Presentation on theme: "HOPE QUARTERLY MEETING"— Presentation transcript:
1 HOPE QUARTERLY MEETING October 9, 2014Martin O'MalleyGOVERNORAnthony G. BrownLT. GOVERNORClarence J. SnuggsACTING SECRETARY
2 Foreclosure Prevention Team Reginald StanfieldDirector, Community ProgramsVirginia TepperDirector, Data & Technology ResourcesKaren AshbyAssistant Director, Community Programs
3 Foreclosure Prevention Team Emilie DrasherProgram Manager(410)Josephine Selvakumar(410)
4 Today’s Agenda Welcome and Introductions DHCD Statewide Foreclosure DataDHCD UpdatesDHCD Outreach and EventsUpdates from DLLR and OAGAnnouncement of Maryland Foreclosure Counseling GuideForeclosure Mediation Brief Advice ProjectNeighborhood Stabilization and Homeownership WorkgroupWorking Lunch (Novadebt Presentation and NFMC Portal Training for New Grantees)Tax Sale Foreclosure PresentationHUD Certification – Fair Housing
11 Housing Counseling E-Newsletter Wait Time Survey LinkRegistration for meetings and trainingsReminders for reportingUpcoming eventsProgram and grant updates and announcementsComplaint submission formsAnd more!
12 Foreclosure Relief Home Repurchasing Program AKA SUN InitiativeGrant agreements are being processedReporting will be through the DHCD Portal (similar to monthly and NFMC reporting)Once information is verified with SUN, DHCD will reimburse agencies for packages “approved to negotiate”
14 DHCD UPDATES:. NFMC. Compliance. Homeowner Requests. for Assistance DHCD UPDATES: NFMC Compliance Homeowner Requests for Assistance NFMC/MHCF Reporting
15 NFMC The performance period for Round 8 is Oct 1, 2013 to Dec 31, 2014 Funding Announcement for Round 9 will be released in mid-OctoberRound 8- very low intakesGrantees must enter at least 50 clients by Oct 10, 2014 to be eligible to participate in Round 9
16 NFMC Compliance Review Responsibilities and Expectations:Grantees chosen for remote compliance review by Neighbor Works were notified by DHCD though sNFMC and MHM- Review results and findings
17 NFMC Compliance Review Legal Service Providers should coordinate with Housing Counseling Agencies in providing the Neighborworks requesteddocuments
18 NFMC AgreementSection-8.6. Monitoring: Grantee shall assist the Department and make itself available for the carrying out the Department’s quality control and compliance measures, which may include site visits, file audits, and other measures to ensure compliance with the terms of this Agreement. By accepting this Grant, the Grantee warrants its understanding that the Department’s right of inspection.
19 NFMC Compliance Review Grantees will be provided cover sheets to separate each of the required documents for the client file reviewNFMC Compliance Resources:
21 Special Notes About Round 8 Grantees should provide translation services to NFMC counseling clients that require and/or request itSubmit verification of your agency’s translation services for its NFMC counseling clients as part of the start-up documentation requirement
22 Duplicate ResetAny client who received counseling services prior to January 1, 2014 will be eligible to be counseled again by an NFMC Grantee on or after January 1, 2014 at any levelIntake date must be after 01/01/2014
23 NFMC Level 1 Counseling Defined Level 1 Counseling - All of these completed documents must be in client file:Intake – DHCD Portal, CMS, or HOPE LOAN PORT®Signed Authorization with NFMC languagenot credit authorization or mortgage authorizationBudgetAction Plan – NFMC Compliance WorksheetScreen for Making Home Affordable.Documentation that a screening occurred for each type of available assistance should be included in the Action Plan and client file..
