Making Home Affordable Program

Servicer Performance Report Through August 2010

HACh

MoSerDis

Ca

Dis

of for 

Sel

WaHoHA

HA

MoReSecLis

DeCoAre

In

Report HighlightsMore Than 468,000 Permanent Modifications Granted to Homeowners• More than 33,000 new permanent modifications recorded in August. 

• Homeowners in active permanent modifications realize a median monthly payment 

reduction of 36%, or more than $500 per month.

• For homeowners in permanent modifications, their median first-lien housing expense falls 

from nearly 45% of their monthly income to 31%.

Backlog of Aged Trial Modifications Falls to Fewer Than 95,000• Fewer than half of the homeowners in active trial modifications have been in a trial for six 

months or longer, as servicers continue to make decisions on aged trials. The number of 

aged trials is expected to continue to decline in coming months.

• The most common causes of cancellations include insufficient documentation, missed trial 

payments, or primary housing expense that is already less than 31% of household income.

• Servicers reported that more than half of homeowners in canceled trials receive alternative 

modifications or become current. Fewer than 15% of homeowners in canceled trials are 

moving toward foreclosure. 

• Verified documentation is required to initiate a trial modification on or after June 1, 2010. As 

a result of this change, the program conversion rate is expected to rise.

This Month: Quarterly Results of Compliance Reviews• Second Look reviews found that fewer than 5% of loans sampled from large servicers were 

evaluated incorrectly by the servicer. Where applicable, servicers are required to forestall 

foreclosure sales and reevaluate these homeowners under HAMP guidelines. Servicers are also required to suspend foreclosure sales on loans where results are under review. 

• When Second Look results warrant, further servicer actions may be required, including: 

requiring servicers to reevaluate loans not offered HAMP modifications; submit further documentation; clarify loan status; engage in process remediation, training, or policy 

clarification; or take other actions as directed by Treasury.

• Treasury takes compliance seriously and continues to work with servicers to ensure that 

they are adhering to program guidelines.
Making Home Affordable Program

Servicer Performance Report Through August 2010

HAMP Activity: All Servicers

Total

HAMP Eligibility (As of July 31, 2010)

Eligible Delinquent Loans1 3,010,530

Eligible Delinquent Borrowers2 1,334,548

TrialModifications

Trial Plan Offers Extended (Cumulative)3 1,580,464

All Trials Started 1,334,117

Trials Reported Since July 2010 Report4 26,628

Trial Modifications Canceled (Cumulative) 663,538

Active Trials 202,521

Permanent Modifications

All Permanent Modifications Started 468,058

Permanent Modifications Begun Since July2010 Report 33,342

Permanent Modifications Canceled

(Cumulative)5 19,121

Active Permanent Modifications 448,937

1 Estimated eligible 60+ day delinquent loans as reported by servicers as of July 31, 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.

For servicers enrolling after June 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 servicing agreements preclude modification. Exclusions for DTI

and NPV results are estimated using market analytics. 3 As reported in the weekly servicer survey through September 2, 2010. 4 Servicers may enter new trial modifications into the HAMP system of record anytime before the loan convertsto a

permanent modification. 5 A permanent modification is canceled when the borrower has missed three or more consecutive monthly payments.

Includes 348 loans paid off.

HAMP Trials 

Permanent Modific

564,191

723,531

838,318

956,239

0

200,000400,000600,000800,000

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

Sep and

Earlier

Oct Nov Dec 

4,742 15,649 31,424

66,938

11

0

100,000200,000300,000400,000500,000

Sep

and

Earlier

Oct Nov Dec 

2

Source: HAMP system of record. Note: Servicers may enter new trial modifications in

permanent modification. For example, 26,628 trials those, 17,878 were trials with a first payment record

Source: HAMP system of record.
Making Home Affordable Program

Servicer Performance Report Through August 2010

• Aggregate reductions in monthly mortgage payments for borrowers in active trial and permanent modifications total more than $3.1 billion.• The median savings for borrowers in permanent modifications is $515.49, or 36% of the median payment before modification. 

Interest Rate Reduction 100%Term Extension 56.7%Principal Forbearance 29.5%

2.9%

11.5

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 44.9% 31.0% ‐13.9 pct pts

Back-End Debt-to-Income Ratio2 79.9% 63.5% ‐14.5 pct ptsMedian Monthly Payment3 $1,428.56 $839.21 ‐$515.49

1 Includes borrowers who are employed b

those who have lost their jobs.Note: Does not include 17.5% 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

Modification Characteristics

Loan Statu

Permanent Modifications by Modification Step

Select Median Characteristics of Permanent Modifications

Predominant Hardship R

In De

at T

Sta

76.

