Making Home Affordable

Program Performance Report Through February 2014

Report Highlights

Nearly 2 Million Homeowner Assistance Actions Taken through Making 

Home Affordable

• More than 1.3 million homeowners have received a permanent modification through 

the Home Affordable Modification Program (HAMP). Homeowners have reduced their 

first lien mortgage payments by a median of approximately $543 each month – almost 

40% of their median before-modification payment – saving a total estimated $26.1 

billion to date in monthly mortgage payments. 

• Homeowners currently in HAMP permanent modifications with some form of principal 

reduction have been granted an estimated $13.5 billion in principal reduction. Of all 

non-Government Sponsored Enterprise (GSE) loans eligible for principal reduction 

entering HAMP in February, 62% included a principal reduction feature.

• Nearly 273,000 homeowners have exited their homes through a short sale or deed-inlieu of foreclosure with assistance from the Home Affordable Foreclosure Alternatives 

Program (HAFA). 

This Month’s Feature: The Second Lien Modification Program (2MP)

• Nearly 130,000 second lien modifications have been started through the Second Lien 

Modification Program (2MP). 

• Homeowners in 2MP with an active permanent modification save a median of $152 per 

month on their second mortgage, resulting in a median total first and second lien 

monthly payment reduction of $784, or 42% of their median before-modification 

payment. Homeowners who receive a full extinguishment of their second lien receive 

a median total first and second lien monthly payment reduction of $1,047, or 53% of 

their before-modification payment. 

Note: For information and quarterly updates about the Hardest Hit Fund, please visit the website for the 

Hardest Hit Fund or the TARP Monthly Report to Congress.

Inside:

SUMMARY AND PROGRAM RESULTS:

Making Home Affordable Program Summary 2

HAMP Summary 3

PRA, Treasury FHA-HAMP and UP Summary 4

HAFA and 2MP Summary 5

Featured Program Results: 2MP 6

HAMP Modification Characteristics 7

HAMP Activity by State and MSA 8

Homeowner Outreach 9

SERVICER RESULTS:

HAMP, PRA, 2MP, and HAFA Activity 10

HAMP Modification Activity 11

Outreach to 60+ Day Delinquent Homeowners 12

Average Delinquency at Trial Start 13

Conversion Rate 14

Disposition of Homeowners Not in HAMP 15

APPENDICES:

Terms and Methodology 16

Program Notes 17

End Notes 18

Participants in MHA Programs 19-20
Making Home Affordable: Summary Results

Program Performance Report Through February 2014

Program Purpose

MHA First Lien 

Modifications

The Home Affordable Modification Program (HAMP) 

provides eligible borrowers the opportunity to lower their 

first lien mortgage payment to affordable and sustainable 

levels through a uniform loan modification process. 

Effective June 2012, HAMP's eligibility requirements were 

expanded to include a "Tier 2" evaluation for non-GSE 

loans that is modeled after the GSE Standard Modification 

and includes properties that are currently occupied by a 

tenant as well as vacant properties the borrower intends 

to rent. FHA-HAMP and RD-HAMP provide first lien 

modifications for distressed borrowers in loans 

guaranteed through the Federal Housing Administration 

and Rural Housing Service.

Second Lien 

Modification Program 

(2MP)

Provides modifications and extinguishments on second 

liens when there has been an eligible first lien 

modification on the same property.

Home Affordable 

Foreclosure 

Alternatives (HAFA)

Provides transition alternatives to foreclosure in the form 

of a short sale or deed-in-lieu of foreclosure. Effective 

November 2012, the GSEs jointly streamlined their short 

sale and deed-in-lieu of foreclosure programs. The GSE 

Standard HAFA program is closely aligned with Treasury’s 

MHA HAFA program. A short sale requires a third-party 

purchaser and cooperation of junior lienholders and 

mortgage insurers to complete the transaction.

Unemployment 

Program (UP)

Provides temporary forbearance of mortgage principal to 

enable unemployed borrowers to look for a new job 

without fear of foreclosure.

The Making Home Affordable Program was launched in March 2009 with the Home Affordable Modification Program (HAMP), which provides assistance to struggling homeowners 

by lowering monthly first lien mortgage payments to an affordable level. Additional programs were subsequently rolled out to expand the program’s reach.

Making Home Affordable Program Activity

2 Source: HAMP system of record for HAMP, 2MP, HAFA, FHA-HAMP, and RD-HAMP. UP participation is reported via 

servicer survey. GSE Standard Modification and GSE Standard HAFA data provided by Fannie Mae and Freddie Mac.

In total, the MHA program has completed nearly 2 million first and second lien permanent modifications, HAFA transactions, and UP forbearance plans.

Program-to-Date Reported Since Prior 

Period

MHA First Lien Permanent Modifications 

Started* 1,555,377 19,324

2MP Modifications Started 129,674 3,127

HAFA Transactions Completed 272,933 6,386

UP Forbearance Plans Started (through 

January 2014) 38,652 207

Cumulative Activity1 1,996,636 29,044

MHA Program Activity

1,515 1,550 1,588 1,624 1,665 1,703 1,740 1,791 1,826 1,864 1,900 1,935 1,968 1,997

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Jan

2013

Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan

2014

Feb

Cumulative MHA Activity (000s)

Cumulative Transactions Completed

*Program-to-Date Total Includes :

• 1,339,742 GSE and Non-GSE HAMP permanent modifications

• 29,097 FHA- and RD-HAMP modifications

• 186,538 GSE Standard Modifications since October 2011 under the GSEs’ 

Servicer Alignment Initiative

See Appendix for Terms and Methodology, Program Notes, End Notes and additional 

information on servicer participants in Making Home Affordable programs. 
Making Home Affordable: Summary Results

Program Performance Report Through February 2014

Cumulative Trial Starts (Left Axis)

Monthly Trial Starts (Right Axis)

HAMP (First Lien) Modifications

3

HAMP Trials Started

Servicers may enter new trial modifications into the HAMP system of record at any time. For example, 10,184 trials 

have entered the HAMP system of record since the prior report; 8,523 were trials with a first payment recorded this 

month.

