Public Workforce System HOPE NOW Alliance: A Partnership with the Public Workforce System March 29th, 2010 2:00 - 3:00 p.m. ET

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Presenter Moderator Featured Speakers Katie King, SunTrust Mortgage HOPE NOW Alliance Unemployment Committee Chair Moderator Kevin Thompson, Office of Workforce Investment Employment and Training Administration

What’s in It for You? This Webinar is intended to provide the workforce community with an overview of and update on the activities of the HOPE NOW Alliance and explore the local opportunities to assist individuals who may be facing foreclosure.

HOPE NOW Alliance Agenda/Objectives Summarize TEN 12-09 Engagement of the Public Workforce System with the HOPE NOW Alliance to Maximize Homeownership and Prevent Unnecessary Foreclosures Provide Insights into the Role and Responsibilities of Certified HUD Housing Counselors and Mortgage Servicers Discuss Home Retention Solutions, Tools and Resources Address the Purpose and Schedule of Upcoming “Homeowner Workshops” in U.S. cities

Administration Update On March 26, 2010, the Administration announced several enhancements to the existing Making Home Affordable Program (MHA) and the Federal Housing Administration (FHA) refinance program that will give a greater number of responsible borrowers an opportunity to remain in their homes and reduce costly foreclosures. The changes will improve the effectiveness of the existing MHA program by providing temporary assistance for unemployed homeowners while they search for re-employment, providing servicers and lenders more flexibility to reduce mortgage principal for underwater borrowers, increasing incentive to servicers to participate in MHA, facilitating transitions to more sustainable housing for borrowers who do not succeed within the HAMP program, and expanding opportunities to refinance into affordable FHA loans for underwater borrowers. Questions and Answers can be found at: http://makinghomeaffordable.gov/docs/Consumer%20FAQs%20032510%20FINAL.pdf

Administration Update Unemployed borrowers meeting eligibility criteria will have an opportunity to have their mortgage payments temporarily reduced to an affordable level for a minimum of 3 months, and up to six months for some borrowers, while they look for a new job. If homeowners don’t find a job before the temporary assistance period is over or if they find a job with a reduced income, they will be evaluated for a permanent HAMP modification or may be eligible for HAMP’s alternatives to foreclosure program. A fact sheet can be found at: http://makinghomeaffordable.gov/docs/HAMP%20Improvements_Fact_ %20Sheet_032510%20FINAL2.pdf

Training and Employment Notice 12-09 Issued in October 2009 This TEN addresses: HOPE Hotline for Homeowners Outreach Activities Forums/Workshops

Training and Employment Notice 12-09 Outreach Activities include: Links between 888-995-HOPE and Department of Labor’s toll-free number Links between HOPE NOW website and WWW.CAREERONESTOP.ORG Availability of a tool which provides UI beneficiaries’ potential income for a future nine- month period for use by mortgage servicers.

Training and Employment Notice 12-09 Outreach Activities include: Development and dissemination of flyers and PowerPoint presentations for local One-Stop Career Centers to use/tailor when participating in the HOPE NOW Alliance workshops.

Training and Employment Notice 12-09 The HOPE NOW outreach calendar is part of a larger outreach effort to the public. Across the country, homeowners could get face to face help from servicers and counselors. These events are an opportunity to learn more about local housing task force efforts and state programs that offer assistance. These events can be sponsored by HOPE NOW, Department of Treasury and NeighborWorks America.

Coming up … The Role of Housing Counselors Role of Mortgage Companies and Mortgage Servicers Home Retention Solutions and Tools Working with Retention Teams Upcoming HOPE NOW Alliance Events

Role of Housing Counselors STEP 1: Obtain third party authorization to act on homeowner(s) behalf and work with the mortgage company. STEP 2: Define the homeowners’ hardship and the reasons for delinquency or imminent default. If homeowner is unemployed provide information to them about resources. See Appendix. STEP 3: Develop Crisis Budget and Determine Accurate Financial Picture Identify all household income for all wage earners in the household. (Gross and Net Income) Identify all expenses. (Monthly living expenses and secured/unsecured debts) Gather information/documentation to verify ability to pay. STEP 4: Work with the homeowner(s) to gather all required documents and get modification documents signed and returned to mortgage company. STEP 5: Explain Process and Roles (i.e.) mortgage company, investor, etc. Provide information about resources. (Websites, etc.)

