The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners U.S. Department of Housing and Urban Development | Office of Policy Development and Research

The Administration’s goal is to promote stability for both the 

housing market and homeowners. To meet these objectives, the 

Administration developed a broad approach implementing state 

and local housing agency initiatives, tax credits for homebuyers, 

neighborhood stabilization and community development 

programs, mortgage modifications and refinancing, continued 

FHA engagement, and support for Fannie Mae and Freddie 

Mac. In addition, Federal Reserve and Treasury MBS purchase 

programs have helped to keep mortgage interest rates at record 

lows over the past year. More detail on the Administration’s 

efforts can be found in the Appendix.

Overall Impact of Administration’s 

Comprehensive Housing Initiative

The President’s housing market recovery efforts began 

immediately after taking office in February 2009. The 

Administration’s comprehensive response, as outlined above, 

has yielded many positive impacts:

• Home price performance has improved. After 30 straight 

months of decline and an expectation of continued 

significant deterioration, home prices have leveled off in 

the past year and expectations have adjusted upward. 

Homeowners have benefitted from the stabilization, as 

owner equity has increased by over $1 trillion since the first 

quarter of 2009

• More than 2.5 million first time homebuyers have purchased 

a home using the First-Time Homebuyer Tax credit, 

helping to stabilize home sales and prices and increase 

affordability.

• Martgages are now more affordable. Due to historically 

low interest rates, more than 6 million homeowners have 

refinanced, saving an estimated $150 per month on 

overage and more than $11 billion in total.

• Servicers report that the number of homeowners receiving 

restructured mortgages since April 2009 has increased 

to 2.8 million. This includes more than 1.2 million 

homeowners who have started HAMP trial modifications 

and nearly 400,000 who have benefitted from FHA loss 

mitigation activities. Of those in the HAMP program, 

346,000 have entered a permanent modification saving a 

median of more than $500 per month. In addition, HUDapproved mortgage counselors have assisted 3.6 million 

families. 

• Based on newly available survey data, nearly half 

of homeowners unable to enter a HAMP permanent 

modification enter an alternative modification with their 

servicer, and fewer than 10 percent of cancelled trials move 

to foreclosure sale. Link to see MHA report: http://www.

financialstability.gov/docs/May%20MHA%20Public%20

062110.pdf

The Administration’s housing initiatives were intended to help 

prevent avoidable foreclosures and stabilize the housing market. 

However the foreclosure prevention initiatives were not designed 

to help every borrower and the housing market will continue to 

adjust for some time.

• Investors and speculators are not protected under the 

Administration’s efforts, nor are Americans living in million 

dollar homes, defaulters on vacation homes, or those who 

don’t meet their responsibilities for qualification. This month, 

HAMP cancellations are high because many borrowers 

who received temporary modifications were not able to 

meet eligibility requirements such verifying their income and 

successfully making trial payments.

• The supply of homes on and off market remains near all-time 

highs. It will take time to work through this large inventory.

U.S. Department of Housing and Urban Development | Office of Policy Development and Research

The Obama Administration’s Efforts To Stabilize 

The Housing Market 

and Help American Homeowners

U.S Department of Housing and Urban Development | U.S. Department of the Treasury
U.S Department of Housing and Urban Development

U.S. Department of the Treasury

The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeo
U.S Department of Housing and Urban Development U.S. Department of the TreasuryThe Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeo

6/20/20106/20/20106/20/

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 

30-Yr Fixed Mortgage Rates Remain Near Historic Lows 

Percentage Rates  

30 Yr FRM Mortgage   10 Yr Treasury Yield 

Source:  Freddie Mac and Treasury. 

0 

1,000 2,000 3,000 4,000 5,000 6,000 

 6.1 Million Homeowners Have Renan

Quarterly Refinance Mortgage OriginaG

Sources:  Mortgage Bankers AssociaGon  and HUD. See Note 4, Sources and Methodolgy. 

0.0 

0.5 

1.0 

1.5 

2.0 

2.5 

3.0 

Apr‐09  May‐09  Jun‐09  Jul‐09  Aug‐09  Sep‐09  Oct‐09  Nov‐09  Dec‐09  Jan‐10  Feb‐10  Mar‐10  Apr‐10 

2.8 Million Borrowers Have Received Restructured Mortgages 

CumulaGve Mortgages Restructured Since April 2009 (Millions) 

FHA Loss MiGgaGon  HAMP ModificaGons  Hope Now ModificaGons 

Sources:  HUD, Dept. of Treasury, and Hope Now Alliance. See Note 5, Sources and Methodology. 