HAMP Permanent Modifications Started (Cumulative)

1,151 1,167 1,179 1,191 1,206 1,223 1,237 1,256 1,269 1,285 1,298 1,312 1,327 1,340

600

700

800

900

1,000

1,100

1,200

1,300

1,400

Jan

2013

Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan

2014

Feb

All Permanent Modifications Started 

(000s)

1,984

1,999

2,016

2,034

2,055

2,071

2,088

2,103

2,116

2,129

2,143

2,156 2,165 2,174

0

5

10

15

20

25

30

35

40

45

50

1,850

1,900

1,950

2,000

2,050

2,100

2,150

2,200

Jan

2013

Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan

2014

Feb

New Trials Started (000s)

All Trials Started (000s)

HAMP Activity Through February 2014 Total

Trial

Modifications

All Trials Started 2,173,922

 Tier 1 2,110,019

 Tier 2 63,903

Trials Reported Since Last Report2 10,184

Active Trials 50,798

Trial Modifications Cancelled since Verified Income 

Requirement* 80,334

Permanent Modifications

All Permanent Modifications Started 1,339,742

 Tier 1 1,295,670

 Tier 2 44,072

Permanent Modifications Reported Since Last Report 12,455

Permanent Modifications Disqualified (Cumulative)** 375,071

Active Permanent Modifications 939,008

Estimated Eligible Loans and Borrowers

Under the original HAMP program, launched in March 2009, now referred to as “Tier 1,” eligible 

loans include conventional loans more than 60 days delinquent (unless the borrower is in 

imminent default), that originated on or before January 1, 2009 with a current unpaid principal 

balance below the maximum conforming loan limit and were owner-occupied at origination.

Homeowners who have HAMP-eligible loans may qualify for Tier 1 if they meet additional criteria 

including, but not limited to requiring: a debt-to-income ratio greater than 31%, occupancy, 

employment, and pooling and servicing agreement eligibility. Based on current estimates, of the 3 

million homeowners who are currently 60+ days delinquent, an estimated 500,000 homeowners 

are potentially eligible for HAMP Tier 1.

On January 27, 2012, Treasury announced an expansion of the eligibility for HAMP to reduce 

additional foreclosures and help stabilize neighborhoods. The eligibility was expanded for non-GSE 

loans to (1) allow for more flexible debt-to-income criteria and (2) include properties that are 

currently occupied by a tenant, as well as vacant properties which the borrower intends to rent. 

This expanded HAMP criteria, referred to as HAMP “Tier 2,” became effective on June 1, 2012 

(although not all servicers began offering Tier 2 modifications on that date). 

* When Treasury first launched HAMP in the spring of 2009, servicers were not required to verify a borrower’s 

income prior to commencing a trial modification. This was the policy because of the severity of the crisis, the 

number of homeowners already in default, and the fact that servicers had not yet built the systems to fully 

implement the program. However, this resulted in many trials being cancelled once income was verified. 

Treasury required all servicers to verify a borrower’s income as of June 2010, which substantially lowered trial 

cancelations. Prior to that date, 703,048 trials were cancelled, for a cumulative of 783,382. ** Does not include 25,663 loans paid off.
Making Home Affordable: Summary Results

Program Performance Report Through February 2014

4

The Treasury MHA Unemployment Program (UP) provides a temporary forbearance to 

homeowners who are unemployed. Under Treasury guidelines, unemployed 

homeowners must be considered for a minimum of 12 months’ forbearance. 

All UP Forbearance Plans Started 38,652

UP Forbearance Plans With Some Payment Required 32,894

UP Forbearance Plans With No Payment Required 5,758

Unemployment Program (UP) Activity

The Treasury FHA-HAMP Program provides assistance to eligible homeowners with 

FHA-insured mortgages.

All Treasury FHA-HAMP Trial Modifications Started 48,766

All Treasury FHA-HAMP Permanent Modifications Started 28,945

Treasury FHA-HAMP Modification Activity

HAMP Principal Reduction Activity

Servicers of non-GSE loans are required to evaluate the benefit of principal reduction under the HAMP Principal Reduction Alternative (PRA) for mortgages with a loan-to-value (LTV) 

ratio greater than 115% when evaluating a homeowner for a HAMP first lien modification. While servicers are required to evaluate homeowners for principal reduction, they are not 

required to reduce principal as part of the modification. The MHA Program allows servicers to provide principal reduction on HAMP modifications in two ways: 

•Under HAMP PRA, principal is reduced to lower the LTV, the investor is eligible to receive an incentive on the amount of principal reduced, and the reduction vests over a 3-year 

period.

•Servicers can also offer principal reduction to homeowners on a HAMP modification outside the requirements of HAMP PRA. If they do, the investor receives no incentive payment 

for the principal reduction and the principal reduction can be recognized immediately. 

Of all non-GSE loans eligible for principal reduction that started a trial in February 2014, 62% included a principal reduction feature, including 55% through the HAMP PRA program. 

HAMP Modifications 

with Earned Principal 

Reduction Under PRA3

HAMP Modifications 

with Upfront Principal 

Reduction Outside of 

PRA

Total HAMP 

Modifications with 

Principal Reduction

All Trial Modifications Started 168,137 50,612 218,749

Trials Reported Since Last Report 2,903 391 3,294

Active Trial Modifications 12,469 2,102 14,571

All Permanent Modifications Started 142,915 44,819 187,734

Permanent Modifications Reported Since Last Report 3,042 715 3,757

Active Permanent Modifications 117,826 37,577 155,403

Median Principal Amount Reduced for Active Permanent Modifications4 $72,377 $56,591 $67,479 

Median Principal Amount Reduced for Active Permanent Modifications (%)5 32.5% 18.0% 30.5%

Total Outstanding Principal Balance Reduced on Active Permanent Modifications4 $10,949,198,057 $2,590,443,292 $13,539,641,348 
Making Home Affordable: Summary Results

Program Performance Report Through February 2014

5

Second Lien Modification Program (2MP) Activity 

The Second Lien Modification Program (2MP) provides assistance to homeowners in a first lien permanent modification who have an eligible second lien with a participating HAMP 

servicer. This assistance can result in a modification of the second lien and even full or partial extinguishment of the second lien. Second lien modifications follow a series of steps 

and may include capitalization, interest rate reduction, term extension and principal forbearance or forgiveness. Effective September 2013, Treasury expanded 2MP program 

eligibility to include second liens with a qualifying first lien modified under the GSEs’ Standard Modification program. 

