017 $10,327,316 September 2017 $9,474,517 October 2017 $8,680,863 November 2017 $8,074,550 December 2017 $7,490,618 January 2018 $6,921,570 February 2018 $6,242,395 March 2018 $5,655,489 April 2018 $4,994,904 May 2018 $4,529,310 June 2018 $3,993,351 July 2018 $3,400,064 August 2018 $2,896,023 September 2018 $2,250,368 October 2018 $1,541,808 November 2018 $741,015 Program Total (b) $937,492,517 (a) Assistance disbursed as of June 30, Quarterly UST Report amount (b) Total Assistance committed on approved transactions 6

7 This document describes the Housing Finance Agency (HFA) Hardest-Hit Fund (HHF) data that state HFAs are required to provide to the U.S. Department of the Treasury. It includes quarterly borrower characteristic data and program specific performance data. All HFA HHF data submitted to the U.S. Department of the Treasury must be accurate, complete, and in agreement with retained HFA records. Data should be reported by each state HFA by the 45th day following the quarter. Data requested in the "Borrower Characteristic" worksheet should be reported in aggregate for all HHF programs run by the state HFA. Program specific data is separated into reporting tabs for each individual program. State HFAs should report program performance data on an individual program basis. A data dictionary has been provided to assist in the definition of each data point. Template Version Date: July 2017

8 HFA Performance Data Reporting- Borrower Characteristics QTD Cumulative Unique Borrower Count Number of Unique Borrowers Receiving Assistance 2,333 69,876 Number of Unique Borrowers Denied Assistance 1,862 46,788 Number of Unique Borrowers Withdrawn from Program 1,626 46,885 Number of Unique Borrowers in Process N/A 3,420 Total Number of Unique Borrower Applicants N/A 166,969 Program Expenditures ($) Total Assistance Provided to Date $93,120,113 $1,749,185,014 Total Spent on Administrative Support, Outreach, and Counseling $8,208,571 $179,208,155 Geographic Breakdown (by county) Alameda 54 2,015 Alpine 0 1 Amador 1 94 Butte Calaveras Colusa 2 44 Contra Costa 69 2,153 Del Norte 0 19 El Dorado Fresno 77 2,371 Glenn 1 35 Humboldt Imperial Inyo 1 15 Kern 83 2,545 Kings Lake Lassen 0 25 Los Angeles ,639 Madera Marin Mariposa 1 20 Mendocino 0 54 Merced Modoc 0 4 Mono 0 8 Monterey Napa Nevada Orange 170 4,268 Placer Plumas 1 38 Riverside 251 7,351 Sacramento 153 4,335 San Benito San Bernardino 228 6,294 San Diego 163 5,668 San Francisco San Joaquin 55 1,965 San Luis Obispo San Mateo Santa Barbara Santa Clara 74 1,870 Santa Cruz Shasta Sierra 0 8 Siskiyou 4 56 Solano 34 1,183 Sonoma Stanislaus 42 1,299 Sutter Tehama 3 65 Trinity 1 6 Tulare 40 1,000 Tuolumne Ventura 75 2,028 Yolo Yuba 8 205

9 HFA Performance Data Reporting- Borrower Characteristics QTD Cumulative Home Mortgage Disclosure C Act (HMDA) Borrower Race American Indian or Alaskan Native Asian 219 5,141 Black or African American 247 7,264 Native Hawaiian or other Pacific Islander White 1,545 42,812 Information Not Provided by Borrower ,557 Ethnicity Hispanic or Latino ,411 Not Hispanic or Latino 1,306 36,687 Information Not Provided by Borrower ,778 Sex Male 1,221 36,465 Female 1,105 31,874 Information Not Provided by Borrower 7 1,537 Co-Borrower Race American Indian or Alaskan Native Asian 175 3,211 Black or African American 97 2,268 Native Hawaiian or other Pacific Islander White ,633 Information Not Provided by Borrower 260 9,605 Ethnicity Hispanic or Latino ,970 Not Hispanic or Latino ,333 Information Not Provided by Borrower 213 8,111 Sex Male ,072 Female ,599 Information Not Provided by Borrower 56 2,743 Line 1: Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some unique borrower counts may not sum in a quarter-over-quarter fashion. Line 4: In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 18.7%, not 28.1%. Refer to the Commentary Memo for additional information. Line 4: SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q1 2017, seven thousand five (7,450) homeowners actively requested to be withdrawn from program consideration over the life of the program. Lines 8 & 9 Amounts may not foot to prior quarter results due to rounding. Line 8: Assistance Provided to Date has a difference of $78,693 from the Quarterly Financial Report due to identified but unposted homeowner assistance returns.

