Pro bono Attorneys Conference Call/Webinar September 17, 12:00 p.m. Moderator, Alice Vickers, Esq. Florida Legal Services, Inc.

Call Directions Jimmy Midyette, Esq., Jimmy Midyette, Esq., Florida Legal Services, Inc. Florida Legal Services, Inc. Audio Suggestions/Issues Chat/Questions Box Virtual Hand-Raise

Welcome from the Real Property Probate and Trust Law Section of the Florida Bar Adele Stone, Esq., Vice-Chair of the Pro Bono Committee of RPPTL section. Adele Stone, Esq., Vice-Chair of the Pro Bono Committee of RPPTL section.

Welcome Dionne Meyers, Esq., Coordinator of Florida Attorneys Saving Homes How the program started How the program started Goal of the program Goal of the program Statistics on our cases so far Statistics on our cases so far Mechanics of the program Mechanics of the program Assistance we provide Assistance we provide Introduction of our first speaker Introduction of our first speaker

Counseling Clients Cora Fulmore President, Mortgage and Credit Center, a for- profit counseling center in Winter Garden. President, Mortgage and Credit Center, a for- profit counseling center in Winter Garden. MCC provides pre-purchase, credit rebuilding, debt management, and foreclosure counseling. MCC provides pre-purchase, credit rebuilding, debt management, and foreclosure counseling. Ms. Fulmore is the former director of Housing for the National Foundation for Consumer Credit (NFCC) and does extensive training nationally. Ms. Fulmore is the former director of Housing for the National Foundation for Consumer Credit (NFCC) and does extensive training nationally.

Working With Housing Counseling Agencies September 17, 2008 Presenter: Cora R. Fulmore

Housing Counseling Agencies HUD Approved Counseling Agencies HUD Approved Counseling Agencies Local CDC’s Local CDC’s Faith Based Organizations Faith Based Organizations Local Non-Profits Local Non-Profits and and Foreclosure Rescue Scammers Foreclosure Rescue Scammers

n HUD.GOV

Services Provided 1 st Time Homebuyer Counseling and Education 1 st Time Homebuyer Counseling and Education Fair Housing Counseling Fair Housing Counseling Delinquency/Default Counseling Delinquency/Default Counseling Predatory Lending Prevention Predatory Lending Prevention Debt Management Counseling Debt Management Counseling

Why should we Partner Delinquency/Default Counseling Delinquency/Default Counseling

Predatory Lending Prevention Predatory Lending Prevention Why should we Partner

County by County HOUSEHOLDS IN FORECLOSURE Osceola County1 in every 101 household Osceola County1 in every 101 household Broward County1 in every 127 households Broward County1 in every 127 households Charlotte County1 in every 187 households Charlotte County1 in every 187 households Sarasota County 1 in every 192 households Sarasota County 1 in every 192 households Manatee County1 in every 279 households Manatee County1 in every 279 households National Average1 in every 501 households National Average1 in every 501 households source: RealtyTrac

Delinquency/Default Look at options available to homeowners Look at options available to homeowners Curable Options Curable Options Repayment Plan Repayment Plan Forbearance Forbearance Modification Modification Principle Balance Reduction Principle Balance Reduction Interest Rate Reduction Interest Rate Reduction Permanent or Temporary Permanent or Temporary Claim Advance Claim Advance VA Refund VA Refund Reverse Equity Reverse Equity Bankruptcy – Chapter 13 Bankruptcy – Chapter 13

When the homeowner does not desire to save the home When the homeowner does not desire to save the home Incurable Options Incurable Options Deed in Lieu Deed in Lieu Sale Property Sale Property Pre-Foreclosure Sale – FHA Pre-Foreclosure Sale – FHA Compromise Agreement – VA Compromise Agreement – VA Short Sale – Conventional Short Sale – Conventional Loan Assumption Loan Assumption Bankruptcy – Chapter 7 Bankruptcy – Chapter 7 Foreclosure Foreclosure Delinquency/Default

The Problem Identifying the owner of the debt Identifying the owner of the debt Agency Overload/Burnout Agency Overload/Burnout Getting through to the servicer Getting through to the servicer Consumer responsiveness Consumer responsiveness Servicer responsiveness Servicer responsiveness Foreclosure Scammers reach borrowers first Foreclosure Scammers reach borrowers first

Predatory Loans How to Determine? How to Determine? What to Do? What to Do?

CHECKLIST: IDENTIFYING A PREDATORY MORTGAGE LOAN #INDICATOR Check if Included Marketing & Sales 1 Aggressive telephone or mail solicitations to targeted neighborhoods 2 Door-to-door solicitation by home improvement contractor 3 Kickbacks to mortgage brokers 4 Steering to high rate lenders 5 Promising specific terms, e.g., fixed rate loan; switching at closing 6 Property flipping

The Application 7 Structuring loans with payments borrowers can’t afford 8 Falsifying loan applications ( particularly regarding income level) 9 Adding “insincere” co-signers 10 Making loans to mentally incapacitated homeowners 11 Forging signatures on loan documents ( i.e., required disclosures) 12 Paying off subsidized mortgages or lower interest rate loans 13 Shifting unsecured debt into mortgages 14 Loans in excess of 100% LTV 15 Falsifying appraisals

The Loan 16 High annual percentage rate 17 High Points or padded closing costs 18 ARM sold to borrower with limited/no ability to pay higher payments 19 Balloon Payments 20 Negative amortization 21 Bogus broker fees 22 Requiring credit insurance 23 Falsely identifying loans as lines of credit or open-end mortgages 24 Mandatory arbitration clauses 25 Excessive prepayment penalties 26 Rushed loan closing 27 Back-dating documents, esp. the notice of right to cancel 28 Failing to give copies of documents to homeowner at closing

After Closing 29 Loan flipping ( repeated refinancing, often after high- pressure sales tactics) 30 Excessive late fees ( including daily interest) 31 Deliberately posting payments late 32 Abusive collection practices 33 Incomplete or shoddy work by home improvement contractor 34 Shoddy installation of mobile home/damaged mobile home 35 Failure to pay off debts as promised 36 Foreclosure “rescue” scams

Q&A Questions from the volunteers Questions from the volunteers “War Stories” from the front lines “War Stories” from the front lines

Follow-up Send critiques for this teleconfence and suggestions for future teleconferences to Dionne Meyers at: Send critiques for this teleconfence and suggestions for future teleconferences to Dionne Meyers at: THANK YOU for joining us and for all the work you are doing! THANK YOU for joining us and for all the work you are doing!