Virginia Foreclosure Prevention Task Force Work Group II Education and Outreach November 20, 2009

1. Virginia Foreclosure Prevention Task Force Work Group II Education and Outreach November 20, 2009

2. The efforts of Work Group II have mainly focused on enhancing access by at-risk borrowers to information and counseling that will enable them to successfully remain homeowners.

3. In 2008, the focus of education and outreach was creating awareness and local capacity • Significant outreach efforts were carried out to educate the public as well as state and local officials on the nature and scope of the foreclosure problem • An ad campaign was conducted using multiple media • Regional mortgage clinics were conducted across the state • A website was developed to provide a focal point for information • Substantial effort and resources were also spent in training foreclosure prevention counselors in order to build local capacity to assist at-risk homeowners

4. Our counselor training activities have significantly increased local capacity • To date, VHDA has conducted 14 counselor trainings • 10 for the full "Certification" training • 4 that provided the "Basic" training • These sessions trained a total of 363 counselors • 289 counselors have taken the “Certification” training • Of those, 254 have passed the exam and been certified • An additional 74 counselors completed the "Basic" training • Additionally, VHDA received a $10,000 grant from NeighborWorks to host a five-day training for more experienced counselors. Twenty-two counselors from around the state attended.

5. Continued grant support for counseling agencies remains a key part of our strategy • For FY 2010, VHDA and DHCD, are partnering to administer an additional $553,750 in funds for a second round of grants for foreclosure prevention counseling • The due date for applications was May 29th and 23 applications were received • Committee made up of DHCD and VHDA reviewed the applications and awards were announced to support 13 organizations • The Office of the Attorney General made $50,000 available of the amount listed above from its work in obtaining funds from the Countrywide Settlement Foreclosure Relief Funds

6. Assisted Richmond Fed, HOPE NOW and NeighborWorks America to Promote NOVA Event Event took place August 27th in Woodbridge, Va. • VHDA assisted in publicizing the event during the last 2 radio shows in NoVa • VHDA, through contacts with other organizations, assisted with recruiting Spanish-speaking volunteers to assist families with LEP during the event • VHDA assisted in recruiting counselors to assist with the event as well

7. Assisted City of Richmond and HOME with Richmond Mortgage Clinics • Provided assistance to the City of Richmond and HOME with mortgage clinics that were conducted in the Richmond area • Clinics were held in four locations reflecting some of the hardest hit areas for foreclosure in the City

8. Developed foreclosure resource guide for State legislators/Congressional delegation Includes: • Industry resources • Federal resources • Counseling resources • State resources

9. The Task Force’s outreach efforts have received National Recognition Communicator Awards – 2009 (Award of Distinction) • Virginia Mortgage Clinic Campaign Task Force web site, mortgage clinic workbook, and TV & Radio PSAs Telly Awards – 2009 (Bronze Awards) • Virginia Mortgage Clinic Campaign • Virginia Mortgage Clinic PSA • Foreclosure Rescue Scam PSA

10. The Task Force website is being maintained as a central point for public information

11. Now, education and outreach needs are expanding and changing— • New homebuyers face challenges in today’s difficult market environment • A new group of homeowners is at risk as home values fall and unemployment rises

12. First-time buyers are key to Virginia’s housing market recovery, but must obtain sustainable homeownership • VHDA’s ad campaign was focused on African Americans and Hispanics—groups most impacted by foreclosure • The campaign, which ran from March 4th - June 30th has been a success • Total online registrations increased 120% from 2,268 for this period in 2008 to 5,788 for the same period in 2009. English and Spanish campaign landing pages have received 27,000 unique visitors • Share of minorities registering for the online classes averaged 47% during the campaign compared to 25% during the same time last year • Continued education is key to prevent the problems of the past from recurring

13. The foreclosure problem has changed • Originally, it impacted people with subprime loans who were employed, so modifications may have been possible • Now it is impacting people who have prime loans, but are experiencing unemployment or underemployment, with substantial loss of income • This is further exacerbated by declines in home values, many of which have fallen below loan balances For these reasons, it is now apparent that not everyone can be helped to stay in their home

14. Many organizations are reachingthe limits of their capacity to assist • In spite of all the of training, there are still an insufficient number of Counselors available to assist borrowers • Loss mitigation counseling is extremely time consuming (average 4 to 6 months per client) • Insufficient dollars are available to reimburse Counselors for their efforts (e.g. VHDA/DHCD had requests of $1.4M for a pool of $550K) • Loss mitigation counseling makes it difficult for Agencies to continue to offer services that are more income producing (e.g. one Agency in Virginia had to return their grant funds, close their doors to reorganize and revert to an all volunteer Staff)

15. Going Forward • Recommend continuation of Virginia Foreclosure Prevention Task Force to the new Administration • Continue monitoring foreclosure data • Assess the impact of unemployment on Virginia’s foreclosure problem