2MP modifications and partial extinguishments require that the qualifying first lien modification be permanent and active and that the second lien have an unpaid balance of $5,000 

or more and a monthly payment of at least $100. 

All Second Lien Modifications Started (Cumulative)* 129,674

Second Lien Modifications Involving Full Lien Extinguishments 33,672

Second Lien Modifications Disqualified** 10,203

Active Second Lien Modifications*** 81,953

Active Second Lien Modifications Involving Partial Lien 

Extinguishments 10,262

Second Lien Extinguishment Details

Median Amount of Full Extinguishment $60,275 

Median Amount of Partial Extinguishment for Active Second Lien 

Modifications $9,875 

Home Affordable Foreclosure Alternatives (HAFA) Activity

Non-GSE Activity GSE Activity Total

Short Sale 146,429 104,129 250,558

Deed-in-Lieu 4,919 17,456 22,375

Total Transactions Completed 151,348 121,585 272,933

The Home Affordable Foreclosure Alternatives Program (HAFA) offers incentives and a streamlined process for homeowners looking to exit their homes through a short sale or 

deed-in-lieu of foreclosure. HAFA has established important homeowner protections and an industry standard for streamlined transactions. Effective November 2012, the GSEs 

revised their short sale and deed-in-lieu programs. The GSE Standard HAFA program is closely aligned with Treasury’s MHA HAFA program. In HAFA transactions, homeowners:

• Follow a streamlined process for short sales and deed-in-lieu transactions that requires no verification of income (unless as required by investors) and allows for preapproved short sale terms;

• Receive a waiver of deficiency once the transaction is completed that releases them from remaining mortgage debt;

• Receive at least $3,000 in relocation assistance at closing.

* Includes 2,617 loans that have a qualifying first lien GSE Standard Modification.

**Does not include 3,846 loans paid off. 

*** Includes 7,715 loans in active non-payment status whereby the 1MP has disqualified from HAMP. As a result, the servicer is no longer required to report payment activity on the 

2MP modification.
Making Home Affordable: Program Results

Program Performance Report Through February 2014

HAMP borrowers with an active 2MP modification, including those with a partial 

extinguishment of their second lien, save a median $784, or 42% of their combined 

total first and second lien monthly mortgage payment. 

Those who received a full extinguishment of their second lien have reduced their 

total monthly mortgage payment by a median amount of $1,047, or 53%.

105 107 109 111 112 113 115 117 120 121 124 126 127 130

60

70

80

90

100

110

120

130

140

Jan

2013

Feb Mar April May June July Aug Sep Oct Nov Dec Jan

2014

Feb

All Modifications Started (000s)

Cumulative 2MP Modifications Started

Featured Program Results: The Second Lien Modification Program (2MP)

Modification Characteristics

Note: Only five of the seven largest SPA servicers participate in 2MP. See Appendix for servicer participants in 2MP and other programs. 

2MP Participating Servicer 

Name

2MP Modifications 

Started

Current Estimated 

Eligible 2nd Liens

Bank of America, N.A. 34,752 10,205

CitiMortgage, Inc. 15,582 4,442

JPMorgan Chase Bank, N.A. 37,178 3,721

Nationstar Mortgage, LLC 3,835 12,082

Wells Fargo Bank, N.A. 20,080 4,871

Other Servicers 18,247 3,143

Total 129,674 38,464

• Based on survey data as reported by servicers through February 2014, 

approximately 38,000 second liens may be eligible to receive a 2MP modification, 

many of them are in the evaluation process by the servicers, awaiting homeowner 

response to the 2MP offer, or awaiting conversion of the first lien HAMP trial to 

permanent modification.

• Important factors affecting the size of the population of second liens eligible for 

2MP modifications include:

 Servicer participation in 2MP is voluntary; current 2MP servicers represent 

approximately 61% of the homeowners with active, permanent HAMP first lien 

modifications.

 Under 2MP, participating servicers are notified when a match is found between 

one of their second liens and a qualifying first lien modification. Survey data indicates 

that program to date, 379,780 qualifying first lien modifications have been matched 

with a second lien. Of these matched second liens, approximately 56% are found to 

be ineligible for a 2MP modification. The most common reasons for ineligibility are:

• Cancellation or failure of a trial or permanent first lien HAMP modification,

• Extinguishment of the second lien prior to evaluation for 2MP,

• Failure of a 2MP trial modification, and

• Some homeowners with eligible second liens decline to participate in 2MP.

Median Monthly Payment Reduction for Active 2MP 

Modifications $152 

Total Outstanding Principal Balance Extinguished through 

partial or full extinguishment $2.6 Billion

Top three States by Activity, Percent of Total 2MP Modifications Started:

• California 35%

• Florida 9%

• New York 7%

Estimated Eligible 2nd Liens

6
Making Home Affordable: Program Results

Program Performance Report Through February 2014

HAMP Homeowner Benefits and First Lien Modification Characteristics

7

Aggregate payment savings to homeowners who received HAMP first lien permanent modifications are estimated to total approximately $26.1 billion, program to 

date, compared with unmodified mortgage obligations. The median monthly savings for homeowners in active permanent first lien modifications is $543, or 39% of 

the median monthly payment before modification. 

• Of all HAMP trial modifications started, 80% of homeowners were at least 60 days 

delinquent at trial start. The rest were up to 59 days delinquent or current and in 

imminent default. 

• Of the Tier 2 trial modifications started, 6% were for non owner-occupied 

properties. 

Select Median Characteristics of Active Permanent Modifications

Loan Characteristic Before 

Modification

After 

Modification

Median 

Decrease

Front-End Debt-to-Income Ratio

 Tier 1 45.6% 31.0% -15.2 pct pts

 Tier 2 29.2% 22.6% -6.8 pct pts

Back-End Debt-to-Income Ratio

 Tier 1 69.2% 50.7% -15.4 pct pts

 Tier 2 45.7% 37.7% -6.8 pct pts

Median Monthly Housing Payment

 Tier 1 $1,410.82 $790.98 ($554.89)

 Tier 2 $1,110.46 $730.67 ($344.76)

Modification Steps of Active Permanent Modifications

Modification Step Tier 1 Tier 2

Interest Rate Reduction 96.1% 75.9%

Term Extension 63.7% 70.0%

Principal Forbearance 34.1% 30.5%

• The primary hardship reason for the majority of homeowners in active permanent 

modifications is loss of income (curtailment of income or unemployment).

