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North Carolina Home Protection Program and Loan Fund.

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Presentation on theme: "North Carolina Home Protection Program and Loan Fund."— Presentation transcript:

1 North Carolina Home Protection Program and Loan Fund

2 Origin and Purpose In response to an increasing number of foreclosures in 2004, the North Carolina General Assembly created the Home Protection Pilot Program. The program is to “assist North Carolina workers who have lost jobs as a result of changing economic conditions.” NCHFA was appointed to develop, implement and administer the pilot program.

3 Program Eligibility Criteria:  Job Loss due to changing economic conditions  Owner of real property  Satisfactory mortgage & credit payment history prior to job loss  Ability to resume mortgage payments after assistance ends

4 What type of assistance is available? Deferred payment loans at 0% interest Due & payable in 15 years Or if the home is sold, refinanced or is no longer the borrower’s primary residence.

5 Maximum loan amount is equal to the lesser of $20, months of monthly mortgage payments (PITI) or the Minimum amount required to reinstate a homeowner (i.e. bring their mortgage current) Effective November 1, 2008: Maximum loan amount increases to $24,000 Maximum months of assistance increases to 24

6 Partner Housing Counseling Organizations (PHCO) Evaluates Eligibility Evaluates Likelihood of Ability to Resume Regular Payments Prescreening 120 Day Stay of Foreclosure According to NC Session Law (as amended), once the PHCO has submitted a complete application with supporting documentation, the Agency will contact the Mortgagee/Servicer who is required to impose a stay of the foreclosure for up to 120 days while the homeowner is being considered for assistance.

7 Loan Proceed Disbursal Agency Taxes Servicer Principal Interest Insurance HomeOwners Associations *NOTE: No loan proceeds are paid directly to the borrower

8 HPP Statistical Data (From Inception Date) Paid in Full: 16 Foreclosed : 12 46% Approval Rate 70% Long Term Loans

9 HPP Statistical Data (From Inception Date)  Funds Disbursed $4.5 Million  Funds Available $3.027 Million  Estimated Value of Homes Saved $30 Million Partner Performance Counties with highest approval rate: Cabarrus Caldwell Cumberland Forsyth Guilford Rowan 2,100 Clients received counseling in FY08.

10 N.C. Housing Counseling Agencies in Home Protection Program & Loan Fund  Choanoke Area Development Association  Cleveland County CDC  CCCS of the Carolina Foothills  CCCS of Forsyth County  CCCS of Gaston County  CCCS of Greater Greensboro  CCCS of United Family Services  CCCS of Western North Carolina  Cumberland Community Action Program  Franklin-Vance-Warren Opportunities  Kingdom CDC

11 N.C. Housing Counseling Agencies in Home Protection Program & Loan Fund  Northwestern Regional Housing Authority  Northeastern Community Development Corporation  Prosperity Unlimited  Rocky Mount-Edgecomb CDC  River City Community Development  Salisbury CDC  Sandhills Community Action Program  Triangle Family Services (*added Sept. 2008)  Twin Rivers Opportunities, Inc.  Western Piedmont Council of Governments  Wilmington AME Zion Housing Development Corporation  Wilson Community Improvement Association, Inc.

12 HPP Expansion Timeline Expansion from 61 to 100 counties to be finalized November 1, 2008 NCHFA Stewardship, Caring, Integrity, Professionalism P.O. Box Raleigh, North Carolina Expansion adds 5 new Counseling Organizations CCS of Gaston County Cumberland Community Action Program, Inc. Northeastern Community Development Corporation River City Community Development Triangle Family Services (added September 1, 2008)

13 Success Stories Paralegal Laid off from a law firm and assistance ended in 8/07. Borrower received training to be a Paralegal and is working for $25K. GED Laid off from Broyhill and assistance ended 4/07. Borrower obtained his GED and is now employed full time with another furniture company making $26K. Respiratory Care Therapist Laid off from Sprint and assistance ended 8/06. Borrower received training and now has full time employment making $45K. NCHFA Stewardship, Caring, Integrity, Professionalism P.O. Box Raleigh, North Carolina 27611

14 National Foreclosure Mitigation Counseling Program

15 Purpose of Funding In response to the nationwide subprime foreclosure crisis, Congress approved and President George W. Bush signed legislation authorizing $180 million for a National Foreclosure Mitigation Counseling (NFMC) Program.

16 National Foreclosure Mitigation Counseling (NFMC) Program:  This was a one-time appropriation designed to support a rapid expansion of foreclosure intervention counseling capacity on a short-term basis.  National Foreclosure Mitigation Counseling Program funds will be available until they are fully expended, with a projected end date of December 31,  The intent of the NFMC funding is to expand counseling opportunities available to American families facing foreclosure.

17 North Carolina Program:  $3.0 Million awarded to N.C. Housing Finance Agency for North Carolina in March 2008  23 Housing Counseling Agencies are currently participating in the North Carolina program

18 Eligible Activities  There are two categories of eligible activities: (1.) Counseling Services (2.) Program-Related Support

19 Counseling Services Fees:  Level One (Intake/Assessment)$150  Level Two (Action Plan)$200  Level Three (Both)$350

20 Program Related Support Program funds available to support:  Cost related to temporary hiring and training of new counseling staff  Establishing a triage system for effective use of counseling times  Outreach/Marketing  Orientation and education sessions  Infrastructure development and communication  Collecting data and preparation of quarterly reports  Quality control

21 N.C. Housing Counseling Agencies participating in NFMC Program:  Blues Springs-Hoke County CDC (*added Sept. 2008)  Choanoke Area Development Association  CCCS of the Carolina Foothills  CCCS of Durham  CCCS of Fayetteville/Cumberland Community Action Program  CCCS of Forsyth County  CCCS of Western North Carolina  CCCS of United Family Services  Davidson Community Action, Inc.  Durham Affordable Housing Coalition  Durham Regional Community Development Group  Franklin-Vance-Warren Opportunity, Inc.  Kingdom CDC  Housing Authority of the City of High Point (*added Sept. 2008)  Northeastern CDC  Olive Hill Community-Economic Development Corp.  Prosperity Unlimited  River City CDC (*added Sept. 2008)  Salisbury CDC  Twin Rivers Opportunities  Western Piedmont Council of Governments  Wilmington AME Zion Housing Development Corp. (*added Sept. 2008)  Wilson Community Improvement Association

22 Facts  North Carolina is expecting 50,000-60,000 foreclosure filings per year, for the next 3 to 4 years.  In January–February of this year, more than 10,000 foreclosure filings have been made.  Nine counties (Cabarrus, Cumberland, Durham, Forsyth, Gaston, Guilford, Mecklenburg, Union & Wake) accounted for 50% of the foreclosures in our state.

23 Facts  One foreclosure in a neighborhood is estimated to cause other home values to decrease $15, $ 20,000.00

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