treasury_hamp_report_201005.pdf

7/21/2019 treasury_hamp_report_201005.pdf

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HAMP Program

Snapshot 2

Characteristics of Permanent

Modifications 3

Servicer Activity 4

Disposition Path

Of Canceled Trials 5

Compliance Activities 6

Borrower Outreach 7

Waterfall

of

HAMP‐

Eligible

Borrowers 7

HAMP Activity by State 8

HAMP Activity by Metropolitan

Area 9

Modifications by Investor Type 9

List of Non‐GSE Participants 10

Definitions of

Compliance Activities 11

Inside:

1

Making Home Affordable ProgramServicer Performance Report Through May 2010

Report Highl ights

Nearly 350,000 Homeowners Granted Permanent Modifications• Total number of permanent modifications increases more than 15%, with growth in

permanent modifications averaging more than 50,000 per month over the last fourmonths.

• Homeowners in permanent modifications are experiencing a median payment reductionof 36%, more than $500 per month.

• Homeowners in permanent modifications are guaranteed lower payments for five years,

then fixed terms at today’s low rates for the life of the loan.

Servicers Continue to Work Through Aged Trial Population• Cancellations rise as servicers comply with Treasury guidance to make decisions on

aged trials. Of the new canceled trials this month, more than 70% had been in trial sixmonths or longer.

• Most homeowners in canceled trials become current on mortgage payments or enter an

alternative modification, according to servicers.• Common causes of cancellations include borrowers who had mortgage payments

already less than 31% of their income, missed trial payments or had incomplete orunverifiable documentation.

New This Month: Disposition Path of Canceled Trials• According to servicer data, nearly half of homeowners unable to enter a HAMP

permanent modification enter an alternative modification with their servicer.• Fewer than 10% of canceled trials move to foreclosure sale, servicers report.

New This Month: Description of Compliance Activ ities• Making Home Affordable-Compliance disagreed with servicer actions in just 3.9% of

Second Look reviews.• Compliance places continued focus on borrower solicitation and document retention.



• Lower monthly mortgage payments for borrowers in active

trial and permanent modifications represent a cumulativereduction of more than $3.1 billion.

• The median savings for borrowers in permanentmodifications is $514.31, or 36% of the median before-modification payment.

Interest Rate Reduction 100%

Term Extension 53.7%

Principal Forbearance 28.8%

3.0%

10.4%

60.3%

0% 20% 40% 60% 80%

Illness of Principal

Borrower

Excessive

Obligation

Loss of

Income

Loan Characteristic

Before

Modification

Af ter

Modification

Median

Decrease

Front-End Debt-to-IncomeRatio1 44.8% 31.0%

‐13.9

pct

pts

Back-End Debt-to-IncomeRatio2

79.8% 63.8% ‐14.4 pct pts

Median Monthly Payment3 $1,425.53 $836.85 ‐$514.31

1 Includes borrowers who are employed but have faced a reduction in hours and/or wages as well asthose who have lost their jobs.

Note: Does not include 17.6% of permanent modifications reported as Other.

1 Ratio of housing expenses (principal, interest, taxes, insurance and homeownersassociation and/or condo fees) to monthly gross income.2 Ratio of total monthly debt payments (including mortgage principal and interest, taxes,

insurance, homeowners association and/or condo fees, plus payments on installmentdebts, junior liens, alimony, car lease payments and investment property payments) tomonthly gross income. Borrowers who have a back-end debt-to-income ratio of greaterthan 55% are required to seek housing counseling under program guidelines.3 Principal and interest payment. 3

1


Modification Characteristics

Loan Status Upon Entering Trial

Permanent Modifications by Modification Step

Select Median Characteristics of Permanent Modif ications

Predominant Hardship Reasons for Permanent Modifications

In Default

at Trial

Start:

77.1%

At Risk of

Default at

Trial Start:

22.9%

Note: For all trial modifications started.“At Risk of Default” includes borrowers up to 59 days delinquent at trial entry as well asthose in imminent default. “In Default” refers to borrowers 60 or more days late at trial entry.



