The Departments of Treasury and Housing
and Urban Development have released their joint November 2011 Housing
Scorecard. The report is essentially a
summary of data on housing and housing finance released by public and private
sources over the previous month and/or quarter.
Most of the data such as new and existing home sales, permits and starts,
mortgage originations, and various house price evaluations have been previously
covered by MND.
The scorecard incorporates by reference
the monthly report of the Making Home Affordable Program (MHA) through the end
of October. This includes information on
the universe of MHA programs including the Home Affordable Modification Program
(HAMP), HOPE Now, and Second Lien Modifications.
During the month of October HAMP
servicers initiated 21,445 new trial modifications and converted 26,102 trial
modifications to current status. Since
the program was started in April, 2009 there have been 1,735,457 trials started
and 883,076 permanent modifications.
Slightly more than 85,000 borrowers remain in active trials. The time a borrower spends in trial status
continues to improve and now stands at 3.5 months. Over
the course of the program 147,600 permanent modifications have been canceled
and 735,464 modifications remain in force.
Since October 2010 servicers have been
required to evaluate all loans with a loan to value ratio (LTV) greater than
115 for their appropriateness for inclusion in the Principal Reduction
Alternative (PRA) program. While
servicers are not required to reduce the principal of any given loan, they must
evaluate each loan when assessing it for HAMP.
Servicers are paid an incentive for every dollar of principal forgiven
on a sliding fee scale and depending on the degree to which the unmodified
balance of the loan is greater than the market value of the home. Loans belonging to either of the two GSEs are
specifically exempted from PRA.
To date there have been 53,323 trial PRA
modifications started and 33,376 permanent modifications including it. The median principal amount reduced on a loan
in an active permanent modification is $65,172 or 31.3 percent and these loans
dropped from a median LTV of 158 percent to a post modification LTV of 115
The ten largest servicers account for 97
percent of the modifications started with PRA and the top three servicers (Bank
of American, Wells Fargo, and JP Morgan Chase) account for 68 percent. Three states (California, Florida and
Illinois) are home to 42 percent of all HAMP modifications and 53 percent of
those with PRA.
The Second Lien Modification Program
(2MP) has now initiated 50,434 second lien modifications, 8,634 of which
resulted in full extinguishment of the lien and 1,569 in partial
extinguishments. There are 40,878 second
liens in modification including the partially extinguished liens.
The Home Affordable Foreclosure
Alternatives Program (HAFA) assists borrowers who wish to surrender their homes
short of foreclosure, usually through a short sale. To date 34,605 homeowners have entered the
program and 20,701 have completed HAFA transactions; 591 through a deed in lieu
of foreclosure and the remainder through short sales.
HAMP is reporting that during the third
quarter only one servicer, JP Morgan Chase Bank was found to be in need of
substantial improvement following the MHA Servicer Assessments. As has been the case in each of the periods
since the assessment program began, the Treasury Department will withhold all
servicer incentives owed to JP Morgan Chase.
Seven servicers were found to need
moderate improvement but only one, Bank of America, will have servicer
incentives withheld until it makes additional improvements. The remainder of the servicers needing
moderate improvements has been put on notice that they may have incentives
withheld in the future unless identified improvements are made.
Treasury Calls Out JPMorgan in Servicer Assessments