Note: For all trial modifications started. “At Risk of Default” includes borrowers those in imminent default. “In Default” rNote: Data on the performance modifications, included in the Juwill be published quarterly. 
Making Home Affordable Program

Servicer Performance Report Through August 2010

91%

80%

71% 71% 67% 65% 65%

0%

25%50%75%

100%

Trial Length atConversion(months):

3.1 3.0 3.1 3.3 4.2 3.0 3.9 

As of July 31, 2010 Cumulative As of August 2010

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 46,270 28,373 24,043 10,445 11,949

Aurora Loan Services, LLC 32,057 50,970 44,422 2,496 15,103

Bank of America, NA4 383,482 410,054 316,421 72,851 79,859

CitiMortgage, Inc. 115,225 160,942 149,400 14,533 47,236

GMAC Mortgage, LLC 16,291 60,889 49,781 4,536 31,070

Green Tree Servicing LLC 5,088 7,622 6,627 1,476 3,134

HomEq Servicing 13,965 7,483 6,184 908 4,948

J.P. Morgan Chase Bank, NA5 201,771 264,353 211,787 22,799 60,932

Litton Loan Servicing LP 43,957 37,606 35,063 1,782 8,305Nationstar Mortgage LLC 16,846 27,053 23,276 2,367 10,206

Ocwen Financial Corp. Inc. 29,871 27,507 29,211 5,254 17,970

OneWest Bank 38,456 61,154 45,440 10,762 19,369

PNC Mortgage6 15,667 22,606 18,203 998 3,768

Saxon Mortgage Services, Inc. 23,115 45,798 35,126 2,689 11,199

Select Portfolio Servicing 14,934 63,200 38,361 1,937 15,880

US Bank NA 8,461 12,800 12,358 2,227 7,465

Wachovia Mortgage, FSB7 25,937 17,885 15,150 7,049 7,893

Wells Fargo Bank, NA8 139,342 255,986 180,180 13,230 48,830

Other SPA servicers9 14,220 18,183 17,924 4,107 10,128

Other GSE Servicers10 149,593 NA 75,160 20,075 33,693

Total 1,334,548 1,580,464 1,334,117 202,521 448,937

1 Estimated eligible 60+ day delinquent borrowers as reported by 

servicers as of July 31, 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.Exclusions for DTI and NPV are estimated using market analytics.

For servicers enrolling after June 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 September 2, 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 as of July 31, 2010, that have signed participation agreements with Treasury and Fannie Mae. A full list of participating servicers is in Appendix A.

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

Freddie Mac. Includes GSE loans transferred from SPA servicers.

Aged Trials1 

71%

61% 61%

56% 55%

52% 52% 

0%

20%40%60%80%

HAMP Modification Activity by Servicer Co

1 As of August 31, 2010. Active trials initiated at least six months ago. 

number of active trials that are converted to a permanent modificatio

newly 6 months old.

1 As measured against trials eligible to convert – those three months 2 Per program guidelines, all servicers must be using verified income 

income information.•Other SPA and Other GSE servicers represent a mix of verified and stPermanent modifications transferred among servicers are credited to 

94,0agotrials CitiM
Making Home Affordable Program

Servicer Performance Report Through August 2010

Disposition Path 

Homeowners in Canceled HAMP Trial Modifications

Through July 2010 (8 Largest Servicers) 1

Homeowners Whose HAMP Trial Modification Was Canceled Who Are in the Process of:

Servicer

Action

Pending2

Action Not

Allowed –

Bankruptcy

in Process

Borrower

Current

Alternative

Modification

Payment

Plan3 Loan Payoff

Short Sale/

Deed in

Lieu

Foreclosure

Starts

Foreclosure

Completions

American HomeMortgage Servicing Inc. 41 8 103 622 1 175 35 34 3 

Bank of America, NA4 63,382 3,196 7,552 35,638 11,889 1,311 15,556 8,062 1,543 

CitiMortgage Inc. 20,264 7,490 8,979 36,224 1,277 277 1,223 6,351 612 

GMAC Mortgage, LLC 2,009 340 1,057 8,169 117 474 323 1,365 521 

JP Morgan Chase Bank

NA5 14,631 504 1,705 59,149 135 2,185 2,376 16,089 3,368 

Litton Loan Servicing LP 3,336 472 1,774 13,552 309 96 823 2,400 475 

OneWest Bank 2,223 329 284 5,320 70 14 698 1,221 969 

Wells Fargo Bank NA6 8,720 540 9,536 58,144 986 2,432 4,485 17,882 4,067 

TOTAL(These 8 Servicers)

