Welcome Introduction Michele Johnson Financial Guidance Center National Mortgage Settlement Attorney General Masto Role of the Housing Counseling Agencies ID: 307840
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AGENDA
Welcome
Introduction
: Michele
Johnson – Financial Guidance
Center
National
Mortgage
Settlement
:
Attorney
General Masto
Role
of the Housing Counseling
Agencies
:
Nelson Araujo
–
Financial
Guidance
Center
Role
of the Legal Services
Agencies
: Christine
Miller – Legal Aid Center of Southern
Nevada & Sheryl
Serreze
–
Nevada Legal
Services
Scams
: Nevada
Attorney General’s
Office
QuestionsSlide3
National Mortgage Settlement
Presented
by
:
Catherine Cortez Masto, Attorney General
Nevada Attorney General’s
OfficeSlide4
Multistate
Settlement
Provisions
Nationally:
Servicing Standards (Change of Conduct)
Monitoring and
Oversight
$25 Billion relief to HomeownersSlide5
1.
The
first nationwide reforms to servicing standards require
Servicer must assign a single point of contact (SPOC) to most first-lien
borrowers,
Servicer must follow strict timelines for short sales and loan modifications,
Servicer must stop dual track of borrowers loan,
Servicer must follow new standards
for executing documents in foreclosure cases
, filing affidavits based upon personal knowledge, and
ending improper
fees, and
Some borrowers are entitled to appeal denial of modification.
2. Servicing standards intended to apply to loans secured by owner-occupied
properties.3. CFPB is expected to issue servicing standard regulations before settlement
sunset
New servicing standards
For banksSlide6
Monitoring and
oversight
1.
The settlement is monitored by:
Joseph A.
Smith
Monitoring
committee made up of State AGs, DOJ,
HUD
2.
The settlement started March 2012.
Monitor
has access to each servicer’s:
Business reports
Work papers relating to the metricsServicing complaints
3.
Monitor can interview service employees
4.
Monitoring committee or any state may enforce the settlement
5.
Nevada is a member of the monitoring committeeSlide7
$25 Billion
$20 Billion
DIRECT CONSUMER RELIEF
$750 Million
FEDERAL GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to Distressed HomeownersSlide8
Multistate
Settlement
DIRECT RELIEF TO DISTRESSED HOMEOWNERS
($17 BILLION)
Principal Reduction (First & Second Lien
)
Facilitation of short sales
Unemployment payment forbearance or forgiveness
Relocation Assistance
Deficiency Waivers
Funding for remediation of blighted properties
Servicemember
short sale programSlide9
$25 Billion
$20 Billion
DIRECT CONSUMER RELIEF
$750 Million
FEDERAL GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to Distressed Homeowners
$3B
Refinancing Underwater BorrowersSlide10
Multistate
Settlement
REFINANCING UNDERWATER HOMEOWNERS
($3 BILLION)
Servicer-owned first liens
NO: FHA, VA, manufactured home, Fannie Mae or Freddie Mac loans, borrowers in bankruptcy/foreclosure in last 24 mos.
Borrower must be current (not late in last 12 mos.)
LTV > 100%
Originated before Jan. 1, 2009
Not modified in last 24 months
Pre-
refi
interest rate at least 5.25% (or PMMS plus 100 basis point, if greater)Slide11
$25 Billion
$20 Billion
DIRECT CONSUMER RELIEF
$750 Million
FEDERAL GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to Distressed Homeowners
$3B
Refinancing Underwater Borrowers
$1.5 Billion
Payments to Borrowers
Lost Homes to ForeclosureSlide12
Multistate
Settlement
PAYMENTS TO BORROWERS
($1.5 BILLION)
Estimated
payment: $1,500 to $2,000 (depending on borrower response rate)
Qualifying borrowers will be notified by mail at a future date
Criteria: Foreclosure sale between Jan. 1, 2008 and Dec. 31, 2011
Borrowers will sign a form stating that they think servicer committed an error during foreclosure
No release of borrower claims
Separate from OCC’
s Foreclosure ReviewSlide13
Bank
of
America Settlement
Nevada will receive an additional $30M
Specific Solicitation of Nevada Borrowers for Principal Reduction
Re-solicitation NHRP Population
Nevada becoming a member on Monitoring Committee
B of A will guaranty to undertake at least $750M in loan modification and other assistance as part of the Multistate settlement specifically in Nevada
Nevada will receive enhanced reporting above and beyond the multistate reporting;
Enforceable in Nevada State CourtSlide14
$25 Billion
$20 Billion
DIRECT CONSUMER RELIEF
$750 Million
FEDERAL GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to Distressed Homeowners
$3B
Refinancing Underwater Borrowers
$1.5 Billion
Payments to Borrowers
Lost Homes to Foreclosure
$2.75 Billion
Payments to States
$57 Million to NevadaSlide15
HOMEOWNERS
STILL NEED HELP.