• The median gross monthly income of homeowners in the program is $3,868. 

• The median credit score of homeowners in the program is 576.

HAMP modifications follow a series of waterfall steps. The modification steps include 

interest rate adjustment, term extension and principal forbearance.

• Under Tier 1, servicers apply the modification steps in sequence until the 

homeowner’s post-modification front-end debt-to-income (DTI) ratio is 31%. The 

impact of each modification step can vary to achieve the target of 31%. 

• Under Tier 2, servicers apply consistent modification terms resulting in the 

homeowner’s post-modification DTI falling within an allowable target range.6 

Active permanent modifications reflect the following modification steps:

Homeowner Characteristics

• Tier 2 provides another modification opportunity for struggling homeowners who 

did not qualify for Tier 1 or received a Tier 1 trial or permanent modification but lost 

good standing. Of the Tier 2 trial modifications started:

 25% were previously in a Tier 1 trial or permanent modification.

 15% were previously evaluated for Tier 1 and did not meet eligibility 

requirements.
Making Home Affordable: Program Results

Program Performance Report Through February 2014

8

State

Active 

Trials

Active

Permanent 

Modifications

Median $ 

Payment 

Reduction7

Median % 

Payment 

Reduction7 State

Active 

Trials

Active 

Permanent 

Modifications

Median $ 

Payment 

Reduction7

Median % 

Payment 

Reduction7

AK 18 425 $508.05 33% MT 38 1,074 $437.83 36%

AL 431 5,201 $288.58 34% NC 1,205 16,745 $333.42 36%

AR 163 1,988 $280.98 35% ND 9 142 $286.21 32%

AZ 816 34,127 $483.18 41% NE 104 1,233 $281.63 35%

CA 8,072 242,807 $767.26 40% NH 231 4,055 $503.97 37%

CO 565 13,055 $442.21 36% NJ 2,313 30,322 $695.66 41%

CT 892 12,325 $585.07 40% NM 176 3,205 $391.65 37%

DC 92 1,606 $600.79 35% NV 798 19,783 $569.62 42%

DE 182 2,769 $449.68 35% NY 3,948 48,787 $865.18 42%

FL 6,530 116,218 $507.21 43% OH 1,562 19,525 $311.02 38%

GA 1,775 32,980 $396.17 40% OK 208 2,232 $273.05 36%

HI 191 3,679 $864.49 36% OR 415 10,534 $498.33 38%

IA 191 2,133 $274.89 36% PA 1,854 19,930 $383.35 36%

ID 125 3,434 $412.42 37% RI 273 4,448 $581.54 42%

IL 2,559 48,254 $556.00 44% SC 639 8,522 $329.00 35%

IN 736 8,782 $283.25 35% SD 19 308 $287.68 31%

KS 175 2,176 $316.82 36% TN 849 9,400 $313.97 37%

KY 310 3,464 $288.14 36% TX 2,120 26,257 $306.35 36%

LA 450 5,315 $310.66 36% UT 276 7,958 $477.41 36%

MA 1,534 22,023 $643.05 39% VA 1,084 22,004 $543.20 35%

MD 1,906 29,722 $628.78 38% VT 64 839 $414.33 37%

ME 205 2,572 $426.53 38% WA 1,038 20,120 $552.21 37%

MI 1,212 26,738 $378.81 40% WI 635 8,611 $374.89 38%

MN 570 13,998 $464.04 38% WV 82 1,230 $341.56 33%

MO 714 9,053 $323.34 37% WY 21 426 $400.67 32%

MS 266 3,224 $276.60 36% PR 157 3,236 $301.93 39%

HAMP Activity by State

Metropolitan Statistical Area

Active 

Trials

Active 

Permanent

Mods

Median $ 

Payment 

Reduction7

Median % 

Payment 

Reduction7

Los Angeles-Long Beach-Santa 

Ana, CA 2,819 78,878 $863.80 41%

New York-Northern New JerseyLong Island, NY-NJ-PA 4,712 64,110 $886.11 43%

Miami-Fort Lauderdale-Pompano 

Beach, FL 2,978 51,985 $576.83 45%

Chicago-Joliet-Naperville, IL-INWI 2,450 46,906 $565.67 44%

Riverside-San BernardinoOntario, CA 1,368 45,626 $686.00 41%

Washington-ArlingtonAlexandria, DC-VA-MD-WV 1,500 31,133 $695.17 38%

Atlanta-Sandy Springs-Marietta, 

GA 1,315 26,546 $412.91 40%

Phoenix-Mesa-Glendale, AZ 521 26,985 $502.50 41%

San Francisco-Oakland-Fremont, 

CA 690 21,854 $924.02 40%

San Diego-Carlsbad-San Marcos, 

CA 570 17,723 $807.53 38%

Orlando-Kissimmee-Sanford, FL 838 16,560 $492.10 42%

Boston-Cambridge-Quincy, MANH 999 15,878 $680.73 39%

Las Vegas-Paradise, NV 657 16,086 $571.22 42%

Detroit-Warren-Livonia, MI 649 15,968 $424.61 42%

Philadelphia-CamdenWilmington, PA-NJ-DE-MD 1,247 15,135 $446.82 36%

15 Metropolitan Areas With Highest HAMP Activity

Note: A complete list of HAMP activity for all metropolitan areas is available at http://www.treasury.gov/initiatives/financial-stability/reports/Pages/HAMP-Report.aspx
Making Home Affordable: Program Results

Program Performance Report Through February 2014

9

Reaching Out to Homeowners

91 Treasury-sponsored 

Outreach Events, through 

February 2014, covering 57

cities, giving more than 76,000

homeowners the opportunity 

to meet face-to-face with their 

mortgage company and HUDapproved housing counselors. 

