Texas Foreclosure Help

HOPE LoanPort

Counselors and Partner Agencies have been provided with this new informational Flyer – also downloadable by clicking on the link below – for use at events, on agency websites, and use through social media.

HLP Partner Document_July 2011

For More Information about the HOPE LoanPort contact:

Katie King
Director of Business Development
HOPE LoanPort(r)
1001 Pennsylvania Avenue, NW, Suite 500 South
Washington, D.C.  20004
kking@hopeloanportal.org
202.470.4018  (Office)
202.355.0293 (Fax)
www.hopeloanportal.org

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Fannie Mae’s Dallas Mortgage Help Center

For Counseling Agencies working with Fannie Mae borrowers, the Fannie Mae Dallas Mortgage Center is available to assist.

Dallas MHC Flyer

For more information about the Mortgage Help Center (MHC) contact:

Kimberly Y. Evans (formerly Kimberly Divers)
Manager, Dallas Mortgage Help Center
Foreclosure Prevention & Outreach
www.fanniemae.com/help-center

2777 N. Stemmons Fwy, Suite 110B
Dallas, TX 75207

Direct Contact Information:

Office: (214) 416-0190
Fax: (240) 699-2425

Email: kimberly_y_evans@fanniemae.com

Dallas mortgage help center information:

Local: (214) 416-0200
Toll Free: (866) 442-8575
Toll Free Fax: (866) 442-6249

Email: dallas_mhc@fanniemae.com

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Mortgage Counseling Benefits Validated by Four Independent Research Studies, Reports Homeownership Preservation Foundation

Data Presented by Harvard University, The Urban Institute, Federal Reserve Board of Governors, and National Council on Aging Confirms Homeowners Benefit

WASHINGTON, D.C., JUNE 23, 2011 – The Homeownership Preservation Foundation (HPF), an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure since 2004, today reported that independent data presented this week at a regulatory briefing verified the efficacy of mortgage counseling for financially challenged homeowners who receive it.

The four research studies separately conducted by the Joint Center for Housing Studies of Harvard University, The Urban Institute, Federal Reserve Board of Governors, and the National Council on Aging were presented at a briefing session held June 21st by the Coalition of HUD Housing Counseling Intermediaries. Colleen Hernandez, president and CEO of The Homeownership Preservation Foundation, which offers mortgage counseling via the Homeowner’s HOPE™ Hotline at 888-995-HOPE™, moderated the panel during which the four organizations reported their findings.

Among the data presented that makes a compelling case for continued support of mortgage counseling opportunities:

• Housing counseling consistently increases the likelihood that the homeowner will be granted a loan modification (200 percent higher probability) ¹
• Counseled borrowers received more favorable terms on their loan modifications compared to uncounseled borrowers (on average, $110 lower monthly payment and five basis points lower interest rate) ^{1 2}
• Counseling raises the probability of a homeowner receiving a loan modification that “cures” (restores the loan to good standing) a serious delinquency or foreclosure (over a 12 month period, 55 percent of loans cured among people who received counseling vs. 38 percent of loans cured among those who did not receive counseling) ²
• Homeowners who received counseling prior to being granted a loan modification curing a serious delinquency or foreclosure were more likely to remain current on their loan after the modification compared to those who did not receive counseling (64% vs. 51% of loans were still current eight months post-modification for counseled and uncounseled homeowners, respectively) ²
• Increasing affordability problems suggest greater need for counseling as the number of renters and current homeowners paying more than 50 percent of their income on housing continues to grow ³
• HECM counseling is a critical consumer protection service for senior citizens who, facing financial insecurity due to stock market volatility, low returns on investments, and rising longevity may consider reverse mortgages to address budget shortfalls. HUD budget cuts have shifted the cost of mandatory pre-loan HECM counseling to senior citizens at a time they may not be able to afford it (35 percent carry a mortgage in 2009 versus 24 percent in 1999, and more than 40 percent of seniors currently live more than 200 percent below poverty level) ⁴

“As nearly three-quarters of those who call our national Homeowner’s HOPE Hotline and receive foreclosure prevention assistance from our counselors report back that they are still in their homes a year later, the findings presented by these four well-respected organizations corroborate what everyone at HPF knows firsthand – that mortgage counseling works,” said Ms. Hernandez.

Housing counselors employed by HUD-approved agencies are trained to help financially distressed homeowners examine their financial health, create responsible budgets that will alleviate debt, and, where possible, identify options that will enable the homeowner to prevent foreclosure and bring their mortgage back to good standing. Many, including those affiliated with The Homeownership Preservation Foundation, also provide critical information to help homeowners avoid being victimized by mortgage scams, all at no cost to the consumer.

