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Making Home Affordable Program Servicer Performance Report Through March 2010 Report Highlights Inside: Over 230,000 Homeowners Granted Permanent Modifications Administration Housing Initiatives 2 • More than 230,000 total permanent modifications have been granted to homeowners, who are guaranteed lower payments for five years. Economic Indicators 3 • In addition, more than 108,000 permanent modifications have been approved by servicers and are pending borrower acceptance. HAMP Program Snapshot 4 Over 1.1 Million Trial Modifications for Homeowners Waterfall of HAMP‐Eligible • More than 1.1 million trial modifications have begun under the program. 5 • 57,000 new trial modifications were added in March, down from 72,000 in February, reflecting Borrowers servicers increasingly requiring upfront documentation from homeowners to comply with Characteristics of Permanent pending HAMP policy requirements. 6 • Borrowers realize immediate relief with the first trial payment. Modifications • More than 1.4 million homeowners have received offers for trial modifications. • Of the 1 million borrowers in active modifications (trial and permanent), more than 227,000 Selected Outreach Measures 6 borrowers are in permanent modifications. • The lower monthly mortgage payments for homeowners in HAMP represent a cumulative reduction of over $3 billion. Servicer Activity 7 Servicers Making Progress on Trial Modification Decisions HAMP Activity by State 8 • Over 60,000 trial modifications converted to permanent modifications in March, an increase of almost 15% from the nearly 53,000 in February. HAMP Activity by Metropolitan 9 Area HAMP Is One Part of the Administration Initiatives to Promote Housing and Financial Stability (see Page 2) Modifications by Investor Type 9 List of Non‐GSE Participants 10 1 Making Home Affordable Program Servicer Performance Report Through March 2010 Overview of Administration Housing Stability Initiatives Initiatives to Support Access to Affordable Mortgage Initiatives to Prevent Avoidable Foreclosures and Credit and Housing Stabilize Neighborhoods Lower Mortgage Rates and Access to Credit: Making Home Affordable – Modifications: • Continued financial support to maintain affordable • Offering up to 3-4 million homeowners assistance to help mortgage rates through the Government-Sponsored prevent avoidable foreclosures through 2012. Enterprises (GSEs). • More than 1.1 million homeowners have started trial • Interest rates remain near historic lows. Every 1% modifications and over 1.4 million offers for trial reduction in interest rate saves a new borrower a median of modifications have been extended to borrowers. $1,500 annually in mortgage payments. • Homeowners in permanent modifications have a median • Access to sustainable mortgages through the Federal payment reduction of over $500 per month. Homeowners in Housing Administration (FHA). trial and permanent modifications have had a reduction of • FHA Refinance options to help homeowners owing more over $3 billion in monthly mortgage payments in aggregate. than their homes are worth. Refinancing: State and Local Housing Initiatives: • Refinancing flexibilities and low mortgage rates have • Access for Housing Finance Agencies to provide allowed over 4 million borrowers with GSE mortgages to mortgages to first-time homebuyers, refinance refinance, saving an average of $150 per month and more opportunities for at-risk borrowers, and affordable rental than $7.0 billion over the past year. housing. Over 90 HFAs across 45 states are participating. Neighborhood Stabilization and Community Tax Credits for Housing: Development Programs: • Homebuyer credit to help hundreds of thousands of • Over $5 billion in Recovery Act support for the hardest hit American families buy new homes. communities to help stabilize neighborhoods. • Low-Income Housing Tax Credit (LIHTC) programs to • $2.1 billion HFA Innovation Fund for the Hardest Hit support affordable rental housing, with total funding of $5 Housing Markets to support innovative foreclosure billion. prevention efforts. 2 Making Home Affordable Program Servicer Performance Report Through March 2010 Mortgage Rates Housing Inventory 20 14 18 12 16 14 Conventional 30‐ 10 year Fixed Rate Months' supply of existing 12 8 homes at the current sales pace 10 6 Percent 8 Months 6 4 4 10‐year Treasury Rate Months' supply of new homes 2 2 at the current sales pace 0 0 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 1999 2002 2005 2008 Source: Federal Reserve. Source: National Association of Realtors. Home Prices New and Existing Home Sales Index: Jan 2000 = 100 1,600 7,000 Sales of existing homes 230 Case/Shiller 1,400 (right axis) 6,000 210 20‐city composite 190 1,200 5,000 170 1,000 4,000 150 Sales of new 800 homes (left axis) 130 Loan Performance 3,000 National Home 600 110 FHFA Price Index 2,000 Thousands 400 90 purchase‐only 70 index 200 1,000 50 0 0 1999 2002 2005 2008 1999 2002 2005 2008 Sources: S&P/Case-Shiller Home Price Index; LP/Haver Analytics; FHFA. Source: National Association of Realtors, Census Bureau. Note: Shaded areas indicate recessions. 