Making Home Affordable Program Servicer Performance Report Through April Report Highlights. Inside: Administration Housing Initiatives

Transcription

1 Report Highlights Almost 3, Borrowers Granted Permanent Modifications, An Increase of 68, Borrowers in permanent modifications are experiencing a median payment reduction of 36%, more than $5 per month. Over 68, trial modifications converted to permanent modifications in April, an increase of almost 3% from March. Servicers Begin to Require Upfront Documentation In order to comply with Treasury guidelines that take effect on June, in March, servicers began collecting upfront documentation from borrowers prior to initiating new trial modifications. Treasury is monitoring servicer performance closely to ensure that borrower demand is met and that servicers are reviewing modification requests in a timely manner. Servicers Provide Resolutions to Borrowers Who Entered Trials Before January, Common causes of cancellations include missed trial payments and incomplete or unverifiable documentation. New This Month: Conversion Rates By Servicer Servicers show wide variation in conversion rates as measured against trials eligible to convert. Servicers who started trials with verified documents generally posted higher conversion rates than servicers who allowed borrowers to enter trials with stated income. With recent Treasury guidance, all servicers are now verifying borrower documents before trial start. Using stated income upon trial starts, the four largest participating servicers have conversion rates below 3%. New This Month: Aged Trial Modifications by Servicer Servicers show wide variation in completing timely decisions on trial modifications. HAMP Is One Part of the Administration Initiatives to Promote Housing and Financial Stability (see Page ) Inside: Administration Housing Initiatives Economic Indicators 3 HAMP Program Snapshot 4 Characteristics of Permanent Modifications Servicer Activity 6 Borrower Outreach 7 Waterfall of HAMP Eligible Borrowers HAMP Activity by State 8 HAMP Activity by Metropolitan Area Modifications by Investor Type 9 List of Non GSE Participants 5 7 9

2 Overview of Administration Housing Stability Initiatives Initiatives to Support Access to Affordable Mortgage Credit and Housing Initiatives to Prevent Avoidable Foreclosures and Stabilize Neighborhoods Lower Mortgage Rates and Access to Credit: Continued financial support to maintain affordable mortgage rates through the Government-Sponsored Enterprises (GSEs). Interest rates remain near historic lows. Every % reduction in interest rate saves a new borrower a median of $,5 annually in mortgage payments. Access to sustainable mortgages through the Federal Housing Administration (FHA). FHA Refinance options to help homeowners owing more than their homes are worth. State and Local Housing Initiatives: Access for Housing Finance Agencies to provide mortgages to first-time homebuyers, refinance opportunities for at-risk borrowers, and affordable rental housing. Over 9 HFAs across 45 states are participating. Tax Credits for Housing: Homebuyer credit to help hundreds of thousands of American families buy new homes. Low-Income Housing Tax Credit (LIHTC) programs to support affordable rental housing, with total funding of $5 billion. Making Home Affordable Modifications: Offering up to 3-4 million homeowners assistance to help prevent avoidable foreclosures through. More than. million homeowners have started trial modifications and almost.5 million offers for trial modifications have been extended to borrowers. Homeowners in permanent modifications have a median payment reduction of over $5 per month. Homeowners in trial and permanent modifications have had a reduction of over $3. billion in monthly mortgage payments in aggregate to date. Refinancing: Refinancing flexibilities and low mortgage rates have allowed over 4 million borrowers with GSE mortgages to refinance, saving an average of $5 per month and more than $7 billion over the past year. Neighborhood Stabilization and Community Development Programs: Over $5 billion in Recovery Act support for the NSP to help stabilize neighborhoods. $. billion HFA Innovation Fund for the Hardest Hit Housing Markets to support innovative foreclosure prevention efforts.

