Foreclosure Program Webinar for Housing Counselors January 12, 2011

1.  Foreclosure Program Webinar for Housing Counselors January 12, 2011

2. Make the most of the Webinar Press *7 to unmute your phone To Ask Questions Raise your hand or Type in Chat box Webinar posted to www.mdhope.org/Library

3. Purpose of the Call Update on Emergency Mortgage Assistance Program in Maryland Update on Maryland Foreclosure Mediation Program Questions & Due Dates

4. Upcoming Dates Letters notifying Prime Agencies for EMA Program � on or before January 31, 2011 Quarterly Reports Due � January 31, 2011 for Period October � December 2010 Monthly Report Due � February 5, 2011 HOPE Quarterly Meeting - February 22, 2011 Next Foreclosure Webinar- March 10, 2011 Notification of NFMC Awards � April 15, 2011

5. Emergency Mortgage Assistance Program

6. What is the EMA Program? The Dodd-Frank Wall Street Reform and Consumer Protection Act included $1 billion through the U.S. Department of Housing and Urban Development to authorize and implement the Emergency Homeowners Loan Program (EHLP). NW will refer to this program as EHLP �Emergency Homeowners Loan Program Program announced at the Maryland Housing Conference in October.

7. Who is Eligible for EMA Program? Must be homeowners� primary residence Be involuntarily unemployed or underemployed Experience a gross income reduction of at least 15% OR have suffered a medical condition that reduced income. Have a household income that is 120% or less of AMI as of the date of application for assistance. Be delinquent in their mortgage for 3 months or more with evidence that foreclosure is imminent. Have a reasonable likelihood of being able to resume repayment of the1st mortgage and meet other housing expenses and debt obligations when the assistance ends (DTI of less than 55%).

8. What is required for EMA Program? Enrolled homeowners must make a monthly contribution equal to 31 percent of their gross income based on household income at the time of their application for assistance Minimum monthly payments of $25 per month are required. Program assistance will be for a maximum period of 24 months and a total amount of $50,000. �Pre-event income� is defined as the income prior to the onset of unemployment, underemployment, or medical emergency. �Current income� is defined as the income at the time of program application, as well as income during the period that the homeowner continues to receive assistance from the fund.

9. Goals of the Maryland EMA Program To assist approximately 1000 unemployed or underemployed households to sustain mortgage payments until they regain income to resume full mortgage payments Prevent further neighborhood decline by sustaining homeownership in communities hard hit by foreclosure.

10. How will the EMA program work in MD? Prime Counseling Agencies will be the primary entry point for the EMA program in Maryland. These agencies will screen and do the preliminary underwriting for the Program. Final Underwriting will be done by Single Family CDA. In December, DHCD began work to put together plan to implement the program in Maryland which we outlined to you in early December. That plan included the selection of Prime Counseling Agencies who would conduct the preliminary underwriting for the programAll final underwriting and approvals will be the responsibility of CDA Single Family.In December, DHCD began work to put together plan to implement the program in Maryland which we outlined to you in early December. That plan included the selection of Prime Counseling Agencies who would conduct the preliminary underwriting for the programAll final underwriting and approvals will be the responsibility of CDA Single Family.

11. How will the EMA program work in MD? Prime Counseling Agencies will: Collect documentation in accordance to EMA requirements, Communicate with lender Submit application to DHCD EMA program Communicate with DHCD EMA to identify any questions/concerns and follow up with homeowner to resolve same. Contact homeowner 3-5 months before planned end of program assistance to meet and discuss status and next steps. . .

12. Emergency Mortgage Assistance Program We anticipate that letters and announcements of Prime Counseling Agencies will be made by January 31 when we have an approved contract with HUD We will begin taking applications in February for The Emergency Mortgage Assistance Program.

13. How will the EMA program work in MD? All Housing Counseling Agencies We will train all our agencies during the February 22 Quarterly Meeting on how to make client referrals to the EMA Program. Please keep a file of homeowners who may be eligible so when we are ready to go we can work to get them assistance as soon as the program is up and running.

14. Maryland Foreclosure Mediation Program

15. Update on Maryland Mediation As of 1/4/2011, 284 Mediation Sessions have been held. There are currently 131 scheduled mediations, Mediations are scheduled everyday of the week at the various locations throughout the state. Visit OAH�s Website for additional information & mediation locations statewide http://www.oah.state.md.us/foreclosuremediation.asp

16. Important Messages re: Mediation Refer mediation eligible clients to legal partners using protocol outlined earlier Use referral form Share client data with Legal Partners Make plans to attend mediation with a client in the next 3 months in order to gain greater understanding of the program. We are working to add �ask your counselor about mediation� to all our Mortgage Late messaging.

18. Important Messages re: Mediation Collect mediation data for Monthly Reports Review Final Loss Mitigation Affidavits When mediation is complete, emphasize the need for homeowner to receive the appropriate documentation Make sure Full Agreement corresponds to what was agreed to in Mediation

19. Important Messages re: Mediation Remind the Homeowner that 15 day clock is ticking on a Motion to Stay or Dismiss (MD Rule 14-211) if no settlement is reached Discuss attorney representation issue with Homeowner- Do they have continued representation? Encourage client to seek legal help Review with Homeowner sustainable solutions- Are they Realistic?

20. What�s Next in Mediation? Now that our legal partners have represented clients in Mediation, they are working to create a Kit for clients who choose to represent themselves. This self representation information will be added to our public workshops and available for counseling agencies to integrate into their materials.

21. What�s Next in Foreclosure Activity We are anticipating a significant increase in foreclosure filings. In the Fall of 2010, many firms stopped filing actions in order to get up to speed and comply with Maryland law and �robo-signing� issue. Servicers may now withdraw existing filings and re-file cases. This will result in a significant increase in number of cases eligible for mediation. .

22. Maryland Department of Housing & Community Development- Staff Contact Reginald Stanfield Director (410)514-7209 stanfield@mdhousing.org Claudia Wilson Randall Project Manger (410)514-7232 wilsonrandall@mdhousing.org Karen Ashby Assistant Director (410)514-7289 ashby@mdhousing.org LaAndra Y. Jones Project Manager (410)514-7234 jonesL@mdhousing.org

23. QUESTIONS??

24. Thank you!