Housing Market Crisis: Support to Soldiers and Families Assistant Chief of Staff for Installation Management Strategic Communications

Supporting Families and Soldiers In the Current Housing Market Supporting Families and Soldiers In the Current Housing Market “Not only do I have to worry about staying alive, but now I got to worry about whether or not my family’s going to get kicked out of the house.” Staff Sgt. Daniel Escamilla Mortgage payments tripled while in his third combat tour in Iraq Source USA Today 04/24/2008

Supporting Families and Soldiers In the Current Housing Market BACKGROUND: Increasing variable home interest rates, plummeting home market values, historic numbers of foreclosures, and an overall economic turndown has combined to create the housing market crisis. PURPOSE: Provide information on the effect of the housing crisis on our Soldiers and their Families Display the magnitude of the problem at installations Provide guidance to assist Soldiers and Families Review existing housing programs Provide resources available to help 2 of 13

Supporting Families and Soldiers In the Current Housing Market Current Housing Crisis Affects Army Families Rent Owner of rental property foreclosed Forces Family to move (unforeseen costs) Own Upside down mortgage (appraised value less than outstanding mortgage) Directed moves (PCS) Unable to sell or rent at current location Forced into Short Sale Foreclosure and pre-foreclosure Unplanned Family separation (family remains at previous location) Having to find housing at new location Credit rating affected (ability to rent/buy new location) Forced to pay two (mortgages / mortgage + rent at new location) 3 of 13

Home Price Change History USA st Q 2009 (Federal Housing Finance Agency Housing Price Index) 5 of 15

Fannie Mae Military Mortgage Data Selected Installations — 68% of Active Component Loans by Fannie Mae N = Total Foreclosed in State; Total Foreclosed All States = 332 As of Jan Selected Installations Data Number Foreclosed = 120 Number Current = 14,821 Sep Jan Number Delinquent = 556 West Southeast Northeast Fort Sill Fort Polk Fort Drum Fort Meade NCRD Forts Eustis/ Monroe 12 4 Fort Lee Fort Campbell Fort Knox Fort Jackson SOUTHCOM Fort Stewart 21 Fort Gordon Fort Benning Fort Sam Houston Fort Leavenworth Fort Leonard Wood Carlisle Barracks Rock Island Natick Soldier Ctr Selfridge Arsenal Fort Dix Fort Hamilton 1, Fort Hood Fort Riley Fort Lewis Fort Huachuca Picatinny Arsenal Watervliet Arsenal West Point Tobyhanna AD Fort Rucker Yuma PG Presidio of Monterey Fort Hunter-Liggett Redstone Arsenal Red River AD Dugway PG Fort Bragg 1, Fort McCoy Ft Buchanan, PR 1 1, Fort Bliss Fort Shafter/Schofield Fort Richardson 0 1 Fort Wainwright 97 Pacific Fort Carson of 13

Key Message The nation is experiencing a housing market crisis. But the chain of command, military and civilian resources, and the Army One Source website can provide information to Soldiers and Families to help overcome most housing and financial challenges. THE ARMY CARES.

How We Can Help Soldier PCS Housing Financial Road Show Installation Information for Soldiers and Families Programs available Train installation staff Homeowners Assistance Program (HAP) proposed language WTU/Surviving Spouses BRAC Causation PCS Sunset Clause Sep 12 Purchased prior to Jul 06 Housing Services Office Automated Housing Referral Network (list home for sale or rent) G-1 Revising BAH waiver criteria to include Families remaining at prior location (unable to Sell/Rent home) MakingHomeAffordable.gov –ARRA program –Refinance & Mitigation Soldier Unable to Sell Homeowners Assistance Program (HAP) proposed language WTU/Surviving Spouses BRAC Causation PCS Sunset Clause Sep 12 Purchased prior to Jul 06 AER loans to assist Soldiers on rent and mortgages G-1 Revising BAH waiver criteria to include Families remaining at prior location (unable to Sell/Rent home) Joint Federal Travel Regulation Revisions Changed to allow payment of moves by Military renters due to landlord foreclosure Soldier in Financial Crisis Army Community Services financial counseling Spouse employment counseling Army Emergency Relief Loans for Rent/Mortgage Grants for Rent / Mortgage Chaplain support TJAG support Foreclosure/Bankruptcy Federal and State refinance programs Command involvement MakingHomeAffordable.gov –ARRA program –Refinance & Mitigation National Foreclosure Mitigation Counseling (NFMC) Program Veterans’ Benefits Improvement Act of 2008 Assist sub prime mortgages to refinance into more affordable VA guaranteed loan. Other Federal Acies Veterans’ Benefits Improvement Act of 2008 Assist veterans with sub prime mortgages to refinance into more affordable VA guaranteed loan. Service members Civil Relief Act Prevents foreclosure on a pre-service mortgage without a court order; allows Soldiers to reduce a pre- service obligation to 6%. Fannie Mae Soldiers allowed to stay in foreclosed properties and rent from bank 12 of 13

Supporting Families and Soldiers In the Current Housing Market HOUSING CRISIS RESOURCES Websites: Military OneSource: Army OneSource: Military Homefront: Army Housing OneStop: Automated Housing Referral Network: Army JAG: Housing Assistance Program (HAP): Local and Installation Resources Army Community Services (ACS) Financial Counseling: Offers spouse employment counseling. Army Emergency Relief: Offers grants and loans for Soldiers who are renting off-post. Chaplain Support TJAG Support Housing Services Office: Provides a Preferred Tenant Program for those Soldiers and Families interested in renting off-post. The Automated Housing Referral Network offers listing that are targeted to military personnel and families. Federal and State Refinance Programs 2 of 13