“The research presented at this briefing provides unbiased support of the favorable impact that housing counseling has had during this economic crisis,” said Ms. Hernandez. “Alarmingly, the continued availability of these much-needed services is in jeopardy due to recent federal government budget cuts that removed $88 million for housing counseling programs. We must restore this critical funding to ensure that financially distressed homeowners who desperately need reliable, accurate financial guidance can get it.” ³

About the Homeownership Preservation Foundation

The Homeownership Preservation Foundation (HPF) is an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure. HPF guides consumers onto the path of sustainable homeownership and develops innovative solutions to preserve and expand homeownership. Through its Homeowner’s HOPE™ Hotline, 888-995-HOPE™, HPF provides comprehensive financial education and confidential foreclosure prevention counseling for FREE, 24 hours a day, 7 days a week, 365 days a year, in over 170 languages. Since 2007, HPF has served more than four million distressed homeowners, an average of 5,500 each weekday, who depend upon HPF as a trusted, neutral source of information and assistance. For more information about the Homeownership Preservation Foundation or the Homeowner’s HOPE™ Hotline, please visit www.995hope.org

Data sources:
¹ Maximilian Schmeiser, Federal Reserve Board of Governors
² Peter Tatian, The Urban Institute; Ken Temkin, Temkin Associates; Neil Mayer, Neil Mayer and Associates; Charles Calhoun, Calhoun Consulting LLC
³ Chris Herbert, Joint Center for Housing Studies of Harvard University
⁴ Barbara Stucki, National Council on Aging

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Four research studies separately conducted by the Joint Center for Housing Studies of Harvard University, The Urban Institute, Federal Reserve Board of Governors, and the National Council on Aging presented research validating the value of housing counseling at a briefing session held June 21st by the Coalition of HUD Housing Counseling Intermediaries. Colleen Hernandez, president and CEO of The Homeownership Preservation Foundation, which offers mortgage counseling via the Homeowner’s HOPE™ Hotline at 888-995-HOPE™, moderated the panel during which the four organizations reported their findings.

 National Foreclosure Mitigation Counseling Program Evaluation

Peter A. Tatian, Senior Research Associate, The Urban Institute: Does Foreclosure Counseling Help Troubled Homeowners? Presentation at Housing Counseling Intervention: Research and Impact, June 21, 2011

The Effects of Foreclosure Counseling for Distressed Homeowners

Maximilian D. Schmeiser – Federal Reserve Board of Governors, Housing Counseling Intervention: Research and Impact, June 21, 2011

Housing Counseling: Past and Future Trends

Chris Herbert, Joint Center for Housing Studies of Harvard University, June 21, 2010

HECM Reverse Mortgage Counseling: Critical for Consumer Protection

Barbara R. Stucki, National Council on Aging: HECM Counseling Essential as More Seniors View Home Equity as a Retirement Resource

Homeownership Preservation Foundation Survey Reveals Significant Optimism Among Distressed Homeowners who Receive Housing Counseling

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HUD No. 11-133
Lemar Wooley
(202) 708-0980

FOR RELEASE
Wednesday
June 29, 2011

HUD ANNOUNCES FINAL RULE SETTING STANDARDS FOR STATE COMPLIANCE WITH SAFE ACT
Finalizing standards for licensing and registration of mortgage loan originators

WASHINGTON – The U.S. Department of Housing and Urban Development today announced publication of a final rule setting the minimum standards that states must meet to comply with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) in licensing mortgage loan originators. The final rule is posted for public display on the Federal Register’s Electronic Public Inspection Desk today and will be published in tomorrow’s Federal Register.

The SAFE Act sets nationwide standards for licensing of mortgage loan originators and is an important step in returning integrity and accountability to the residential mortgage loan market,” said Acting FHA Commissioner Robert Ryan. “All 50 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands have enacted legislation to support this law and our final rule provides clarification of the minimum standards against which each state’s laws and regulations will be evaluated.”

While states are charged with enacting licensing standards that meet the requirements of the SAFE Act, overall responsibility for interpretation, implementation, and compliance was delegated to HUD.  However, the Act was amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the authorities and duties delegated to HUD by the SAFE Act will be transferred on July 21, 2011, to the new Consumer Financial Protection Bureau (CFPB) established by the Dodd-Frank Act.

The final rule explains the criteria that will be used to determine whether a state has put in place a system for licensing and registering mortgage loan originators as required by the SAFE Act.  The rule does so by clarifying the meaning of “engaging in the business of a loan originator,” which determines whether an individual must be licensed, and the rule also provides that certain activities do not amount to engaging in the business of a loan originator.