10 HFA Performance Data Reporting- Program Performance Unemployment Mortgage Assistance Program QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance 1,569 55,134 % of Total Number of Applications N/A 58.75% Denied Number of Borrowers Denied ,587 % of Total Number of Applications N/A 12.35% Withdrawn Number of Borrowers Withdrawn ,974 % of Total Number of Applications N/A 27.68% In Process Number of Borrowers In Process N/A 1,155 % of Total Number of Applications N/A 1.22% Total Total Number of Borrowers Applied N/A 93,850 Number of Borrowers Participating in Other HFA HHF Programs or Program 196 3,129 Components Program Characteristics General Characteristics Median 1st Lien Housing Payment Before Assistance 1,745 1,579 Median 1st Lien Housing Payment After Assistance 0 0 Median Length of time Borrower Receives Assistance N/A 9 Median Assistance Amount 3,660 13,739 Assistance Characteristics Assistance Provided to Date $35,777,675 $838,766,316 Other Characteristics Current Number 1,404 45,996 % 89.48% 83.42% Delinquent (30+) Number 55 3,008 % 3.51% 5.46% Delinquent (60+) Number 36 1,785 % 2.29% 3.24% Delinquent (90+) Number 74 4,345 % 4.72% 7.88% Borrower Income ($) Above $90, % 3.16% $70,000- $89, % 6.92% $50,000- $69, % 13.42% Below $50, % 76.50% Hardship Unemployment 1,569 55,134 Underemployment 0 0 Divorce 0 0 Medical Condition 0 0 Death 0 0 Other 0 0 Program Outcomes

11 HFA Performance Data Reporting- Program Performance Unemployment Mortgage Assistance Program Borrowers No Longer in the HHF Program (Program Completion/Transition or Alternative Outcomes) Alternative Outcomes Foreclosure Sale QTD Cumulative 1,458 48,926 Cancelled Number 35 2,412 % 2.40% 4.93% Deed in Lieu Short Sale Line 1 Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some borrower counts may not sum in a quarter-over-quarter fashion. Line 8 In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 19.9%, not 27.7% as reported. Line 8 SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q2 2017, four thousand five hundred sixty two (5,001) homeowners actively requested to be withdrawn from program consideration over the life of the program. Line 24 Amounts may not foot to prior quarter results due to rounding. Line 38 KYHC reports gross household income as provided by the homeowner(s). Not all types of reported household income are used to determine program eligibility or calculate program benefits. Lines 51,57,70 Forty nine (49) homeowners cancelled assistance with 19 due to becoming re-employed. Cumulative counts have been adjusted to reflect this change to outcome.

