HAMP Servicers Continue to Improve on Assessments: Housing Scorecard


U.S. Department of Housing and Urban Development (HUD) and the U.S. Department
of the Treasury today released the February edition of the Obama
Administration’s Housing Scorecard.  The
Scorecard is a summary of housing data from various sources such as the
SP/Case-Shiller house price indices, the National Association of Realtors®
existing home sales report, Census data, and RealtyTrac foreclosure
information.  Most of the information has
already been covered by MND.

Scorecard is accompanied with the monthly report on the various programs
operated by the Making Home Affordable (MHA)  Program including the Home Affordable
Modification Program
(HAMP), the Second Lien Modification Program (2MP), and
Principal Reduction Alternatives
The current report contains program activity through the end of January
2012.  The February report also includes
the Fourth Quarter 2012 assessments of the largest mortgage servicers participating
in the program. 

For the fourth quarter of 2012, two servicers were found to
need only minor improvement in the areas reviewed for program performance,
while seven servicers were found to need moderate improvement.  The two servicers needing minor improvement
were GMAC Mortgage and
OneWest Bank.  Those needing moderate
improvement were Bank of America, CitiMortgage, Homeward Residential,  JPMorgan Chase Bank, Ocwen Loan Servicing, Select
Portfolio Servicing, and Wells Fargo Bank.  

MHA says
that while servicer performance in any particular category can fluctuate, in
general servicers continue to show improvement in program implementation and
highlighted the progress in two areas. 
In one, the “second look disagree” category in which reflects the rate
at which the Treasury Department’s program reviews disagree with the servicers
decision to find a homeowner ineligible for assistance the disagree rate for
the top servicers was below two percent.

also found that servicers are continuing to accurately calculate homeowner
income, finding the average income calculation error rate decreased from the
previous quarter and three servicers had a zero percent error rate. 

the end of December and the end of January MHA’s activity included the
initiation of 24,106 first lien modifications, 11,654 of which were through
HAMP, and 14,858 HAMP permanent modifications. The remainder of the modifications initiated
were standard modifications by the government sponsored enterprises Freddie Mac
and Fannie Mae.  

2MP program initiated 2,165 second lien modifications and the HAFA program
concluded 13,322 transactions, the vast majority of which were short
sales.  There were also 811 forbearance
plans started through UP.  

the implementation of MHA programs there have been 1,264,711 first lien
modifications initiated, 1,151,340 through HAMP.  The second lien modification program has
initiated 105,437 modifications and the UP plan 30,525 forbearance plans.  HAFA has completed foreclosure alternative
transactions for 114,417 borrowers.

$25 billion National Mortgage Settlement in February 2012 has caused servicers
to increase their use of principal reductions in their loan modifications.  Sixty-nine percent of non-GSE modifications
started in January included principal reduction but only 55 percent were done
through the HAMP PRA) which offers servicers incentives for participating.  MHA says that principal reductions granted
outside of the HAMP PRA program since February 2012 are likely attributable to
the settlement.

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