Supplemental Data

Figure 13: Michigan vs. National Subprime Mortgages

Michigan National

Number of subprime mortgages 113,140 2,650,083

Average interest rate 8.73% 8.26%

Average balance $120,814 $181,741

Average loan age (months) 45 42

Average FICO 604 617

Average combined loan-to-value at

origination 86.72 84.32

Number with interest only 7,202 285,275

Number with negative amortization 14 750

% with 30-59 days past due 11.50% 10.50%

% with 60-89 days past due 6.70% 6.00%

% with 90+ days past due 15.30% 13.60%

% in foreclosure 5.50% 11.80%

% originated in 2007 10.50% 15.10%

% originated in 2006 31.40% 36.40%

% originated in or before 2005 58.10% 48.60%

% with no or low documentation 25.70% 32.30%

% ARM loans 71.50% 60.70%

Average initial interest rate 8.37 8.04

Average current interest rate 8.95 8.57

% resetting in next 12 months 9.70% 13.70%

% resetting in 12-23 months 1.80% 3.00%

Figure 14: Michigan vs. National Alt-A Mortgages

Source: Federal Reserve Bank of New York

Michigan National

Number of Alt-A mortgages 52,073 2,139,150

Average interest rate 6.41% 6.29%

Average balance $185,138 $321,094

Average loan age (months) 40 37

Average FICO 702 705

Average combined loan-to-value at

origination 85.51 81.15

Number with interest only 15,909 586,293

Number with negative amortization 5,982 358,168

% with 30-59 days past due 6.10% 5.60%

% with 60-89 days past due 2.90% 3.40%

% with 90+ days past due 5.40% 7.40%

% in foreclosure 3.40% 7.70%

% originated in 2007 13.60% 21.60%

% originated in 2006 29.90% 35.70%

% originated in or before 2005 56.50% 42.70%

% with no or low documentation 53.90% 73.00%

% ARM loans 44.60% 52.40%

Average initial interest rate 4.93 4.49

Average current interest rate 6.1 6.01

% resetting in next 12 months 8.50% 6.10%

References

Ambromowitz, David, and Andrew Jakabovics. 2008. “Shared Equity in Action: Recover and Affordability Are Possible Amid the Crash in Housing Prices.” Center for American Progress.

Adler, Lynn. 2009. “U.S. Foreclosure Filing Jump as Moratoriums End.” Reuters. (April 16)

www.news.yahoo.com/s/nm/20090416/ts_nm/us_usa_mortgages_foreclosures. Armour, Stephanie. 2008. “Owners Find Themselves Trapped Underwater; When Homes Aren’t Worth What You Owe, You’re Stuck.” USA Today. December 19. Armour, Stephanie. 2009. “Obama’s Plan To Stop Foreclosures; Millions Could Get Help, But Is the Plan Fair?” USA Today. February 19.

Becker, Caryn. 2009. Testimony to U.S. House Committee on Financial Services Subcommittee on Housing and Community Opportunity on the housing crisis in Los Angeles and responses to preventing foreclosures and foreclosure rescue fund. Blomberg, Darrell. 2009. “Proposal To Reduce Foreclosures Through Effective Loan Modifications.” www.ssrn.com/abstract=1342521.

Board of Governors of the Federal Reserve System. 2009. “Federal Financial Regulatory Agencies Issue Statement in Support of the ‘Making Home Affordable’ Loan Modification Program.”

www.federalreserve.gov/newsevents/press/bcreg/20090304a.htm.

Caplin, Andrew, James H. Carr, Frederick Pollock, Zhong Yi, Tong, Kheng Mei Tan, and Trivikraman Thampy. 2007. “Shared Equity Mortgages, Housing Affordability, and Homeownership.” Fannie Mae Foundation Special Report.

www.ssrn.com/abstract=983100.

Center for Housing Policy. 2009. “Shared Equity, Powerful Results: Helping One Generation of Homeowners After Another.” www.nhc.org/housing/sharedequity. Center for American Progress Action Fund. 2008. “Congress Must Act Now To Prompt the Rapid Refinancing or Modifications of At-Risk Mortgages to Stabilize Housing and Credit Markets.”

Center for American Progress Action Fund. 2008. “Great American Dream Neighborhood Stabilization (GARDNS) Plan.”

www.americanprogress.org/issues/2008/01/gardns.html.