In addition, Treasury has 

partnered with the Ad Council 

on three different public service 

advertising campaigns featured 

in both English and Spanish, 

encouraging struggling 

homeowners nationwide to 

reach out for help with their 

mortgages.

OVER 

10.6

MILLION

OVER 

4.2

MILLION

OVER

184 

MILLION

OVER

2.3

MILLION

Homeowners 

referred to free 

housing counseling 

from a HUDapproved housing 

expert.

Page views on 

MakingHome

Affordable.gov.

Calls taken 

at the 

Homeowner’s 

HOPE Hotline.

Solicitations of 

homeowners by 

participating 

mortgage 

servicers.

1

Number of Homeowner Events per State

2 3 or more

Total HAMP Modifications Active

5,000 and lower

5,001-10,000

10,000-20,000

20,001-30,000

30,001 and higher

6

3

3

3 4

3

3

16

15

6

6
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

10

Making Home Affordable Programs by Servicer

HAMP First Lien Modifications Principal Reduction Alternative 

(PRA)9

Second Lien 

Modification (2MP)

Home Affordable 

Foreclosure 

Alternatives (HAFA)10

Servicer Trials

Started8

Permanent 

Modifications 

Started8

Trials 

Started

Permanent 

Modifications 

Started

Second Lien 

Modifications 

Started

Non-GSE Transactions 

Completed

Bank of America, N.A. 234,850 106,649 8,127 6,946 34,752 45,258

CitiMortgage, Inc. 129,616 64,178 4,163 3,471 15,582 1,175

JPMorgan Chase Bank, N.A. 318,716 191,623 28,328 25,742 37,178 35,712

Nationstar Mortgage LLC 191,400 128,040 6,959 6,580 3,835 5,150

Ocwen Loan Servicing, LLC 378,224 271,804 71,326 58,013 N/A 14,589

Select Portfolio Servicing, Inc. 108,783 66,082 8,274 6,730 N/A 8,055

Wells Fargo Bank, N.A. 313,240 190,204 30,526 26,647 20,080 26,945

Other Servicers 499,093 321,162 10,434 8,786 18,247 14,464

Total 2,173,922 1,339,742 168,137 142,915 129,674 151,348

N/A - Servicer does not participate in the program.

See Appendix for Terms and Methodology, Program Notes, End Notes and additional information on servicer participants in Making Home Affordable programs. 
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

Servicer 

All HAMP 

Trials 

Started8

HAMP 

Permanent 

Modifications

Started8

Active Trial 

Modifications11

Active 

Permanent 

Modifications

Total Active Modifications

GSE Private Portfolio Total

Bank of America, N.A. 234,850 106,649 3,105 71,251 23,776 35,413 15,167 74,356

CitiMortgage, Inc. 129,616 64,178 2,071 46,622 28,675 6,218 13,800 48,693

JPMorgan Chase Bank, N.A. 318,716 191,623 2,951 143,033 65,643 49,877 30,464 145,984

Nationstar Mortgage LLC 191,400 128,040 6,571 93,107 57,265 39,977 2,436 99,678

Ocwen Loan Servicing, LLC 378,224 271,804 14,506 185,549 38,862 146,161 15,032 200,055

Select Portfolio Servicing, Inc. 108,783 66,082 4,883 38,694 447 38,912 4,218 43,577

Wells Fargo Bank, N.A. 313,240 190,204 6,597 140,764 55,766 29,959 61,636 147,361

Other Servicers 499,093 321,162 10,114 219,988 172,331 24,407 33,364 230,102

Total 2,173,922 1,339,742 50,798 939,008 442,765 370,924 176,117 989,806

HAMP Modification Activity by Servicer and Investor Type

11
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

12

Servicer Outreach to HAMP Eligible 60+ Day Delinquent Homeowners: Cumulative Servicer Results, February 2013 – January 2014

Per program guidance, servicers are directed to establish Right Party Contact (RPC) with homeowners of delinquent HAMP eligible loans and then 

evaluate the homeowners' eligibility for HAMP. There is a range of performance results across top program servicers with respect to making RPC 

and completing the evaluations.

79%

85%

77%

63%

79%

68%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen SPS Wells Fargo

66%

Right Party Contact Ratio HAMP Evaluations Complete Ratio

86%

89%

93%

87%

84%

86%

Source: Survey of largest participating servicers as of January 31, 2014. 
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

HAMP Average Homeowner Delinquency at Trial Start

0

50

100

150

200

250

300

Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen SPS Wells Fargo

Days Delinquent

13

Servicers are instructed to follow a series of steps in order to evaluate homeowners for HAMP, including:

• Identifying and soliciting homeowners in the early stages of delinquency; 

• Making reasonable efforts to establish right party contact with the homeowners; 

• Gathering required documentation once contact is established in order to evaluate the homeowner for a HAMP trial; and, 

• Communicating decisions to the homeowner.

Effective October 1, 2011, a new servicer compensation structure exists to encourage servicers to work with struggling homeowners in the early 

stages of delinquency, with the highest incentives paid for permanent modifications completed when the homeowner is 120 days delinquent or less 

at the trial start. 

Maximum servicer incentive is 

paid for converting a 

permanent modification that 

was 120 days delinquent or 

less at trial start.
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

91% 90% 91%

81%

86%

75%

92%

0%

25%

50%

75%

100%

Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen SPS Wells Fargo

Conversion Rate

HAMP Conversion Rate

14

Per program guidelines, effective June 1, 2010, all trials must be started using verified income documentation. Servicers have converted most 

eligible trials to permanent modifications. Prior to June 1, 2010, some servicers initiated trials using stated income information. Of trials started 

prior to June 1, 2010, 44% have converted to permanent modifications. 

Of eligible trials started on or after June 1, 2010, 89% have converted to permanent modifications* as of February 2014.

For trials started on or after June 1, 2010 the average length of a trial is 3.5 months. 

* With another 3% pending processing or decision.
Making Home Affordable: Servicer Results

Program Performance Report Through February 2014

Disposition Path of Homeowners Not in HAMP

Survey Data For Actions Completed Through January 201412 (Largest Servicers)

• HAMP guidance requires that 

servicers evaluate homeowners 

with eligible loans for HAMP, 

before considering other 

foreclosure alternatives.