24 NFMC Level 2 Counseling Defined Level 2 Counseling - These completed documents must be in client file:Signed Authorization with NFMC languageVerified budget (income and debt)Documentation of Action PlanClose-out documentation(No longer required)
25 Compliance and Monitoring Program Time FramesClient File RequirementsReporting DatesRandom Review ProcessFindings - Follow upNFMC Member SiteNFMC Monthly WebEx
26 Process for Homeowner Requests for Assistance (aka “LIDS” or “Governor’s Letters”) Complaint from Homeowner Referral to Housing Counseling Agencies/ Legal Service Providers Grantee’s response to DHCD
27 Reporting NFMC and MHCF/AG- Combined Reporting NFMC- New Final Reporting Template
33 Counselor’s Webpage NFMC Program – Counselor’s Website Sample Client Satisfaction Survey FormSample NFMC Intake FormNFMC: Making Home Affordable - Outreach and Intake ProjectNFMC: Events of Default and Remedies PolicyNFMC Action Plan TemplateNFMC Quality Control and Compliance WorksheetSample Authorization Form & Privacy StatementNational Industry Standards Code of EthicsMD DHCD NFMC Required DocumentationMHA Checklist
34 Key Points to Remember Adherence to the Industry Standards Translation Service Form and Signed Ethics toReview NFMC requirementsCompliance with Housing Counseling StandardsMake links with Legal Service ProvidersSend us updated contact informationCommunicate with DHCD about what is going on in your agency
35 Important Dates to Remember Wait Time Reports - 5th and 20thMonthly Reports - 5thNext Quarterly Report - Oct 10thNFMC R8 Client (at least 50 clients) Portal Intake - Oct 10th
36 Effectiveness of Counseling Counseling greatly increased a homeowner’s ability to cure a serious delinquency or foreclosureCounseled homeowners were about 1.5 times more likely to not have their mortgage re-enter a troubled status after receiving a loan modification cure
37 Effectiveness of Counseling Counseled homeowners are nearly three times as likely to receive a loan modification cure compared to non- counseled homeowners
40 Updates from DLLR and the Office of the Attorney General
41 Director of Foreclosure Outreach Maryland’s Office of the Commissioner of Financial Regulation: Info for HOPE GranteesMeredith Mishaga,Director of Foreclosure OutreachOctober 9, 2014
42 About Office of Commissioner of Financial Regulation (“Fin Reg”) “The Office of Financial Regulation protects consumers by ensuring the soundness of financial institutions in the State, licensing financial industry professionals, and disciplining businesses and individuals engaged in fraudulent financial activities.” More info on website and Maryland Manual
43 My Role at Fin RegData – NOI database and FPR oversight, analysis of consumer complaintsCoordination – with nonprofit providers, industry advocates, other government entitiesOutreach – directly and indirectly to Maryland homeownersInquiries – respond to consumers and/or their nonprofit or legal representatives (on foreclosure-related matters)
44 Relationship with Service Providers Feedback on regulations and policyInsight on trends and industry-wide concernsTracking and resolving complaintsResources on our website for all to use (e.g. NOI reports, consumer advisories, industry advisories, enforcement actions, regulations, etc.)
45 Submitting Complaints to Fin Reg When is it appropriate?Only have jurisdiction over our licenseesEgregious or repeat issuesSpecific violations of state regulationWhy is it important?Resolution for homeownerTrend recognition and analysis for making regsMore proactive “risk-based” examinationsWhat is the process?See handout with link and instructionsStill need to work with homeowner on loss mit (investigation won’t stop foreclosure process)Goes to Consumer Services UnitScams/Fraud escalate to Enforcement Unit
46 Info on Citi Settlement 2014 settlement between Citigroup, U.S. Dept of Justice, several state AGs, and FDIC related to residential mortgage-backed securities (RMBS)No direct payments to borrowers who were foreclosed-uponRequired to pay out $2.5 billion in consumer relief nationwide – crediting starts April 30, 2014“Soft relief”, i.e. incentives for modifications, forbearance, forgivenessLMI lending in form of down payment/closing cost assistanceCommunity reinvestment and neighborhood stabilization (demolitions, REO donations, CDFI capitalization funding)Donations to HUD-approved housing counseling agencies and legal assistance organizations (minimum donations are $10 million to counseling and $15 million to legal nationwide)Affordable rental housing financing for developments equivalent to LIHTC requirements
48 This guide is intended to be a central resource and tool for counselors providing foreclosure intervention counseling. The guide was developed through a partnership between the Baltimore Homeownership Preservation Coalition and the Maryland Department of Housing and Community Development with support of The Abell Foundation.
