1. WHEDA Single Family Housing Bond Claim Program Your Dream, Our Mission

2. Agenda What is the Bond Claim Program? Program Qualifications
Borrower Requirements
Timeline
The Funding Source

3. What is the Bond Claim Program?
A WHEDA-funded loan to eligible homeowners to reinstate their delinquent home loan.
0% interest rate
Due on payoff or non-owner occupancy
Program Eligibility
Primary Residence with a commitment to owner occupy
First mortgage financing only
Available statewide - Wisconsin

4. Program Qualifications
MRB Loan - 90 days or more past due
Maximum loan amount -$25,000 (average $10K)
Maximum CLTV not to exceed 150% of current BPO
Loans in Foreclosure / Bankruptcy are eligible
3 month trial period must be completed
WHEDA DPA 2nd mortgages may be modified
by a similar process
What we are not solving:
Lack of equity
Borrower’s who have not overcome the reason
for default
Imminent default borrower (current)
Property condition

5. Borrower Requirements
Borrower has overcome the reason for default
Provide the necessary documentation
Explain and document the reason for default
Current financial statement
Document current income
Provide any additional information
as required

6. Borrower Requirements Continued…
Monthly surplus income required - 10% of Net Monthly Income or $150
Ratios reviewed for reasonability
Definition
Percentage
Range and Calculation
Housing to Income (MTI)
<45%
PITI/Net Income = MTI
Debt to Income (DTI)
<55%*
Total Debt/Net Income = DTI
Expense to Income (ETI)
<50%*
Total Expenses/Net Income = ETI
*If borrower has greater than 55% DTI or 50% ETI, borrower must complete debt counseling prior to obtaining Bond Claim Loan approval.
Housing includes PITI plus any junior liens
DTI equals PITI plus other monthly obligations
Expense includes estimated food, transportation, child care, utilities, etc.

7. Contact / Analysis / Decision
Timeline
Jul 1, 2014
Contact / Analysis / Decision
Solicitation letters to borrower with checklist of required information
Calling campaigns to follow up and / or clarify received documentation
Internal review of financial information
Decision based on review
Postcard mailer for incomplete documentation or non-responsive borrower
Face-to-face meeting

8. The Funding Source
The Single Family Team encumbered $500,000 from WHEDA’s Dividend - Homeownership Fund to finance the pilot Bond Claim Program.
Wisconsin law requires that an annual plan be developed to use unencumbered general reserve funds specifically in the categories:
*Homeownership *Multifamily Housing
*Small Business / Economic Development
*Grants and Services

9. The Results
The first Bond Claim loan was successfully completed July 1, 2014
The program has shown positive impact in keeping WHEDA “hardship” borrowers in their homes
To-date, 14 WHEDA borrowers have overcome their reason for default and have avoided subsequent default and foreclosure
All 14 borrowers have remained current on their mortgage payments

10. Summary
WHEDA’s Bond Claim Program was a local response to provide a path for “mortgage revenue bond loan borrowers to overcome default and remain in their home in the absence of Hardest Hit Fund remedies.