Presentation on theme: " Welcome Introduction: Michele Johnson – Financial Guidance Center National Mortgage Settlement: Attorney General Masto Role of the Housing Counseling."— Presentation transcript:
Welcome Introduction: Michele Johnson – Financial Guidance Center National Mortgage Settlement: Attorney General Masto Role of the Housing Counseling Agencies: Nelson Araujo – Financial Guidance Center Role of the Legal Services Agencies: Christine Miller – Legal Aid Center of Southern Nevada & Sheryl Serreze– Nevada Legal Services Scams: Nevada Attorney General’s Office Questions
Nationally: 1.Servicing Standards (Change of Conduct) 2.Monitoring and Oversight 3.$25 Billion relief to Homeowners
1.The first nationwide reforms to servicing standards require Servicer must assign a single point of contact (SPOC) to most first-lien borrowers, Servicer must follow strict timelines for short sales and loan modifications, Servicer must stop dual track of borrowers loan, Servicer must follow new standards for executing documents in foreclosure cases, filing affidavits based upon personal knowledge, and ending improper fees, and Some borrowers are entitled to appeal denial of modification. 2. Servicing standards intended to apply to loans secured by owner-occupied properties. 3. CFPB is expected to issue servicing standard regulations before settlement sunset
1.The settlement is monitored by: Joseph A. Smith Monitoring committee made up of State AGs, DOJ, HUD 2. The settlement started March Monitor has access to each servicer’s: Business reports Work papers relating to the metrics Servicing complaints 3. Monitor can interview service employees 4. Monitoring committee or any state may enforce the settlement 5. Nevada is a member of the monitoring committee
$20 Billion DIRECT CONSUMER RELIEF $750 Million FEDERAL GOVT $4.25 Billion STATE PAYMENTS $17B Direct Relief to Distressed Homeowners
($17 BILLION) DIRECT RELIEF TO DISTRESSED HOMEOWNERS ($17 BILLION) Principal Reduction (First & Second Lien) Facilitation of short sales Unemployment payment forbearance or forgiveness Relocation Assistance Deficiency Waivers Funding for remediation of blighted properties Servicemember short sale program
$20 Billion DIRECT CONSUMER RELIEF $750 Million FEDERAL GOVT $4.25 Billion STATE PAYMENTS $17B Direct Relief to Distressed Homeowners $3B Refinancing Underwater Borrowers
($3 BILLION) REFINANCING UNDERWATER HOMEOWNERS($3 BILLION) Servicer-owned first liens NO: FHA, VA, manufactured home, Fannie Mae or Freddie Mac loans, borrowers in bankruptcy/foreclosure in last 24 mos. Borrower must be current (not late in last 12 mos.) LTV > 100% Originated before Jan. 1, 2009 Not modified in last 24 months Pre-refi interest rate at least 5.25% (or PMMS plus 100 basis point, if greater)
$20 Billion DIRECT CONSUMER RELIEF $750 Million FEDERAL GOVT $4.25 Billion STATE PAYMENTS $17B Direct Relief to Distressed Homeowners $3B Refinancing Underwater Borrowers $1.5 Billion Payments to Borrowers Lost Homes to Foreclosure
($1.5 BILLION) PAYMENTS TO BORROWERS ($1.5 BILLION) Estimated payment: $1,500 to $2,000 (depending on borrower response rate) Qualifying borrowers will be notified by mail at a future date Criteria: Foreclosure sale between Jan. 1, 2008 and Dec. 31, 2011 Borrowers will sign a form stating that they think servicer committed an error during foreclosure No release of borrower claims Separate from OCC’s Foreclosure Review
Nevada will receive an additional $30M Specific Solicitation of Nevada Borrowers for Principal Reduction Re-solicitation NHRP Population Nevada becoming a member on Monitoring Committee B of A will guaranty to undertake at least $750M in loan modification and other assistance as part of the Multistate settlement specifically in Nevada Nevada will receive enhanced reporting above and beyond the multistate reporting; Enforceable in Nevada State Court
$20 Billion DIRECT CONSUMER RELIEF $750 Million FEDERAL GOVT $4.25 Billion STATE PAYMENTS $17B Direct Relief to Distressed Homeowners $3B Refinancing Underwater Borrowers $1.5 Billion Payments to Borrowers Lost Homes to Foreclosure $2.75 Billion Payments to States $57 Million to Nevada
As part of national mortgage settlement funds given to state, the AG’s Office dedicated some of these funds for “Home Again”.
