Key Housing Policy Issues: Pre-Purchase and Post-Purchase

Ohio Fair Lending Conference Policy Issues Purchasing a Home Pre-Purchase Education Best tool to avoid foreclosure Proven effectiveness in preparing soon to be homeowners Requirement – Scale Loss Leader Allowable HUD 1 Cost Has Value Has Costs

Ohio Fair Lending Conference Policy Issues Purchasing a Home Down Payment Assistance Funds need to be allocated to need CityLIFT 248 Reservations in 4 days – Cleveland only $3.7 million Millenials County DPA Limited funding – per RFP Innovative ideas of instituting like 203k NSP2 was there, short-lived

Ohio Fair Lending Conference Policy Issues Purchasing a Home Regulations Qualified Mortgages vs Qualified Residential Mortgages Alignment Loan to Value Down Payment – 0, 20, 30 percent Reserves Uncertainty = less access to capital

Ohio Fair Lending Conference Policy Issues Keeping Your Home Home Equity Conversion Mortgages – Reverse Mortgages Assessment of willingness and ability Demonstration of meeting obligations Credit pulls – risk = property charges set aside 90 days of homeowners insurance

Ohio Fair Lending Conference Policy Issues Keeping Your Home National Foreclosure Mitigation and Counseling Program 7 Rounds – Round 8 open Urban Institute Evaluation Counseled homeowners were at least 67% more likely to remain current on their mortgage nine months after receiving a loan modification cure increasing by at least 89% the relative odds of modification cures for counseled homeowners Counseled homeowners received loan modifications resulting in a monthly payment that was $176 less, on average, than non-counseled borrowers – a savings of close to $2,100 a year. Now is not the time to take foot off the pedal!

Ohio Fair Lending Conference Policy Issues Keeping Your Home Ohio Housing Finance Agency – Hardest Hit Fund One of the only funding sources that can be used innovatively to address foreclosure and its effects Save the Dream Ohio Demolition Don’t pit counseling, rehab and demo against each other Provide resources Create synergy – not press releases Mortgage Resolution Fund

Ohio Fair Lending Conference What is the Mortgage Resolution Fund? The Mortgage Resolution Fund (MRF) is a national nonprofit partnership created to help homeowners in danger of losing their homes to foreclosure. Policy Issues Keeping Your Home

Ohio Fair Lending Conference Who is MRF? Policy Issues Keeping Your Home

Ohio Fair Lending Conference Who is MRF on the local level? Policy Issues Keeping Your Home

Ohio Fair Lending Conference Buy Box Filters Loans are filtered to align with: HHF eligible uses Economic viability HFA strategic priorities Loan Sourcing FHA Quarterly Sale over DebtX Platform HFAs create sub- pool based on MRF Buy Box and HFA Strategic priorities Current FHA model requires competition vs. negotiated sale No kick outs Servicers MRF Buy Box Pools Negotiated Sale Loan Selection and Purchase Notes reviewed against MRF Buy Box to ensure eligibility. Mortgage & Asset Due diligence to ensure enforceability, occupancy and homeowner status Price negotiated or bid submitted Family Engaged Mortgage Notes assigned to contract Special Servicer - Ocwen Family connected to a Local MRF Resolution Specialist. Specialist will evaluate the household; Create in Individual Payment Plan. Final Outcomes Loan Modifications: MRF Permanent modification that is recapitalized Family may choose to refinance into prime mortgage Alternative Dispositions: Short Sale Deed in Lieu Foreclosure How Does MRF Work?

Ohio Fair Lending Conference market depreciation cost of note sale homeowner equity MRF Resolution Funding Includes Due Diligence, counseling, program coordination, legal, finance structure, cost of capital, carrying costs, special service set up, reserves for short sales, cash for keys and foreclosures. $80,000 $68,000 Unpaid Principle Balance $100,000 Current Market Value Modified Note MRF Note Purchase $40,000 Policy Issues Keeping Your Home

Ohio Fair Lending Conference Policy Issues Keeping Your Home

Ohio Fair Lending Conference Policy Issues Keeping Your Home

Ohio Fair Lending Conference Policy Issues Keeping Your Home

Success happens at the speed of trust Ohio Fair Lending Conference

Contact Information Lou Tisler Neighborhood Housing Services of Greater Cleveland Phone: FB: fb.com/NHSGC Ohio Fair Lending Conference