12 HFA Performance Data Reporting- Program Performance Principal Reduction Program QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance ,564 % of Total Number of Applications N/A 14.75% Denied Number of Borrowers Denied 1,719 38,861 % of Total Number of Applications N/A 49.54% Withdrawn Number of Borrowers Withdrawn 1,013 26,192 % of Total Number of Applications N/A 33.39% In Process Number of Borrowers In Process N/A 1,822 % of Total Number of Applications N/A 2.32% Total Total Number of Borrowers Applied N/A Number of Borrowers Participating in Other HFA HHF Programs or Program Components Program Characteristics General Characteristics Median 1st Lien Housing Payment Before Assistance 1,579 1,540 Median 1st Lien Housing Payment After Assistance 1,284 1,235 Median 2nd Lien Housing Payment Before Assistance N/A N/A Median 2nd Lien Housing Payment After Assistance N/A N/A Median 1st Lien UPB Before Program Entry 238, ,046 Median 1st Lien UPB After Program Entry 182, ,110 Median 2nd Lien UPB Before Program Entry N/A N/A Median 2nd Lien UPB After Program Entry N/A N/A Median Principal Forgiveness 68,956 71,000 Median Assistance Amount 68,300 61,964 Assistance Characteristics Assistance Provided to Date $47,767,202 $701,911,752 Other Characteristics Current Number 444 6,302 % 60.49% 54.50% Delinquent (30+) Number % 7.22% 7.57% Delinquent (60+) Number % 3.95% 5.40% Delinquent (90+) Number 208 3,763 % 28.34% 32.53% Current Combined Loan to Value Ratio (CLTV) <100% 84.46% 38.62% 100%-119% 9.54% 16.87% 120%-139% 4.09% 18.80% 140%-159% 1.09% 11.96% >=160% 0.82% 13.75% Borrower Income ($)

13 HFA Performance Data Reporting- Program Performance Principal Reduction Program QTD Cumulative Above $90, % 2.65% $70,000- $89, % 12.23% $50,000- $69, % 31.70% Below $50, % 53.42% Hardship Unemployment 0 0 Underemployment 396 5,643 Divorce Medical Condition Death Other 218 4,256 Program Outcomes Borrowers No Longer in the HHF Program (Program Completion/Transition or Alternative Outcomes) ,564 Alternative Outcomes Foreclosure Sale Cancelled Number % 0.54% 3.25% Deed in Lieu Short Sale Line 1 Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some borrower counts may not sum in a quarter-over-quarter fashion. Line 8 In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 19.74, not 33.4% as reported. Line 8 SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q2 2017, two thousand six hundred sixty eight (2,864) homeowners actively requested to be withdrawn from program consideration over the life of the program. Line 30 Amounts may not foot to prior quarter results due to rounding. Lines 69 & 85 Eight (8) homeowners cancelled assistance that KYHC approved in prior quarters. Cumulative counts have been adjusted to reflect change to outcome. Line 50 KYHC reports gross household income as provided by the homeowner(s). Not all types of reported household income are used to determine program eligibility or calculate program benefits.

14 HFA Performance Data Reporting- Program Performance Mortgage Reinstatement Assistance Program QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance ,962 % of Total Number of Applications N/A 18.29% Denied Number of Borrowers Denied ,790 % of Total Number of Applications N/A 37.80% Withdrawn Number of Borrowers Withdrawn ,232 % of Total Number of Applications N/A 42.66% In Process Number of Borrowers In Process N/A 887 % of Total Number of Applications N/A 1.25% Total Total Number of Borrowers Applied N/A 70,871 Number of Borrowers Participating in Other HFA HHF Programs or Program Components Program Characteristics General Characteristics Median Assistance Amount 14,057 13,046 Assistance Characteristics Assistance Provided to Date $8,730,258 $195,943,863 Other Characteristics Current Number 7 45 % 1.39% 0.35% Delinquent (30+) Number 91 2,037 % 18.02% 15.72% Delinquent (60+) Number 51 1,771 % 10.10% 13.66% Delinquent (90+) Number 356 9,109 % 70.49% 70.27% Borrower Income ($) Above $90, % 12.98% $70,000- $89, % 23.85% $50,000- $69, % 35.36% Below $50, % 27.81% Hardship Unemployment 0 0 Underemployment 330 8,078 Divorce Medical Condition Death Other 94 2,781 Program Outcomes Borrowers No Longer in the HHF Program (Program ,959 Completion/Transition or Alternative Outcomes) Alternative Outcomes Foreclosure Sale