A new program designed for: Homeowners seeking loan modification Borrowers who are current, but “underwater” Those who lost their homes to foreclosures Households considering homeownership
Home Again Nevada Homeowner Relief Program is: Offered through the Office of the Attorney General Free of fees and charges A partnership of HUD Counseling Agencies and Legal Aid Services HLP-4-NEV or HomeAgainNevada.org
Financial Guidance Center Nevada Legal Services Housing for Nevada Women’s Development Center Community Services of Nevada Neighborhood Housing Services Novadebt Springboard Chicanos Por La Causa
Call Center HLP-4-NEV Trained counselors English & Spanish Convenient HomeAgainNevada.gov
Presented by: Nelson Araujo, Financial Guidance Center
Federal Programs State Programs Lender/Servicer Proprietary Programs
Independent Foreclosure Review Federal government effort to compensate homeowners impacted by faulty lending practices. Homeowners foreclosed or in foreclosure process between January 1, 2009 to December 31, 2010 Potentially eligible for a direct payment. Expires December 31, To apply, go to:
Making Home Affordable HAMP - Home Affordable Modification Program Assistance for homeowners in default, or at risk of defaulting, on their mortgage. HARP Home Affordable Refinance Program Homeowners with a FannieMae or FreddieMac insured loan who are current on their mortgage, may refinance at current market rates regardless of loan-to-value.
Nevada Hardest Hit Funds Principal Reduction Program - Eligible homeowners may qualify for a principal reduction of up to $100,000. Mortgage Assistance Program - Eligible homeowners who are unemployed or underemployed may qualify for assistance of up to $1, toward mortgage payment - maximum of 9 months. Principal Curtailment Program - Works in conjunction with HARP Eligible borrower may receive an additional $50,000 principal reduction. Reinstatement - Assist qualified homeowners by offering up to $12,500 in assistance in bringing a past due mortgage to current status.
Nevada Foreclosure Mediation Program Resource to assist homeowner and lender in reaching resolution regarding mortgage in partnership with trained mediator. Minimal expense, non-binding. Homeowners of owner-occupied property have 30 days after being served with a Notice of Default to elect to participate in mediation
Fannie Mae Partnership Financial Guidance Center and Community Services of Nevada have direct access to a dedicated team to provide quicker, more efficient assistance to homeowners with Fannie Mae insured mortgage loans. Wells Fargo Partnership Financial Guidance Center has direct access to a dedicated team to provide quicker, more efficient assistance to homeowners with Wells Fargo, Wachovia or ASC serviced/insured mortgage loans. Many OTHER financial counseling services are available too!
Presented by: Christine Miller, Legal Aid Center of Southern Nevada & Sheryl Serreze, Nevada Legal Services
Documentation is not required Income guidelines: HouseholdMax. Monthly Income 1$4, $4, $5, $5, $6, $6,837.24
Free community legal education classes Foreclosure Bankruptcy Others Ask A Lawyer General consumer issues
Free community legal education classes Documentation required No income guidelines Southern & Northern Nevada office
Presented by: Nevada Attorney General’s Office
Victims pay upfront money to receive assistance in modifying their home loan. -HUD housing counselors will assist homeowners for free. In most cases the HUD counselors know more about loan modifications and the programs available to homeowners than any other entity.
AG Masto worked hard to create and pass AB 284 to protect Nevada property owners from fraudulent foreclosure. A.B. 284 has not stopped foreclosures in Nevada it has only caused the banks to follow a required legal course for foreclosures. Nevada has followed the national trend for reductions and increases in foreclosure patterns.
Pay upfront money and company will make sure you get the multistate settlement monies owed to you for the banks foreclosing on your home. – HUD housing counselors will assist homeowners for free.
Pay money upfront and company will get you a principal reduction on your home mortgage loan. – There is no guarantee that a principal reduction will be given. The decision is the banks to make. – HUD housing counselors will assist homeowners for free. Nevada HUD counselors know what programs exist and which ones the homeowner might qualify for.
People are recording false documents removing the lien holder from the deed of trust with the County recorder's office.
Requires a fee in advance Guarantees a specific outcome to stop the foreclosure or loan modification Advises the homeowner to – stop paying the mortgage company – make the loan payment to the company or individual.
Report the following national mortgage settlement problems to the Office of Mortgage Settlement Oversight: Foreclosure/Documentation, Fee, Loan Modification, Loss Mitigation, Customer Service, Third Party Provider, Military Personnel, Bankruptcy, Force-Placed Insurance, Community Blight Problems, Tenant Rights Submit an online complaint at
Report problems to the AG’s office by submitting a written complaint. For instructions, call the AG’s Consumer Protection Hotline at or visit ag.nv.gov.