114,606

23.5%

12,879

2.6%

30,990

6.4%

216,818

44.5%

14,784

3.0%

6,964

1.4%

25,519

5.2%

53,404

11.0%

11,558

2.4%

Note: Data is as reported by servicers for actions completed through July 31, 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 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 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.
Making Home Affordable Program

Servicer Performance Report Through August 2010

Disposition Path 

Homeowners Not Accepted for HAMP Trial Modificatio

Through July 2010 (8 Largest Servicers) 1

Homeowners Not Accepted for a HAMP Trial Modification Who Are in the Process of:

Servicer

Action

Pending2

Action Not

Allowed –

Bankruptcy

in Process

Borrower

Current

Alternative

Modification

Payment

Plan3 Loan Payoff

Short Sale/

Deed in

Lieu

Foreclosure

Starts

Foreclosure

Completions

American HomeMortgage Servicing Inc. 2,164 370 4,230 30,282 285 565 1,296 3,106 159 

Bank of America, NA4 19,387 2,673 2,954 10,532 2,403 1,021 22,282 22,278 6,261 

CitiMortgage Inc. 5,378 2,055 8,497 8,410 1,819 3,775 909 3,046 1,048 

GMAC Mortgage, LLC 21,297 3,590 21,691 30,373 2,660 4,738 2,523 13,559 4,589 

JP Morgan Chase Bank

NA5 27,616 1,939 72,291 66,584 332 9,030 3,071 11,725 2,569 

Litton Loan Servicing LP 8,706 3,537 7,283 10,016 1,093 323 3,298 8,407 2,388 

OneWest Bank 8,224 1,463 5,540 4,679 393 147 2,601 3,941 4,450 

Wells Fargo Bank NA6 10,868 976 15,621 35,807 1,101 2,557 2,894 10,267 4,304 

TOTAL(These 8 Servicers)

103,640

16.5%

16,603

2.6%

138,107

22.0%

196,683

31.3%

10,086

1.6%

22,156

3.5%

38,874

6.2%

76,329

12.1%

25,768

4.1%

Note: Data is as reported by servicers for actions completed through July 31, 2010. 1 As defined by cap amount.2 Homeowners who were not approved for a HAMP trial modification, 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 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 Wells Fargo Bank, NA includes a portion of the loans previously included in Wachovia Mortgage, FSB. Excludes Wachovia Mortgage FSB Pick-a-Payment Loans. 
Making Home Affordable Program

Servicer Performance Report Through August 2010

Homeowner Outreach Events Hosted Nationally by Treasury and Partners (cumulative) 44Homeowners Attending Treasury-Sponsored Events (cumulative) 44,969Servicer Solicitation of Borrowers (cumulative)1 5,824,832

Page views on MakingHomeAffordable.gov

(August 2010) 3,281,857Page views on MakingHomeAffordable.gov (cumulative) 96,086,409Percentage to Goal of 3-4 Million Modification Offers by 20122 40-53%

1 Source: survey data provided by SPA 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.

Cumulative August

Total Number of Calls Taken at 1-888-995-HOPE (since program inception) 1,495,637 118,542

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

725,429 46,831

Selected Homeowner Outreach Measures

Call Center Volume

Source: Homeowner’s HOPETM Hotline.

Waterfall of E

4.7

3.9

3.2

5.5

0123456

Loans (Millions)

= Estimate

Not all 60-day delinquent loans are eligible homeowner eligibility. Based on the estimat60+ days delinquent, 1.3 million homeownein-time snapshot of the delinquency populatmore homeowners will become seriously desome of those homeowners will be eligible f

1st Lien, Less: Non- Less: Less: Non- Les

60+ Days Participating FHA or Owner- NonDelinquent HAMP VA Occupied at Co

Servicer Origination Loa

LoaOriAfte

* Other exclusions include: no longer owner-occupmodification; and manufactured housing loans with 

Sources: Fannie Mae; monthly survey of participafigure derived from 2nd Quarter 2010 MBA Nationa

large servicers by survey who have signed a servi
Making Home Affordable Program

Servicer Performance Report Through August 2010

Program to date, there have been Hotline regarding a specific SPA sBelow shows specific complaint ra

2%3%4%5%6%7%

JP Morgan

Chase NA

OneWest Litton 

% of Calls for Specific Servicer

That Are Complaints

Source: Homeowner’s HOPETM Hotline.