15 HFA Performance Data Reporting- Program Performance Mortgage Reinstatement Assistance Program QTD Cumulative Cancelled Number % 0.60% 0.92% Deed in Lieu Short Sale Line 1 Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some borrower counts may not sum in a quarter-over-quarter fashion. Line 8 In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 33.1%, not 42.7% as reported. Line 8 SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q2 2017, three thousand seven hundred thirty five (3,811) homeowners actively requested to be withdrawn from program consideration over the life of the program. Line 21 Amounts may not foot to prior quarter results due to rounding. Lines 54 & 64 Three (3) homeowners cancelled assistance that KYHC approved in prior quarters. Cumulative counts have been adjusted to reflect change to outcome. Line 48 Three (3) homeowners approved in current quarter are schedule to receive a supplemental payment and therefore are not counted in Program Outcome. Line 35 KYHC reports gross household income as provided by the homeowner(s). Not all types of reported household income are used to determine program eligibility or calculate program benefits.

16 HFA Performance Data Reporting- Program Performance Transition Assistance Program QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance % of Total Number of Applications N/A 42.15% Denied Number of Borrowers Denied % of Total Number of Applications N/A 24.67% Withdrawn Number of Borrowers Withdrawn % of Total Number of Applications N/A 32.16% In Process Number of Borrowers In Process N/A 25 % of Total Number of Applications N/A 1.02% Total Total Number of Borrowers Applied N/A 2444 Number of Borrowers Participating in Other HFA HHF Programs or 0 0 Program Components Program Characteristics General Characteristics Median Assistance Amount 5,000 4,000 Assistance Characteristics Assistance Provided to Date $54,500 $3,664,495 Other Characteristics Current Number 1 28 % 7.69% 2.72% Delinquent (30+) Number 1 19 % 7.69% 1.84% Delinquent (60+) Number 1 19 % 7.69% 1.84% Delinquent (90+) Number % 76.93% 93.60% Borrower Income ($) Above $90, % 3.88% $70,000- $89, % 11.46% $50,000- $69, % 20.87% Below $50, % 63.79% Hardship Unemployment 0 0 Underemployment Divorce 0 66 Medical Condition 1 69 Death 1 80 Other Program Outcomes Borrowers No Longer in the HHF Program (Program Completion/Transition or Alternative Outcomes) 13 1,030 Alternative Outcomes

17 HFA Performance Data Reporting- Program Performance Transition Assistance Program QTD Cumulative Foreclosure Sale Cancelled Number 0 0 % 0.00% 0.00% Line 1 Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some borrower counts may not sum in a quarter-over-quarter fashion. Line 8 In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 21.7%, not 32.2% as reported. Line 8 SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q2 2017, seventy one (71) homeowners actively requested to be withdrawn from program consideration over the life of the program. Line 21 Amounts may not foot to prior quarter results due to rounding. Line 35 KYHC reports gross household income as provided by the homeowner(s). Not all types of reported household income are used to determine program eligibility or calculate program benefits.

18 HHF Performance Data Reporting- Program Performance Reverse Mortgage Assistance Pilot Program (RevMAP) QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance % of Total Number of Applications N/A 28.56% Denied Number of Borrowers Denied % of Total Number of Applications N/A 18.45% Withdrawn Number of Borrowers Withdrawn % of Total Number of Applications N/A 46.53% In Process Number of Borrowers In Process N/A 147 % of Total Number of Applications N/A 6.46% Total Total Number of Borrowers Applied N/A 2276 Number of Borrowers Participating in Other HFA HHF Programs or 0 0 Program Components Program Characteristics General Characteristics Median Assistance Amount 9,052 11,645 Assistance Characteristics Assistance Provided to Date $790,478 $8,309,378 Other Characteristics Current Number % % % Delinquent (30+) Number 0 0 % 0.00% 0.00% Delinquent (60+) Number 0 0 % 0.00% 0.00% Delinquent (90+) Number 0 0 % 0.00% 0.00% Borrower Income ($) Above $90, % 0.15% $70,000- $89, % 0.77% $50,000- $69, % 5.69% Below $50, % 93.39% Hardship Unemployment 0 0 Underemployment 3 60 Divorce 0 1 Medical Condition 6 80 Death 2 71 Other Program Outcomes Borrowers No Longer in the HHF Program (Program Completion/Transition or Alternative Outcomes) Alternative Outcomes Foreclosure Sale Cancelled Number 0 1 % 0.00% 0.16%

