HOPE NOW: 444,000 Non-Foreclosure Solutions for Homeowners during Q1 2015

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1 May 19, 2015 Media Contact: Brad Dwin (410) HOPE NOW: 444,000 Non-Foreclosure Solutions for Homeowners during Q Permanent Loan Mods Total 116K 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 444,000 homeowners received non-foreclosure solutions from mortgage servicers in January, February and March. Permanent loan modifications totaled approximately 116,000 and short sales totaled 24,000. Other solutions (including repayment plans, 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 116,000 loan modifications completed for the first quarter of 2015, about 87,000 homeowners received proprietary loan modifications and 29,101 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP). Month over month, proprietary loan modifications showed a consistent trend in Q For Q1 2015, the combination of total loan modifications, short sales, deeds in lieu and workout plans outpaced foreclosure sales by a significant margin (approximately 444,000 solutions vs. 96,000 foreclosure sales). For every one foreclosure sale completed on a property, there were approximately solutions offered for other properties. The availability of a combination of long term and short term workout tools has allowed for mortgage servicers to consider the viability of all retention and liquidation options before a foreclosure sale becomes the only course of action.

2 Q vs. Q Loan Mods Increase 7%, Serious Delinquencies Decline 4% During the first quarter of 2015, there were an estimated 116,000 loan modifications completed, compared to 108,000 during the previous quarter an increase of approximately 7%. Serious delinquencies of 60 days or more declined from 1.93 million in 4Q 2014 to 1.86 million in 1Q 2015 a 4% decline. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the Q1 2015) Here are some other key metrics for Q vs. Q4 2014: Total non-foreclosure solutions were approximately 444,000 in Q1 2015, compared to 447,000 in Q virtually unchanged. Foreclosure starts were approximately 225,000 in Q1 2015, compared to 205,000 in Q4 2014, an increase of approximately 10%. Foreclosure sales in Q were approximately 96,000, compared to the same number in Q unchanged. Q vs. Q Foreclosure Sales Down 24% The 96,000 foreclosure sales in the first quarter of 2014 compares to an estimated 126,000 completed during the first quarter of 2014, representing a significant decline year over year. Here are some other key metrics for Q vs. Q1 2014: Total solutions for Q were approximately 444,000 vs. 509,000 for Q a decline of 13%. Loan mods for Q were approximately 116,000 vs. 142,000 for Q a decline of 18%. Foreclosure starts for Q were approximately 225,000 vs. 219,000 for Q an increase of 3%. Short sales completed for Q were approximately 24,000 vs. 36,000 for Q a decline of 33%. Deeds in lieu for Q were approximately 6,100 a decline of 18% from Q (7,400). Delinquencies of 60+ days were approximately 1.86 million for Q1 2015, compared to 2.11 million for Q a decline of 12%. March 2015 Key Data Points For the month of March, mortgage servicers offered approximately 154,000 total solutions. There were an estimated 43,000 permanent loan modifications completed. Of that total, approximately 35,000 were proprietary loan modifications and 8,262 were completed under HAMP. Total modifications for the month represented a 15% increase from the previous month (38,000). Of the proprietary loan modifications completed in March 2015, approximately 69% (24,000) had reduced monthly principal and interest payments of more than 10%.

3 Other key metrics for the month of March 2015 compared to February 2015: Foreclosure sales were estimated at 31,000 in March vs. 28,000 in February an increase of 11%. Foreclosure starts were estimated at 78,000 in March vs. 66,000 in February an increase of 17%. Short sales completed were approximately 8,300 in March vs. 7,500 in February an increase of 11%. The full data set for Q can be found at Eric Selk, Executive Director, issued this statement: Activity on mortgage solutions remained robust during the first quarter of the year. Permanent loan mods continue to slightly outpace foreclosure sales and total non-foreclosure solutions remain at a steady pace. The industry has many tools at its disposal in offering customers the best possible outcome. HOPE NOW s data has shown a consistent trend in the relationship between options offered and foreclosure sales. The good news in this trend is that these efforts point to a correcting market across the board. HOPE NOW s members have made a special effort to engage borrowers in communities that still lag behind in their housing and economic recovery. We have held community and borrower events in California Oakland and San Bernardino already this year, with considerable support from the local leaders and non-profits. We will focus much of our outreach effort in the middle of the year on markets in the Midwest. Face to face events are planned for Chicago on May 27 th, St. Louis on June 13 th and Cleveland on July 11 th. We are grateful to our many partners who assisted in these efforts, including the Federal Reserve Bank of Chicago, the City of Oakland, San Bernardino County, NID Housing Counseling Agency, NHS of Chicago and others. Additionally, HOPE NOW s members will be piloting an event focused on home buying and new borrower education in Anaheim on May 30 th. It is hoped that these types of outreach activities, combined with our signature loss mitigation events, will allow our members to better address housing issues at a regional level.

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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

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