Note: Complaint rate is the share of a specific servicer’s 

included complaints.)

Homeowner Experience (8 Largest Servicers)*

Average Speed to Answer Homeowner Calls (July)

05

101520253035404550

OneWest Bank of

America NA

JP Morgan

Chase NA

Am. Home

Servicing

GMAC Wells Fargo Litton CitiMortgage

Seconds

Average of Calls to 

Homeowner’s HOPETM

Hotline for July: 4.0 Seconds

Call Abandon Rate (July)

0%1%2%3%4%5%

JP Morgan

Chase NA

Bank of

America

Litton Wells Fargo Am. Home

Servicing

OneWest GMAC CitiMortgage

Homeowner’s HOPETM

Hotline Average for July: 

1.6%

Source: Survey data through July 31, 2010, from servicers on call volume to loss mitigation lines.

Source: Survey data through July 31, 2010, from servicers on call volume to loss mitigation lines.

Servicer Time to Resolve (Program to Date, Throu

0

1020304050

JP Morgan

Chase NA

Bank of

America NA

OneWest 

Resolved: 1,256 1,647 290 

Cases (PTD)

Calendar Days

Source: HAMP Solutions Center. Target of 25 calenprocessing by HAMP Solutions Center. *As defined by cap amount.

Servicer Complaint Rate to H

(Program to Date, Through A

Calls to Servicer:
Making Home Affordable Program

Servicer Performance Report Through August 2010

Note: Includes active trial and permanemodifications from the official HAMP syrecord.

Source: 2nd Quarter 2010 National Delinquency Survey, Mortgage Bankers Association.

State

Active

Trials

Permanent 

Modifications Total

% of 

Total State

Active

Trials

Permanent 

Modifications Total

% of 

Total 

AK 86 184 270 0.0% MT 269 479 748 0.1%

AL 1,272 2,673 3,945 0.6% NC 3,594 8,604 12,198 1.9%AR 446 1,096 1,542 0.2% ND 40 82 122 0.0%AZ 9,262 23,390 32,652 5.0% NE 257 614 871 0.1%

CA 47,266 101,760 149,026 22.9% NH 919 2,132 3,051 0.5%

CO 2,555 6,469 9,024 1.4% NJ 6,655 14,626 21,281 3.3%CT 2,507 5,825 8,332 1.3% NM 718 1,415 2,133 0.3%

DC 350 749 1,099 0.2% NV 5,650 12,029 17,679 2.7%

DE 634 1,451 2,085 0.3% NY 10,083 19,054 29,137 4.5%

FL 24,339 53,777 78,116 12.0% OH 4,593 10,092 14,685 2.3%

GA 7,393 16,385 23,778 3.6% OK 537 1,044 1,581 0.2%

HI 791 1,684 2,475 0.4% OR 2,186 4,968 7,154 1.1%

IA 505 1,157 1,662 0.3% PA 4,272 9,462 13,734 2.1%

ID 829 1,707 2,536 0.4% RI 965 2,338 3,303 0.5%

IL 10,455 24,126 34,581 5.3% SC 1,812 4,427 6,239 1.0%

IN 1,948 4,502 6,450 1.0% SD 90 167 257 0.0%

KS 520 1,083 1,603 0.2% TN 2,061 4,763 6,824 1.0%KY 797 1,750 2,547 0.4% TX 6,295 11,260 17,555 2.7%

LA 1,133 2,271 3,404 0.5% UT 1,844 4,209 6,053 0.9%

MA 4,787 11,332 16,119 2.5% VA 4,889 11,305 16,194 2.5%

MD 6,382 15,051 21,433 3.3% VT 146 367 513 0.1%

ME 563 1,251 1,814 0.3% WA 3,929 8,779 12,708 2.0%

MI 6,571 15,266 21,837 3.4% WI 1,963 4,520 6,483 1.0%MN 3,094 8,744 11,838 1.8% WV 267 714 981 0.2%

MO 2,199 4,976 7,175 1.1% WY 119 220 339 0.1%MS 696 1,710 2,406 0.4% Other* 988 898 1,886 0.3%

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

60+ 

HAMP Activity by State Modific

Mortgage D
Making Home Affordable Program

Servicer Performance Report Through August 2010

Servicer 

Bank of America, NA1 

JP Morgan Chase NA2 

Wells Fargo Bank, NA 3 CitiMortgage, Inc. 