• For those homeowners that did 

not qualify for HAMP or did not 

successfully complete the trial 

period, 58% received an 

alternative modification or 

resolved their delinquency.

15

• HAMP guidance requires that a servicer 

work with a delinquent homeowner in 

a permanent modification to cure the 

delinquency. 

• In the event the homeowner cannot 

bring a delinquent HAMP modification 

current without additional assistance, 

the servicer is prevented from 

commencing foreclosure proceedings 

until the borrower is evaluated for any 

other loss mitigation action.

• The majority of homeowners who 

disqualify from a HAMP permanent 

modification receive an alternative to 

foreclosure or resolve their 

delinquency. Approximately one 

quarter have been referred to 

foreclosure. 

Servicer 

Totals 31,363 12,903 38,067 28,786 72,262 24,551 44,374 252,306

Servicer 

Totals 394,396 217,176 721,779 220,110 538,308 97,675 431,607 2,621,051

Status of Homeowners Not Accepted 

for a HAMP Trial or Those Whose 

HAMP Trial was Cancelled

Status of Homeowners with 

Disqualified HAMP Permanent 

Modification

1% 4% 4%

22%

4%

18%

2% 2% 5%

10%

2%

5%

3%

3%

5%

4%

25%

20% 36%

39%

18%

13%

30% 28%

21%

27%

29%

13%

51% 30% 27% 30%

18%

14%

14%

6%

7%

11% 11%

12%

2%

5%

3%

11%

7%

12%

7%

6%

31%

21%

13%

3%

10% 13%

18% 16%

0%

20%

40%

60%

80%

100%

Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen SPS Wells Fargo Top Servicers

% of Trials Cancelled and Not Approved

7% 8% 11% 16% 15%

28%

7%

13% 4%

13% 3%

9%

4%

6%

9%

6% 9%

13%

10%

9%

12%

7%

7%

9%

26%

22% 38%

10%

45% 29%

46% 35%

25%

18%

18%

10%

6%

9% 10%

12%

6%

9%

6%

40%

11%

13%

4% 12%

23% 18% 13%

6% 7% 10%

17% 13%

0%

20%

40%

60%

80%

100%

Bank of America CitiMortgage JPMorgan Chase Nationstar Ocwen SPS Wells Fargo Top Servicers

% of Permanent Modifications Disqualified

Foreclosure 

Completions

Foreclosure 

Starts

Short Sale/

Deed in Lieu

Alternative 

Modification/

Payment Plan

Borrower 

Current/

Loan Payoff

Action Not 

Allowed –

Bankruptcy in 

Process

Action Pending
Making Home Affordable

Program Performance Report Through February 2014

HAMP Terms and Methodology:

Action Pending: 

Includes homeowners who were not approved for a 

HAMP trial modification, trial loans that have been 

cancelled or permanent modifications that have been 

disqualified, but further action has yet to be taken at 

this time. 

Average Delinquency at Trial Start:

For all permanent modifications started, the average 

number of days delinquent as of the trial plan start 

date. Delinquency is calculated as the number of days 

between the homeowner's last paid installment before 

the trial plan and the first payment due date of the trial 

plan.

Back-End Debt-to-Income Ratio:

Ratio of total monthly debt payments (including 

mortgage principal and interest, taxes, insurance, 

homeowners association and/or condo fees, plus 

payments on installment debts, junior liens, alimony, 

car lease payments and investment property payments) 

to monthly gross income. Homeowners who have a 

back-end debt-to-income ratio of greater than 55% are 

required to seek housing counseling under program 

guidelines.

Conversion Rate:

Ratio of permanent modifications to trials eligible to 

convert, defined as those three months in trial, or four 

months if the borrower was at risk of imminent default 

at trial modification start. Permanent modifications 

transferred among servicers are credited to the 

originating servicer. Trial modifications transferred are 

reflected in the current servicer’s population. 

Disqualification:

A permanent modification disqualifies from HAMP 

when the borrower has missed the equivalent of three 

full monthly payments. Once disqualified, the borrower 

is no longer eligible to receive HAMP incentives. 

However, the terms of the permanent modification 

remain the same, and the servicer will continue to work 

with the borrower to cure the delinquency or identify 

other loss mitigation options.

Eligible Loans:

Homeowners with HAMP eligible loans, which include 

conventional loans that were originated on or before 

January 1, 2009; excludes loans with current unpaid 

principal balances greater than current conforming loan 

limits-current unpaid principal balance must be no 

greater than: $729,750 for a single-unit property, 2 

units: $934,200, 3 Units: $1,129,250, 4 Units: 

$1,403,400; FHA and VA loans; loans where investor 

pooling and servicing agreements preclude 

modification; and manufactured housing loans with 

title/chattel issues that exclude them from HAMP. 

Evaluation Complete: 

HAMP evaluations complete ratio reflects the share 

of homeowners who have been evaluated for HAMP as 

a percent of HAMP eligible loans, 

excluding homeowners where RPC or HAMP evaluation 

is no longer needed. Evaluated homeowners include 

those offered a trial plan, those that are denied or did 

not accept a trial plan and homeowners that failed to 

submit a complete HAMP evaluation package by 

program-specified timelines.

Front-End Debt-to-Income Ratio:

Ratio of housing expenses (principal, interest, taxes, 

insurance and homeowners association and/or condo 

fees) to monthly gross income. 

Median Monthly Housing Payment:

Principal and interest payment. Before modification 

payment is homeowner’s current payment at time of 

evaluation.

Payment Plan:

An arrangement with the borrower and servicer that 

does not involve a formal loan modification. 

RPC: 

Right Party Contact (RPC) is achieved when a servicer 

has successfully communicated directly with the 

homeowner obligated under the mortgage about 

resolution of their delinquency in accordance with 

program guidelines. The RPC ratio reflects the share of 

homeowners with which the servicer has established 

RPC as a percent of HAMP eligible loans, excluding 

homeowners where RPC or HAMP evaluation is no 

longer needed. 

Total Active:

Reflects active HAMP trials and permanent 

modifications.

