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» VISIT US ONLINE @ DSNEWS.COM 57 2015 marks six years since the height of the housing crisis and is an appropriate time to take stock of the progress that has been made to help homeowners who bore the brunt of the crisis and the changes that have been made in mortgage servicing since the crisis. It is also an opportune time to look at what we need to do to continue progress as the housing market steadily recovers. Progress since 2009 is undeniable. In the first quarter of 2009, there were more than 700,000 foreclosure starts. Another 6.9 million loans were 30 days or more delinquent, and 10.2 million loans were underwater. Data from the second quarter of this year paint a much different picture. Foreclosure starts were down to less than 200,000, delinquencies were down to 4 million, and the number of underwater loans had fallen to 5.3 million. While progress has been uneven with many local markets still troubled and 1 in 17 homeowners behind on his or her mortgage, overall, the housing market has stabilized. e housing market's measured but steady recovery since 2009 is attributable to many factors, including programs and policies implemented by the Federal government—the crisis was national in scope and it required, and received, a national response. A critical part of the Federal response was the launch in early 2009 of Making Home Affordable (MHA). MHA was designed to help stabilize the nation's housing market by preventing avoidable foreclosures. e cornerstone of MHA is the Home Affordable Modification Program (HAMP), which helps struggling homeowners avoid foreclosure by lowering monthly mortgage payments to more affordable levels. HAMP provides incentives for servicers and investors to modify mortgages for qualified homeowners and to homeowners who stay current on their modified loans. MHA also includes programs designed to assist homeowners facing specific hardships, such as unemployment, underwater loans, and unaffordable second liens. But what is sometimes lost in the debate is the tangible help MHA has provided to families nationwide and the fundamental and structural changes the program has helped spur in the mortgage servicing industry. ese changes in loss mitigation and default servicing will make the nation's housing industry stronger and better equipped to combat future crises. Let's look at the help MHA provided and the lessons it instilled in both industry and government over the past six years. TANGIBLE HELP, CAREFULLY FOCUSED Mortgage servicers have taken 2.1 million actions through MHA to help struggling homeowners. at includes more than 1.6 million first lien permanent modifications started under HAMP and other MHA programs. It also includes 137,000 second lien modifications started under the 2MP program. And, approximately 300,000 homeowners Treasury Speaks Out On Making Home Affordable for Struggling Homeowners and What We've Learned From the Crisis STRONGER ON THE OTHER SIDE COVER STORY SUCCESS FORMUL AS INDUSTRY INSIGHT INDUSTRY INSIGHT

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