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NC Foreclosure Prevention Fund

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NCForeclosure Prevention

Fund

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.

Hardest Hit Counties

Counties with unemployment < 11.3%

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)

TimelineDECEMBER 1, 2010: MPP expanded statewide

FEBRUARY 2011: Borrower Web Portal Available

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

Website

Portal

Call Center

Expanded Counselor Network

New Website!

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

QUESTIONS?

FOR MORE INFORMATIONCONTACT:

RICH LEEForeclosure Prevention Team

Leader

Phone: 919-877-5688 Email: [email protected]