Appendix A1: Terms and Methodology

16
Making Home Affordable

Program Performance Report Through February 2014

17

General MHA Program Notes:

• MHA Program Effective Dates:

HAMP First Lien: April 6, 2009

PRA: October 1, 2010

2MP: August 13, 2009

HAFA: April 5, 2010

• 1MP, PRA, Treasury FHA-HAMP, RD-HAMP, 2MP, 

and HAFA Program Metrics: Data includes activity 

reported into the HAMP system of record through 

the end of cycle for the current reporting month, 

though the effective date may occur in the following 

month.

MHA First Lien Program Notes:

• MHA First Lien Permanent Modifications Started 

includes: HAMP Tier 1, HAMP Tier 2, GSE Standard 

Modifications and both Treasury FHA- and RDHAMP. HAMP Tier 1 includes both GSE and Non-GSE 

modifications. The GSEs do no participate in HAMP 

Tier 2, however the GSE Standard Modification is 

similar to HAMP Tier 2. FHA-HAMP and RD-HAMP 

are similar to HAMP Tier 1. 

• GSE Standard Modification data is provided by 

Fannie Mae and Freddie Mac as of February 2014. 

The GSEs undertake other foreclosure prevention 

activities beyond their participation in MHA which is 

not reflected in this report. Per the Federal Housing 

Finance Agency’s Foreclosure Prevention Report for 

the Fourth Quarter of 2013, since 4Q 2008, the GSEs 

have completed nearly 1.6 million permanent 

modifications, which includes their activity under 

MHA. Please visit www.FHFA.gov for the complete 

FHFA report. 

Treasury FHA-HAMP Program Notes: 

• The FHA undertakes other foreclosure prevention 

activities beyond their participation in MHA which is 

not reflected in this report. As reported in the 

March 2014 edition of the Obama Administration’s 

Housing Scorecard, FHA has offered more than 2.2 

million loss mitigation and early delinquency 

interventions through February 2014 since April 

2009, which includes their activity under MHA.

2MP Program Notes:

• Number of modifications started is net of 

cancellations, which are primarily due to servicer 

data corrections.

• 2MP loans previously reported under top servicers 

that were transferred to or acquired by nonparticipating 2MP servicers are reflected in “Other 

Servicers.”

• Borrowers with an active 1MP permanent 

modification who have also received a 2MP 

modification realize a higher monthly payment 

reduction on their first lien compared to the overall 

population of 1MP borrowers as the median first 

lien unpaid principal balance is higher.

HAFA Program Notes:

• Unless otherwise noted, HAFA Transactions 

Completed includes GSE activity under the MHA 

program in addition to the GSE Standard HAFA 

program implemented in November 2012. GSE 

Standard HAFA data provided by Fannie Mae and 

Freddie Mac as of February 2014. It does not 

include other GSE short sale and deed-in-lieu 

activity outside the HAFA program. Per the Federal 

Housing Finance Agency’s Foreclosure Prevention 

Report for the Fourth Quarter of 2013, since 4Q 

2008 the GSEs have completed more than 550,000 

short sales and deed-in-lieu of foreclosure actions, 

which includes their activity under MHA. Please 

visit www.FHFA.gov for the complete FHFA report. 

• The debt relief represents the obligation relieved by 

the short sale or deed-in-lieu transaction and is 

calculated as the unpaid principal balance and 

allowable transactions costs less the property sales 

price. The allowable transaction costs may include 

release of any subordinate lien, borrower relocation 

assistance, sales commission, and closing costs for 

taxes, title, and attorney fees.

PRA Program Notes:

• Eligible loans include those receiving evaluation 

under HAMP PRA guidelines plus loans that did not 

require an evaluation but received principal 

reduction on their modification.

UP Program Notes: 

• Data is as reported by servicers via survey for UP 

participation through January 31, 2014.

Appendix A2: General Program Notes
Making Home Affordable

Program Performance Report Through February 2014

SUMMARY AND PROGRAM RESULTS:

1. This does not include trial modifications that have 

cancelled or not yet converted to permanent 

modifications, or HAFA transactions started but 

not yet completed.

2. Servicers may enter new trial modifications into 

the HAMP system of record at any time.

3. Includes some modifications with additional 

principal reduction outside of HAMP PRA.

4. Under HAMP PRA, principal reduction vests over a 3-year period. The amounts noted reflect the 

entire amount that may be forgiven.

5. Principal amount reduced as a percentage of 

before-modification UPB, excluding capitalization.

6. Subject to investor restrictions. Effective February 

1, 2013, Supplemental Directive 12-09 expanded 

the acceptable DTI range for Tier 2 to 10-55%.

7. For active permanent modifications. Median % 

reflects percent of the median monthly payment 

before modification.

SERVICER RESULTS:

8. As reported into the HAMP system of record by 

servicers. Excludes Treasury FHA-HAMP 

modifications. Totals reflect impact of servicing 

transfers. Servicers may enter new trial 

modifications into the HAMP system of record at 

any time.

9. While both GSE and non-GSE loans are eligible for 

HAMP, at the present time due to GSE policy, 

servicers can only offer PRA on non-GSE 

modifications under HAMP. Servicer volume can 

vary based on the investor composition of the 

servicer’s portfolio and respective policy with 

regards to PRA. 

10. Includes Non-GSE activity under the MHA program 

only. Servicer GSE program data not available.

11. These figures may include trial modifications that 

have been converted to permanent modifications, 

but not reported as such in the HAMP system of 

record. Additionally, servicers may process 

cancellations of permanent modifications for 

reasons, including but not limited to, data 

corrections, loan repurchase agreements, etc. This 

process requires reverting the impacted 

permanent modifications to trials in the HAMP 

system of record with re-boarding of some of 

these permanent modifications in subsequent 

reporting periods. Prior to being re-boarded as 

permanent modifications, these modifications are 

reported as Active Trials.

12. Data is as reported by servicers for actions 

completed through January 31, 2014 and reflects 

the status of homeowners as of that date; a 

homeowner's status may change over time. 

Survey data is not subject to the same data quality 

checks as data uploaded into the HAMP system of 

record. Excludes cancellations and 

disqualifications pending data corrections and 

loans otherwise removed from servicing 

portfolios.