GMAC Mortgage, LLC 

OneWest Bank 

Ocwen Financial Corporation, In

American Home Mortgage Servicing Inc 

Select Portfolio Servicing 

Aurora Loan Services, LLC 

Wachovia Mortgage, FSB4 

Saxon Mortgage Services Inc. 

Nationstar Mortgage LLC 

Litton Loan Servicing LP 

US Bank NA HomEq Servicing PNC Mortgage5 

Green Tree Servicing LLC 

Remainder 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 13,735 28,982 42,717 6.6%New York-Northern New JerseyLong Island, NY-NJ-PA 13,195 26,421 39,616 6.1%Riverside-San Bernardino-Ontario, CA 10,057 23,974 34,031 5.2%Chicago-Joliet-Naperville, IL-IN-WI 10,058 23,288 33,346 5.1%

Miami-Fort Lauderdale-Pompano Beach, FL 9,797 20,289 30,086 4.6%

Phoenix-Mesa-Glendale, AZ 7,619 19,385 27,004 4.1%

Washington-Arlington-Alexandria, DC-VA-MD-WV 6,812 15,953 22,765 3.5%

Atlanta-Sandy Springs-Marietta, GA 5,978 13,303 19,281 3.0%Las Vegas-Paradise, NV 4,706 9,847 14,553 2.2%

Detroit-Warren-Livonia, MI 4,072 9,237 13,309 2.0%

Orlando-Kissimmee-Sanford, FL 3,824 8,939 12,763 2.0%

Boston-Cambridge-Quincy, MA-NH 3,397 8,077 11,474 1.8%

San Francisco-Oakland-Fremont,CA 3,910 7,020 10,930 1.7%

Sacramento-Arden-ArcadeRoseville, CA 3,212 7,648 10,860 1.7%

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 3,289 7,443 10,732 1.6%

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

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

Servicer Performance Report Through August 2010

0%

10%20%30%40%50%60%70%80%90%

100%

MHA‐C Disagrees Pending MHA‐C's Further Review MHA‐C Agrees

American CitiMortgage GMAC JPMorgan Litton OneWest Wells 

Home Chase Fargo 

Results of Compliance Second-Look Reviews (Q1 2010)

1 Second Look Results are derived from a statistical sample of loan files for borrowers not offered a HAMP modification (typically 100 loan files). Chart shows results for largest serv2 Cases where the borrower was not appropriately solicited or evaluated for HAMP.3 Cases where MHA-C was unable to determine if the servicer’s actions were appropriate without further information from the servicer.

Please see Appendix B for a detailed desc

Making Home Affordable-Compliance (MHA-C) conducts Second Look1 reviews of homeowners that were not solicited o

that the servicer’s actions were appropriate. In an average of 4.8% of the cases, MHA-C disagreed with the servicer’s ac

further servicer actions may be required, including: requiring servicers to reevaluate loans not offered HAMP modificatiostatus; engage in process remediation, training, or policy clarification; or take other actions as directed by Treasury.

Results of Q1 2010 Second Look Reviews

2 3

The results of Second Look reviews help determine the types of other compliance activitiesand frequency with which those activities will be conducted. (See Appendix B1). Servicers arerequired to reconsider loans in the “Disagree” category, and submit additional information forloans in the “Pending MHA-C’s Further Review” population. Importantly, where MHA-Cdisagrees with the disposition of a loan or is unable to determine if the loan was evaluatedproperly, servicers are reminded to continue forestalling foreclosure of the loan until theseitems are resolved.The frequency of Second Look loan file reviews performed during the 1st quarter of 2010

varied by servicer due to a number of factors: changes in MHA-C sampling methodology, morestringent data submission deadlines, and coordination with overall compliance activity.Beginning in the 3rd quarter sampling period, MHA-C revised its sampling strategy to sample

monthly from all large servicers in order to provide more consistent trending by

servicer and greater comparability of results bAs noted in the chart, non-compliance rates above the average and resulted in requiring eligibility processes. Additionally, MHA-C coservicers were making the changes required.The Second Look chart does not include reactivities were conducted in this time perioeligibility) evaluated during Second Look revBank of America’s solicitation and eligibiliactivities to help ensure required changes we
Making Home Affordable Program

Servicer Performance Report Through August 2010

Allstate Mortgage Loans

& Investments, Inc.