Mortgages  restructured since April  2009:  2.8 million 

40.0  80.0  

120.0  160.0  

Foreclosure Starts Declining, Foreclosur

Monthly Foreclosure AcGons (T

Foreclosure Starts  Forec

Source: Realty Trac. See Note 6, Sources and Methodology. 

Cumula&ve foreclosure comple&ons since Apr

(Includes investor, second home, and jum

6/20/20106/20/20106/20/

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 

30-Yr Fixed Mortgage Rates Remain Near Historic Lows 

Percentage Rates  

30 Yr FRM Mortgage   10 Yr Treasury Yield 

Source:  Freddie Mac and Treasury. 

0 

1,000 2,000 3,000 4,000 5,000 6,000 

 6.1 Million Homeowners Have Renanc

Quarterly Refinance Mortgage OriginaGo

Sources:  Mortgage Bankers AssociaGon  and HUD. See Note 4, Sources and Methodolgy. 

0.0 

0.5 

1.0 

1.5 

2.0 

2.5 

3.0 

Apr‐09  May‐09  Jun‐09  Jul‐09  Aug‐09  Sep‐09  Oct‐09  Nov‐09  Dec‐09  Jan‐10  Feb‐10  Mar‐10  Apr‐10 

2.8 Million Borrowers Have Received Restructured Mortgages 

CumulaGve Mortgages Restructured Since April 2009 (Millions) 

FHA Loss MiGgaGon  HAMP ModificaGons  Hope Now ModificaGons 

Sources:  HUD, Dept. of Treasury, and Hope Now Alliance. See Note 5, Sources and Methodology. 

Mortgages  restructured since April  2009:  2.8 million 

40.0  80.0  

120.0  160.0  

Foreclosure Starts Declining, Foreclosur

Monthly Foreclosure AcGons (T

Foreclosure Starts  Forec

Source: Realty Trac. See Note 6, Sources and Methodology. 

Cumula&ve foreclosure comple&ons since Apr

(Includes investor, second home, and jum
U.S Department of Housing and Urban Development U.S. Department of the TreasuryThe Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeo

0 5 

10 15 20 

2009 Q4  

Homeowners Save From Reduced M

Annualized Savings from Payment Redu

All Refinances  H

Aggregate annual reduc?on in mortgage payments on refinances and loan modifica?oSources:  MBA, Treasury, Freddie Mac, and HUD. See Note 7, Sources and Methodology. 

0 

500 

1000 1500 2000 2500 3000 3500 4000 

2009 Q2  2009 Q3  

Housing Counselors Serve Milli

Cumula?ve Households Counseled Since Apr 

Source:  HUD. 

0 2 4 6 8 

10 12 14 16 

Home Equity Up More than $1 Trillion Since First Quarter 2009 

Owners’ Equity in Household Real Estate at End of Period ($ Trillions) 

Source:  Federal Reserve Board. 

Source:  Freddie Mac and Treasury. 

0 5 

10 15 20 25 30 35 

FHA Supports Mortgage Lending During Crisis 

FHA as Share of Quarterly Mortgage Origina?ons by Type (Percent) 

Purchase  Refinance  Combined 

Sources:  MBA and HUD. See Note 8, Sources and Methodology. 

0 5 

10 15 20 

2009 Q4  

Homeowners Save From Reduced M

Annualized Savings from Payment Redu

All Refinances  H

Aggregate annual reduc?on in mortgage payments on refinances and loan modifica?Sources:  MBA, Treasury, Freddie Mac, and HUD. See Note 7, Sources and Methodology. 

0 

500 

1000 1500 2000 2500 3000 3500 4000 

2009 Q2  2009 Q3  

Housing Counselors Serve Milli

Cumula?ve Households Counseled Since Apr

Source:  HUD. 

0 2 4 6 8 

10 12 14 16 

Home Equity Up More than $1 Trillion Since First Quarter 2009 

Owners’ Equity in Household Real Estate at End of Period ($ Trillions) 

Source:  Federal Reserve Board. 

Source:  Freddie Mac and Treasury. 