3 Percent Source: Federal Reserve. Mortgage Rates Conventional 3 year Fixed Rate year Treasury Rate Months Source: National Association of Realtors. Housing Inventory Months' supply of existing homes at the current sales pace Months' supply of new homes at the current sales pace Index: Jan = Home Prices Case/Shiller city composite FHFA purchase only index Loan Performance National Home Price Index Thousands,6,4,, Home Sales Sales of existing homes (right axis) Sales of new homes (left axis) , 6, 5, 4, 3,,, Sources: S&P/Case-Shiller Home Price Index; LP/Haver Analytics; FHFA. Note: Shaded areas indicate recessions. Source: National Association of Realtors, Census Bureau. 3

4 HAMP Eligibility Trial Modifications Permanent Modifications HAMP Activity: All Servicers Total Eligible Delinquent Loans 3,75,49 Eligible Delinquent Borrowers,7,34 Trial Plan Offers Extended 3,487,594 All Trials Started,4,85 Trials Reported Since March Report 4 47,6 Trial Modifications Canceled 77,64 Active Trials 637,353 All Permanent Modifications Started 99,9 Permanent Modifications Canceled 5 3,744 Active Permanent Modifications 95,348 Estimated eligible 6+ day delinquent loans as reported by servicers as of March 3,, include conventional loans: in foreclosure and bankruptcy. with a current unpaid principal balance less than $79,75 on a one unit property, $934, on a two unit property, $,9,5 on a three unit property and $,43,4 on a four unit property. on a property that was owner occupied at origination. originated on or before January, 9. Estimated eligible 6+ day delinquent loans exclude: FHA and VA loans. loans that are current or less than 6 days delinquent, which may be eligible for HAMP if a borrower is in imminent default. Refer to the Waterfall of Eligible Borrowers on page 7 for further explanation. For servicers enrolling after February, that did not participate in the 6+ day delinquency survey, the delinquency count is from the servicer registration form. Effective this month, the estimated eligible 6+ day delinquent borrowers are those in HAMP eligible loans, minus estimated exclusions of loans on vacant properties, loans with borrower debt to income ratio below 3%, loans that fail the NPV test, properties no longer owner occupied, manufactured housing loans with title/chattel issues that exclude them from HAMP, and loans where the investor pooling and service agreements preclude modification. Exclusions for DTI and NPV results are estimated using market analytics. Refer to the Waterfall of Eligible Borrowers on page 7 for further explanation. 3 As reported in the weekly servicer survey through April 9,. 4 Servicers may enter new trial modifications anytime before the loan converts to a permanent modification. 5 Includes 8 loans paid off. Source: HAMP system of record (except where noted).,4,,,,, 8, 6, 4,, 54,7 May and Prior HAMP Trials Started (Cumulative) 73,768 55,97 48,73 553,568 84,46 7,738 June July Aug Sep Oct Nov Dec Jan,4,85,77,64,4,98,3,95 939,995 Feb Mar Apr Note: Servicers may enter new trial modifications anytime before the loan converts to a permanent modification. Source: HAMP system of record. 35, 3, 5,, 5,, 5, Permanent Modifications Started (Cumulative) 4,74 Sep and Earlier 5,649 Source: HAMP system of record. 3,44 66,938 7,3 7,7 3,8 99,9 Oct Nov Dec Jan Feb Mar Apr 4

5 Modification Characteristics Lower monthly mortgage payments for borrowers in active trial and permanent modifications represent a cumulative reduction of more than $3. billion to date. The median savings for borrowers in permanent modifications is $56.9, or 36% of the median beforemodification payment. Permanent Modifications by Modification Step Predominant Hardship Reasons for Permanent Modifications Loss of Income Excessive Obligation.% 6.4% Interest Rate Reduction % Illness of Principal Borrower.8% Term Extension 53.4% Principal Forbearance 8.6% The calculation for term extension has been corrected. Select Median Characteristics of Permanent Modifications % % 4% 6% 8% Includes borrowers who are employed but have faced a reduction in hours and/or wages as well as those who have lost their jobs. Note: Does not include 9% of permanent modifications reported as Other. Loan Status Upon Entering Trial Before Modification After Modification Median Decrease Loan Characteristic Front-End Debt-to-Income Ratio 44.9% 3.% 4. pct pts Back-End Debt-to-Income Ratio 8.% 64.3% 4.5 pct pts Median Monthly Payment 3 $,47.8 $836.8 $56.9 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners association and/or condo fees) to monthly gross income. Ratio of total monthly debt payments (including mortgage principal and interest, taxes, insurance, homeowners association and/or condo fees, plus payments on installment debts, junior liens, alimony, car lease payments and investment property payments) to Note: For all trial modifications started. monthly gross income. Borrowers who have a back-end debt-to-income ratio of greater At Risk of Default includes borrowers up to 59 days delinquent at trial entry as well as than 55% are required to seek housing counseling under program guidelines. 3 those in imminent default. In Default refers to borrowers 6 or more days late at trial entry. Principal and interest payment. 5 In Default at Trial Start: 77.% At Risk of Default at Trial Start:.9%

