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NC Foreclosure Prevention Fund

NC Foreclosure Prevention Fund. NC Foreclosure Prevention Fund Programs will fall under the Home Protection Program (HPP) Umbrella. HPP 120 day stay of foreclosure. Mortgage Payment Program. Second Mortgage Refinance Program. Permanent Loan Modification Program.

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NC Foreclosure Prevention Fund

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  1. NC Foreclosure Prevention Fund

  2. NCForeclosure Prevention FundPrograms will fall under the Home Protection Program (HPP)Umbrella HPP 120 day stay of foreclosure Mortgage Payment Program Second Mortgage Refinance Program Permanent Loan Modification Program

  3. Overview of Expenditure

  4. Mortgage Payment Program (MPP) Allocation of $115,000,000 Goal: To assist 5,750 homeowners over next 3 years Target population: Unemployed homeowners & others, who through no fault of their own, are unable to make their mortgage payments.

  5. Targeted Counties with Unemployment Rates of 11.3% or Greater for 2009 Hardest Hit Counties Counties with unemployment < 11.3%

  6. 50 Targeted or “Hardest Hit” Counties

  7. Mortgage Payment Program (MPP) Maximum Assistance: • $36,000/36 months for residents of 50 Targeted counties • $24,000/24 months for 50 Non-Targeted counties Type of Loan: • 10 year, 0% interest, non-recourse, deferred-payment forgivable subordinate loan. Hardest Hit Counties Counties with unemployment < 11.3%

  8. Timeline OCTOBER 18 – Initially available in 17 NWcounties: Alexander Catawba Surry Alleghany Davie Watauga Ashe Forsyth Wilkes Avery Iredell Yadkin Burke Mitchell Yancey Caldwell Stokes Counties served by the following 3 counselingpartners: • CCCS of Forsyth County (Winston-Salem) • Northwestern Regional Housing Authority (Boone) • Western Piedmont Council of Governments (Hickory)

  9. Timeline DECEMBER 1, 2010: MPP expanded statewide FEBRUARY 2011: Borrower Web Portal Available

  10. Second Mortgage Refi Prg. (SMRP) Allocation of $15,000,000 Goal: To assist 1,000 homeowners Target population: Underemployed homeowners with a second mortgage that makes their total mortgage payment unaffordable. NOTE: Homeowners not eligible for other government refinance programs

  11. Second Mortgage Refinance (SMRP) • Maximum Assistance: $30,000 • Type of loan: 10 year, 0% interest, non-recourse, deferred-payment forgivable subordinate loan. • Only available in Targeted counties • Lender Match required Targeted counties

  12. Timeline • JANUARY 2011 – Second Mortgage Refinance Program available only in Targeted or “Hardest Hit” Counties.

  13. Permanent Loan Modification Program (PLMP) Allocation of $8,800,000 Goal: To assist 440 homeowners Target population: Employed, underemployed homeowners & others, with a recent financial hardship that has left them with damaged credit that disqualifies them for traditional refinancing programs. NOTE: Homeowners not eligible for other government loan modification programs (i.e. HAMP)

  14. Permanent Loan Modification Program (PLMP) • Maximum Assistance: $30,000.00 • Type of Assistance: • 10 year, 0% interest, non-recourse, deferred-payment forgivable subordinate loan. • Available statewide

  15. Timeline • FEBRUARY 2011 – PLMP available in 50 Targeted or “Hardest Hit” Counties • APRIL 2011 – PLMP available Statewide

  16. Program Overview EXCLUSIONS: • No mortgage-related felony convictions in last 10 yrs. • Unpaid principal balance(s) < $ 275,000.00 • Cannot own more than 1 other home ELIGIBLITY: • NC homeowner & legal US resident • Unable to make mortgage payment through no fault of their own • Homeowner has acceptable credit history • Homeowner meets program underwriting guidelines

  17. NEW Delivery System • Website • Portal • Call Center • Expanded • Counselor • Network

  18. New Website!

  19. MPP Program Goal To assist at least 5,750 N.C. homeowners over the next 3 years (2010-2013): Year 1 2,500 Year 2 2,500 Year 3 750 EXPAND capacity of current partners andADD new partners who have experienced foreclosure counselors

  20. Expanding Partner Network Minimum Standards for New Partners: • HUD-approved counseling agency • In existence for at least 3 years & financially stable • Staff with at least 2 years experience providing foreclosure/loss mitigation counseling • Formal office that is handicapped accessible & open during normal business hours • Agency maintains sufficient insurance coverage to conduct business with the general public

  21. Expanding Partner Network OTHER FACTORS CONSIDERED: • Geographic focus (i.e. serves high unemployment &/or high foreclosure counties) • Production capacity and successes (i.e. # of loss mitigation or foreclosure prevention clients assisted from HUD 9902 Report) • OTHER:

  22. New Partner Payment Structure New Partners must: • Complete simple application & submitapplicable documentation • Agrees to achieve a minimumannual production goal of closing 24 MPP loans • Assign at least 1 experienced housing counselor (full or part-time) to work on MPP • Staff successfully completes required MPP Partner training NOTE: First new partner training will be held in mid/late OCTOBER 2010

  23. New Partner Payment Structure New Partners also agree to: • HelpMarket MPP to potential applicants • Help borrowers assemble & submit application package to NCHFA • Facilitate loan closing & file applicable closing documents with local Register of Deeds • Provide follow up & close out counseling

  24. New Partner Payment Structure In exchange NCHFA will: • Pay partner a $ 1,000.00Fee-for-Service for each MPP application submitted that is approved & loan closed. • Reimburse partner for approved Out-of-Pocket Expenses • NCHFA to review partner production quarterly andbase continued program participation on Agency meeting annual production goal.

  25. New Partner Payment Structure Out-of-Pocket Expenses Reimbursed: • Credit Reports (bi-or tri-merged) • Recording Fees for filing applicable closing documents at Register of Deeds • Postage for mailing closing documents to Agency • Mileage for conducting MPP-related business including outreach/marketing • MPP training-related expenses • Marketing expenses* • Other

  26. QUESTIONS?

  27. FOR MORE INFORMATION CONTACT: RICH LEE Foreclosure Prevention Team Leader Phone: 919-877-5688 Email: rylee@nchfa.com

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