50 Foreclosure Mediation Brief Advice Project The Foreclosure Mediation Brief Advice Project is a program that provides FREE brief legal consultations for homeowners facing foreclosure who do not have legal representation.Foreclosure Mediation Brief Advice Attorneys will:Answer questions about foreclosure mediationGive legal advice regarding your foreclosureHelp you understand court papers and documents you received regarding your foreclosureMondays and Wednesdays: 8:00AM – 4:30PM (No new intakes accepted after 4PM)Office of Administrative HearingsAdministrative Law Building11101 Gilroy RoadHunt Valley, Maryland 21031
51 Neighborhood Stabilization and Homeownership Workgroup
53 neighborhood stabilization & h0meownership workgroup (NSHO) A workgroup of the Maryland Sustainable Growth Commission at the request of House Speaker Michael E. Busch Goals: To understand the impact of the financial crisis on historically owner-occupied neighborhoods AND to identify resources, strategies and recommendations to preserve the stability of neighborhoods and promote homeownership in these neighborhoods. To understand the impact of changes in the banking industry and the development and real estate environment on neighborhoods, families, homeownership and the local tax base AND to recommend strategies to mitigate negative impacts.
54 Goal:We want to benefit from your perspective and expertise in housing and neighborhood revitalization in order to:…Establish or refine priorities for investing in homeownership and home improvement as a vehicle for neighborhood stabilization in Maryland.…Understand how changes in the lending and real estate development environments are affecting your communities as well as how to mitigate negative effects.
55 Ice breaker:Imagine you have been granted one wish by the Maryland General Assembly, what would you make happen?
56 Issues TO explore…I. How have things changed? Remember back to pre-Great Recession (pre-2007’ish)… A. What is different NOW with respect to the status of homeowners, homeownership or neighborhood stability, positive or negative …starting with homeowners …homeownership …home improvement/rehab …neighborhoods?
57 Issues TO explore…I. How do you think things have changed? Remember back to pre-Great Recession (pre-2007’ish). B. What is different NOW with respect to the mortgage lending environment and housing and real estate development/rehab environment, positive or negative …mortgage lending? …real estate investment/rehabilitation
58 Issues TO explore…II. A. What do you think are the CHIEF BARRIERS now to achieving or encouraging homeownership and home investment? …for consumers …for local government advocates …for local nonprofit advocates …for the private sector builders/rehabbers …for lenders …for other stakeholders?
59 Issues TO explore…II. B.. What are the CHIEF BARRIERS now to achieving or encouraging neighborhood stabilization /revitalization? …to consumers …to local government advocates …to nonprofit advocates …to the private sector builders/rehabbers …to lenders …other stakeholders?
60 Issues TO explore…III. A. What are the CHIEF OPPORTUNITIES now to achieving or encouraging homeownership and home investment ? What’s working in your community? B. What stakeholders and partners are needed to make this work? Are they on board/in place? C. Who should be the main targets demographically? …for new homeownership …for housing rehab
61 Issues TO explore…III. A. What are the CHIEF OPPORTUNITIES now to achieving or encouraging neighborhood revitalization/stabilization? What’s working in your community? B. What stakeholders and partners are needed to make this work? Are they on board/in place?
62 Issues TO explore… IV. Tools available from the state What DHCD programs do you use or know about to encourage homeownership and home investment?--strengths/weaknesses?B. What DHCD programs do you use or know about to encourage neighborhood revitalization/stabilization?
