1 / 13

NLS-LA & One LA Foreclosure Prevention

NLS-LA & One LA Foreclosure Prevention. Our Approach. Partner with community organization Train “cohorts” of borrowers Cohorts negotiate as a group with banks that service their loan Monitor modifications Craft community supported proposal. Collaboration With Multiple Partners. NLS-LA

tait
Download Presentation

NLS-LA & One LA Foreclosure Prevention

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NLS-LA & One LAForeclosure Prevention

  2. Our Approach • Partner with community organization • Train “cohorts” of borrowers • Cohorts negotiate as a group with banks that service their loan • Monitor modifications • Craft community supported proposal

  3. Collaboration With Multiple Partners • NLS-LA • One LA-IAF • New Economics for Women • Volunteer with banking background

  4. Train “cohorts” of borrowers • Financial literacy • Understanding your mortgage • Understanding securitized mortgages • i.e., the bank that takes your money is not the institution that owns your loan) • Types of loan modifications

  5. Cohorts Negotiate With Banks That Service Their Loan • Over 200 borrowers to date • Four banks (servicers): • Chase (includes WaMu & EMC) • Wells Fargo (includes ASC) • Countrywide/Bank of America • Indymac

  6. Monitor Modifications • follow up with banks follow up with borrowers develop criteria to evaluate mods

  7. Craft Community Supported Proposal • Listen to homeowners in house meetings • Evaluate financial capacity of the group • Understand self-interest of the bank • Develop proposal with key stakeholders in mind • Bring back to local constituency

  8. One LA Proposal • Long-term fixed payment • Reasonable interest rate • Principal reduction so borrower has equity & reason to keep paying • Publicly funded “soft” second to secure affordable payment for more borrowers

  9. Problems With Modifications • Bank disorganization (e.g., over 90 days to get a decision; by then info is old & have to start over) • Modification is voluntary • President’s plan leaves out more than 75% of our borrowers • Most modifications are short-term fixes: 5 years or less before payments jump by hundreds per month

  10. One LA Proposal at Work • LA City Council votes unanimously to invest $1 Million in demonstration project May 13th: • Long term fixed payment • Principal reduction • Publicly funded soft second (with $1M CRA funds) • One LA-IAF in negotiation with banks to leverage participation • Implementation in progress

  11. Time Line • Sept 08: Community led house meetings • Nov 08: Organization of borrowers into cohorts and secure NEW as a partner • Dec 08 – Jan 09: Negotiations begin for first three cohorts • Jan 09 – One LA Community Assembly – 1,500 participants; federal, state & local elected, proposal publicly presented to elected officials

  12. Time Line, Cont’d • Feb 09 – LA city council approves program in principle • March - May 09 – Ongoing borrower training and meetings with banks • May 09 – LA City Council approves investment of $1 Million into project • Sept 09 – Program operational?

  13. Moderators • Antonio Hicks, Staff Attorney, Consumer & Housing Advocacy Group, Neighborhood Legal Services of LA County e-mail: antoniohicks@nls-la.org • Carlota Garcia, Organizer, One LA – IAF e-mail: carlota.garcia@gmail.com

More Related