1. www.hocmn.org State and Federal Housing Legislation 2008: Impact on Foreclosure Counseling in Minnesota

2. www.hocmn.org Agenda  About the Center and Foreclosure Counseling  Setting the Stage  New State Legislation  Housing and Economic Recovery Act of 2008  Impact of Current Funding  Q & A

3. www.hocmn.org Introduction  History  Role  Network Minnesota Home Ownership Center

4. www.hocmn.org Successful Home Ownership through Education and Counseling  Home Stretch (pre-purchase) = informed buyers  Post purchase = preparing for the unexpected  Refinance = expert opinion on advisability of refinancing  Foreclosure prevention = help dealing with a crisis Minnesota Home Ownership Center

5. www.hocmn.org Foreclosure Counseling  Foreclosure process  Customized plan to address household situation  Financial counseling  Mortgage counseling  Identify options for preventing foreclosure  Negotiate with lenders  Avoid predatory practices Minnesota Home Ownership Center

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7. Scope of the crisis Setting the Stage Source: Foreclosures in Minnesota, A Report Based on County Sheriff’s Sale Data Available at: www.gmhf.com 20052007 2008 (projected) Greater MN2,7077,4308,346 Metro3,75912,97419,936 Total6,46620,40428,282

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9. State Legislation 2008 New Pre-foreclosure Notice   Pre-foreclosure notice to homeowners   Notice with homeowner contact info to counseling agency   Counseling agencies use contact info to reach out to homeowners   Tracking referrals

10. www.hocmn.org State Legislation 2008 Change in Sale Notice to Homeowner   Sale Notice (accompanies Sherriff’s Sale notice) provides more information about foreclosure and homeowner rights   Provides homeowners with Minnesota Home Ownership Center contact information Change in Tenants Rights   www.LawHelpMN.org

11. www.hocmn.org Housing and Economic Recovery Act of 2008 Hope for Homeowners Act   Authorizes FHA to insure up to $300 billion in 30-year fixed rate mortgages   Fact Sheet

12. www.hocmn.org Housing and Economic Recovery Act of 2008 Foreclosure Protections for Service Members   Establishes foreclosures counseling program   Lengthens time lender must wait before starting foreclosure from 3 months to 9 months   Relief on interest rate increases after service   Moving benefit to service members who are forced to move due to foreclosed rental housing

13. www.hocmn.org Housing and Economic Recovery Act of 2008 Foreclosure Counseling Funding   $180 million funding for foreclosure counseling   $30 million set aside for legal assistance   Similar terms to current National Foreclosure Mitigation Counseling (NFMC)   Center applying with Minnesota Housing for our statewide network

14. www.hocmn.org Impact of Current Funding   State and Federal dollars awarded in 2008   Counselor capacity grew from 18 FTEs to 74 FTEs   Expanded outreach & early intervention statewide 4 th Qtr. 2007 1 st Qtr. 2008 2 nd Qtr. 2008 Households Served 1,3382,0922,669

15. www.hocmn.org THANK YOU Debbie Wuerffel debbie@hocmn.org (651) 659-9336 or (866) 462-6466 www.hocmn.org