63 Pulling it all together… V. What should the priorities be? …To encourage Homeownership …To encourage Home Investment/rehab? …To encourage Neighborhood Stability …To mitigate changes in the Banking Industry …To mitigate changes in the Real Estate/Development Environment
64 Next Steps…Research Workgroup Discussion Report to the SG Commission Recommendations from SGC to the Maryland General Assembly
65 Thank you!Questions? Carol Gilbert Assistant Secretary MD DHCD
69 Our MissionNovadebt, a non-profit organization, is committed to assisting families and individuals in need by providing free financial education, community outreach and housing and credit counseling services; all with compassion and the utmost commitment to quality and integrity.1
70 Organization Highlights Novadebt, A Garden State Consumer Credit Counseling Organization, is a non- profit, social service, financial management agency that was founded in February, 1991.We are a national organization. Our headquarters is located in Freehold, New Jersey. We also have 9 satellite locations in California, Nevada, Minnesota, Texas, North Carolina, Illinois, Maryland and Michigan that provide face to face and telephone counseling.Novadebt is recognized by the United States Government as a charitable organization under 501 (c) (3) of the IRS code.In January 2013, we were approved as a HUD National Intermediary. Novadebt was initially approved by HUD as Local Housing Counseling Agency in New Jersey in March of 2003. As our housing counseling services expanded, we became HUD approved as a Multi-State Organization in March of 2009.2
71 Organization Highlights We have been a member of the National Foundation for Credit Counseling (NFCC) since November 2011.Novadebt is nationally approved by the Executive Office for United States Trustees to provide Pre-Bankruptcy Counseling and the Debtor Education Course to consumers filling for bankruptcy protection.In 2011 Novadebt became accredited to the Council on Accreditation’s (COA) Eighth Edition Standards. COA's Eighth Edition Standards help organization's to enhance growth and stability through a commitment to comply with human service standards.In 2013, Novadebt added Student Loan Counseling to its service offering.3
72 Housing Counseling Services Pre-purchase CounselingHigh Cost Home Loan CounselingFHA Back to Work CounselingDefault and Foreclosure Prevention CounselingPost Modification Financial CoachingHECM Counseling6
73 Maryland Hope Hotline Joined September 2014 Office located in Owings MillsService Howard County and Baltimore6
74 Other Services Budget Counseling Debt Management Program Student Loan CounselingPre-Bankruptcy CounselingBankruptcy Debtor EducationFinancial Education5
75 Financial EducationThe first type of education program that our agency offers is the education information provided during a counseling session. Once an analysis of the situation is determined, counselors provide information on a variety of topics in accordance with the individual client’s needs.Financial education is the core of our mission and is provided at no cost through workshops and community events. We are involved with over 200 social service agencies nationwide. Monthly workshops and seminar/conference exhibits are facilitated for the members of the community along with various non-profit, social service groups to provide knowledge to those who might otherwise not receive such guidance.8
76 Workshops ABC’s of Credit Taking Control of Your Financial Life Dealing with Finances While UnemployedPreparing to Buy a HomeCollege Students10
77 Counselor Certification Counselors are required to take a course administered through a third party, the National Foundation for Credit Counseling (NFCC). Upon receipt of the course material, counselors are required to take and pass an exam per financial module within the course within six months of their start date. Once the counselor passes the exams, they have fulfilled the standard requirement and the NFCC designates the counselor as a Certified Credit Counselor and Certified Housing Counselor accordingly. All results are provided to the organization for tracking and monitoring purposes. As per the requirements for maintaining the certification by the National Foundation for Credit Counseling, our counselors are required to maintain a minimum of 20 professional development units (PDUs) bi-annually. Counselors can earn PDUs through approved classes held in-house at Novadebt and via approved external courses. Classes vary and are finance and/or industry related. Counselors may also earn PDUs through outside training and/or conferences as well. The NFCC will audit Certified Credit Counselors biannually to ensure PDU requirements have been met prior to issuing a certificate of re-certification. In addition, the organization maintains records of all professional development units to ensure counselors maintain certification.11
80 Tax Sales Susan Francis, Maryland Volunteer Lawyers Service (MVLS) ;Margaret Henn, Pro Bono Resource Center (PBRC);
81 What’s the Big Deal with Tax Sales When a homeowner loses their house to tax sale, they lose all the equity in the propertyMost of our clients have their homes paid for, and are losing their homes for less than $1,000 or $2,000 delinquent tax or water bills.The purchaser at the tax sale auction takes the entire property, there is no equity returned to the homeowner.Homeowners with reverse mortgages are at particular risk, since most don’t include an escrow account to pay these bills.