Appendix A3: End Notes

18
Making Home Affordable

Program Performance Report Through February 2014

Servicers participating in the HAMP First Lien Modification Program may also offer additional support for homeowners, including Home Affordable Foreclosure 

Alternatives (HAFA), a forbearance for unemployed borrowers through the Unemployment Program (UP), and Principal Reduction Alternative (PRA). 

Effective October 3, 2010, the ability to make new financial commitments under the Troubled Asset Relief Program (TARP) terminated, and consequently no 

new Servicer Participation Agreements may be executed. In addition, effective June 25, 2010, no new housing programs may be created under TARP. 

Allstate Mortgage Loans & 

Investments, Inc.

AMS Servicing, LLC

Bank of America, N.A.1

Bank United

Bayview Loan Servicing, LLC

Carrington Mortgage Services, LLC

CCO Mortgage

Central Florida Educators Federal 

Credit Union

CitiMortgage, Inc.

Citizens 1st National Bank

Community Bank & Trust Company

CUC Mortgage Corporation

DuPage Credit Union

Fay Servicing, LLC

Fidelity Homestead Savings Bank

First Bank

First Financial Bank, N.A.

Franklin Credit Management 

Corporation

Glass City Federal Credit Union

Great Lakes Credit Union

Greater Nevada Mortgage Services

Green Tree Servicing LLC

Hartford Savings Bank

Hillsdale County National Bank

Horicon Bank

IC Federal Credit Union

Idaho Housing and Finance Association

iServe Residential Lending LLC

iServe Servicing Inc.

JPMorgan Chase Bank, N.A.2

Lake City Bank

Liberty Bank and Trust Co. 

Los Alamos National Bank

Magna Bank

Marix Servicing, LLC

Midland Mortgage Company

Midwest Community Bank

Mission Federal Credit Union

Mortgage Center, LLC

Nationstar Mortgage LLC

Navy Federal Credit Union

Ocwen Loan Servicing, LLC3

OneWest Bank

ORNL Federal Credit Union

Pathfinder Bank

PennyMac Loan Services, LLC

PNC Bank, National Association

PNC Mortgage4

Purdue Employees Federal Credit 

Union

QLending, Inc.

Residential Credit Solutions

RG Mortgage Corporation

RoundPoint Mortgage Servicing 

Corporation

Schools Financial Credit Union

Select Portfolio Servicing, Inc.

Servis One Inc., dba BSI Financial 

Services, Inc.

Specialized Loan Servicing, LLC

Sterling Savings Bank

Technology Credit Union

The Golden 1 Credit Union

U.S. Bank National Association

United Bank

United Bank Mortgage Corporation

Vantium Capital, Inc.

Vist Financial Corp.

Wells Fargo Bank, N.A.5

Yadkin Valley Bank

1 Bank of America, N.A. includes all loans previously reported under BAC Home Loans Servicing LP, 

Home Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, N.A. includes all loans previously reported under EMC Mortgage Corporation. 3 Ocwen Loan Servicing, LLC includes loans previously reported under Litton Loan Servicing LP, 

Homeward Residential, Inc., GMAC Mortgage, LLC and also reflects recent acquisitions from OneWest

Bank.

4 Formerly National City Bank.

5 Wells Fargo Bank, N.A. includes all loans previously reported under Wachovia Mortgage, FSB. 

Appendix A4: Non-GSE Participants in HAMP

19
Making Home Affordable

Program Performance Report Through February 2014

Second Lien Modification Program (2MP)

Bank of America, N.A.

1

Bayview Loan Servicing, LLC 

CitiMortgage, Inc.

Green Tree Servicing LLC 

iServe Residential Lending, LLC 

iServe Servicing, Inc. 

JPMorgan Chase Bank, N.A.

2

Nationstar Mortgage LLC

OneWest Bank

PennyMac Loan Services, LLC

PNC Bank, National Association

PNC Mortgage

3

Residential Credit Solutions 

Servis One Inc., dba BSI Financial Services, Inc. 

Wells Fargo Bank, N.A. 

4

FHA First Lien Program (Treasury FHA-HAMP)

Amarillo National Bank

American Financial Resources Inc. 

Aurora Financial Group, Inc. 

Banco Popular de Puerto Rico 

Bank of America, N.A.

1

Capital International Financial, Inc. 

CitiMortgage, Inc. 

CU Mortgage Services, Inc. 

First Federal Bank of Florida 

First Mortgage Corporation 

Gateway Mortgage Group, LLC 

Green Tree Servicing, LLC 

Guaranty Bank 

iServe Residential Lending, LLC 

iServe Servicing, Inc. 

James B. Nutter & Company 

JPMorgan Chase Bank, N.A.

2

M&T Bank 

Marix Servicing, LLC 

Marsh Associates, Inc. 

Midland Mortgage Company 

Nationstar Mortgage LLC 

Ocwen Loan Servicing, LLC

5

PennyMac Loan Services, LLC 

PNC Mortgage

3

Residential Credit Solutions 

Schmidt Mortgage Company 

Select Portfolio Servicing, Inc.

Servis One Inc., dba BSI Financial Services, Inc. 

Stockman Bank of Montana 

Wells Fargo Bank, N.A.

4

Weststar Mortgage, Inc. 

Rural Housing Service Modification Program 

(RD-HAMP)

Banco Popular de Puerto Rico

Bank of America, N.A.

1

Horicon Bank 

JPMorgan Chase Bank, N.A.

2

Magna Bank 

Marix Servicing, LLC 

Midland Mortgage Company 

Nationstar Mortgage LLC 

Wells Fargo Bank, N.A.

4

1 Bank of America, N.A. includes all loans previously reported under BAC Home Loans Servicing LP, Home 

Loan Services and Wilshire Credit Corporation. 2 JPMorgan Chase Bank, N.A. includes all loans previously reported under EMC Mortgage Corporation

.

3 Formerly National City Bank. 4 Wells Fargo Bank, N.A. includes all loans previously reported under Wachovia Mortgage FSB. 5 Ocwen Loan Servicing, LLC includes loans previously reported under Litton Loan Servicing LP and GMAC 

Mortgage, LLC and also reflects recent acquisitions from OneWest Bank.

Appendix A5: Participants in Additional Making Home Affordable Programs

20