The Departments of Housing and Urban Development and
Treasury issued their joint Housing Scorecard on Monday. The Scorecard summarizes information on home
sales, mortgage originations, delinquencies and foreclosures, home prices, loan
modifications, and other housing related data, most of which is covered by
Mortgage News Daily as it is released from its original sources.
The Scorecard this month makes note of the
Neighborhood Stabilization Program which it said has completed 28,000 units of
new or rehabilitated housing through its grantees through the end of the third
quarter. Direct assistance to
homeowners reached the 10,500 mark.
The Scorecard includes by reference the monthly
report of the Making Home Affordable or MHA Program which is the umbrella under
which most of the administration's foreclosure prevention initiatives
operate. Chief among these is the Home
Affordable Modification Program (HAMP) which modifies first lien loans for both
private investors and the government sponsored enterprises Freddie Mac and
HAMP servicers initiated 13,655 trial modification
plans in October, bringing the total since the program began in the spring of
2009 to 2.12 million. Since the
September report 16,383 trial modifications were converted to permanent status,
bringing permanent modifications to a total of 1.29 million. Of those 917,138 modifications are still
The Home Affordable Foreclosure Alternatives (HAFA)
program has assisted 237,687 homeowners exit homeownership without undergoing a
foreclosure. Short sales have accounted
for 221,886 of those actions and 15,801 were completed through a deed in lieu
The Second Lien Modification Program (2MP) has
initiated 121,252 second lien modifications and 77,713 are active. Full lien extinguishments, at a median amount
of $61,242 have been completed for 31,119 homeowners and partial
extinguishments at a median of $10,116 have been completed for 9,507.
The November MHA report also contains the results of
the third quarter Servicer Assessments.
Since the beginning of MHA Treasury has required participating servicers to take specific
actions to improve their processes through ongoing program reviews and the Assessments
summarize performance in three categories of program implementation:
identifying and contacting homeowners; homeowner evaluation and assistance; and
program management and reporting.
The Assessment has been enhanced for
the third quarter to present new compliance metrics and benchmarks. The report says these changes will provide
additional insight into the impact of servicer performance on the borrower's
experience, allow for trending analysis of all compliance metrics and foster
further improvement in servicer performance by tightening performance
benchmarks. In addition to tightening
benchmarks for existing compliance metrics and removing three existing metrics
the changes include the addition of three new ones such as timely assignment of
a single point of contact.
Three servicers were found to need
minor improvement, three servicers were found to need moderate improvement and
one servicer, Citi, was found to need substantial improvement. All servicers will
need to continue to demonstrate progress in areas identified in program
reviews. Although this quarter's results indicate one servicer needs
substantial improvement, on average servicer performance has improved since the
inception of the Servicer Assessment reports. This is evidenced by an
average income calculation error rate of 0.8 percent for this quarter.
"The standards set by the
Making Home Affordable program have transformed the mortgage servicing
industry, as have our quarterly servicer assessments," said Treasury Deputy
Assistant Secretary Tim Bowler. "While the country as a whole has made significant
progress, there is still room for improvement for servicers and the Treasury is
committed to applying pressure on the mortgage servicing industry to improve
servicer behavior. Although the housing market has largely recovered, there are
still homeowners struggling and it is key that we continue to help them."