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

2. 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

3. 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

4. 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

5. Home Price Change History USA 1992- 1 st Q 2009 (Federal Housing Finance Agency Housing Price Index) 5 of 15

6. 2 13 7 3 3 15 1 0 6 16 3 0 0 0 1 1 7 3 2 18 10 1 9 0 0 4 1 0 0 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 1 2009 Selected Installations Data Number Foreclosed = 120 Number Current = 14,821 Sep 1 2005 - Jan 1 2009 Number Delinquent = 556 West Southeast Northeast 269 4 12 Fort Sill 5 10 1 7 2 232 9 Fort Polk 6 0 19 1 265 Fort Drum 5 0 9 Fort Meade 629 15 9 984 18 2 NCRD 486 5 Forts Eustis/ Monroe 12 4 Fort Lee 133 1 13 110 0 4 Fort Campbell Fort Knox 219 3 16 4 28 10 421 4 21 Fort Jackson 14 19 SOUTHCOM 105 2 24 683 2 Fort Stewart 21 Fort Gordon 368 13 2 Fort Benning 481 26 8 4 679 11 2 Fort Sam Houston 31 15 242 8 10 Fort Leavenworth 1 160 3 Fort Leonard Wood Carlisle Barracks 93 4 1 0 36 0 Rock Island 1 0 19 Natick Soldier Ctr 10 5 77 Selfridge Arsenal 6 1 60 Fort Dix 6 1 60 Fort Hamilton 1,292 11 48 Fort Hood 321 11 1 Fort Riley Fort Lewis 962 30 4 233 3 6 Fort Huachuca 0 0 10 Picatinny Arsenal 1 0 13 Watervliet Arsenal 1 0 63 West Point 0 1 11 Tobyhanna AD Fort Rucker 361 9 2 4 1 1 Yuma PG 8 0 0 Presidio of Monterey 2 1 0 Fort Hunter-Liggett 208 0 5 Redstone Arsenal 12 0 0 Red River AD Dugway PG 25 0 0 64 Fort Bragg 1,807 14 2 1 19 Fort McCoy Ft Buchanan, PR 1 1,146 6 76 Fort Bliss 2 2 467 2 13 Fort Shafter/Schofield 76 2 2 Fort Richardson 0 1 Fort Wainwright 97 Pacific Fort Carson 840 23 6 10 of 13

7. 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.

8. 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

9. Supporting Families and Soldiers In the Current Housing Market HOUSING CRISIS RESOURCES Websites: Military OneSource: www.militaryonesource.comwww.militaryonesource.com Army OneSource: www.myarmyonesource.comwww.myarmyonesource.com Military Homefront: www.militaryhomefront.comwww.militaryhomefront.com Army Housing OneStop: https://onestop.army.milhttps://onestop.army.mil Automated Housing Referral Network: www.ahrn.comwww.ahrn.com Army JAG: www.jagcnet.army.milwww.jagcnet.army.mil Housing Assistance Program (HAP): www.hap.usace.army.milwww.hap.usace.army.mil 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