STEP FORWARD MICHIGAN OCTOBER Oct 2013

HISTORICAL SUMMARY Oct U.S. Department of the Treasury established the Hardest Hit Fund® to provide targeted aid to families in eighteen states hit hard by the economic and housing market downturn Michigan received a total of $498.6 million in Emergency Economic Stabilization Act (EESA) or Troubled Asset Relief Program (TARP) funds to operate it’s Hardest Hit Fund® loan program 2

HISTORICAL SUMMARY Oct 2013 The Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) was created by the Michigan State Housing Development Authority (MSHDA) to oversee the distribution of the Hardest Hit Funds® in Michigan In July 2010, Michigan was the first state to award and disburse Hardest Hit Funds® through its program called Step Forward Michigan By September 2013, over 75,000 homeowners have initiated a Hardest Hit Funds® application on Michigan's website: 3

STEP FORWARD PROGRAMS OCT 2013 Unemployment Mortgage Subsidy (UMS) Loan Rescue (LR) Includes delinquent property tax assistance Principal Curtailment (PC) Modification Plan (MP) Blight Elimination Restricted to five hardest hit Cities 4

TERMS OF ASSISTANCE Oct 2013 Up to $30,000 in assistance; paid directly to participating mortgage servicer and/or county treasurer to apply towards the homeowner’s mortgage loan or property taxes MHA records subordinate mortgage lien on property MHA Note has 0% interest rate, requires no payments, and the principal amount of assistance is forgivable over a 5-year term, 20% per year Non-forgiven portion of the principal is due upon a transfer of the property OR if the property ceases to be the homeowner’s principal residence 5

STEP FORWARD SUCCESS Oct 2013  Through September 2013, over 15,200 homeowners received assistance on either their mortgage or property taxes  Since February 2013, 2,377 delinquent property tax payments were sent directly to County Treasurers  Average amount of assistance is $9,393 per household; total disbursed in four Programs is over $108 million with another $53 million reserved/committed  Over 8,500 active applications in our Operation Center 6

BASIC HOMEOWNER ELIGIBILITY Oct 2013  Qualifying Involuntary Hardship  Ownership Interest in the property AND occupying the property as their primary residence  Cash Reserves Must Meet Program Guidelines  Ability to Sustain Ongoing Mortgage and/or Tax Payments  Compliance With Dodd-Frank  Ability to Execute MHA Mortgage Lien and Note 7

BASIC PROPERTY ELIGIBILITY Oct 2013  Property Located In State Of Michigan  Mortgage Lien With Participating Lender/Servicer  Located In a Participating County For Tax Assistance  1-4 Unit Property – (One Unit Is Primary Residence)  Foreclosure Sale Not Completed 8

Oct WANT TO SHARE THIS INFORMATION?  YouTube Videos: Video # 1 Foreclosure Prevention Help Video # 2 Not Out of Options  Website: Program Information and Answers to Frequently Asked Questions  Request Marketing Material : Program Posters, Flip Cards, Door Hangers

Oct 2013 Program Website Mailing Address Step Forward Michigan - MSHDA PO BOX Lansing, MI Phone: (866) Fax: (517) Key Program Contacts Project Lead – Chad Coffman Operations Manager – Katy Twining Director of Homeownership – Mary Townley