The rule further clarifies that employees of government agencies and bona fide nonprofit organizations who act as loan originators only as part of their duties do not engage in the business of a loan originator and do not require licensure by states.

The final rule does not define the terms of “loan originator” or “business of a mortgage loan originator” to include individuals who only engage in loan modifications or are third-party loan modification specialists.  Instead, HUD defers to the CFPB the issue of whether such individuals should be licensed under the SAFE Act, or should otherwise be regulated under other CFPB regulatory authority.

The SAFE Act was enacted into law on July 30, 2008, as part of the Housing and Economic Recovery Act of 2008. It is designed to enhance consumer protection and reduce fraud by establishing minimum standards for the licensing and registration of state-licensed mortgage loan originators. SAFE also mandates the creation of a Nationwide Mortgage Licensing System and Registry (NMLSR), and encourages all states to provide for a licensing and regulatory regime for all residential mortgage loan originators.

To comply with the Act, states have put in place statutory and regulatory frameworks that require originators to take initial and continuing education courses, pass a test, and undergo civil, criminal and financial background checks.  In any State that fails to have in place a licensing system that meets the minimum requirements, mortgage loan originators may be required to be licensed under a federal program.

HUD received more than 5,000 comments on its proposal that led to this final rule.  Though minimum standards have been established and clarified, States have the right to enact additional legislation and rules, and to take actions that exceed the federal SAFE Act minimum requirements.

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and  transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD.

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HUD No. 11-139 HUD Public Affairs (202) 708-0980 Treasury Public Affairs (202) 622- 2960

FOR RELEASE Thursday July 07, 2011

OBAMA ADMINISTRATION OFFERS ADDITIONAL MORTGAGE RELIEF TO UNEMPLOYED HOMEOWNERS
Adjustments to FHA and MHA requirements to allow 12-month Forbearances

(Washington, DC)-Today, the Obama Administration announced adjustments to Federal Housing Administration (FHA) requirements that will require servicers to extend the forbearance period for unemployed homeowners to 12 months. The Administration also intends to require servicers participating in the Making Home Affordable Program (MHA) to extend the minimum forbearance period to 12 months wherever possible under regulator and investor guidelines. These adjustments will provide much needed assistance for unemployed homeowners trying to stay in their homes while seeking re-employment. These changes are intended to set a standard for the mortgage industry to provide more robust assistance to unemployed homeowners in the economic downturn.

The changes to FHA’s Special Forbearance Program announced today will require servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to 12 months and remove upfront hurdles to make it easier for unemployed borrowers to qualify.

“The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers,” U.S. Housing and Urban Development Secretary Shaun Donovan said. “Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home.”

Changes to MHA’s Home Affordable Unemployment Program (UP) will require participating servicers to extend the minimum forbearance period from 3 months to 12 months for eligible unemployed homeowners, whenever possible subject to investor and regulator guidance for each mortgage loan. Additionally, forbearance under UP will become available to borrowers who are seriously delinquent.

All FHA-approved servicers must participate in FHA’s Loss Mitigation Program, which includes the Special Forbearance program. In addition to extending the forbearance period and removing the up-front hurdles for borrowers, the FHA also reemphasized its requirement that servicers conduct a review at the end of the forbearance period to evaluate the borrower for all additional, applicable foreclosure assistance programs and notify the borrower in writing whether or not he/she qualifies for any other available option. If the borrower does not qualify for any foreclosure assistance option, the servicer must provide the borrower with the reason for denial and allow the borrower at least seven calendar days to submit additional information that may impact the servicer’s evaluation.

These reforms build on successful Administration initiatives to support unemployed borrowers through the $7.6 billion Hardest Hit Fund and the $1 billion Emergency Homeowner Loan Program (EHLP). The Hardest Hit Fund, first announced in February 2010, provides support to 18 states and the District of Columbia, which represent the areas hardest hit by steep home price declines and unemployment, to design and implement programs to help struggling homeowners avoid foreclosure. Participating states have dedicated approximately seventy percent of program funds toward programs to help homeowners struggling with unemployment or underemployment. As of this month, each participating state is accepting applications from borrowers and providing direct mortgage assistance to those that qualify.

The EHLP program complements the Hardest Hit Fund, by serving the remaining 32 states and Puerto Rico. Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement the recently launched program. EHLP assists homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment due to economic conditions or a medical condition. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.

Read a fact sheet about today’s announcement.

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Final ML- Unemployment Special Forbearance – Temporary Program Changes and Clarifications