nc foreclosure prevention fund. second mortgage refinance program hpp 120 day stay of foreclosure...
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Second Mortgag
e Refinanc
e Program
HPP120 day stay of
foreclosure
Mortgage
Payment
Program
Permanent Loan
Modification
Program
NC Foreclosure Prevention Fund Programs
will fall under the Home Protection Program (HPP)Umbrella
Allocation of $115,000,000
Goal: To assist 5,750 homeowners over next 3 years
Target population: Unemployed homeowners & others, who through no fault of their own, are unable to make their mortgage payments.
50 Targeted or “Hardest Hit” Counties
Alamance Chowan Lenoir Rutherford
Alexander Clay Lincoln Scotland
Alleghany Cleveland McDowell Stanly
Anson Columbus Mitchell Surry
Ashe Davidson Montgomery Swain
Beaufort Davie Nash Vance
Bladen Edgecombe Northampton Warren
Burke Gaston Person Washington
Cabarrus Graham Randolph Wilkes
Caldwell Halifax Richmond Wilson
Caswell Harnett Robeson Yancey
Catawba Iredell Rockingham
Cherokee Lee Rowan
Mortgage Payment Program (MPP)
Maximum Assistance:
$36,000/36 months for residents of 50 Targeted counties
$24,000/24 months for 50 Non-Targeted counties
Type of Loan:10 year, 0%
interest, non-recourse, deferred-payment forgivable subordinate loan.
Hardest Hit Counties
Counties with unemployment < 11.3%
TimelineOCTOBER 18 – Initially available in 17 NW counties:
Alexander Catawba SurryAlleghany Davie WataugaAshe Forsyth WilkesAvery Iredell YadkinBurke Mitchell YanceyCaldwell Stokes
Counties served by the following 3 counseling partners:
CCCS of Forsyth County (Winston-Salem)Northwestern Regional Housing Authority (Boone)Western Piedmont Council of Governments (Hickory)
Second Mortgage Refi Prg. (SMRP)
Allocation of $15,000,000
Goal: To assist 1,000 homeowners
Target population: Underemployed homeowners with a second mortgage that makes their total mortgage payment unaffordable.
NOTE: Homeowners not eligible for other government refinance programs
Maximum Assistance: $30,000
Type of loan:10 year, 0% interest, non-recourse, deferred-payment forgivable subordinate loan.
Only available in Targeted counties
Lender Match required
Second Mortgage Refinance (SMRP)
Targeted counties
TimelineJANUARY 2011 – Second Mortgage
Refinance Program available only in Targeted or “Hardest Hit” Counties.
Allocation of $8,800,000
Goal: To assist 440 homeowners
Target population: Employed, underemployed homeowners & others, with a recent financial hardship that has left them with damaged credit that disqualifies them for traditional refinancing programs.
NOTE: Homeowners not eligible for other government loan modification programs (i.e. HAMP)
• Maximum Assistance: $30,000.00
• Type of Assistance:10 year, 0% interest, non-recourse, deferred-payment forgivable subordinate loan.
• Available statewide
TimelineFEBRUARY 2011 – PLMP available in 50
Targeted or “Hardest Hit” CountiesAPRIL 2011 – PLMP available Statewide
Program OverviewEXCLUSIONS:No mortgage-related felony convictions in last
10 yrs.Unpaid principal balance(s) < $ 275,000.00Cannot own more than 1 other home
ELIGIBLITY:NC homeowner & legal US residentUnable to make mortgage payment through no
fault of their ownHomeowner has acceptable credit historyHomeowner meets program underwriting guidelines
MPP Program GoalTo assist at least 5,750 N.C. homeowners over
the next 3 years (2010-2013):
Year 1 2,500Year 2 2,500Year 3 750
EXPAND capacity of current partners and ADDnew partners who have experienced
foreclosurecounselors
Expanding Partner Network
Minimum Standards for New Partners:
HUD-approved counseling agencyIn existence for at least 3 years &
financially stable Staff with at least 2 years experience
providing foreclosure/loss mitigation counseling
Formal office that is handicapped accessible & open during normal business hours
Agency maintains sufficient insurance coverage to conduct business with the general public
Expanding Partner Network OTHER FACTORS CONSIDERED:
Geographic focus (i.e. serves high unemployment &/or high foreclosure counties)
Production capacity and successes (i.e. # of loss mitigation or foreclosure prevention clients assisted from HUD 9902 Report)
OTHER:
New Partner Payment StructureNew Partners must:
Complete simple application & submit applicable documentation
Agrees to achieve a minimum annual production goal of closing 24 MPP loans
Assign at least 1 experienced housing counselor (full or part-time) to work on MPP
Staff successfully completes required MPP Partner training
NOTE: First new partner training will be held in mid/late OCTOBER 2010
New Partner Payment Structure
New Partners also agree to:
Help Market MPP to potential applicantsHelp borrowers assemble & submit
application package to NCHFAFacilitate loan closing & file applicable
closing documents with local Register of Deeds
Provide follow up & close out counseling
New Partner Payment Structure
In exchange NCHFA will:
Pay partner a $ 1,000.00 Fee-for-Service for each MPP application submitted that is approved & loan closed.
Reimburse partner for approved Out-of-Pocket Expenses
NCHFA to review partner production quarterly and base continued program participation on Agency meeting annual production goal.
New Partner Payment Structure
Out-of-Pocket Expenses Reimbursed:Credit Reports (bi-or tri-merged)Recording Fees for filing applicable closing
documents at Register of DeedsPostage for mailing closing documents to
AgencyMileage for conducting MPP-related
business including outreach/marketingMPP training-related expensesMarketing expenses*Other
FOR MORE INFORMATIONCONTACT:
RICH LEEForeclosure Prevention Team
Leader
Phone: 919-877-5688 Email: [email protected]