NOW THEY HAVE A PLACE TO TURN.Slide16
A “ONE STOP” RESOURCE
As part of
national mortgage settlement
funds given to state, the AG’s Office dedicated some of these funds for “Home Again”. Slide17
INTRODUCING HOME AGAIN
A new program designed for:
Homeowners
seeking loan
modification
Borrowers
who are current, but “underwater
”
Those
who
lost
their homes to
foreclosures
Households considering homeownershipSlide18
THE PROGRAM
Home Again Nevada Homeowner Relief Program is:
Offered through the Office of the Attorney
General
Free of fees and charges
A partnership of HUD Counseling Agencies and Legal Aid Services
1-855-HLP-4-NEV or
HomeAgainNevada.orgSlide19
PARTICIPATING HUD AGENCIES
Financial Guidance
Center
Nevada
Legal
Services
Housing
for
Nevada
Women’s
Development
Center
Community Services of Nevada
Neighborhood Housing Services
NovadebtSpringboard
Chicanos Por La Causa Slide20
A SINGLE POINT OF CONTACT
Call Center
1-855-HLP-4-NEV
Trained counselors
English & Spanish
Convenient
HomeAgainNevada.govSlide21
HOME AGAIN WEBSITESlide22
HomeAgainNevada.org
1-855-HLP-4-NEV
NationalMortgageSettlement.com
1-866-430-8358Slide23
Role of the Housing Counseling
Agencies
Presented
by
:
Nelson
Araujo
,
Financial Guidance CenterSlide24
Programs
& Services
Federal Programs
State Programs
Lender/Servicer Proprietary ProgramsSlide25
Federal Programs
Independent Foreclosure Review
Federal government effort to compensate homeowners impacted by faulty lending practices.
Homeowners foreclosed or in foreclosure process between January 1, 2009 to December 31, 2010
Potentially eligible for a direct payment.
Expires December 31, 2012.
To apply, go to:
www.independentforeclosurereview.com
Slide26
Federal Programs
Making Home Affordable
HAMP
- Home Affordable Modification Program
Assistance for homeowners in default, or at risk of defaulting, on their mortgage.
HARP 2.0
- Home Affordable Refinance Program
Homeowners with a
FannieMae
or
FreddieMac
insured loan who are current on their mortgage, may refinance at current market rates regardless of loan-to-value. Slide27
State Programs
Nevada Hardest Hit Funds
Principal Reduction Program
- Eligible homeowners may qualify for a principal reduction of up to $100,000.
Mortgage Assistance Program
- Eligible homeowners who are unemployed or underemployed may qualify for assistance of up to $1,000.00 toward mortgage payment - maximum of 9 months.
Principal Curtailment Program
- Works in conjunction with HARP 2.0.
- Eligible borrower may receive an additional $50,000 principal reduction.
Reinstatement
- Assist
qualified homeowners by offering up to $12,500 in assistance
in bringing a past
due mortgage to current status.Slide28
State Programs
Nevada Foreclosure Mediation Program
Resource to assist homeowner and lender in reaching resolution regarding mortgage in partnership with trained mediator.
Minimal expense, non-binding.
Homeowners
of owner-occupied
property have
30 days after being served with a
Notice of Default to
elect to participate in mediationSlide29
Other Programs
Fannie Mae Partnership
Financial Guidance Center and Community Services of Nevada have direct access to a dedicated team to provide quicker, more efficient assistance to homeowners with Fannie Mae insured mortgage loans.
Wells Fargo Partnership
Financial Guidance Center has direct access to a dedicated team to provide quicker, more efficient assistance to homeowners with Wells Fargo, Wachovia or ASC serviced/insured mortgage loans.
