HA

ChMSeDiOf CoBoWBoHAHAArMLisDeCo

In

Making Home Affordable Program

Servicer Performance Report Through May 2010

Report HighlightsNearly 350,000 Homeowners Granted Permanent Modifications• Total number of permanent modifications increases more than 15%, with growth in 

permanent modifications averaging more than 50,000 per month over the last four months.

• Homeowners in permanent modifications are experiencing a median payment reduction 

of 36%, more than $500 per month.

• Homeowners in permanent modifications are guaranteed lower payments for five years, 

then fixed terms at today’s low rates for the life of the loan. 

Servicers Continue to Work Through Aged Trial Population• Cancellations rise as servicers comply with Treasury guidance to make decisions on 

aged trials. Of the new canceled trials this month, more than 70% had been in trial six months or longer. 

• Most homeowners in canceled trials become current on mortgage payments or enter an 

alternative modification, according to servicers.

• Common causes of cancellations include borrowers who had mortgage payments 

already less than 31% of their income, missed trial payments or had incomplete or unverifiable documentation.

New This Month: Disposition Path of Canceled Trials• According to servicer data, nearly half of homeowners unable to enter a HAMP 

permanent modification enter an alternative modification with their servicer.

• Fewer than 10% of canceled trials move to foreclosure sale, servicers report. New This Month: Description of Compliance Activities• Making Home Affordable-Compliance disagreed with servicer actions in just 3.9% of 

Second Look reviews.

• Compliance places continued focus on borrower solicitation and document retention.
Making Home Affordable Program

Servicer Performance Report Through May 2010

HAMP Activity: All Servicers

Total

HAMP Eligibility

Eligible Delinquent Loans1 3,180,615

Eligible Delinquent Borrowers2 1,675,238

Trial Modifications

Trial Plan Offers Extended3 1,507,018

All Trials Started 1,244,184

Trials Reported Since April 2010

Report4 30,099

Trial Modifications Canceled 429,696Active Trials 467,672

Permanent Modifications

All Permanent Modifications

Started 346,816Permanent Modifications Begun

Since April 2010 Report 47,724

Permanent Modifications

Canceled5 6,357

Active Permanent Modifications 340,459

1 Estimated eligible 60+ day delinquent loans as reported by servicers as of April 30, 2010, include conventional loans:

 in foreclosure and bankruptcy. with a current unpaid principal balance less than $729,750 on a one‐unit property, $934,200 on a two‐unit property, $1,129,250 on a

three‐unit property and $1,403,400 on a four‐unit property.

 on a property that was owner‐occupied at origination.

 originated on or before January 1, 2009.

Estimated eligible 60+ day delinquent loans exclude:

 FHA and VA loans. loans that are current or less than 60 days delinquent, which may be eligible for HAMP if a borrower is in imminent default.

Refer to the Waterfall of Eligible Borrowers on page 7 for further explanation.

For servicers enrolling after March 1, 2010 that did not participate in the 60+ day delinquency survey, the delinquency count is from the

servicer registration form. 2 The estimated eligible 60+ day delinquent borrowers are those in HAMP‐eligible loans, minus estimated exclusions of loans on vacant

properties, loans with borrower debt‐to‐income ratio below 31%, loans that fail the NPV test, properties no longer owner‐occupied,

manufactured housing loans with title/chattel issues that exclude them from HAMP, and loans where the investor pooling and service

agreements preclude modification. Exclusionsfor DTI and NPV results are estimated using market analytics.

Refer to the Waterfall of Eligible Borrowers on page 7 for further explanation. 3 As reported in the weekly servicer survey through May 27, 2010. 4 Servicers may enter new trial modifications anytime before the loan converts to a permanent modification. 5 Includes 124 loans paid off.

Source: HAMP system of record (except where noted).

