HAFA Market Opportunity & Impact

Home Affordable Foreclosure Alternatives ("HAFA") is scheduled to start April 5, 2010. What exactly is the size of this program? By using some publicly available data, I have constructed the HAFA waterfall of eligible homeowners.

1. 7.5 MM borrowers that are 60+ days delinquent or in some stage of foreclosure (LPS Mortgage Monitor Report, Feb '10)
2. 2.0 MM are the foreclosure "inventory" (MBA Q4 '09 National Delinquency Survey)
3. 1.0 MM Non-HAMP Mods (OCC Mortgage Metrics Report, assumes Q4 '09 = Q3 '09)
4. 830k HAMP Trial Mods (Making Home Affordable Jan '10 report)
5. 116k HAMP Permanent Mods (Making Home Affordable Jan '10 report)
6. 754k Remaining HAMP eligible Mods (1.7 MM HAMP eligible minus HAMP Trial minus Mods minus HAMP Permanents Mods)
7. What is left is the HAFA eligible, or about 2.8 MM