Eggert, Kurt. 2007. “Comment: What Prevents Loan Modifications.” Housing Policy

Eggert, Kurt. 2004. “Limiting Abuse and Opportunism in Mortgage Servicers,

Housing Policy Debate 14(4)

Eggum, John P., Katherine M. Porter, and Tara Twomey. 2009. “Saving Homes in Bankruptcy: Housing Affordability and Loan Modification.” Utah Law Review, p. 1123, 2008; U Iowa Legal Studies Research Paper No. 09-10.

www.ssrn.com/abstract=1349151.

Epstein, Gene. 2009. “Feds Must Confront Foreclosure Woes.” Barron’s Online, (January) www.barrons.com/article/SB123275478898411715.html.

Federal Reserve Bank of New York. 2009. “Credit Conditions in the United States.” (February) www.newyorkfed.org/regional/subprime.html.

“Finance and Economics: Move Over, Subprime; Mortgage Losses.” 2009. The

Economist, February 7: 63.

www.economist.com/finance/displaystory.cfm?story_id=13062194. HB-4453, 2009, As Passed House, March 11.

House Fiscal Agency. 2009. “Legislative Analysis: Foreclosures: Mortgage Modifications: House Bill 4453, House Bill 4454, House Bill 4455.

HousingPolicy.org. 2009. “Reserve and Recycle Resources for Affordable Homes: Use Shared Equity Mechanisms to Preserve Homeownership Subsidies.”

www.housingpolicy.org/toolbox/strategy/policies/shared_equity.html?tierid=219. H.R. 1106, 2009, “Helping Families Save Their Home” Act.

Jacobus, Rick. 2007. “Shared Equity, Transformative Wealth.” Center for Housing Policy.

Jacobus, Rick, Heather Gould, and Barbara Katz. 2008. “Preserving Affordability of NSP Funded Foreclosed Properties.” Goldfarb, Lipman Attorneys.

Jacobus, Rick, and Jeffry Lubell. 2007. “Preservation of Affordable Homeownership: A Continuum of Strategies.” Center for Housing Policy.

Manning, Robert, 2009, “Keeping People in Their Homes: Policy Recommendations for the Foreclosure Crisis in Michigan.” Filene Research Institute. January.

Mason, Joseph R. 2007. “Mortgage Loan Modification: Promises and Pitfalls.” www.ssrn.com/abstract=1027470.

National Credit Union Association. 2002. “NCUA Accounting Guide” Section No. 300. 1-91.

Office of the Comptroller of the Currency and the Office of Thrift Supervision 2009. “OCC and OTS Mortgage Metrics Report – Disclosure of National Bank and Federal Thrift Mortgage Loan Data. Fourth Quarter 2008.”

www.occ.treas.gov/ftp/release/2009-37a.pdf.

Mortgage Bankers Association of America, 2008, “Quarterly Data Book.”

Patterson, Alix. 2009. “6 Things To Know about Loan Modifications.” Callahan and Associates. www.creditunions.com/article.aspx?articleid=3034.

RealtyTrac. 2009. “Foreclosure Activity Increases 9 Percent in First Quarter.” www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID =6180&accnt=64847.

Sacher, Michael J. 2009. “Understanding Troubled-Debt Restructures.” Callahan and Associates. www.creditunions.com/article.aspx?articleid=3006.

Simon, Ruth. 2009. “Option ARMs See Rising Defaults—Woes Mount in $750 Billion Home-Loan Market; Analysts’ Dim Views.” Wall Street Journal, January 30 Stolberg, Sheryl Gay, and Edmund L. Andrews. 2009. “$275 Billion Plan Seeks To Address Housing Crisis.” New York Times. (February 18).

www.nytimes.com/2009/02/19/business/19housing.html?hp.

White, Alan M. 2008. “Rewriting Contracts, Wholesale: Data on Voluntary Mortgage Modifications from 2007 and 2008 Remittance Reports.” Fordham Urban Law Journal www.ssrn.com/abstract=1259538.

White, Alan M. 2009. “Deleveraging the American Homeowner: The Failure of 2008 Voluntary Mortgage Contract Modifications.” Connecticut Law Review

www.ssrn.com/abstract=1325534.

Zandi, Mark. 2009. “Accessing Obama’s Housing Plan.” Moody’s Economy.com. March 10.

Zandi, Mark. 2008. “Homeownership Vesting Plan.” Moody’s Economy.com. December 22.

Zandi, Mark, Richard Jaffee, and Daniel Melser. 2008. “Home Appreciation Mortgage Plan.” Moody’s Economy.com. May.

ideas grow here

PO Box 2998

Madison, WI 53701-2998 Phone (608) 231-8550