HAMP Trials 

Permanent Modific

54,722

155,097

273,768

418,730

5

0

200,000400,000600,000800,000

1,000,0001,200,0001,400,000

May

and

Prior

June July Aug 

4,742 15,649 31,424

6

0

50,000

100,000150,000200,000250,000300,000350,000400,000

Sep and

Earlier

Oct Nov 

Note: Historical data is unchanged from previous reSource: HAMP system of record.Source: HAMP system of record.
• Lower monthly mortgage payments for borrowers in active 

trial and permanent modifications represent a cumulative reduction of more than $3.1 billion.• The median savings for borrowers in permanent modifications is $514.31, or 36% of the median beforemodification payment. 

Interest Rate Reduction 100%Term Extension 53.7%Principal Forbearance 28.8%

3.0%

10.4%

0% 2

Illness of Principal

Borrower

Excessive

Obligation

Loss of Income

Loan Characteristic

Before 

Modification

After 

Modification

Median 

Decrease

Front-End Debt-to-Income Ratio1 44.8% 31.0% ‐13.9 pct pts

Back-End Debt-to-Income Ratio2 79.8% 63.8% ‐14.4 pct ptsMedian Monthly Payment3 $1,425.53 $836.85 ‐$514.31

1 Includes borrowers who are employed b

those who have lost their jobs.Note: Does not include 17.6% of permane

1 Ratio of housing expenses (principal, interest, taxes, insurance and homeowners 

association and/or condo fees) to monthly gross income. 

2 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. Borrowers who have a back-end debt-to-income ratio of greater than 55% are required to seek housing counseling under program guidelines.

3 Principal and interest payment. 

1

Making Home Affordable Program

Servicer Performance Report Through May 2010

Modification Characteristics

Loan Statu

Permanent Modifications by Modification Step

Select Median Characteristics of Permanent Modifications

Predominant Hardship R

In De

at T

Sta

77.

Note: For all trial modifications started. “At Risk of Default” includes borrowers uthose in imminent default. “In Default” re
86% 83% 79%

63% 59%

56% 56% 55

0%

25%50%75%

100%

Trial Length atConversion(months):

3.2 3.0 4.6 3.3 3.1 3.8 3.0 3

Servicer 

Estimated 

Eligible 60+ Day

Delinquent

Borrowers1 

Trial Plan 

Offers 

Extended2

All HAMP Trials 

Started3

Active Trial 

Modifications3

Permanent 

Modifications3

American Home Mortgage Servicing Inc 52,145 21,826 18,147 9,565 8,383Aurora Loan Services, LLC 40,525 47,508 42,997 10,679 12,019Bank of America, NA4 478,811 403,384 308,527 142,824 62,969Carrington Mortgage ServicesLLC 5,535 3,391 2,705 627 1,914CitiMortgage, Inc. 148,547 154,047 145,951 42,131 34,675GMAC Mortgage, Inc. 22,722 55,190 44,807 12,255 23,122Green Tree Servicing LLC 7,215 7,051 6,002 2,977 1,629HomEq Servicing 16,233 6,107 4,365 1,111 3,054J.P. Morgan Chase Bank, NA5 242,282 257,474 198,307 87,550 47,467Litton Loan Servicing LP 54,687 36,648 29,649 11,283 7,262Nationstar Mortgage LLC 21,821 25,051 20,709 5,867 7,539Ocwen Financial Corp. Inc. 34,230 24,556 20,124 4,058 13,384OneWest Bank 57,127 59,256 43,025 23,878 11,992PNC Mortgage6 21,079 21,818 17,741 5,821 1,906Saxon Mortgage Services, Inc. 28,909 44,698 40,147 8,413 11,784Select Portfolio Servicing 20,592 60,716 37,505 8,883 13,757US Bank NA 20,181 12,982 9,958 3,363 5,026Wachovia Mortgage, FSB7 31,084 12,397 8,965 7,744 1,211Wells Fargo Bank, NA8 182,067 238,682 171,009 45,999 40,759Other SPA servicers9 15,667 14,236 11,754 4,781 5,352Other GSE Servicers10 173,779 NA 61,790 27,863 25,255

Total 1,675,238 1,507,018 1,244,184 467,672 340,459

1 Estimated eligible 60+ day delinquent borrowers as reported by 

servicers as of April 30, 2010, include those in conventional loans: 

 in foreclosure and bankruptcy. with a current unpaid principal balance less than $729,750 on a 

one-unit property, $934,200 on a two-unit property, $1,129,250 on a three-unit property and $1,403,400 on a four-unit property.

 on a property that was owner-occupied at origination. originated prior to January 1, 2009.

