To: Fast Facts List

Fast Facts: RECOVERING HOUSING MARKET

Were past the bottom and slowly recovering. Mark Zandi, Chief Economist at Moodys Analytics, Bloomberg, July 19, 2012. FACT: Recent housing data gives reasons for optimism in the mortgage market: Single-family starts (new construction projects) in June were nearly 22% higher than a year ago. Total existing-home sales in June (4.37 million) were up 4.5% from a year ago. The median home price in June ($189,400) was 7.9% higher than a year ago. June's gain was the strongest since February 2006. Refinance applications in June were at their highest volume since 2009. Projected refinancing volume for 2012 ($932 billion) is 8.6% higher than 2011. Average interest rates continue to be at historic lows. Rates have been under 4% for three months and have been on a decreasing trend since March. Housing vacancies declined to 2.1% in the second quarter of 2012 from 2.5% the previous year.

FACT: Many homeowners who fell behind on payments during the crisis have received permanent solutions. Since 2007, the industry and government have completed over 5.57 million permanent mortgage modifications according to HOPE NOW data, including: 4.54 million permanent proprietary (industry) modifications 1.03 million permanent HAMP (government) modifications FACT: Of the proprietary modifications completed in 2012: 90% included an initial fixed period of 5 years or more; and 76% reduced principal and interest payments by 10% or more. FACT: Organizations such as HOPE NOW a voluntary alliance between counselors, mortgage companies, investors, and other mortgage market participants continue to help homeowners in distress stay in their homes. Since 2008, HOPE NOW has hosted 133 events in over 60 major markets, including military bases. In 2012, HOPE NOW has helped 300 military service member homeowners through on base events at Fort Jackson (SC) and Fort Gordon (GA). HOPE NOW will continue targeted military outreach through the second half of 2012 with visits to: Fort Lewis, WA (09/27); Fort Hood, TX (10/16); Fort Lee, VA (10/30), Fort Stewart, GA (TBD); Fort Bragg, NC (TBD). FACT: While there have been many improvements in the housing sector, many homeowners are still hurting. In the second quarter of 2012, over 380,849 foreclosure starts were filed and 2,522,441 mortgages were 60+ days delinquent.

August 2012

IF YOU ARE A HOMEOWNER IN DISTRESS, CONTACT HOPENOW AT 888-995-HOPE

Financial Services HOTLINE: If you have questions about this topic or any other issue facing financial services, please reach out to Abby McCloskey, Director of Research at the Financial Services Roundtable, at 202-589-2531 or Scott Talbott, Senior Vice President of Government Affairs, at 202-289-4322. Learn more about the Financial Services Industry at www.OurFinancialFuture.com. OurFinancialFuture.com is continuously updated to bring you the most useful information about the industry in real-time.
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August 2012