6 HAMP Modification Activity by Servicer Conversion Rate Servicer American Home Mortgage Servicing Inc Estimated Eligible 6+ Day Delinquent Borrowers Trial Plan Offers Extended All HAMP Trials Started 3 Active Trial Modifications 3 Permanent Modifications 3 5,47 9,9 6,53 9,39 6,97 Aurora Loan Services, LLC 4,5 47,97 4,956,69,69 Bank of America, NA 4 477,59 4,398 3,98 4,56 56,398 Carrington Mortgage Services LLC 6,96 3,6,495 85,64 CitiMortgage, Inc. 5,357 53,389 44,76 54,947 8,556 GMAC Mortgage, Inc. 3,96 53,6 43, 3,95,47 Green Tree Servicing LLC 7,34 7,3 5,763 3,79,34 HomEq Servicing 6,87 5,55 4,355,889,8 J.P. Morgan Chase Bank, NA 5 46,85 56,43 89,4 8,997 39,57 Litton Loan Servicing LP 54,888 36,67 3,4 7,85 6,46 Nationstar Mortgage LLC,687 4,446,599 7,38 6,933 Ocwen Financial Corp. Inc. 7,85 3,35 9,4 5,497,9 OneWest Bank 57,459 58,863 4,375 7,347 9,6 PNC Mortgage 6,6,76 7,78 8,4 98 Saxon Mortgage Services, Inc. 36,658 44,55 39,7,946,568 Select Portfolio Servicing,78 6,76 36,94 9,784,93 US Bank NA 9,554,38 9,58 3,559 4,648 Wachovia Mortgage, FSB 7 3,3 8,969 6,95 6,43 43 Wells Fargo Bank, NA 8 74,995 33,84 7,74 75,3 36,94 Other SPA servicers 9 7,55 3,67,6 5,996 4,3 Other GSE Servicers 94,38 NA 59,373 7,94 3,69 Total,7,34,487,594,4,85 637,353 95,348 % 75% 5% 5% % 8% 6% 4% 83% 83% 74% 76% 7% 59% 55% 54% 48% 47% 43% 4% Trial Evaluation : Verified Income Stated Income 3% 9% 9% 8% 6% 5% 5% % % Aged Trials as Share of Active Trials 58% 48% 46% 4% 4% 35% 3% 3% 9% 6% 6% 5% 6% 6% As measured against trials eligible to convert those three months in trial, or four months if the borrower was in imminent default. * Other SPA and Other GSE servicers represent a mix of verified and stated income trial starts. Per program guidelines, all servicers will use verified income before starting trial modifications by June. Estimated eligible 6+ day delinquent borrowers as reported by servicers as of March 3,, include those in conventional loans: in foreclosure and bankruptcy. with a current unpaid principal balance less than $79,75 on a one-unit property, $934, on a two-unit property, $,9,5 on a three-unit property and $,43,4 on a four-unit property. on a property that was owner-occupied at origination. originated prior to January, 9. Estimated eligible 6+ day delinquent borrowers excludes: Those in FHA and VA loans. Those in loans that are current or less than 6 days delinquent, which may be eligible for HAMP if a borrower is in imminent default. Those borrowers with debt-to-income ratios less than 3% or a negative NPV test, Owners of vacant properties or properties otherwise excluded (see footnotes of page 7 for further explanation). Exclusions for DTI and NPV are estimated using market analytics. For servicers enrolling after February, that did not participate in the 6+ day delinquency survey, the delinquency count is from the servicer % registration form. % As reported in the weekly servicer survey through April 9,. % 8% 5% 3 Active trial and permanent modifications as reported into the HAMP system of 3% record by servicers. 4 Bank of America, NA includes Bank of America, NA, BAC Home Loans 4% Servicing LP, Home Loan Services and Wilshire Credit Corporation. 5 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 6 Formerly National City Bank. % 7 Wachovia Mortgage, FSB consists of Pick-a-Payment loans. 8 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. 9 Other SPA servicers are entities with less than 5, estimated eligible 6+ day delinquent borrowers that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in the Appendix. Includes servicers of loans owned or guaranteed by Fannie Mae and Freddie Active trials initiated at least six months ago. 6 Mac. Note: Excludes Wachovia Mortgage, FSB at %.