Estimated eligible 60+ day delinquent borrowers excludes: 

 Those in FHA and VA loans. Those in loans that are current or less than 60 days delinquent, 

which may be eligible for HAMP if a borrower is in imminent default.

 Those borrowers with debt-to-income ratios less than 31% or a 

negative NPV test,

 Owners of vacant properties or properties otherwise excluded (see 

footnotes of page 7 for further explanation). 

Exclusions for DTI and NPV are estimated using market analytics. 

For servicers enrolling after March 1, 2010 that did not participate in the 

60+ day delinquency survey, the delinquency count is from the servicer registration form.

2 As reported in the weekly servicer survey through May 27, 2010.3 Active trial and permanent modifications as reported into the HAMP 

system of record by servicers. Subject to adjustment based on servicer reconciliation of historic loan files. 

4 Bank of America, NA includes Bank of America, NA, BAC Home Loans 

Servicing LP, Home Loan Services and Wilshire Credit Corporation.

5 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation.6 Formerly National City Bank.7 Wachovia Mortgage, FSB consists of Pick-a-Payment loans.8 Wells Fargo Bank, NA includes a portion of the loans previously 

included in Wachovia Mortgage, FSB. 

9 Other SPA servicers are entities with less than 5,000 estimated eligible 

60+ day delinquent borrowers that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in the Appendix.

10 Includes servicers of loans owned or guaranteed by Fannie Mae and 

Freddie Mac.

Making Home Affordable Program

Servicer Performance Report Through May 2010

Aged Trials1 

71% 69% 64%

54%

51% 51%

39% 

0%

20%40%60%80%

HAMP Modification Activity by Servicer Co

1 Active trials initiated at least six months ago. Note: Excludes Wachovia Mortgage, FSB at 0%.1 As measured against trials eligible to convert – those thre

* Other SPA and Other GSE servicersrepresent a mix of ver

Note: Per program guidelines, all servicers will use verified 

Permanent modificationstransferred among servicers are c

190,0initiat
Making Home Affordable Program

Servicer Performance Report Through May 2010

Disposition Path 

Trials Canceled Through April 2010 (8 Largest Servicer

Borrowers who are in, or are in the process of receiving

Action

Pending2

Borrower in

Bankruptcy

Borrower

Current

Alternative

Modification

Payment

Plan3

Loan

Payoff

American Home Mortgage

Servicing, Inc. 65 8 50 6 9 1 

Bank of America, NA5 12,014 829 1,286 13,928 690 140 

CitiMortgage Inc. 15,665 5,469 6,556 26,446 932 433 GMAC Mortgage Inc. 1,481 189 1,039 3,808 434 133 

JP Morgan Chase Bank NA6 12,765 0 4,080 8,113 33 1 

Litton Loan Servicing LP 3,385 143 617 389 98 65 

OneWest Bank 1,733 108 209 960 63 5 

Wells Fargo Bank NA7 3,502 254 5,103 41,188 526 1,382 

TOTAL(These 8 Servicers)

50,610

26.1%

7,000

3.6%

18,940

9.8%

94,838

48.9%

2,785

1.4%

2,160

1.1%

Note: Data is as reported by servicers for actions completed through April 30, 2010. 1 As defined by cap amount.2 Trial loans that have been canceled, but no further action has yet been taken. 3 An arrangement with the borrower and servicer that does not involve a formal loan modification. 4 Foreclosure actions started and completed foreclosure sales. 5 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing LP, Home Loan 

Services and Wilshire Credit Corporation.

6 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation.7 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. 

Excludes Wachovia Mortgage FSB Pick-a-Payment Loans. 

Note: Excludes cancellations pending data corrections. 

Action Pending

Borrower Current

Foreclosure

Bankruptcy

Short Sale/Deed

in Lieu

Payment Plan 
Making Home Affordable Program

Servicer Performance Report Through May 2010

Results of Compliance Second-Look Reviews (Dec. 2009)

0%

20%40%60%80%

100%

Group Average American Home

Mortgage

Servicing, Inc.

