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NC Foreclosure Preventio n Fund. “N.C. Jobless Rate Up Again … ” Recent headline from News & Observer (10/22/11) “ … The state unemployment rate rose.

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Presentation on theme: "NC Foreclosure Preventio n Fund. “N.C. Jobless Rate Up Again … ” Recent headline from News & Observer (10/22/11) “ … The state unemployment rate rose."— Presentation transcript:

1 NC Foreclosure Preventio n Fund

2 “N.C. Jobless Rate Up Again … ” Recent headline from News & Observer (10/22/11) “ … The state unemployment rate rose for the 4th straight month in Sept. as job declines across a swath of industries took a toll on NC’s sputtering economy. … Just six states and the District of Columbia have higher unemployment rates than North Carolina (10.5%). The national rate in September stood at 9.1% … The number of government sector jobs feel by 18,700 over the last 12 months, more than any other sector.”

3 “Hardest Hit Fund” created by the U.S. Treasury under the Emergency Economic Stabilization Act of 2008 Purpose: To help stabilize housing markets and prevent foreclosures Recipients:18 States, including North Carolina, and the District of Columbia NC Share:$482.8 million to help an estimated 21,000 homeowners over the next 3-5 yrs

4 NCFPF Programs: Mortgage Payment Prg. (MPP) Pays mortgage for unemployed homeowners & eligible others while they look for work or train for new job Second Mortgage Refinance Prg. (SMRP) Eliminates 2 ND mortgage payments for certain homeowners who don’t qualify for other loan mod or refi programs

5 NCFPF Key Dates: October 2010 > MPP pilot launched in 17 counties in northwestern NC December 2010 > MPP expanded Statewide March 2011 > First group of new PHCOs added April 2011 > Homeowners able to apply directly via Website June 2011 > SMRP available statewide

6 NCFPF Stats to Date *Through September 30, 2011 Homeowners Assisted:2,183 Amount Committed:$38.5 million Average Size Loan:$14,897.00

7 Mortgage Payment Program (MPP ) Goal: To assist 19,000 homeowners over next 3-5 years Target Population: Unemployed homeowners & Others with an eligible hardship

8 Mortgage Payment Program (MPP) Type of Loan: 10 year, 0% interest, non-recourse, deferred-payment, forgivable subordinate loan. Maximum Assistance: $36,000/36 months in 50 “Hardest Hit” counties $24,000/24 months for residents of other counties

9 Hardest Hit Counties Counties with unemployment < 11.3%

10 50 Targeted or “Hardest Hit” Counties AlamanceChowanLenoirRutherford AlexanderClayLincolnScotland AlleghanyClevelandMcDowellStanly AnsonColumbusMitchellSurry AsheDavidsonMontgomerySwain BeaufortDavieNashVance BladenEdgecombeNorthamptonWarren BurkeGastonPersonWashington CabarrusGrahamRandolphWilkes CaldwellHalifaxRichmondWilson CaswellHarnettRobesonYancey CatawbaIredellRockingham CherokeeLeeRowan

11 Mortgage Payment Program (MPP) TYPES OF ASSISTANCE AVAILABLE: JOB SEARCH– SHORT TERM ASSISTANCE to help homeowner while they are looking for work Up to 18 months/$36, Hardest Hit County Up to 12 months/$24, Non-Hardest Hit But cannot be more than 6 months past due when application received at NCHFA

12 TYPES OF ASSISTANCE AVAILABLE: JOB TRAINING/EDUCATION LONG TERM ASSISTANCE to help homeowner while they complete a job training, certification or education program Up to 36 months/$36,000 Hardest Hit County Up to 24 months/$24,000 Non-Hardest Hit Mortgage Payment Program (MPP)

13 TYPES OF ASSISTANCE AVAILABLE: REINSTATEMENT – ONE TIME ASSISTANCE Previously unemployed homeowners who have found a new job but need help to bring their mortgage current. Up to 36 months/$ 36,000 Hardest Hit County Up to 24 months or $24,000 Non-Hardest Hit Mortgage Payment Program (MPP)

14 MPP Program Overview MAJOR ELIGIBLITY CRITERIA: Legal US resident who owns a home in NC that is their principal place of residence Unable to make mortgage payment through no fault of their own Acceptable mortgage payment history prior to eligible financial hardship Hardship occurred after January 1, 2008

15 MPP Program Overview: MAJOR UNDERWRITING GUIDELINES: Must demonstrate a Need for Assistance (i.e. Housing expenses > 31% of current HH income) Loan to Value < 125% of current market value of home* Ability to Resume mortgage payments for Recipients of One-Time Assistance (i.e. housing expenses < 31% of HH income)

16 MPP Program Overview PROGRAM EXCLUSIONS: Unpaid Principal Balance > $275, Been convicted of a mortgage related felony in last 10 years Seller financed mortgage Current pending litigation on primary residence mortgage Owner of more than 1 Other residential property

17 2 nd Mortgage Refinance Program Goal: To assist 2,000 homeowners over next 3-5 years Target Population: Homeowners with an eligible hardship who don’t qualify for other loan modification or refinance programs

18 2 nd Mortgage Refinance Program BASIC COMPONENTS Homeowner must have recovered from an eligible program hardship Have a 2 nd mortgage & DTI > 31% Provide loan to refinance second mortgage Up to $30,000.00, 0% interest, deferred payment, 30 year term Eligibility & Underwriting same as MPP

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20 FOR MORE INFORMATION: NC Foreclosure Prevention Fund CALL CENTER: NC Foreclosure Prevention Fund WEB SITE:

21 Becoming a NCFPF Partner 40 current housing counseling partners including 16 added this year. Will add new partners in 2012 based on demand for assistance. Current areas of high demand include: Triangle (Raleigh/Durham/Chapel Hill) Triad (Greensboro/High Point/Winston-Salem) Charlotte Metro Area

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23 Becoming a NCFPF Partner Major Qualifications/Standards: Agency is HUD-approved counseling agency Counselors are experienced and well trained: At least 2 years experience providing foreclosure prevention counseling Certified by The Association of Housing Counselor (TAHC) &/or NeighborWorks Completed a number of loss mitigation trainings within the last 2 years

24 Becoming a NCFPF Partner Major Qualifications/Standards: Agency in existence for at least 3 years Audited financial statements or equivalent Submit New Partner Application to NCHFA FOR MORE INFO: Rich Lee, Foreclosure Prevention Team Leader or


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