82 When is a House at Risk of Tax Sale? “any tax, or charge of any kind… that by law is a lien against the real property on which it is imposed or assessed”Includes interest, penalties & service chargesAmountDelinquent - $250 or moreBaltimore City – water bill - $350 & 3 quarters delinquentHandout – local informationTimingDepends on county, but generally late paying annual or bi- annual tax bills.What is a tax sale & why do we care about it? Most likely- delinquent property tax or water bill. End result – homeowner loses home or pays much more than delinquent amounts to save propertyWho are our clients? Often seniors, fixed income. Many do not have mortgagesWhat can attorneys do? Explain process – lots of confusion, negotiation with purchaser, raise judicial challenges to process, bankruptcy. If pre-tax sale – challenging underlying taxes/feesCollector = city or countyTax = property tax, water bills, other liensAmount can be combination of various taxes & liens to get to $250
83 Notice to HomeownerHomeowner should receive notice at least 30 days before the house is placed into tax sale auction.Homeowner should also receive notice after the sale.Within 60 days after tax sale, collector must send property owner notice.ContentsStatement that property has been soldDate of tax saleAmount of bidLien amount at time of saleStatement that owner has right to redeemStatement that foreclosure action can occur at 6 monthsAmount for current redemption, after 4 months, and 6 months
84 Homeowner Has Right to Redeem, But… Right of RedemptionProperty owner has right to redeem until right has been foreclosedLegal process – Complaint to Foreclosure the Right to RedeemCan’t be filed until at least 6 months after the tax sale
85 $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ For a homeowner to redeem the property, they must pay in entirety (no partial payments):Total lien amount paid at tax sale with interestTaxes, interest and penalties paid by certificate holder (person who purchased at tax sale auction)Taxes, interest and penalties accruing after tax sale dateInterest –6% or as fixed by City Council/Govt. EntityBaltimore City – 18%. Montgomery & Prince George’s – 20%Counties – in handoutBut wait there’s more…Certificate holder/purchaser = person who won the bid at the tax sale auction, and holds the tax sale certificate on the property
86 These fees are added on top of existing charges And then… 4 months after tax sale, but before an action to foreclose has been filed (can occur at 6 month mark), purchaser may be reimbursed for:Recording costsTitle search fee (maximum $250)Postage and certified mailing costs for noticesReasonable attorney’s fees (maximum $500)These fees are added on top of existing chargesAnd then…Fees routinely at a maximum cap.Regularly have inappropriate charges
87 If foreclosure action has been filed (at least 6 months after tax sale), purchaser may be reimbursed for:Attorney’s fees$1,300 if compliance affidavit hasn’t been filed$1,500 if compliance affidavit filedOther reasonable fees specifically requested, case by case basis
88 With affidavit that expenses were incurred: Filing fee with courtService of process feeTitle search (max. $250). If 2nd title search conducted more than 6 months after 1st search, then an update fee (max. $75)Publication feePosting feePostage and certified mailThese are all cumulative fees, meaning that a $500 tax lien can cost a homeowner several thousand dollars to be able to save their house.
89 Fixing amount necessary for redemption If redemption occurs after an action to foreclose has begun, and the redemption amount is disputed, the homeowner may ask the court to determine the amount necessary to redeemRights during redemption periodHomeowner continues to have possession of property until the right of redemption has been foreclosed (this requires court action) and homeowner is formally evicted from property.