JP Morgan Chase

Bank, NA

Litton Loan

Servicing LP

OneWest Bank

MHA‐C Agrees MHA‐C Disagrees Unable to Determine

1Bank of America NA, Wells Fargo NA, CitiMortgage Inc. and GMAC Mortgage Inc. were not part of

the December 2009 rotation for Second Look reviews................... 2Second Look Results are derived of a statistical sample of loan files for borrowers not offered a

HAMP modification (typically 150 loan files). 3 Cases where the borrower was not appropriately solicited or evaluated for HAMP. 4 Cases where MHA‐C was unable to determine if the servicer’s actions were appropriate.

The results of these reviews help determine the types of other compliance

activities and frequency with which those activities will be performed. In

addition, these reviews help determine if further actions are required, including

requiring servicers to: reevaluate disagrees and hold off foreclosures until

disagrees are reevaluated; submit further documentation to clarify loan status

for the “Unable to Determine” population; engage in process remediation,

training, or policy clarification; or take other actions as directed by MHA‐C and

Treasury.

Ongoing CompliancBased on Making Home Adate, HAMP compliance e

• Borrower Solicitat

• Servicers awithout delay• Servicers aproceedings uconsidered fo• Servicers m

identify all pop

• Underwriting Docu

• Servicers mdocumentatio• Documentadenials, permservicer• Servicers’ inare required to evaluation of udocumentatio

Please see Appendix B for a 

Making Home Affordable-Compliance (MHA-C) conducts Second Look1,2 reviews of homeowners that were not solicited or evaluated 

for HAMP modifications to ensure that the servicer’s actions were appropriate. In 3.9% of the cases, MHA-C disagreed with the servicer’s actions.

3 4
Making Home Affordable Program

Servicer Performance Report Through May 2010

Events Hosted Nationally by Treasury and Partners (cumulative) 38Homeowners Attending Treasury-Sponsored Events (cumulative) 40,169Servicer Solicitation of Borrowers (cumulative)1 4,721,697

Page views on MakingHomeAffordable.gov

(May 2010) 5,231,590Page views on MakingHomeAffordable.gov (cumulative) 85,365,909Percentage to Goal of 3-4 Million Modification Offers by 20122 38-50%

1 Source: survey data provided by servicers. Servicers are encouraged by HAMP to solicit 

information from borrowers 60+ days delinquent, regardless of eligibility for a HAMP 

modification. 

2 In 2009, Treasury set a goal of offering help to 3-4 million borrowers through the end of 2012, 

as measured by trial plan offers extended to borrowers.

Cumulative May

Total Number of Calls Taken at 1-888-995-HOPE (since program inception) 1,165,237 104,936

Borrowers Receiving Free Housing Counseling Through the Homeowner’s HOPETM Hotline

591,235 45,917

Selected Outreach Measures

Call Center Volume

4.9

4.1

3

5.7

0123456

Loans (Millions)

1st Lien, 60+

DaysDelinquent

Less: Non‐ParticipatingHAMP Servicer

Less: FHAor VA

LeOO

O

•Other exclusions include: no longer owner-occupied; inand manufactured housing loans with titling/chattel issu•Note: Effective this month, this estimate will be updated numbers from the Mortgage Bankers Association. Sources: Fannie Mae; monthly survey of participating seQuarter MBA delinquency survey. Excluded loans are aparticipation agreement for HAMP.

Not all 60-day delinquent loans are eligible borrower eligibility. Based on the estimatesdelinquent in the 1st quarter of 2010, 1.7 m

represents a point-in-time snapshot of the deligibility, we expect that more borrowers w

Waterfall of HAM

= Estimate
Note: Includes active trial and permanent modifications from the official HAMP system of record.

Source: Mortgage Bankers Association. Data is as of 1stQuarter 2010.