Role of Mortgage Company: Definition of Mortgaging Servicing Administering a mortgage loan, including recordkeeping, payment collection, releasing liens, making certain insurance and taxes are paid, and initiating collections on past due payments and including foreclosure proceedings for loans that are in default. Lenders after originating a mortgage loan can retain the servicing or release to another mortgage company/servicer to handle the servicing process. Servicers sign contracts with investors called pooling and servicing agreements (PSAs) that provide specific rules that a servicer must follow with regard to collection and foreclosure activity.

Role of Mortgage Company: Definition of Mortgaging Servicing It’s important to understand that mortgage companies/servicers must adhere to guidelines provided by the investor and insurer (as applicable) specific to loss mitigation remedies. Each investor and/or insurer provides detailed guidelines. Mortgage companies service loans for investors such as Fannie Mae, Freddie Mac, and Ginnie Mae, as well as government agencies such as the Federal Housing Agency (“FHA”) / U.S. Department of Housing and Urban Development (“HUD”) and the Veterans Administration (“VA”). Some banks and/or lending institutions retain loans in its portfolio and is the investor of those loans. Lastly, mortgage companies will service loans for numerous private investors held in mortgage backed securities (MBS pools).

Loss Mitigation Solutions

Working with Mortgage Companies Counselors Dedicated toll-free lines, fax lines and escalation contacts at mortgage companies that are members of the HOPE NOW Alliance. Creation of dedicated email boxes for HUD approved counselors and non-profit attorney networks. Specialized teams within loss mitigation/home retention teams created to work with HUD approved counselors, state programs resources, and to support foreclosure prevention events. Loss Mitigation websites and on-line submissions.

Working with Mortgage Companies Homeowners Dedicated toll-free telephone lines, faxes, and emails created to support new programs. Specialized loss mitigation websites. HOPE NOW Website (Borrower Assistance In-take Form). Special teams created for homeowners working with a counselor or who attend a foreclosure prevention event. Foreclosure prevention events

Directing Homeowners to their Mortgage Companies

Directing Homeowners to their Mortgage Companies

Government Resources - Websites and Key Links

Assisting Unemployed Homeowners

Other Assistance for Homeowners Other Resources on WWW.HOPENOW.COM Assistance to Homeowners Who Have Been “Scammed” A Google Translator Tool for Multi-Lingual Homeowners Help for Homeowners with Pets

A Large Lineup of Partners for Events

Example of Invitation to Homeowner

Schedule of Events

Additional Steps and Materials As dates and locations are confirmed, ETA’s Regional Office will also contact local Boards and One-Stop principals in the jurisdictions hosting the events to provide additional background with the encouragement to engage with the homeowners and counselors. A check list is also provided which outlines the role of the public workforce system principals – facilitating presentations, providing information on One-Stop services, responding to questions on UI payments, sharing information resources and electronic tools. Fact sheets – customizable for local use to present specific services – are also made available. One-Stops are also encouraged to bring flyers, business cards, pamphlets, and laptops with PowerPoint presentations providing an overview of the local service delivery system.

To Learn More about HOPE NOW Sponsored Events

To Learn More about HOPE NOW Sponsored Events

To Learn More about Additional Events in Your Area

Government Resources - Websites and Key Links

HOPE NOW Website: WWW.HOPENOW.COM Summary of Resources HOPE NOW Website: WWW.HOPENOW.COM The Fannie Mae Website tracks all foreclosure prevention events in the U.S. Information is presented by state. Flyers, date and time information is shared as available. WWW.FREDDIEMAC.COM/AVOIDFORECLOSURE/WORKSHO PS.HTML The Unemployment Benefit Estimation Tool: WWW.OWS.DOLETA.GOV/UNEMPLOY/BEN_ENTITLE.ASP

Katie King Katie.King@suntrust.com Erik Selk Director of Outreach Speakers’ Contact Information Katie King Katie.King@suntrust.com Erik Selk Director of Outreach HOPE NOW Alliance Eric@hopenow.com Kevin Thompson Thompson.Kevin@dol.gov

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