Working Together for Strong Communities The Faces of Foreclosure: In America

Working Together for Strong Communities

The Faces of Foreclosure:In America


NeighborWorks® America

• Creates opportunities for people to live in affordable homes, improve their lives and strengthen their communities.

• Congressionally chartered with statutory board.

• Over 235 NeighborWorks organizations.

• 160,000+ Homebuyers (FY 1993 – FY 2010).

• National Foreclosure Mitigation Counseling Program (NFMC): 1,000,000+ families counseled .



Source: Realtytrac.com



Consumer Profiles – What We Know

•Foreclosure starts now concentrated in Prime Fixed and Prime ARM Products.

• 62% of households seeking assistance hold Fixed mortgages. 49% of households have both Fixed mortgage and interest rate below 8%.

• Fifty-eight percent (58%) of households seeking counseling reported reduction or loss of income as primary reason for hardship (54% in Nov’09 report update and 41% in Oct’08 report update).




• 38% of households assisted were “Married w/ Dependents” (19% “Single Adults”, “16% Married w/o Dependents”, 13% “Female Head of Household w/ Dependents”).

• 52% of clients are minority homeowners (African American, Hispanic, American Indian/Alaskan Native, Asian, Pacific Islander, and clients listing more than one ethnic background).

• 61% of clients are between the ages of 35 and 54 (23% are over the age of 55).




• 66% of clients report household income less than 80% of AMI. 41% report income less than 50% AMI.

• 53% of clients are fewer than 60 days delinquent on mortgage payment (33% were current at intake, and 22% were over 120 days delinquent).

• 39% of counseled households pay more than 50% of income toward housing (20% pay more than 75%).

• .



What’s Being Done?

• National Foreclosure Mitigation Counseling Program (NFMC)• $475 million has been appropriated to the NFMC program since Dec’07 • Uses of funds:

• Foreclosure Counseling and Legal Assistance Funding: $381.2 million has been awarded to 166 direct grantees (1,700 sub-grantees).

• Training: $18 million.• Consumers Assisted:

• Over 1 million counseled; more than 13,000 received legal assistance.• More than 13,000 received legal assistance.• Counseled consumers 60% more likely to avoid foreclosure.• Counseled consumers receiving mortgage modifications save average

of $454 on monthly payment.




• National Initiatives – Products and Services• Making Home Affordable (www.makinghomeaffordable.gov and

www.hmpadmin.com)• Program Design and Implementation.• Intermediary between non-profits, for-profits, and Federal Agencies.• Counselor training on HAMP, HARP, HAFA, 2MP.• Informational sessions hosted – feedback on program success

provided to Congress, regulators, investors/servicers.

• FHA (www.fha.gov) and “Proprietary” products and services• Pilot initiatives, consumer outreach, and counselor training.• Dedicated resources for NW network and mortgage servicers.




• National Initiatives – Products and Services• Capacity Building and Technological Efficiencies

• Hope LoanPort (www.hopeloanportal.org)• Electronic transmission of applications and messaging.• Integration of technology applications for ease of use.

• CounselorMax (www.hopeloanportal.org)• Client Management System as source application for all

consumer services.• Continued efforts to provide additional funding opportunities.• Technical assistance for organizations (reporting, outreach,

technology, training).




• National Initiatives – Outreach• Consumer Awareness Campaigns

• “Nothing is Worse Than Doing Nothing”• Designed for early intervention – 888-995-HOPE.• Radio, Television, Print campaign.

• Loan Scam Alert (www.loanscamalert.org)• Awareness of scam activities intended to be tailored locally• Radio, Television, Print campaign.

• Borrower Outreach Events• Partnership with Government, Industry, and Non-Profits.

• Local events provide opportunity for consumers to meet with housing counselors and mortgage servicers.




• State, Local, and National Coalitions• Partnerships with task forces

• Several states and regional task forces formed.• Funding assistance, help to provide forum, facilitate speaking

engagements and subject matter.• National Foreclosure Prevention and Neighborhood Stabilization

Task Force• Assembly of state and local agencies, for-profits, and local

governments.

Documents

Working Together for Strong Communities The Faces of Foreclosure: In America