5


Disposition Path

Trials Canceled Through Apri l 2010 (8 Largest Servicers) 1

Borrowers who

are

in,

or

are

in

the

process

of

receiving:

Action

Pending2

Borrower in

Bankruptcy

Borrower

Current

Alternative

Modification

Payment

Plan3

Loan

Payoff

Short

Sale/Deed in

Lieu Foreclosure4

Total

(As of April

2010)

American Home Mortgage

Servicing, Inc. 65 8 50 6 9 1 ‐‐ 8 147

Bank of

America,

NA5 12,014 829 1,286 13,928 690 140 489 336 29,712

CitiMortgage Inc. 15,665 5,469 6,556 26,446 932 433 23 5,083 60,607

GMAC Mortgage Inc. 1,481 189 1,039 3,808 434 133 251 652 7,987

JP Morgan Chase Bank NA6 12,765 0 4,080 8,113 33 1 187 0 25,179

Litton Loan Servicing LP 3,385 143 617 389 98 65 277 1,223 6,197

OneWest Bank 1,733 108 209 960 63 5 378 861 4,317

Wells Fargo Bank NA7 3,502 254 5,103 41,188 526 1,382 2,454 5,501 59,910

TOTAL

(These 8 Servicers)

50,610

26.1%

7,000

3.6%

18,940

9.8%

94,838

48.9%

2,785

1.4%

2,160

1.1%

4,059

2.1%

13,664

7.0%

194,056

100%

Note: Data is as reported by servicers for actions completed through April 30, 2010.1 As defined by cap amount.2

Trial loans that have been canceled, but no further action has yet been taken.3 An arrangement with the borrower and servicer that does not involve a formal loan modification.4 Foreclosure actions started and completed foreclosure sales.5 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan

Services and Wilshire Credit Corporation.6 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation.7 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB.

Excludes Wachovia Mortgage FSB Pick-a-Payment Loans.

Note: Excludes cancellations pending data corrections. Alternate

Modification

Action Pending

Borrower Current

Foreclosure

Bankruptcy

Short Sale/Deed

in Lieu

Payment Plan Payoff



8

Note: Includes active trial andpermanent modifications from theofficial HAMP system of record.

Source: Mortgage Bankers Association. Data is as of 1st

Quarter 2010.

State

Act ive

Trials

Permanent

Modif icat ions Total

% of

Total State

Act ive

Trials

Permanent

Modif icat ions Total

% of

Total AK 230 153 383 0.0% MT 606 377 983 0.1%

AL 3,081 2,092 5,173 0.6% NC 9,286 6,759 16,045 2.0%

AR 1,263 880 2,143 0.3% ND 111 64 175 0.0%

AZ 21,622 18,361 39,983 4.9% NE 646 480 1,126 0.1%

CA 104,280 73,700 177,980 22.0% NH 1,937 1,660 3,597 0.4%

CO 6,423 4,960 11,383 1.4% NJ 15,268 11,192 26,460 3.3%

CT 5,835 4,497 10,332 1.3% NM 1,640 1,116 2,756 0.3%

DC 920 538 1,458 0.2% NV 12,150 9,305 21,455 2.7%

DE 1,431 1,158 2,589 0.3% NY 22,868 13,522 36,390 4.5%

FL 58,100 41,272 99,372 12.3% OH 10,035 7,692 17,727 2.2%

GA 18,223 12,759 30,982 3.8% OK 1,337 835 2,172 0.3%

HI 1,744 1,254 2,998 0.4% OR 5,074 3,918 8,992 1.1%

IA 1,343 913 2,256 0.3% PA 10,107 7,215 17,322 2.1%

ID 1,735 1,352 3,087 0.4% RI 2,052 1,844 3,896 0.5%

IL 24,503 18,065 42,568 5.3% SC 4,636 3,421 8,057 1.0%

IN 4,657 3,516 8,173 1.0% SD 223 121 344 0.0%

KS 1,270 875 2,145 0.3% TN 5,040 3,735 8,775 1.1%

KY 1,903 1,373 3,276 0.4% TX 16,030 8,431 24,461 3.0%

LA 2,724 1,700 4,424 0.5% UT 4,079 3,174 7,253 0.9%

MA 10,326 8,622 18,948 2.3% VA 11,418 8,826 20,244 2.5%

MD 15,033 11,623 26,656 3.3% VT 338 291 629 0.1%

ME 1,150 1,018 2,168 0.3% WA 9,089 6,803 15,892 2.0%

MI 14,766 11,871 26,637 3.3% WI 4,414 3,514 7,928 1.0%

MN 7,531 6,923 14,454 1.8% WV 712 565 1,277 0.2%

MO 5,345 3,917 9,262 1.1% WY 241 179 420 0.1%

MS 1,685 1,330 3,015 0.4% Other* 1,212 698 1,910 0.2%

* Includes Guam, Puerto Rico and the U.S. Virgin Islands.


60+ Day Delinquency Rate

5.0% and lower 10.01% - 15.0% 20.01%

5.01% - 10.0% 15.01% - 20.0% and higher

HAMP Modifications

5,000 and lower 20,001 – 35,000

5,001 – 10,000 35,001 and higher

10,001 – 20,000

HAMP Activity by State Modification Activity by State

Mortgage Delinquency Rates by State

treasury_hamp_report_201005.pdf

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