State

Active

Trials

Permanent 

Modifications Total

% of 

Total State

Active

Trials

Permanent 

Modifications Total

% of 

Total 

AK 230 153 383 0.0% MT 606 377 983 0.1%

AL 3,081 2,092 5,173 0.6% NC 9,286 6,759 16,045 2.0%

AR 1,263 880 2,143 0.3% ND 111 64 175 0.0%

AZ 21,622 18,361 39,983 4.9% NE 646 480 1,126 0.1%

CA 104,280 73,700 177,980 22.0% NH 1,937 1,660 3,597 0.4%CO 6,423 4,960 11,383 1.4% NJ 15,268 11,192 26,460 3.3%CT 5,835 4,497 10,332 1.3% NM 1,640 1,116 2,756 0.3%

DC 920 538 1,458 0.2% NV 12,150 9,305 21,455 2.7%DE 1,431 1,158 2,589 0.3% NY 22,868 13,522 36,390 4.5%

FL 58,100 41,272 99,372 12.3% OH 10,035 7,692 17,727 2.2%

GA 18,223 12,759 30,982 3.8% OK 1,337 835 2,172 0.3%HI 1,744 1,254 2,998 0.4% OR 5,074 3,918 8,992 1.1%

IA 1,343 913 2,256 0.3% PA 10,107 7,215 17,322 2.1%

ID 1,735 1,352 3,087 0.4% RI 2,052 1,844 3,896 0.5%

IL 24,503 18,065 42,568 5.3% SC 4,636 3,421 8,057 1.0%IN 4,657 3,516 8,173 1.0% SD 223 121 344 0.0%KS 1,270 875 2,145 0.3% TN 5,040 3,735 8,775 1.1%KY 1,903 1,373 3,276 0.4% TX 16,030 8,431 24,461 3.0%LA 2,724 1,700 4,424 0.5% UT 4,079 3,174 7,253 0.9%

MA 10,326 8,622 18,948 2.3% VA 11,418 8,826 20,244 2.5%MD 15,033 11,623 26,656 3.3% VT 338 291 629 0.1%

ME 1,150 1,018 2,168 0.3% WA 9,089 6,803 15,892 2.0%

MI 14,766 11,871 26,637 3.3% WI 4,414 3,514 7,928 1.0%MN 7,531 6,923 14,454 1.8% WV 712 565 1,277 0.2%

MO 5,345 3,917 9,262 1.1% WY 241 179 420 0.1%MS 1,685 1,330 3,015 0.4% Other* 1,212 698 1,910 0.2%

* Includes Guam, Puerto Rico and the U.S. Virgin Islands.

Making Home Affordable Program

Servicer Performance Report Through May 2010

60+ 

HAMP Activity by State Modific

Mortgage D
Servicer 

Bank of America, NA1 

JP Morgan Chase NA2 

Wells Fargo Bank, NA 3 CitiMortgage, Inc. 

OneWest Bank GMAC Mortgage, Inc. 

Aurora Loan Services, LLC 

Select Portfolio Servicing Saxon Mortgage Services Inc. 

Litton Loan Servicing LP American Home Mortgage Servicing Inc Ocwen Financial Corporation, InNationstar Mortgage LLC 

Wachovia Mortgage, FSB4 

US Bank NA PNC Mortgage5 

Green Tree Servicing LLC 

HomEq Servicing Carrington Mortgage Services LLRemainder of HAMP Servicers 

Total 

1 Bank of America, NA includes Bank of America

Wilshire Credit Corporation.

2 J.P. Morgan Chase Bank, NA includes EMC Mo3 Wells Fargo Bank, NA includes a portion of the 4 Wachovia Mortgage, FSB consists of Wachovia 5 Formerly National City Bank.Note: Figures reflect active trials and perm

Metropolitan Statistical Area

Active

Trials

Permanent

Modifications

Total 

HAMP 

Activity

% of All 

HAMP 

Activity

Los Angeles-Long Beach-Santa Ana, CA 31,729 20,390 52,119 6.4%New York-Northern New JerseyLong Island, NY-NJ-PA 29,920 19,294 49,214 6.1%Chicago-Naperville-Joliet, IL-IN-WI 23,640 17,428 41,068 5.1%Riverside-San Bernardino-Ontario, CA 22,217 18,016 40,233 5.0%Miami-Fort Lauderdale-Pompano Beach, FL 23,443 15,050 38,493 4.8%Phoenix-Mesa-Scottsdale, AZ 17,853 15,159 33,012 4.1%