0 5 

10 15 20 25 30 35 

FHA Supports Mortgage Lending During Crisis 

FHA as Share of Quarterly Mortgage Origina?ons by Type (Percent) 

Purchase  Refinance  Combined 

Sources:  MBA and HUD. See Note 8, Sources and Methodology. 
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

HOuSing MArkET FAcT SHEET

indicator This Period Last Period Year Ago As of Dec 08 Latest 

release Sources

Mortgage Rates (30-Yr FRM, percent) 4.75 4.72 5.38 5.1 17-Jun-10 Freddie Mac

Home Prices (indices)

 Case Shiller (NSA) 

 FHFA (SA)

143.4

193.9

144.1

193.4

140.1

198.3

150.5

199.0

March-10

March-10

Standard and Poor’s

Federal Housing Finance Agency

Home Sales (thousands, SA)

 New 

 Existing 

 First Time Buyers

42.0

480.8

245.7

36.6

446.7

227.2

28.4

391.7

197.4

31.4

395.0

174.8

April-10

April-10

April-10

HUD and Census Bureau

National Association of Realtors ®

NAR, Census Bureau, and HUD

Housing Supply

 Existing Homes for Sale (thousands, SA)

 Existing Homes - Months’ Supply (months)

 New Homes for Sale (thousands, SA)

 New Homes for Sale - Months’ Supply (months)

 Vacant Units Held Off Market (thousands)

4,044.0

8.4

211.0

5.0

3,628.0

3,626.0

8.1

227.0

6.2

3,497.0

3,937.0

10.1

300.0

10.6

3,527.0

3,700.0

9.4

353.0

11.2

3,508.0

April-10

April-10

April-10

April-10

1st Q 10

National Association of Realtors ®

National Association of Realtors ®

HUD and Census Bureau

HUD and Census Bureau

Census Bureau

Mortgage Originations (thousands)

 Refinance Originations

 Purchase Originations

1,165.0

725.0

1,610.5

978.6

1,309.1

625.1

767.2

986.4

1st Q 10

1st Q 10

Mortgage Bankers Association and HUD

Mortgage Bankers Association and HUD

FHA Originations (thousands)

 Refinance Originations Purchase 

 Purchase Originations

 Purchases by First Time Buyers

21.6 (p) 

95.0 (p) 

71.3 (p)

33.4

103.3

76.1

92.7

88.9

70.2

62.9

72.7

56.2

May-10

May-10

May-10

HUD 

HUD

HUD

Mortgage Delinquency Rates (percent)

 Prime 

 Subprime 

 FHA

5.9

36.4

12.4

5.8

35.9

11.7

4.9

33.5

13.6

4.4

34.1

14.3

May-10

May-10

May-10

LPS-McDash, MBA, and HUD

LPS-McDash, MBA, and HUD

HUD

Seriously Delinquent Mortgages (thousands) 

 Prime 

 Subprime 

 FHA

1,939.5

1,930.9

548.2

1,983.0

1,959.4

544.5

1,366.1

1,776.4

388.7

910.5

1,642.8

333.1

May-10

May-10

May-10

LPS-McDash and HUD

LPS-McDash and HUD

HUD

Underwater Borrowers 11,276.9 11,321.7 10,163.3 (a) -- 1st Q 10 First American CoreLogic 

Foreclosure Actions (thousands)

 Foreclosure Starts 

 Notice of Foreclosure Sale 

 Foreclosure Completions

96.5

132.7

93.8

103.8

137.6

92.4

123.1

133.3

65.0

121.5

103.0

78.9

May-10

May-10

May-10

Realty Trac

Realty Trac

Realty Trac

HOuSing ASSiSTAncE AnD STABiLiZATiOn PErFOrMAncE METricS

indicator This Period Last 

Period

cumulative From 

Apr 1, 2009 Latest release Sources

Distressed Borrowers Assisted (thousands)

 HAMP Trial Modifications 

 HAMP Permanent Modifications

 FHA Loss Mitigation Interventions 

 HOPE Now Modifications

30.1

47.7

25.2

104.3

37.0

68.1

25.2

114.9

1,244.2

346.8

383.5

1,211.8

May-10

May-10

May-10

April-10

Treasury

Treasury

HUD

Hope Now Alliance

Counseled Borrowers (thousands) 839.4 1,075.6 3,558 1st Q 10 HUD

Borrower Annual Savings ($ millions) 

