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Key Housing Policy Issues: Pre-Purchase and Post-Purchase

Key Housing Policy Issues: Pre-Purchase and Post-Purchase. Policy Issues Purchasing a Home. Pre-Purchase Education Best tool to avoid foreclosure Proven effectiveness in preparing soon to be homeowners Requirement – Scale Loss Leader Allowable HUD 1 Cost Has Value Has Costs.

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Key Housing Policy Issues: Pre-Purchase and Post-Purchase

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  1. Key Housing Policy Issues: Pre-Purchase and Post-Purchase

  2. Policy Issues Purchasing a Home • Pre-Purchase Education • Best tool to avoid foreclosure • Proven effectiveness in preparing soon to be homeowners • Requirement – Scale • Loss Leader • Allowable HUD 1 Cost • Has Value • Has Costs Ohio Fair Lending Conference

  3. Policy Issues Purchasing a Home • Down Payment Assistance • Funds need to be allocated to need • CityLIFT • 248 Reservations in 4 days – Cleveland only • $3.7 million • Millenials • County DPA • Limited funding – per RFP • Innovative ideas of instituting like 203k • NSP2 was there, short-lived Ohio Fair Lending Conference

  4. Policy Issues Purchasing a Home • Regulations • Qualified Mortgages vs Qualified Residential Mortgages • Alignment • Loan to Value • Down Payment – 0, 20, 30 percent • Reserves • Uncertainty = less access to capital Ohio Fair Lending Conference

  5. Policy Issues Keeping Your Home • Home Equity Conversion Mortgages – Reverse Mortgages • Assessment of willingness and ability • Demonstration of meeting obligations • Credit pulls – risk = property charges set aside • 90 days of homeowners insurance Ohio Fair Lending Conference

  6. Policy Issues Keeping Your Home • National Foreclosure Mitigation and Counseling Program • 7 Rounds – Round 8 open • Urban Institute Evaluation • Counseled homeowners were at least 67% more likely to remain current on their mortgage nine months after receiving a loan modification cure • increasing by at least 89% the relative odds of modification cures for counseled homeowners • Counseled homeowners received loan modifications resulting in a monthly payment that was $176 less, on average, than non-counseled borrowers – a savings of close to $2,100 a year. • Now is not the time to take foot off the pedal! Ohio Fair Lending Conference

  7. Policy Issues Keeping Your Home • Ohio Housing Finance Agency – Hardest Hit Fund • One of the only funding sources that can be used innovatively to address foreclosure and its effects • Save the Dream Ohio • Demolition • Don’t pit counseling, rehab and demo against each other • Provide resources • Create synergy – not press releases • Mortgage Resolution Fund Ohio Fair Lending Conference

  8. Policy Issues Keeping Your Home • What is the Mortgage Resolution Fund? • The Mortgage Resolution Fund (MRF) is a national nonprofit partnership created to help homeowners in danger of losing their homes to foreclosure. Ohio Fair Lending Conference

  9. Policy Issues Keeping Your Home • Who is MRF? Ohio Fair Lending Conference

  10. Policy Issues Keeping Your Home • Who is MRF on the local level? Ohio Fair Lending Conference

  11. How Does MRF Work? Ohio Fair Lending Conference

  12. Policy Issues Keeping Your Home Unpaid Principle Balance $100,000 market depreciation Current Market Value $80,000 homeowner equity Modified Note $68,000 cost of note sale MRF Resolution Funding MRF Note Purchase $40,000 Includes Due Diligence, counseling, program coordination, legal, finance structure, cost of capital, carrying costs, special service set up, reserves for short sales, cash for keys and foreclosures. Ohio Fair Lending Conference

  13. Policy Issues Keeping Your Home Ohio Fair Lending Conference

  14. Policy Issues Keeping Your Home Ohio Fair Lending Conference

  15. Policy Issues Keeping Your Home Ohio Fair Lending Conference

  16. Success happens at the speed of trust Ohio Fair Lending Conference

  17. Contact Information • Lou Tisler • Neighborhood Housing Services • of Greater Cleveland • Email: Ltisler@nhscleveland.org • Phone: 216.458.4663 • Twitter: @nhscleveland • FB: fb.com/NHSGC Ohio Fair Lending Conference

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