American Eagle Federal Credit Union

American Home Mortgage Servicing, Inc

AMS Servicing, LLCAurora Loan Services, LLCBank of America, N.A.1

Bank UnitedBay Federal Credit Union

Bay Gulf Credit Union

Bayview Loan Servicing, LLC

Bramble Savings BankCarrington Mortgage Services, LLC

CCO MortgageCentral Florida Educators Federal Credit Union

Central Jersey Federal Credit Union

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 Financial Bank, N.A.

First Keystone BankFirst National Bank of Grant Park

Franklin Credit Management Corporation

Fresno County Federal Credit UnionGlass City Federal Credit Union

GMAC Mortgage, LLC

Golden Plains Credit Union

Grafton Suburban Credit UnionGreat Lakes Credit UnionGreater 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 Union

IC 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 Bank

ORNL Federal Credit UnionPark View Federal Savings BankPathfinder BankPennyMac Loan Services, LLCPNC Bank, National Association

PurduQLenQuan

ResidRG MRoebRounSaxon 

SchooSEFCUSelec

Servis ShoreSilver 

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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 August 2010

Note: Areas of compliance emphasis and servicer‐specific

compliance data will be updated quarterly.

Description of Compliance ActivitiesFreddie 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‐based approach, MHA‐C conducts a

number of different types of compliance activities

to assess servicer compliance with HAMP guidelines

for those servicers that have signed a servicer

participation agreement with Treasury and for

those loans for which Treasury pays incentives

(non‐GSE loans), as described below.

On Site Reviews: Readiness

& Governance

–

Reviews 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. Reviewsare performed as needed, determined by

frequency of new program additions.

NPV Reviews – Reviews 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 – Review

conducted by MHA‐C covering the servicer’s overall

execution of the HAMP program. Areas coveredinclude, 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 beenoffered HAMP modifications to ensure that the

exclusion was appropriate (“Second Look”). Larger

servicers are on an alternating permanent

mod

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Appendix B1: Description of Compliance Activities
Making Home Affordable Program

Servicer Performance Report Through August 2010

In the coming months, following will be areas ofemphasis for MHA‐C, to ensure ongoing compliance.

Program Changes: HAFA, 2MP, Unemployment andPrincipal ReductionServicers are required to be prepared prior to the

implementation of new programs. At the outset of new

programs, servicers should focus on making necessary

changes to processes, policies, procedures, and controls

in order to implement the new requirements effectively.

To the extent that systematic controls are not fully

implemented, it is important that servicers design and

fully communicate to staff any alternative processes

(manual or otherwise) that will help ensure eligible

borrowers are considered and provided the opportunity

to participate in the programs, where appropriate.

With several recently implemented or new programs

including HAFA, 2MP, Unemployment, and PrincipalReduction, MHA‐C will emphasize in the coming quarter

both policy design and overall program execution.Specific attention will be given to transitional alternative

processes required in advance of full systems

integrations of new programs.NPV Model Management and 4.0 Model Preparation

Proper and consistent use of the Net Present Value

model is essential in assuring that potentially eligible

borrowers are appropriately evaluated for the HAMP

program. Servicers who do not utilize the Treasury NPV

Portal model (Recoders) are required to have their

recorded model tested and certified by MHA‐C before

use, establish and maintain documentation of their

internal controls and governance processes and

periodically test their model and controls to help

ensure that the recoded model produces resultsconsistent with the Portal model.

As of October 1, Servicers will be required to begin using

a new version (4.0) through the Portal or in theirrecoded model. Conversion to 4.0 is expected to add

additional control challenges and servicers are expected

to review and appropriately enhance their current NPV

procedures and controls. As with any NPV model

change, Recoders are required to obtain certification

from MHA‐C prior to utilizing a recoded 4.0 model.

In the coming quarter, MHA‐C will remain focused on

servicers’ NPV Model management practices.

Additionally, and in consideration of the conversion to

NPV version 4.0, MHA‐C will evaluate conversion

preparation and contingency planning. Recoding

servicers with complex systems may face unusual

challenges in returning to Portal use in the event that

their recoded version 4.0 NPV model cannot be certified

by the required timeframe. Accordingly, MHA‐C will

expect servicers to prepare to implement contingency

plans , including; detailed contingency plans for return

to Portal use and revalidation through the Treasury

Portal, where necessary.IR2 Data Integrity

Servicers are required to timely report accurate

information to the Program Administrator’s IR2

database. The information reported is used for both

public reporting and in deriving the incentive payments.

Because of the importance of this data, Servicers must

maintain controls which assure that information in the

database is accurate and consistent with source

documentation utilized to process the modification.

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Appendix B2: Areas of Compliance Emphasis