Washington-Arlington-Alexandria, DC-VA-MD-WV 16,102 12,177 28,279 3.5%Atlanta-Sandy Springs-Marietta, GA 14,693 10,372 25,065 3.1%Las Vegas-Paradise, NV 10,082 7,638 17,720 2.2%

Detroit-Warren-Livonia, MI 9,365 7,080 16,445 2.0%

Orlando-Kissimmee, FL 9,214 6,849 16,063 2.0%

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 7,695 5,757 13,452 1.7%

Boston-Cambridge-Quincy, MA-NH 7,281 6,103 13,384 1.7%

Sacramento-Arden-ArcadeRoseville, CA 7,150 5,795 12,945 1.6%

San Francisco-Oakland-Fremont,CA 7,951 4,604 12,555 1.6%

A complete list of HAMP activity for all MSAs is available athttp://www.financialstability.gov/docs/MSA%20HAMP%20Data%20May%202010.pdf

Making Home Affordable Program

Servicer Performance Report Through May 2010

15 Metropolitan Areas With Highest HAMP Activity Modifications by In
Making Home Affordable Program

Servicer Performance Report Through May 2010

Allstate Mortgage Loans

& Investments, Inc.

American Eagle Federal Credit Union

American Home Mortgage Servicing, Inc

AMS Servicing, LLCAurora Financial Group, Inc.Aurora Loan Services, LLCBank of America, N.A.1

Bank UnitedBay Federal Credit Union

Bay Gulf Credit Union

Bayview Loan Servicing, LLC

Carrington Mortgage Services, LLC

CCO MortgageCentral Florida Educators Federal Credit Union

Central Jersey Federal Credit Union

Chase Home Finance, LLC

CitiMortgage, Inc.

Citizens 1st National Bank

Citizens First Wholesale Mortgage Company

Community Bank

& Trust Company

CUC Mortgage Corporation

DuPage Credit Union

Eaton National Bank

& Trust Co

Farmers State BankFidelity Homestead Savings Bank

First BankFirst Keystone Bank

First National Bank of Grant Park

Franklin Credit Management Corporation

Fresno County Federal Credit UnionGlass City Federal Credit Union

GMAC Mortgage, Inc.

Golden Plains Credit Union

Grafton Suburban Credit UnionGreat Lakes Credit Union

Greater Nevada Mortgage Services

Green Tree Servicing LLCHartford Savings BankHillsdale County National BankHomEq ServicingHomeStar Bank

& Financial Services

Horicon BankHorizon Bank, NA

IberiabankIBM Southeast Employees' Federal Credit UnionIC Federal Credit Union

Idaho Housing and Finance Association

iServe Residential Lending LLCiServe Servicing Inc.

J.P.Morgan Chase Bank, NA2

Lake City BankLake National Bank

Litton Loan Servicing

Los Alamos National Bank

Marix Servicing, LLCMetropolitan National BankMidwest Bank

& Trust Co.

Mission Federal Credit UnionMorEquity, Inc.Mortgage Center, LLCMortgage Clearing Corporation

National City Bank

Nationstar Mortgage LLCNavy Federal Credit UnionOakland Municipal Credit Union

Ocwen Financial Corporation, Inc.

OneWest BankORNL Federal Credit UnionPark View Federal Savings BankPennyMac Loan Services, LLC

PNC B

PurduQLenQuan

ResidRG MRoebRounSaxon 

SchooSEFCUSelec

Servis ShoreSilver 

Sound 

Speci

Spirit StanfSterli

TechnTempThe G

U.S. B

Unite

Unite

Urban VantiVerity 

Vist FWells 

WealtWesc

Yadki

1 Bank of America, NA includes Bank of America, NA, BAC Home Loans Servicing 

LP, Home Loan Services and Wilshire Credit Corporation. 2 J.P. Morgan Chase Bank, NA includes EMC Mortgage Corporation. 