7 Borrower Engagement Program to date, Treasury and partners have hosted 3 events across the country connecting more than 35, homeowners with mortgage servicers and housing counselors. Selected Outreach Measures Servicer Solicitation of Borrowers (cumulative since program inception) 4,46,4 Page views on MHA.gov (April ) 6,588,873 Page views on MHA.gov (cumulative) 8,34,39 Percentage to Goal of 3-4 Million Modification Offers by 37-5% Source: survey data provided by servicers. Servicers are encouraged by HAMP to solicit information from borrowers 6+ days delinquent, regardless of eligibility for a HAMP modification. In 9, Treasury set a goal of offering help to 3-4 million borrowers through the end of, as measured by trial plan offers extended to borrowers. Call Center Performance Total Number of Calls Taken at HOPE Borrowers Receiving Free Housing Counseling Cumulative April,6,3,78 545,38 53, Loans (Millions) st Lien, 6+ Days Delinquent Waterfall of HAMP-Eligible Borrowers Not all 6-day delinquent loans are eligible for HAMP. Other characteristics may preclude borrower eligibility. Based on the estimates, of the 6. million borrowers who were 6 days delinquent in the 4 th quarter of 9,.7 million borrowers are eligible for HAMP. As this represents a point-in-time snapshot of the delinquency population and estimated HAMP eligibility, we expect that more borrowers will become eligible for HAMP from now through = Estimate Less: Non Less: FHA Participating or VA HAMP Servicer 3.4 Less: Non Owner Occupied at Origination HAMP- Eligible 6+ Day Delinquent Loans (GSE and SPA Servicers) Less: Jumbo Non Conforming Loans and Loans Originated After //9 Less: DTI Less Than 3%..7 Less: Negative NPV Less: Vacant Properties and Other Exclusions* HAMP Estimated Eligible 6+ Day Delinquent Borrowers.7 Estimated HAMP Eligible Borrowers Other exclusions include: no longer owner-occupied; investor s pooling and servicing agreement precludes modification; and manufactured housing loans with titling/chattel issues that exclude them from HAMP. Sources: Fannie Mae; monthly survey of participating servicers for March 3,. Total 6+ delinquent figure from 4 th quarter 9 MBA delinquency survey. Excluded loans are as reported by servicers by survey who have signed a servicer participation agreement for HAMP. 7