3 Making Home Affordable Program Servicer Performance Report Through March 2010 Home Affordable Modification Program (HAMP) Snapshot HAMP Trials Started Program Inception Through March 20101 (Cumulative, by Month) 1,400,000 Number of Trial Period Plan Offers 1,200,000 1,166,925 2 1,436,802 1,109,588 Extended to Borrowers (Cumulative) 1,028,887 1,000,000 939,949 825,188 All HAMP Trials Started Since Program 800,000 1,166,925 712,969 Inception 600,000 554,293 Trials Converted to Permanent 419,163 230,801 400,000 Modifications 274,116 200,000 155,108 1 As reported by the HAMP system of record except where noted. 54,562 2 Source: Survey data provided by servicers. 0 May and June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March Prior Source: All trial modifications started by month first payment posted; based on numbers reported by servicers to the HAMP Home Affordable Modification Program (HAMP) Snapshot system of record. As of March 20101 Permanent Modifications Started Active Modifications (Trial and Permanent) 1,008,873 (Cumulative, by Month) 250,000 230,801 Active Trial Modifications 780,951 200,000 Active Permanent Modifications 227,922 170,207 Pending Permanent Modifications2 108,212 150,000 117,302 Trial Modifications Canceled 155,173 100,000 66,938 Permanent Modifications Canceled3 2,879 50,000 31,424 1 As reported by the HAMP system of record. 15,649 2 As reported by the top 21 servicers based on cap allocation; pending permanent modifications have been approved 4,742 by the servicer but have not yet been accepted by the borrower. While pending, modifications are reflected in the count of active trials. 0 3 Includes 37 loans paid off. September October November December January February March and Prior Additional information on HAMP can be found on MakingHomeAffordable.gov Source: HAMP system of record. 4 Borrowers may call the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673). Making Home Affordable Program Servicer Performance Report Through March 2010 Waterfall of HAMP-Eligible Borrowers Not all 60-day delinquent loans are eligible for HAMP. Other characteristics may preclude borrower eligibility. Based on the estimates, of the 6.0 million borrowers who were 60 days delinquent in the 4th quarter of 2009, 1.7 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 2012. 7 6.0 6 5 5.1 HAMP 4 4.3 Estimated Eligible 60+ Day 3.5 3.4 (Millions) Delinquent 3 HAMP- Borrowers Eligible 60+ 2.5 Loans 2 Day 2.1 1.7 Delinquent 1.7 1 Loans (GSE = Estimate and SPA Servicers) 0 1st Lien, 60+ Days Less: Non‐ Less: FHA or VA Less: Non‐Owner Less: Jumbo Non‐ Less: DTI Less Than Less: Negative NPV Less: Vacant Estimated HAMP‐ Delinquent Participating HAMP Occupied at Conforming Loans 31% Properties and Eligible Borrowers Servicer Origination and Loans Other Exclusions* Originated After 1/1/2009 •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 February 28,2010. Total 60+ delinquent figure from 4th quarter 2009 MBA delinquency survey. 5 Excluded loans are as reported by servicers by survey who have signed a servicer participation agreement for HAMP. Making Home Affordable Program Servicer Performance Report Through March 2010 Modification Characteristics Predominant Hardship Reasons for Permanent Modifications • Lower monthly mortgage payments for borrowers in active trial and permanent modifications represent a 1 cumulative reduction of more than $3 billion. Loss of Income 59.1% • The median savings for borrowers in permanent modifications is $512.39, or 36% of the median before- Excessive modification payment. 10.5% Obligation Permanent Modifications by Modification Steps: Illness of Principal Interest Rate Reduction 100% 2.8% Borrower Term Extension 38.9% 0% 20% 40% 60% 80% Principal Forbearance 27.6% 1 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 19.9% of permanent modifications reported as Other. Select Median Characteristics of Permanent Modifications Selected Outreach Measures Before After Median Loan Characteristic Modification Modification Decrease Servicer Solicitation of Borrowers (cumulative 4,077,912 Front-End Debt-to-Income since program inception)1 44.8% 31.0% ‐13.9 pct pts Ratio1 Back-End Debt-to-Income Page views on MHA.gov (March 2010) 7,064,803 77.5% 61.3% ‐14.4 pct pts Ratio2 Median Monthly Payment3 $1,428.46 $841.61 ‐$512.39 Page views on MHA.gov (cumulative) 73,545,446 1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners Percentage to Goal of 3-4 Million Modification 36-48% association and/or condo fees) to monthly gross income.
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