19 Deed in Lieu Short Sale Line 1 Since applications marked as denied or withdrawn in previous quarters may be reconsidered due to a change in borrower circumstances, some borrower counts may not sum in a quarter-over-quarter fashion. Line 8 In SIGTARP s quarterly report dated January 27, 2017, it compared s HHF program withdrawal rates to other HHF states. Because not all HHF states use the same definition of an approved borrower application for Treasury reporting purposes, the comparison and determined results do not fairly depict s actual results. One of the primary reasons s withdrawal rate appears high as compared to other HHF states is because s definition of an approved borrower application does not include receipt of any homeowner documents as is the case with many other HHF states. If included document collection in its definition of an approved borrower application the cumulative withdrawal rate would be 16.1%, not 46.5% as reported. Line 8 SIGTARP recommended "report separately people who withdraw their applications from applications withdrawn by the state". As of Q2 2017, two hundred twentyone (247) homeowners actively requested to be withdrawn from program consideration over the life of the program. Line 21 Amounts may not foot to prior quarter results due to rounding. Line 35 KYHC reports gross household income as provided by the homeowner(s). Not all types of reported household income are used to determine program eligibility or calculate program benefits. Line 48 Twenty two (22) homeowners approved in current quarter will receive a scheduled supplemental payment totaling $119,268 next quarter and therefore are not counted in Program Outcomes section until all assistance is funded. Thirty nine (39) homeowners approved in the prior quarter received their final disbursement and are included in the cumulative total. A dual disbursement workflow was implemented to confirm that no further funds were required to reinstate the loan.

20 HHF Performance Data Reporting- Program Performance Community Second Mortgage Principal Reduction Program QTD Cumulative Program Intake/Evaluation Approved Number of Borrowers Receiving Assistance N/A 34 % of Total Number of Applications N/A 81.00% Denied Number of Borrowers Denied N/A 8 % of Total Number of Applications N/A 19.00% Withdrawn Number of Borrowers Withdrawn N/A 0 % of Total Number of Applications N/A 0.00% In Process Number of Borrowers In Process N/A N/A % of Total Number of Applications N/A N/A Total Total Number of Borrowers Applied N/A 42 Number of Borrowers Participating in Other HFA HHF Programs or N/A 0 Program Components Program Characteristics General Characteristics Median 1st Lien Housing Payment Before Assistance N/A 1588 Median 1st Lien Housing Payment After Assistance N/A N/A Median 2nd Lien Housing Payment Before Assistance N/A 400 Median 2nd Lien Housing Payment After Assistance N/A 0 Median 1st Lien UPB Before Program Entry N/A Median 1st Lien UPB After Program Entry N/A N/A Median 2nd Lien UPB Before Program Entry N/A Median 2nd Lien UPB After Program Entry N/A Median Principal Forgiveness N/A Median Assistance Amount N/A Assistance Characteristics Assistance Provided to Date N/A $589,210 Other Characteristics Current Number N/A 30 % N/A 88.24% Delinquent (30+) Number N/A 0 % N/A 0.00% Delinquent (60+) Number N/A 0 % N/A 0.00% Delinquent (90+) Number N/A 4 % N/A 11.76% Program Outcomes Borrowers No Longer in the HHF Program (Program Completion/Transition N/A 34 or Alternative Outcomes) Alternative Outcomes Foreclosure Sale Number N/A 0 % N/A 0.00% Cancelled Number N/A 0 % N/A 0.00% Deed in Lieu Number N/A 0 % N/A 0.00% Short Sale Number N/A 0 % N/A 0.00%