Appendix B - Credit Metrics Details

Metric Type:

General Servicing

Definition:

Loans that transitioned from less than 60-days delinquent to greater than 60-days delinquent

Loan greater than or equal to 60-days delinquent

Loan less than 60-days delinquent

Interpretation:

Lower event rate is better

60 plus days delinquent is significant leading indicator of loan non-payment

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Transition of loans to delinquency status

Measure Period:

Over a three-month period

Denominator: As of three-months ago, how many loans were less than 60-days delinquent

Numerator: Over the course of the following three-months, does the loan move to greater than or equal to 60-days delinquent or foreclosed

Using January scorecard as an example, the denominator would measure October month-end as a base month. The numerator would measure activity at the end of January.

Metric Type:

Solution Delivery

Definition::

Loans that transitioned from 60 plus days delinquent to current status

Loan is current, paid off, repurchased

Loan greater than or equal to 60-days delinquent

Interpretation::

Higher event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Transition of loans from delinquency to current status

Measure Period:

Over a three-month period

Denominator: As of three-months ago, how many loans were 60 plus days delinquent

Numerator: Over the course of the following three-months, does the loan become current, paid off, or is repurchased

Using January scorecard as an example, the denominator would measure October month-end as a base month. The numerator would measure activity at the end of January.

Metric Type:

Solution Delivery

Definition:

Trial starts on loans that are 60 plus days delinquent

Mod initiated (Trial start)

Loan greater than or equal to 60-days delinquent

Interpretation:

Higher event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Rate of mods

Measure Period:

Over a three-month period

Denominator: At the beginning of a three-month window, how many loans were 60 plus days delinquent

Numerator: Over the course of the following three-months, how many loans had a mod initiated

Using January scorecard as an example, the denominator would measure October month-end as a base month. The numerator would be the sum of trial starts in November, December, and January.

Metric Type:

Solution Delivery

Definition:

Of mods completed six prior, how many are still current

Mod is current, paid off, repurchased

Mod completed

Interpretation:

Higher event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Mod performance

Measure Period:

Over a six-month period

Denominator: Number of mods completed six-months prior and was not cancelled

Numerator: Over the course of the following six-months, how many loans are current (less than or equal to 30-days delinquent), paid off, or repurchased

Metric Type:

Solution Delivery

Definition:

Of Payment Deferrals (PDs) completed six-months prior, how many are still current

PD is current, paid off, repurchased

PD completed

Interpretation:

Higher event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / PD performance

Measure Period:

Over a six-month period

Denominator: Number of PDs completed six-months prior and were not cancelled

Numerator: Over the course of the following six-months, how many loans are current (less than or equal to 30-days delinquent), paid off, or repurchased

Metric Type:

Solution Delivery

Definition:

Completed Trials

Trials initiated six-months prior

Interpretation:

Higher event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Mod performance

Measure Period:

Over a six-month period

Denominator: Number of trials initiated six-months period

Numerator: Over the course of the following six-months, how many loans have successfully completed their modifications

Metric Type:

Timeline Management

Definition:

Loans that are within 180-days of foreclosure timeline that went beyond the timeline during the reporting period

Loan transitions to beyond foreclosure timeline

Loan within 180-days of foreclosure timeline

Interpretation:

Lower event rate is better

Valid Value:

Percent greater than or equal to zero

Measure Type:

Flow / Timeline performance

Measure Period:

Over a six-month period

Denominator: 60 plus delinquent loans within 180-days of foreclosure timeline (exclude cancelled and non-performing loans)

Numerator: Over the course of the following six-months, how many loans transitioned to beyond the foreclosure timeline