8 HAMP Activity by State Modification Activity by State Active Permanent % of Active Permanent % of State Trials Modifications Total Total State Trials Modifications Total Total AK % MT ,97.% AL 4,47,843 6,7.7% NC 3,6 5,933 9,93.% AR,83 758,57.3% ND % AZ 9,95 6, 46,7 4.9% NE ,35.% CA 35,499 6,883 98,38.3% NH,67,476 4,47.4% CO 8,93 4,355 3,87.4% NJ,43 9,8 3, % CT 8,9 3,98,.3% NM, ,34.4% DC,69 47,739.% NV 6,834 8,9 5,63.7% DE,6,5 3,5.3% NY 3,8,59 4,39 4.5% FL 78,356 36,3 4,486.3% OH 3,63 6,58,.% GA 5,385,8 36, % OK,8 74,74.3% HI,37,76 3,447.4% OR 7,97 3,49,56.% IA,945 79,736.3% PA 4,35 6,69,69.% Note: Includes active trial and permanent modifications from the official HAMP system of record. HAMP Modifications 5, and lower, 35, 5,, 35, and higher,, Mortgage Delinquency Rates by State ID,5,98 3,78.4% RI,89,58 4,473.5% IL 33,393 5,434 48,87 5.% SC 6,564,97 9,535.% IN 6,6 3,6 9,68.% SD % KS, ,66.3% TN 7,63 3,88,35.% KY,658, 3,859.4% TX,67 7,4 9,885 3.% LA 3,93,438 5,34.6% UT 5,54,737 8,77.9% MA 4,34 7,437,74.3% VA 5,67 7,836 3,57.5% MD,746,4 3,95 3.3% VT % ME,633 9,535.3% WA,49 5,959 8,45.% MI,4,3 3,65 3.3% WI 6,8 3,64 9,45.% MN,555 6,6 6,77.8% WV, 498,58.% MO 7,66 3,43,57.% WY % MS,4,76 3,597.4% Other*,5 643,868.% * Includes Guam, Puerto Rico and the U.S. Virgin Islands. Source: Mortgage Bankers Association. Data is latest available and is as of 4 th Quarter Day Delinquency Rate 5.% and lower.% - 5.%.% 5.% -.% 5.% -.% and higher 8

9 5 Metropolitan Areas With Highest HAMP Activity Modifications by Investor Type (Large Servicers) Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA New York-Northern New Jersey- Long Island, NY-NJ-PA Chicago-Naperville-Joliet, IL-IN-WI Riverside-San Bernardino-Ontario, CA Miami-Fort Lauderdale-Pompano Beach, FL Active Trials Permanent Modifications Total HAMP Activity % of All HAMP Activity 4,573 7,85 57,758 6.% 4,45 6,67 57,97 6.% 3,78 4,89 47,68 5.% 9,79 5,56 45,69 4.9% 3,93 3,59 43,98 4.7% Phoenix-Mesa-Scottsdale, AZ 4,496 3,33 37,86 4.% Washington-Arlington-Alexandria, DC-VA-MD-WV,8,73 3, % Atlanta-Sandy Springs-Marietta, GA,59 9,36 9,545 3.% Las Vegas-Paradise, NV 4,99 6,749,848.% Detroit-Warren-Livonia, MI,946 6,48 8,994.% Orlando-Kissimmee, FL,46 6, 8,48.% Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Boston-Cambridge-Quincy, MA-NH Sacramento-Arden-Arcade- Roseville, CA Tampa-St. Petersburg-Clearwater, FL A complete list of HAMP activity for all MSAs is available at 5,3 5,97.7%,73 5,97 5,37.6% 9,64 5,9 4,643.6% 9,773 4,678 4,45.5% Servicer GSE Private Portfolio Total Bank of America, NA 76,755 8,887 3,38 7,96 JP Morgan Chase NA 73,39 6,983, 58,54 Wells Fargo Bank, NA 3 77,83 8,47 5,96,46 CitiMortgage, Inc. 55,7 5,45,95 83,53 OneWest Bank 8,673 5,679,67 36,959 GMAC Mortgage, Inc. 9,938 4,483 34,4 Litton Loan Servicing LP,87,7 3,998 Saxon Mortgage Services Inc.,99,399,86 3,54 Select Portfolio Servicing 533 9,6,53,687 Aurora Loan Services, LLC,89 9,9 56,338 Ocwen Financial Corporation, Inc. 5,47, ,66 American Home Mortgage Servicing Inc,87 5,76 6,363 Nationstar Mortgage LLC,35 3,889 4,5 PNC Mortgage 4 8, ,39 US Bank NA 5,637,549 8,7 Wachovia Mortgage, FSB ,854 6,86 Green Tree Servicing LLC 4, ,43 HomEq Servicing 5 4,6 4,7 Carrington Mortgage Services LLC,464,464 Remainder of HAMP Servicers 53,83 4,47 3,98 6,38 Total 56,88 3,9 83,59 93,7 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loans Services and Wilshire Credit Corporation. J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. 4 Formerly National City Bank. 5 Wachovia Mortgage, FSB consists of Wachovia Mortgage FSB Pick-a-Payment loans. Note: Figures reflect active trials and permanent modifications. 9