90 Complaints to foreclose right of redemption Timing – Any time after 6 months from tax sale dateNotice to Homeowner Prior to FilingStatement – certificate of sale issuanceCopy of certificate of saleStatement – right to redeemStatement of timingStatement of redemption costsName, address & telephone number of certificate holder/agent/ attorney
91 What Can You Do? Priority #1 – Keep homeowner out of tax sale!! If mortgage, make sure lender is aware of pending tax saleUsually lender will pay to avoid losing their interest in the propertyUtilize any available resources, credits, etc.Will discuss in next sectionIf the homeowner believes they have been misbilled, have them challenge it as soon as possibleIf homeowner doesn’t avoid tax sale, refer to MVLS ( – same # as foreclosure line) or Legal Aid of Baltimore City ( ).Limited legal assistanceReview process to make sure followed appropriatelyNegotiate with purchaserDetermine if Chapter 13 bankruptcy is an optionHelp homeowner file for bid surplus if applicable
92 Tax Sale Prevention Resources Baltimore City Resource Guide for Tax Sale and Tax ForeclosureProperty Tax Bill Questions & CreditsBaltimore City Department of FinanceAbel Wolman Municipal Building200 Holiday StreetBaltimore, MD 21202For questions about the status of your property tax bill.For information about this year’s tax sale. (It is free to create a username and password.)Department of Assessments and Taxation301 West Preston Street, Room 900Baltimore, MD 21201For information about the Homeowner’s Property Tax Credit or the Homestead Tax Credit. These credits could lower your tax bill if you are eligible.Collector = city or county
93 Utility Bills & Assistance Department of Public Works(Water Bill Issues)Abel Wolman Municipal Building200 Holiday StreetBaltimore, MD 21202For incorrect water bills, request an informal conference from the Department of Public Works.For water leaks, request a credit from the Department of Public Works.To apply for the Senior Citizens Water Discount submit an application to the Department of Public Works.BGE(Electric Bills)orFor information about assistance paying my electric bill.Baltimore City Housing Department LIGHT ProgramFor information about housing repairs to help address high water bills, energy efficiency issues, or other housing related problems.
94 Assistance with Public Benefits & Alternative Housing Options Financial AssistanceNeighborhood Housing Services of Baltimoreext. 104819 Park Ave.Baltimore, MD 21201For information about a loan program to help pay your property taxes or water bill.Assistance with Public Benefits & Alternative Housing OptionsMaryland Access PointFor information about your housing options.Benefit CentersMonday – Friday 8:30am to 4:30pmFor information about public benefits.Southeast Community Action Center:Eastern Community Action Center:Northwest Community Action Center:Southern Community Action Center:Northern Community Action Center:
95 Legal Resources Maryland Volunteer Lawyers Service 443-451-4067 For free legal assistance with a tax sale or tax foreclosure matter for income eligible clients.Legal Aid BureauFor free legal assistance with a tax sale or tax foreclosure matter for income eligible clientsMaryland Attorney General’s Office Consumer HotlineFor complaints about reverse mortgage fraud or other types of consumer fraud.Pro Bono Resource Center of MarylandFor a free brief consultation about a tax sale matter, information and referral.
96 What Resources Are Available in Your Community? Statewide ResourcesHomestead Tax Credit“To help homeowners deal with large assessment increases on their principal residence, state law has established the Homestead Property Tax Credit. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. View a listing of homestead caps for each local government. ” (Maryland.gov)Application: https://sdathtc.resiusa.org/
97 Homestead Tax Credit Cont. 20132014$100,000$120,00020% increase in value triggers the homestead credit (more than 10%)10% increase in value would be $110,000. Homeowner gets a credit on any tax paid on the value of the house above $110,000.
98 Statewide Resources Cont. Homeowner’s Property Tax Credit“The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.” (Maryland.gov)FAQsApplication: 60.pdf
99 Homeowners Property Tax Credit Cont. You must own or have a legal interest in the property.The dwelling on which you are seeking the tax credit must be your principal residence where you live at least six months of the year, including July 1, unless you are a recent home purchaser or unless you are unable to do so because of your health or need of special care.Your net worth, not including the value of the property on which you are seeking the credit or any qualified retirement savings or Individual Retirement Accounts, must be less than $200,000.Your combined gross household income cannot exceed $60,000.(Maryland.gov)
100 Homeowner’s Property Tax Credit Guidelines Household IncomeTax Limit$1 - 8,000$09,0004010,0008011,00012012,00016013,00022514,00029015,00035516,00042017,00051018,00060019,00069020,00078021,00087022,00096023,000105024,000114025,000123026,000132027,000141028,000150029,000159030,0001,680and up to a maximum of $60,000*
102 How to Find Resources in Your Community Convene a group of stakeholders – housing counselors, legal services, community groups, local elected officials, title agents, foundations, local collegesCall local finance department to determine local procedures and see if there are resources for homeownersCall local water department and gas/electric company to ask about available programs
103 How to Find Resources in Your Community Cont. Find out whether local government or nonprofits have any programs related to weatherization or housing rehab/repairsSee if homeowner is eligible for benefits that could free up money in budgetGet Creative!