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November Housing Scorecard: "Homeowners' Equity $1.5T Higher than 2009"
The November edition of the Obama
Administration's Housing Scorecard notes that home values are continuing to
rise and home sales remained strong during October. The Scorecard is issued jointly by the
Departments of Treasury and Housing and Urban Development (HUD)
Poethig, HUD Acting Assistant Secretary for Policy Development and Research
said that the Administration's efforts to speed housing recovery are showing
continued progress. "Six consecutive months of rising home prices have bolstered homeowners'
equity, which is now $1.5 trillion higher than in April 2009," she said. "But with so many households still struggling
to make ends meet, we have important work ahead. That is why we are asking
Congress to approve the President's refinancing proposal so that more
homeowners can receive assistance."
The Scorecard is a summary of recent housing
data from a number of sources such as the Census Bureau, RealtyTrac and
S&P/Case-Shiller. Much of the data,
such as housing permits and starts, home prices, and foreclosure data have been
previously reported by MND. The
Scorecard also incorporates by reference the monthly report on the various
foreclosure prevention programs operated under the umbrella of the Making Home
Affordable (MHA) program including the Home Affordable Modification Program
(HAMP.), the Unemployment Program (UP) and the Principal Reduction Alternative
(PRA), . That MHA report, covering
program operations through the end of October, also includes results of quarter
assessments of servicers participating in the programs.
Since the end of the previous reporting
period HAMP has started 13,403 trial modifications and converted 16,003 trial
modifications to permanent status. A
total of 1.94 million borrowers have started trials since the program began in
April 2009 and 1.11 million trials have been converted to permanent
status. There are currently 840,838 active
permanent modifications. Borrowers who
have received permanent modifications have reduced their monthly mortgage
payments by a median amount of $542 a month for aggregate savings of $16.2 billion
since the program began.
The Second Lien Modification Program
(2MP) has initiated 99,157 second lien modifications over the life of the
program, 793 of them in October. Second
liens were extinguished for 24,617 borrowers and 5,765 were partially extinguished. The median value of extinguished loans was
$61,960 and the median value of the partial extinguishment was $9,125. In addition, modifications were made to
68,088 second liens.
The Principal Reduction Alternative
(PRA) is a program to reduce principal on loans as part of a modification. The Treasury Department incentivizes this program
and there have been 104,191 principal reductions through HAMP and another
33,361 PRA modifications have been done outside of HAMP. Since September 3,467 PRA modifications have
been started under HAMP and 1,342 outside of HAMP. Modifications including PRA have outstanding
principal balances totally $8 billion. Loans
owned by either Freddie Mac or Fannie Mae are not permitted to participate in
the reduction program.
The UP program granted forbearance to
1,040 employed homeowners since the last report and 28,071 over the life of the
program. More than 80 percent of the
forbearances have required that borrower make some payment during the
Home Affordable Foreclosure Alternative
(HAFA) transactions numbered 4,800 during the recent period and 80,263 since
the program began. About 2,000
homeowners have surrendered their homes through deeds-in-lieu of foreclosure
while the remaining 78,260 completed short sale transactions. Over 11,000 HAFA transactions are active and
not included in the other numbers.
There have been a total of 1.32 million
homeowners who have completed an MHA program, 24,911 of them in the most recent
Servicer assessments for the third
quarter found that seven servicers needed moderate improvement in some areas
and two others needed minor improvements.
Servicers in need of moderate improvement were Bank of America,
CitiMortgage, GMAC Mortgage, Homeward Resident, JPMorgan Chase Bank, Ocwen Loan
Servicing, and Wells Fargo Bank. OneWest
Bank and Select Portfolio were found to need minor improvements. The assessments focus on three categories of
program implementation; identifying and contacting
homeowners; homeowner evaluation and assistance; and program reporting,
management and governance. Metrics used to measure performance included such
measures as conversion rates, percentage of aged trials, missing modification
status reports, and average calendar days to resolve escalated cases.
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