10 Appendix: Non-GSE Participants in HAMP Making Home Affordable Program Allstate Mortgage Loans & Investments, Inc. American Eagle Federal Credit Union American Home Mortgage Servicing, Inc AMS Servicing, LLC Aurora Loan Services, LLC Bank of America, N.A. Bank United Bay Federal Credit Union Bay Gulf Credit Union Bayview Loan Servicing, LLC Carrington Mortgage Services, LLC CCO Mortgage Central Florida Educators Federal Credit Union Central Jersey Federal Credit Union Chase Home Finance, LLC CitiMortgage, Inc. Citizens st National Bank Citizens First Wholesale Mortgage Company Community Bank & Trust Company CUC Mortgage Corporation Digital Federal Credit Union DuPage Credit Union Eaton National Bank & Trust Co Farmers State Bank Fidelity Homestead Savings Bank First Bank First Federal Savings and Loan First Keystone Bank First National Bank of Grant Park Franklin Credit Management Corporation Fresno County Federal Credit Union Glass City Federal Credit Union Glenview State Bank GMAC Mortgage, Inc. Golden Plains Credit Union Grafton Suburban Credit Union Great Lakes Credit Union Greater Nevada Mortgage Services Green Tree Servicing LLC Hartford Savings Bank Hillsdale County National Bank HomEq Servicing HomeStar Bank & Financial Services Horicon Bank Horizon Bank, NA Iberiabank IBM Southeast Employees' Federal Credit Union IC Federal Credit Union Idaho Housing and Finance Association iserve Residential Lending LLC iserve Servicing Inc. J.P.Morgan Chase Bank, NA Lake City Bank Lake National Bank Litton Loan Servicing Los Alamos National Bank Marix Servicing, LLC Metropolitan National Bank Midwest Bank & Trust Co. Mission Federal Credit Union MorEquity, Inc. Mortgage Center, LLC Mortgage Clearing Corporation National City Bank Nationstar Mortgage LLC Navy Federal Credit Union Oakland Municipal Credit Union Ocwen Financial Corporation, Inc. OneWest Bank ORNL Federal Credit Union Park View Federal Savings Bank PennyMac Loan Services, LLC PNC Bank, National Association Purdue Employees Federal Credit Union QLending, Inc. Quantum Servicing Corporation Residential Credit Solutions RG Mortgage Corporation Roebling Bank RoundPoint Mortgage Servicing Corporation Saxon Mortgage Services, Inc. Schools Financial Credit Union SEFCU Select Portfolio Servicing Servis One Inc., dba BSI Financial Services, Inc. ShoreBank Silver State Schools Credit Union Sound Community Bank Specialized Loan Servicing, LLC Spirit of Alaska Federal Credit Union Stanford Federal Credit Union Sterling Savings Bank Technology Credit Union Tempe Schools Credit Union The Golden Credit Union U.S. Bank National Association United Bank of Georgia United Bank Mortgage Corporation Urban Trust Bank Vantium Capital, Inc. Verity Credit Union Vist Financial Corp. Wells Fargo Bank, NA 3 Wealthbridge Mortgage Corp. Wescom Central Credit Union Yadkin Valley Bank Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan Services and Wilshire Credit Corporation. J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 3 Wells Fargo Bank, NA includes Wachovia Mortgage FSB and Wachovia Bank NA.