1. Georgia Mortgage Servicing Meeting

2. Welcome
Mr. Dan Maddox Executive Vice President & COO Atlanta Habitat for Humanity

3. Mr. Bob Boyd President Habitat for Humanity of Georgia
Introduction
Mr. Bob Boyd President Habitat for Humanity of Georgia

4. Mrs. Natosha Reid Rice Associate General Counsel Habitat for Humanity International

5. Purpose
Make a recommendation to Affiliates for how best to handle mortgage servicing
Educate Affiliates on how to ensure their mortgages are properly serviced

6. Habitat Georgia’s Recommendation
Habitat Georgia recommends Habitat Affiliates outsource the servicing of their mortgage to a reputable third-party vendor.

7. How We Decided
HFHGA has investigated different solutions for mortgage servicing for an extended period of time.
HFHGA currently services 7 mortgages, but is in the process of outsourcing these.
HFHGA has performed a high degree of due diligence in making its recommendation.

8. Due Diligence Affiliate surveys Conference calls
Affiliate interviews / feedback
Roundtable discussions
Professional inquiries

9. Affiliate Concerns Laws are changing and difficult to keep up with
Spending large amount of staff time handling collections and loss mitigation
Current methods not effective (high delinquency rates)
Departure from mission

10. Habitat’s Mission
“We just want to help families, not be debt collectors.” -- Habitat Affiliate Representative

11. Calculating Costs
How to calculate what you spend on mortgage servicing without a third-party:
Salaries (including taxes and benefits paid)
Equipment and software
Postage
Office space
Legal fees
Costs of multiple staff involvement

12. Offsetting Costs
All newly originated mortgages should include the cost of mortgage servicing (even if you do not outsource).
All loan modifications should include the cost of mortgage servicing (even if you do not outsource).

13. Utilizing Benefits
Homeowners can work with trained professionals to help them with any issues
Staff can focus on mission-critical activities (volunteers, building, partner family recruitment, etc.)
Delinquency rates can decrease and unrestricted revenue can increase

14. The Questions
Could you spend less money and get a better result? YES Will that result allow you to focus on your mission?

15. How?

16. Synovus Partnership
Habitat Georgia has spent several months working on a partnership with Synovus Mortgage Company.
Our goal was to develop a Habitat-centric method of mortgage servicing
Habitat Georgia has performed extensive due diligence and vetting of Synovus Mortgage Company

17. Habitat-Minded
We wanted someone who understands Habitat Affiliates and understands Habitat families.
We needed to work with someone who could provide all of the services an affiliate require.
We wanted someone who would take care of our families.

18. Synovus Mortgage Company
Servicer Comparison
Other Servicers
Synovus Mortgage Company
Á la carte services (pay as you go)
All-inclusive (turn-key)
No hazard insurance claim responsibility
Full-service handling of all hazard insurance claims
Send delinquent mortgages back to affiliates after certain date
Handle delinquencies from beginning to end
Focus on large lenders (Fannie Mae, Freddie Mac)
Emphasis on local lending and servicing
Inexperienced staff (unfamiliar with Habitat model)
Professional staff with decades in the mortgage servicing industry
Fits Habitat into their model
Shapes their model to fit Habitat
Based in other states
Founded in Georgia
Payments through mail and credit card only
Families can make payments at any Synovus bank branch

19. Habitat Georgia October 12, 2015
The Opportunity to Serve Underserved Communities

21. Who they are Stated Goals:
The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector
Stated Goals:
Educate – consumers against abusive practices
Enforce – federal consumer financial laws
Study – gather and analyze information

22. CFPB -Who they are Core Function
Write rules, supervise and enforce federal consumer protection laws
Restrict unfair, deceptive or abusive acts or practices
Take consumer complaints, promote education and analyze behavior
Monitor financial markets for new risks to consumers
Enforce laws that outline discrimination and other unfair treatment in consumer finance

23. CFPB Servicing Compliance Requirements Guide

24. National Flood Insurance Program
Created by Congress in 1968
Reduce future flood damage through floodplain management
Government subsidy of insurance premiums
Servicer responsibility to maintain updated flood maps
Servicer responsibility to force place insurance
Servicer responsibility to notify borrower of map changes

25. Today’s Regulatory environment has created pitfalls
There is no safety net for best intentions
Servicers are held financially liable for actions and inactions
Fair Lending dictates consistent policies and procedures
Treating borrowers differently is considered discriminatory
What amount of risk you are willing to accept?

26. Do nothing and hope for the best?

27. Read the regulations
Review your current operation
Report your risk to your respective Boards
Put together a comprehensive plan to achieve compliance
Consider outsourcing servicing Or