key housing policy issues: pre-purchase and post-purchase

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

Ohio Fair Lending Conference

Policy IssuesPurchasing 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



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



Regulations• Qualified Mortgages vs Qualified Residential Mortgages

• Alignment• Loan to Value• Down Payment – 0, 20, 30 percent

• Reserves• Uncertainty = less access to capital


Policy IssuesKeeping 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



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 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


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.



Who is MRF?



Who is MRF on the local level?



How Does MRF Work?


market depreciation

cost of note sale

homeowner equity

MRF Resolution

FundingIncludes 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 $100,000Current Market ValueModified NoteMRF Note Purchase $40,000


Success happens at the speed of trust


Contact Information

Lou TislerNeighborhood Housing Services of Greater ClevelandEmail: [email protected]: 216.458.4663Twitter: @nhsclevelandFB: fb.com/NHSGC


key housing policy issues: pre-purchase and post-purchase

Documents

mortgage resolution

mrf work

key housing policy issues

valuedown payment

monthly payment

noncounseled borrowers

days cleveland

loan modifications