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Department of Housing and Urban Development | Office of Policy Development and Research
e Obama Administrations Eorts
To Stabilize e Housing Market
and Help American Homeowners
August 2011
U.S Department of Housing and Urban Development | U.S. Department of the Treasury
August 2011 National Scorecard | Page 1
The Administrations goal is to stabilize the housing market and
provide security for homeowners. To meet these objectives in the
context of a very challenging market, the Administration developed
a broad approach implementing state and local housing agency
initiatives, tax credits for homebuyers, neighborhood stabilization
and community development programs, mortgage modications
and renancing, housing counseling, continued Federal Housing
Administration (FHA) engagement, support for Fannie Mae and
Freddie Mac and increased consumer protections. 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 Administrations efforts can be found in the Appendix.
August 2011 Scorecard on Administrations
Comprehensive Housing Initiative
The Presidents housing market recovery efforts began immediately after
taking ofce in February 2009. The August 2011 housing scorecard
includes the following key indicators of market health and results of the
Administrations comprehensive response, as outlined above:
The Administrations efforts have helped millions of
families deal with the worst economic crisis since
the Great Depression. More than 5 million mortgage aid
arrangements were started between April 2009 and the end of
July 2011. While some homeowners may have received help from
more than one program, the total number of aid offers is more than
double the number of foreclosure completions for the same period
(2.2 million). In July, more than 28,000 additional homeowners
received a permanent modication through the Administrations
Home Affordable Modication Program (HAMP); more than
790,000 homeowners across the country have now received a
HAMP permanent modication with a median payment reduction
of 37 percent. To date, homeowners in permanent modications
have realized aggregate savings in monthly mortgage payments
of nearly $7.8 billion. The July monthly report can be found at:
http://www.treasury.gov/initiatives/nancial-stability/results/
MHA-Reports/Pages/default.aspx
Housing market remains fragile as data through July paint
a mixed picture of recovery. Home prices as reported by S&P/
Case-Shiller and FHFA were up for the third consecutive month
in July after several previous months of decline. Foreclosure starts
and completions continued a downward trend, as mortgage aid
programs are helping homeowners, although some of the decline
remains due to lender processing issues delaying some foreclosure
actions. The fragility of the market is underscored by the fact
mortgage delinquencies rose slightly in July.
Given the current fragility and recognizing that recovery will take
place over time, the Administration remains committed to its efforts to
prevent avoidable foreclosures and stabilize the housing market.
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August 2011 National Scorecard | Page 2
U.S Department of Housing and Urban Development
U.S. Department of the Treasury
e Obama Administrations Eorts To Stabilize e Housing Market and Help American Homeowners
|
August 2011
1S0
17S
200
22S
2S0
27S
House Prices Up For ird Consecutive Month, Presence Of Distressed Sales
Key As Recovery Remains Fragile
MonLhly Pouse rlce 1rends 8y lndex ($ 1housands)
Sources: SLandard & oor's, lederal Pouslng llnance Agency, Core Loglc, and Puu.
See noLe 1, Sources and MeLhodology.
CoreLoglc (Lxcludlng
ulsLressed Sales)
S&/Case-Shlller
lPlA
0
20
40
60
80
100
120
0
200
400
600
800
Existing And New Home Sales
MonLhly Sales (1housands)
Seasonally Ad[usLed
Source: nauonal Assoclauon of 8ealLors
lPA Loss Mlugauon PAM Modlcauons Pope now Modlcauons loreclosure Compleuons
Sources: Puu, uepL. of 1reasury, Pope now Alllance, and 8ealLy 1rac.
See noLe S, Sources and MeLhodology.
MorLgage modlcauons lnluaLed slnce Aprll 1, 2009: S.0 Mllllon
40
80
120
160
Mortgage Aid Helps Foreclosures Continue Downward Trend,
Although Lender Processing Delays Continue
MonLhly loreclosure Acuons (1housands)
Source: 8ealLy 1rac.
See noLe 6, Sources and MeLhodology.
Cumulauve foreclosure compleuons slnce Aprll 2009: 2.2 mllllon
(lncludes lnvesLor, second home, and [umbo properues)
loreclosure
Compleuons
loreclosure
SLarLs
80
90
100
110
120
130
140
1S0
160
170
180
190
200
0.0
1.0
2.0
3.0
4.0
S.0
6.0
7.0
8.0
9.0
Mortgage Rates Remain Near Record Lows
Aordability Index High But Declines
ercenLage 8aLes And lndex values
30-?r llxed MorLgage 8aLe nA8 Pome AordablllLy lndex
Sources: lreddle Mac and nauonal Asssoclauon of 8ealLors
August 2011 National Scorecard | Page 3
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U.S Department of Housing and Urban Development
U.S. Department of the Treasury
e Obama Administrations Eorts To Stabilize e Housing Market and Help American Homeowners
|
August 2011
0
S
10
1S
20
2S
30
2009 C4 2010 C1 2010 C2 2010 C3 2010 C4 2011 C1 2011 C2
Homeowners Save From Reduced Mortgage Payments
Annuallzed Savlngs lrom aymenL 8educuons ($ 8llllons)
All 8enances PAM Modlcauons and 1rlals
AggregaLe annual reducuon ln morLgage paymenLs on renances slnce Aprll 1, 2009 plus acuve Lrlal and
permanenL PAM modlcauons.
Sources: M8A, 1reasury, lreddle Mac, and Puu.
See noLe 7, Sources and MeLhodology.
0
1
2
3
4
S
6
2009 C2 2009 C3 2009 C4 2010 C1 2010 C2 2010 C3 2010 C4 2011 C1
Housing Counselors Serve Millions Of Families
Cumulauve Pouseholds Counseled Slnce Apr 1, 2009 (Mllllons)
Source: Puu.
Pouseholds counseled slnce Aprll 1, 2009: S.8 mllllon
0
2
4
6
8
10
12
14
Home Equity Down From Prior Quarter and Close to
First Quarter 2009
NARs composite housing affordability index as reported. A value of 100 means that a
family with the median income has exactly enough income to qualify for a mortgage on a
median-priced home. An index above 100 signies that family earning the median income
has more than enough income to qualify.
Home Prices
Case-Shiller (NSA)
FHFA (SA)
CoreLogic - Excluding Distressed Sales (NSA)
Monthly
Monthly
Monthly
Standard and Poors
Federal Housing Finance Agency
CoreLogic
Case-Shiller 20-metro composite index, January 2000 = 100. Standard and Poors recommends
use of not seasonally adjusted index when making monthly comparisons.
FHFA monthly (purchase-only) index for US, January 1991 = 100.
CoreLogic national combined index, distressed sales excluded, January 2000 = 100.
(Only available as NSA).
Home Sales (SA)
New
Existing
First Time Buyers
Distressed Sales (NSA)
Monthly
Monthly
Monthly
Monthly
HUD and Census Bureau
National Association of Realtors