1. NLS-LA & One LA Foreclosure Prevention

2. Our Approach Partner with community organization Train “cohorts” of borrowers Cohorts negotiate as a group with banks that service their loan Monitor modifications Craft community supported proposal

3. Collaboration With Multiple Partners NLS-LA One LA-IAF New Economics for Women Volunteer with banking background

4. Train “cohorts” of borrowers Financial literacy Understanding your mortgage Understanding securitized mortgages –i.e., the bank that takes your money is not the institution that owns your loan) Types of loan modifications

5. Cohorts Negotiate With Banks That Service Their Loan Over 200 borrowers to date Four banks (servicers): –Chase (includes WaMu & EMC) –Wells Fargo (includes ASC) –Countrywide/Bank of America –Indymac

6. Monitor Modifications - follow up with banks follow up with borrowers develop criteria to evaluate mods

7. Craft Community Supported Proposal Listen to homeowners in house meetings Evaluate financial capacity of the group Understand self-interest of the bank Develop proposal with key stakeholders in mind Bring back to local constituency

8. One LA Proposal Long-term fixed payment Reasonable interest rate Principal reduction so borrower has equity & reason to keep paying Publicly funded “soft” second to secure affordable payment for more borrowers

9. Problems With Modifications Bank disorganization (e.g., over 90 days to get a decision; by then info is old & have to start over) Modification is voluntary President’s plan leaves out more than 75% of our borrowers Most modifications are short-term fixes: 5 years or less before payments jump by hundreds per month

10. One LA Proposal at Work LA City Council votes unanimously to invest $1 Million in demonstration project May 13th: –Long term fixed payment –Principal reduction –Publicly funded soft second (with $1M CRA funds) One LA-IAF in negotiation with banks to leverage participation Implementation in progress

11. Time Line Sept 08: Community led house meetings Nov 08: Organization of borrowers into cohorts and secure NEW as a partner Dec 08 – Jan 09: Negotiations begin for first three cohorts Jan 09 – One LA Community Assembly – 1,500 participants; federal, state & local elected, proposal publicly presented to elected officials

12. Time Line, Cont’d Feb 09 – LA city council approves program in principle March - May 09 – Ongoing borrower training and meetings with banks May 09 – LA City Council approves investment of $1 Million into project Sept 09 – Program operational?

13. Moderators Antonio Hicks, Staff Attorney, Consumer & Housing Advocacy Group, Neighborhood Legal Services of LA County e-mail: antoniohicks@nls-la.organtoniohicks@nls-la.org Carlota Garcia, Organizer, One LA – IAF e-mail: carlota.garcia@gmail.comcarlota.garcia@gmail.com