Many OTHER financial counseling
services are available too!Slide30
Role of the Legal Services
Agencies
Presented
by:
Christine
Miller, Legal
Aid Center of Southern Nevada
&
Sheryl
Serreze
, Nevada
Legal ServicesSlide31
LEGAL REFERRAL WHEN:
Mediation
Judicial Foreclosure
HOA Foreclosure
Review of legal Documents
Homeowners Facing Eviction
Bankruptcy
Predatory Lending
Identity Theft
Lending ScamsSlide32
LEGAL AID CENTER OF
SOUTHERN
NEVADA
Documentation
is not
required
Income guidelines
:
Household
Max. Monthly Income 1
$4,125.92 2 $4,715.34 3
$5,304.76 4 $5,894.16 5
$6,365.70 6 $6,837.24Slide33
LEGAL AID CENTER OF
SOUTHERN
NEVADA
Free community legal education classes
Foreclosure
Bankruptcy
Others
Ask A Lawyer
General consumer issues
www.lacsn.orgSlide34
NEVADA LEGAL SERVICES
Free community legal education classes
Documentation
required
No income
guidelines
Southern & Northern Nevada office
www.nlslaw.netSlide35
Scams
Presented
by
:
Nevada
Attorney General’s
OfficeSlide36
Victims pay
upfront money
to receive assistance in modifying their home loan.
HUD housing counselors will assist homeowners for
free.
In
most cases the HUD counselors know more about loan modifications and the programs available to homeowners than any other entity.
LOAN MODIFICATION FRAUDSlide37
AG Masto worked
hard to create and pass AB
284 to protect
Nevada property owners from fraudulent foreclosure.
A.B
. 284 has not
stopped foreclosures
in Nevada it
has
only caused the banks to follow a required legal course for foreclosures.
Nevada
has followed the national trend for reductions and increases in foreclosure patterns.ROBO SIGNING FRAUDSlide38
Pay
upfront
money
and company will make sure you get the multistate settlement monies owed to you for the banks foreclosing on your home.
HUD housing counselors will assist homeowners for free.
MULTISTATE SETTLEMENT
FORCLOSURE PAYOUT SCAMSSlide39
PRINCIPAL REDUCTION SCAMS
Pay
money
upfront
and
company
will
get
you a principal reduction on your home mortgage loan.
There is no guarantee that a principal reduction will be given. The decision is the banks to make.
HUD
housing counselors will assist homeowners for free.
Nevada HUD counselors know what programs exist and which ones the homeowner might qualify for. Slide40
People
are
recording false documents removing the lien holder from the deed of trust with the County recorder's office.
RECORDING FALSE
DOCUMENT SCAMSSlide41
R
equires
a fee in
advanceGuarantees a specific outcome to stop the foreclosure or loan modification
Advises
the homeowner to
stop
paying the mortgage company
make
the loan payment to the company or individual.
AVOID ANY COMPANY OR
INDIVIDUAL THAT:Slide42
Report Problems
Report the
following national mortgage settlement
problems
to
the Office
of Mortgage
Settlement Oversight:
Foreclosure/Documentation, Fee, Loan Modification, Loss Mitigation, Customer Service, Third
Party
Provider, Military Personnel, Bankruptcy, Force-Placed Insurance, Community
Blight
Problems, Tenant RightsSubmit an online complaint at www.mortgageoversight.com.Slide43
Report Problems
Report problems to the AG’s office by submitting a written complaint.
For instructions, call the AG’s Consumer
Protection
Hotline at 702-486-3132 or visit ag.nv.gov.Slide44
Nevada
Attorney General’s Office
Consumer Protection Hotline
:
702
-486-3132
Website:
Ag.nv.gov
Email:
aginfo
@ag.nv.govFacebook: NVAttorneyGeneralTwitter: @NevadaAGYouTube: NevadaAGSlide45
Nevada
Attorney General’s Office
Contact Information:
Russell D. Smith, Chief
Deputy Atty.
Gen
.
Phone:
702-486-3348
Email
:
rsmith@ag.nv.govJoAnn Gibbs, Chief Deputy Multistate Counsel Phone: 702-486-3789 Email: jgibbs@ag.nv.gov
Ursula Silva Kazarian, Paralegal
Phone: 702-486-4524 Email:
ukazarian@ag.nv.gov Slide46
QUESTIONS & DISCUSSIONSlide47