HAMP Trial Modifications

 HAMP Permanent Modifications

 All Refinances (Including GSEs and FHA)

--

--

--

--

--

--

6,095.9

1,401.4

10,918.9

1st Q 10

1st Q 10

1st Q 10

Treasury, Freddie Mac, and HUD

Treasury and HUD

MBA, Treasury, and HUD

Change in Aggregate Home Equity 

 ($ billions) 28.6 97.3 1,079.4 1st Q 10 Federal Reserve Board

SA= seasonally adjusted, NSA = not seasonally adjusted, p = preliminary, a = adjusted for methodology change.
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

SOurcES AnD METHODOLOgY

A. Items in Tables

indicator Frequency Sources notes on Methodology

Distressed Homeowners Assisted 

 HAMP Trial Modifications

 HAMP Permanent Modifications

 FHA Loss Mitigation Interventions

 HOPE Now Modifications

Monthy

Monthy

Monthy

Monthy

Treasury

Treasury

HUD

Hope New Alliance

As reported. 

As reported. 

All FHA loss mitigation and early delinquency interventions. 

All proprietary modifications completed.

Counseled Borrowers (thousands) Quarterly HUD Housing Counseling Activity Reported by All HUD-Approved Housing Counselors.

Borrower Annual Savings 

 HAMP Trial Modifications 

 HAMP Permanent Modifications 

 All Refinances

Quarterly 

Quarterly 

Quarterly

Treasury, Freddie Mac, and 

HUD 

Treasury and HUD 

MBA, Treasury, and HUD

Estimates of average savings per HAMP Trial Modifications made by Freddie 

Mac. 

Average savings per HAMP permanent modification reported by Treasury.

Estimate of refinance originations (see below) is multiplied by Freddie Mac estimate of savings per refinance.

Change in Aggregate Home Equity Quarterly Federal Reserve Board Difference in aggregate household owners’ equity in real estate as reported in the 

Federal Reserve Board’s Flow of Funds Accounts of the United States for stated 

time period.

Mortgage Rates (30-Yr FRM) Weekly Freddie Mac Weekly Survey of Mortgage Commitment Rates.

Home Prices 

 Case Shiller (NSA) 

 FHFA (SA)

Monthy 

Monthy

Standard and Poor’s 

Federal Housing Finance 

Agency

Case Shiller 20-metro composite index, January 2000 = 100. 

FHFA monthly (purchase-only) index for US, January 1991 = 100.

Home Sales (SA)

 New 

 Existing 

 First Time Buyers

Monthy 

Monthy 

Monthy

HUD and Cencus Bureau 

National Association of 

Realtors®

NAR, Census Bureau, and 

HUD

Seasonally adjusted annual rates divided by 12. 

Seasonally adjusted annual rates divided by 12. 

Sum of seasonally adjusted new and existing home sales (above) multiplied by 

National Association of Realtors ® annual estimate of first time buyer share of 

existing home sales.

Housing Supply 

 Existing Homes for Sale (SA) 

 Existing Homes - Months’ Supply 

 New Homes for Sale (SA)

 New Homes for Sale - Months’ Supply 

 Vacant Units Held Off Market 

Monthly 

Monthly 

Monthly 

Monthly 

Quarterly

National Association of 

Realtors®

National Association of 

Realtors®

HUD and Cencus Bureau 

HUD and Cencus Bureau 

Cencus Bureau

As reported. 

As reported. 

As reported. 

As reported. 

As reported.

Mortgage Originations 

 Refinance Originations 

 Purchase Originations

Quarterly 

Quarterly

Mortgage Bankers Association and HUD 

Mortgage Bankers Association and HUD

HUD estimate of refinance originations based on MBA estimate of dollar volume of 

refiance originations.

HUD estimate of home purchase originations based on MBA estimate of dollar volume 

of home purchase originations. 

FHA Originations 

 Refinance Originations 

 Purchase Originations 

 Purchases by First Time Buyers

Monthy 

Monthy 

Monthy

HUD

HUD

HUD

FHA originations reported as of date of loan closing. Estimate for current month 

scaled upward due to normal reporting lag and shown as preliminary.

Mortgage Delinquency Rates

 Prime 

 Subprime 

 FHA

Monthy 

Monthy 

Monthy

LPS-McDash Analytics 

LPS-McDash Analytics 

HUD

Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages 

actively serviced. 

