NC Foreclosure Preventio n Fund. “N.C. Jobless Rate Up Again … ” Recent headline from News & Observer (10/22/11) “ … The state unemployment rate rose.

NCForeclosure Prevention

Fund

“N.C. Jobless Rate Up Again … ” Recent headline from News & Observer (10/22/11)

“ … The state unemployment rate rose for the 4th straight month in Sept. as job declines across a swath of industries took a toll on NC’s sputtering economy.

… Just six states and the District of Columbia have higher unemployment rates than North Carolina (10.5%). The national rate in September stood at 9.1%

… The number of government sector jobs feel by 18,700 over the last 12 months, more than any other sector.”

“Hardest Hit Fund” created by the U.S. Treasury under the Emergency Economic Stabilization Act of 2008

Purpose: To help stabilize housing markets and prevent foreclosures

Recipients: 18 States, including North Carolina, and the District of Columbia

NC Share: $482.8 million to help an estimated 21,000 homeowners over the next 3-5 yrs

NCFPF Programs:Mortgage Payment Prg. (MPP)Pays mortgage for unemployed

homeowners & eligible others while they look for work or train for new job

Second Mortgage Refinance Prg. (SMRP)

Eliminates 2ND mortgage payments for certain homeowners who don’t qualify for other loan mod or refi programs

NCFPF Key Dates:October 2010> MPP pilot launched in 17 counties in

northwestern NC December 2010> MPP expanded Statewide March 2011> First group of new PHCOs added April 2011> Homeowners able to apply directly via WebsiteJune 2011> SMRP available statewide

NCFPF Stats to Date*Through September 30, 2011

Homeowners Assisted: 2,183

Amount Committed: $38.5 millionAverage Size Loan: $14,897.00

Goal: To assist 19,000 homeowners over next 3-5 years

Target Population: Unemployed homeowners & Others with an eligible hardship

Mortgage Payment Program (MPP)Type of Loan:10 year, 0% interest, non-recourse, deferred-payment, forgivable subordinate loan.

Maximum Assistance:$36,000/36 months in 50 “Hardest Hit” counties

$24,000/24 months for residents of other counties

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)TYPES OF ASSISTANCE AVAILABLE:

JOB SEARCH– SHORT TERM ASSISTANCE to help homeowner while they are looking for work

Up to 18 months/$36,000.00 Hardest Hit CountyUp to 12 months/$24,000.00 Non-Hardest Hit

But cannot be more than 6 months past due when application received at NCHFA

TYPES OF ASSISTANCE AVAILABLE:

JOB TRAINING/EDUCATION LONG TERM ASSISTANCE

to help homeowner while they complete a job training, certification or education program

Up to 36 months/$36,000 Hardest Hit CountyUp to 24 months/$24,000 Non-Hardest Hit

Mortgage Payment Program (MPP)

TYPES OF ASSISTANCE AVAILABLE:

REINSTATEMENT – ONE TIME ASSISTANCEPreviously unemployed homeowners who have

found a new job but need help to bring their mortgage current.

Up to 36 months/$ 36,000 Hardest Hit County

Up to 24 months or $24,000 Non-Hardest Hit

Mortgage Payment Program (MPP)

MPP Program OverviewMAJOR ELIGIBLITY CRITERIA:Legal US resident who owns a home in NC that is their principal place of residence

Unable to make mortgage payment through no fault of their own

Acceptable mortgage payment history prior to eligible financial hardship

Hardship occurred after January 1, 2008

MPP Program Overview:MAJOR UNDERWRITING GUIDELINES:Must demonstrate a Need for Assistance (i.e. Housing expenses > 31% of current HH income)

Loan to Value < 125% of current market value of home*

Ability to Resume mortgage payments for Recipients of One-Time Assistance (i.e. housing expenses < 31% of HH income)

MPP Program OverviewPROGRAM EXCLUSIONS:Unpaid Principal Balance > $275,000.00

Been convicted of a mortgage related felony in last 10 years

Seller financed mortgageCurrent pending litigation on

primary residence mortgage Owner of more than 1 Other residential property

2nd Mortgage Refinance ProgramGoal: To assist 2,000 homeowners overnext 3-5 years

Target Population: Homeowners withan eligible hardship who don’t qualifyfor other loan modification or refinanceprograms

2nd Mortgage Refinance ProgramBASIC COMPONENTS

Homeowner must have recovered from an eligible program hardship

Have a 2nd mortgage & DTI > 31%Provide loan to refinance second

mortgageUp to $30,000.00, 0% interest, deferred payment, 30 year term

Eligibility & Underwriting same as MPP

FOR MORE INFORMATION:

NC Foreclosure Prevention Fund CALL CENTER:1-888-623-8631

NC Foreclosure Prevention Fund WEB SITE:

www.ncforeclosureprevention.gov

Becoming a NCFPF Partner40 current housing counseling partners including 16 added this year.

Will add new partners in 2012 based ondemand for assistance. Current areas of

highdemand include:Triangle (Raleigh/Durham/Chapel Hill)Triad (Greensboro/High Point/Winston-Salem)Charlotte Metro Area

Becoming a NCFPF PartnerMajor Qualifications/Standards:

Agency is HUD-approved counseling agency

Counselors are experienced and well trained:

At least 2 years experience providing foreclosure prevention counseling

Certified by The Association of Housing Counselor (TAHC) &/or NeighborWorks

Completed a number of loss mitigation trainings within the last 2 years

Becoming a NCFPF PartnerMajor Qualifications/Standards:

Agency in existence for at least 3 years

Audited financial statements or equivalent

Submit New Partner Application to NCHFA

FOR MORE INFO:Rich Lee, Foreclosure Prevention Team

Leader 919-877-5688 or [email protected]