U.S. Department of Housing and Urban Development (HUD) and the U.S. Department
of the Treasury today released the January edition of the Obama
Administration's Housing Scorecard. The
Scorecard is a summary of housing data from various sources such as the
S&P/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 month report on the various programs operated
by the Making Home Affordable program
including the Home Affordable Modification Program (HAMP), the Second Lien
Modification Program (2MP), and Principal Reduction Alternatives (PRA). The current report contains program activity
through the end of November 2012.
Activity under the various programs
operated under MHA has now reached 1.43 million borrowers. The majority of these, 1.12 million have been
serviced through HAMP but standard modifications have been done through the
GSEs for 84,961 borrowers; FHA and RD HAMP permanent modifications have been
completed for 10,463 borrowers. There
have been 101,722 2MP modifications, 29,050 UP Forbearance Plans and 85,881
Home Affordable Foreclosure Alternatives completed.
the overall improvement in the housing market borrowers are continuing to
utilize the various MHA programs. Since
October data was released there have been 21,816 new entrants into the HAMP
program and 15,399 borrowers have converted their modifications from trial
status to permanent modifications. In addition to the 1.21 million permanent
modifications since the program began almost 68,000 borrowers remain in trial
has now begun reporting on Tier 2 modifications. Tier 1 modifications follow a series of
waterfall steps including interest rate adjustment, term extension, and
principal forbearance. Tier 2 provides
another opportunity for borrowers who do not qualify for Tier 1 or who fall out
of a Tier 1 trial. There have been 4,174
Tier 2 modification trials started over the life of the program and 331
permanent modifications. Of those
starting a Tier 2 modification 39 percent were previously in a Tier 1 trial or
permanent modification and 22 percent were evaluated for but did not qualify
for a Tier 1 trial.
2MP program is available to borrowers when second mortgages interfere with
their ability to obtain a modification of the senior lien. Servicers attempt to work with the second
lienholder to modify or erase the 2nd lien so modifications of the
first lien can proceed.
data the program has identified 123,638 second liens that appear eligible for
2MP and 82 percent or 101,722 of these liens have been modified. About a quarter of these modifications
involve full extinguishments of the second lien and 68,559 liens were modified.
most controversial of the MHA programs has been the PRA or Principal Reduction
Alternative program. Principal
reductions are offered as a part of the loan modification arsenal but not for
GSE loans. This has been the subject of
considerable conflict between the GSE's conservator the Federal Housing Finance
Agency (FHFA) and Congress. To data
servicers have started 110,482 PRA modifications under HAMP and 85,361 permanent
modifications. There have been 3,652
permanent HAMP PRA modifications started since the last MHA report. Servicers have started another 146,141 trial
modifications using non-HAMP principal reduction guidelines and 113,439
"The Obama Administration's efforts
to speed housing recovery are showing continued progress as the January
scorecard indicators highlight clear forward momentum in the housing market,"
said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. "The
housing market has clearly bottomed out nationally and is turning a corner with
new home construction increasing to a level not seen since June 2008 and home
prices showing strong annual gains. But with so many households still
struggling, we have important work ahead."