A RoadMap for HOPI: NHS of Chicago’s Home Ownership Preservation Initiative

In The Past Three Years… The Home Ownership Preservation Initiative (HOPI) has saved: –Homeowners –Lenders –The City of Chicago Over $287 Million Dollars!

Foreclosure Starts Reduced by 20% ( )

With Your Help, NHS of Chicago – HOPI Delivered Counsel and Educate over 4,000 people Goal: 3,000 individuals Result:4,328 individuals (144% of goal) Prevent 1,328 foreclosures Goal:1,500 foreclosures prevented Result:1,304 foreclosures prevented (88% of goal) Reclaim 330 buildings Goal: 300 reclaimed buildings Result:330 reclaimed buildings (110% of goal)

What’s Next: Creating a HOPI Roadmap for Methodology: Analyzed NHS of Chicago’s and HOPI capabilities and processes Informational interviews with partners Conducted online survey with partners Explored partnership opportunities Developed a research agenda Identified specific and measurable goals for

Learning What HOPI Partners Value National visibility and leadership of HOPI on this issue Heightened awareness of problem and costs of foreclosure Research showing effectiveness of foreclosure prevention efforts NHS of Chicago as a “Learning Laboratory” for national pilot strategies A forum for networking with industry representatives Building partnerships with nonprofits

Partner Recommendations Creation of a formal Steering Committee Better reporting on results to partners More applied research projects Increased marketing and promotion activities More involvement of servicing staff from partner organizations More ongoing communications with partners Improved REO relationship Expanded outreach to new partners

Suggested HOPI Research Topics Evaluation of the cost and benefits of HOPI strategies Documentation of the direct and indirect costs of foreclosures Case studies on the causes and impacts of foreclosure on individual families Study of consumer behaviors and decision- making process of defaulting homeowners Research on mortgage or appraisal fraud and strategies to address them

HOPI Mission Statement HOPI is a public-private partnership dedicated to preserving homeownership through foreclosure prevention, loss mitigation, and individual intervention. HOPI partners are committed to developing innovations and promoting best practices in lending, servicing and default counseling in order to prevent or mitigate the devastating social and financial costs of foreclosure. HOPI partners are committed to carrying out and expanding the HOPI program – including the research and development efforts in Chicago – to serve as a model for the entire nation.

Proposed HOPI Goals:  Counsel and educate 5,000 families  Prevent 1,500 foreclosures throughout Chicago  Reclaim 350 buildings throughout Chicago  Continue “National Learning Laboratory”  Test at least three new intervention strategies  Assist in replicating successful HOPI strategies in 5 cities nationwide  Conduct at least 3 research projects  Develop Policies and Best Practices  Pursue Next Stage issues  Mortgage Fraud  Engage Wall Street  Refine understanding of borrowers in distress  Address issues of exotic new loan products

A Partnership Approach to Preventing Foreclosure Regional and National Efforts NHS of Chicago – HOPI Preventing foreclosures through direct contact and service to borrowers National Model – A Pilot Program –Demonstrating success of components –Assisting with local replication –Promoting best practices for industry partnerships Applied Research –A “Learning Laboratory” –Borrower information and practices –Research and development site to test applications Promotion and marketing of foreclosure issues

NeighborWorks America: Center for Foreclosure Solutions National hotline and connection to local entities Replication of local partnerships with HOPI components Training counselors and not-for-profit organizations in loss mitigation techniques and processes Promotion of industry and partnership best practices A Partnership Approach to Preventing Foreclosure Regional and National Efforts

Set up formal steering committee with partnership structure Strengthen existing partnerships with new goals and strategies Recruit new partners Provide regular and value-added communications Work with other innovative industry efforts Test new programs and applied research projects Components of HOPI

NHS services to borrowers resulting in increased borrower contact and saves Public and other resources focused on issue Testing and improving foreclosure prevention strategies for replication elsewhere Providing a platform and model for national leadership on issue Networking and mutual sharing with industry colleagues on foreclosure issues Promoting best practices Use of trademarked “HOPI” logo in materials and website HOPI Partner Benefits

Commitment to HOPI goals and mission Financial support of HOPI / NHS Chicago Responsible and responsive loss mitigation contact –Institutional commitment to improve servicing and loss mitigation efforts Creative solutions about the impact of origination practices on foreclosure. Willingness to share best practices and data for applied research Provide feedback on HOPI servicing insights to loan origination quality control efforts Participate in substantially decreasing vacant buildings HOPI Partner Responsibilities

Review and incorporate comments from today’s discussions into RoadMap Obtain new commitments from existing partners for Identify and recruit new partners Set up HOPI Steering Committee Engage partners through new goals Next Steps