Total mortgages past due (30+ days) but not in foreclosure, divided by mortgages 

actively serviced. 

Total FHA mortgages past due (30+ days) but not in foreclosure, divided by FHA’s 

insurance in force.

Seriously Delinquent Mortgages

 Prime

 Subprime

 FHA

Monthy 

Monthy 

Monthy

LPS-McDash, MBA, and HUD 

LPS-McDash, MBA, and HUD 

HUD

Mortgages 90+ days delinquent or in foreclosure, scaled up to market. 

Mortgages 90+ days delinquent or in foreclosure, scaled up to market. 

Mortgages 90+ days delinquent or in foreclosure.

Underwater Borrowers Quarterly First American CoreLogic As reported. Due to change in reporting methodology, underwater borrower 

estimates prior to the third quarter of 2009 are adjusted to be compatible with 

current estimates.

Foreclosure Actions

 Foreclosure Starts

 Notice of Foreclosure Sale

 Foreclosure Completions

Monthly 

Monthly

Monthly

Realty Trac 

Realty Trac 

Realty Trac

Notice of default plus lis pendens. 

Notice of sale (auctions). 

Real Estate Owned (REO).
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

SOurcES AnD METHODOLOgY

B. Notes on Charts.

1. Monthly house price trends shown as changes in respective house price indices applied to a base price in January 2008 set to equal the median price of an existing home 

sold in January 2008 as reported by the National Association of Realtors. Indices shown: S&P/Case Shiller 20-metro composite index, January 2000 = 100, and FHFA 

monthly (purchase-only) index for US, January 1991 = 100.

2. S&P/Case-Shiller Index as reported monthly. Futures index figures report forward expectations of house prices reflected by the market as of the date indicated.

3. Reported seasonally adjusted annual rates for new and existing home sales divided by 12.

4. HUD estimate of refinance originations based on MBA estimate of dollar volume of refinance originations.

5. Cumulative HAMP modifications started, FHA loss mitigation and early delinquency interventions, plus proprietary modifications completed as reported by 

Hope Now Alliance.

6. Foreclosure starts include notice of default and lis pendens, completions are properties entering REO. Both as reported by Realty Trac.

7. See “Borrower Annual Savings” above.

8. FHA market shares as FHA purchase and refinance originations divided by HUD estimates of purchase and refinance mortgage originations as noted in “Mortgage Originations” above. 
The Obama Administration’s Efforts To Stabilize The Housing Market and Help American Homeowners U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

The Administration has taken a broad set of actions to stabilize the housing market and help American 

homeowners. A year ago, stress in the financial system had severely reduced the supply of mortgage credit, 

limiting the ability of Americans to buy homes or refinance mortgages. Millions of responsible families who 

had made their monthly payments and had fulfilled their obligations saw their property values fall. They also 

found themselves unable to refinance at lower mortgage rates.

In February 2009, less than one month after taking office, President Obama announced the Homeowner 

Affordability and Stability Plan. As part of this plan and through other housing initiatives, the Administration 

has taken the following actions to strengthen the housing market:

• Supported to Fannie Mae and Freddie Mac to ensure continued access to affordable mortgage credit;

• The Federal Reserve and the U.S. Treasury purchased more than $1.4 trillion in agency mortgage 

backed securities through independent MBS purchase programs, helping to keep mortgage rates at 

historic lows;

• Launched a modification initiative to help homeowners reduce mortgage payments to affordable levels 

and to prevent avoidable foreclosures;

• Launched a $23.5 billion Housing Finance Agencies Initiative to increase sustainable homeownership 

and rental resources;

• Supported the First Time Homebuyer Tax Credit, which has helped 2.5 million American families 

purchase homes;

• Provided more than $5 billion in support for affordable rental housing through low income housing 

tax credit programs and $2 billion in support for the Neighborhood Stabilization Program through the 

Recovery Act to restore neighborhoods hardest hit by concentrated foreclosures;

• Created the $2.1 billion HFA Hardest Hit Fund for innovative foreclosure prevention programs in the 

nation’s hardest hit housing markets.

• Supported home purchase and refinance activity through the FHA to provide access to affordable 

mortgage capital and help homeowners prevent foreclosures.

###

Appendix