3 Wells Fargo Bank, NA includes Wachovia Mortgage FSB and Wachovia Bank NA. Appendix A: Non-GSE Participants in HAMP
Making Home Affordable Program

Servicer Performance Report Through May 2010

Description of Compliance Activities

Freddie Mac, serving as Compliance Agent for Treasury’s

Home Affordable Modification Program (HAMP), has

created a separate division known as Making Home

Affordable ‐ Compliance (MHA‐C). Using a risk‐basedapproach, MHA‐C conducts a number of different types of

compliance activities to assess servicer compliance with

HAMP guidelines, as described below.

On Site Reviews: Readiness

& Governance – A review

performed by MHA‐C to assess the servicer’s preparedness

for complying with new/future HAMP requirements, or to

research a trend or potential implementation risk. Reviews

are performed as needed, determined by frequency of new

program additions.NPV – A review conducted by MHA‐C to determine the

servicer’s adherence to the HAMP NPV guidelines. For

those servicers that have elected to recode the NPV model

into their own systems (recoders), the testing process is

designed to ensure the servicer’s NPV model is accurately

calculating NPV and that the model usage is consistent with

directives. At a minimum, recoders are subject to quarterly

off‐site testing and semi‐annual for on‐site reviews. For

servicers using the Treasury NPV Web Portal, reviews of

data submissions are performed on a monthly basis.

On Site Reviews: Implementation – A review conducted by

MHA‐C covering the servicer’s overall execution of the

HAMP program. Areas covered include, among other

things, solicitation, eligibility, underwriting, document

management, payment processing, reporting, and

governance. Reviews are performed at a minimum for

larger servicers on a semi‐annual schedule and for smaller

servicers on an annual schedule.

Loan File Review – A review performed by MHA‐C of a

servicer’s non‐performing loan portfolio primarily to assess

completeness of relevant documentation and appropriate

loan modification decisioning. This includes reviews of

loans which have successfully converted to a permanent

modification to ensure they meet the HAMP guidelines, as

well as loans that have not been offered HAMP

modifications to ensure that the exclusion was appropriate

(“Second Look”). Larger servicers are on an alternating

permanent modifications and Second Look monthly loan

file review cycle. These Loan File reviews consist of astatistical sample (typically 100‐ 150 loan files per larger

servicer). Smaller servicers are also statistically sampled on

a quarterly or semi‐annual cycle.

Incentive Payments – A review performed by MHA‐C to

determine the accuracy and validity of borrower and

investor incentive payments, and to assess whether

borrower payments are appropriately allocated to

borrowers’ loan principal in accordance with HAMP

guidelines. They are performed at a minimum annually on

the top 21 servicers.

Areas of Compliance Focus

Based on the results of MHA‐C’s reviews to date and

anticipated risks to the program, HAMP compliance efforts

will remain focused on the following general areas:

Borrower Solicitation – Servicers are required to solicit

eligible borrowers without delay and not conduct

foreclosure proceedings until such borrowers are

appropriately considered for HAMP. It is critical that

servicers not take actions that would lead to borrowers

becoming displaced from their home without being given

proper consideration for a loan modification or other

foreclosure alternative. Servicers should ensure that their

operating protocols identify all populations of eligible

borrowers. Servicers should ensure that their operating

procedures meet or exceed the minimum requirements of

Supplemental Directive 10‐02 related to borrower

solicitation and contact.

Underwriting Documentation – Servicers must retain a

complete and consistent set of documentation for all loans

considered for HAMP, including evidence supporting

borrower income. In addition, appropriate documentationmust support all decisions (e.g., denials, permanent

modifications, etc.) made by the servicer. Servicers’ quality

assura

an acti

underw

NPV m

presen

accuraoutcom

require

should 

Treasu

inaccuDocum

policie

acquis

potent

immed

made f

additio

educatdocum

respon

technoIR2 Dat

timely 

Admin

only to 

author

borrow

conduc

prepar

incons

Govern

governgovern

accoun

proced

develo

lending

Appendix B: Description of Compliance Activities