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North Carolina Housing Finance Agency Mary Holder

State Home Foreclosure Prevention Project (SHFPP) 2011 North Carolina Affordable Housing Conference November 1, 2011. North Carolina Housing Finance Agency Mary Holder. SHFPP Project Purpose. Reduce foreclosures.

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North Carolina Housing Finance Agency Mary Holder

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  1. State Home Foreclosure Prevention Project • (SHFPP) • 2011 North Carolina Affordable Housing Conference November 1, 2011 North Carolina Housing Finance Agency Mary Holder

  2. SHFPP Project Purpose Reduce foreclosures Establish partnerships among housing counselors, legal aid, mortgage servicers and community organizations

  3. SHFPP Origination & Initial Loan Target • Initially established in October 2008, “Emergency Program to Reduce Home Foreclosures” (H.2623; S.L. 2008-226) • Temporary Two-Year Program (November 2008 thru October 2010) • Applied to only “Subprime” loans originated between 2005 and 2007

  4. SHFPP Expanded and Extended through 2013 • Act to Amend and Extend the Emergency Program to Reduce Foreclosures, (S 1216; S.L. 2010-168) • Extends SHFPP to May 31, 2013 • Beginning November 1, 2010, scope expanded to cover all “home loans” • Establishes State Home Foreclosure Prevention Trust Fund • One-time filing fee of $75 • Used toward admin costs, counseling and legal services

  5. SHFPP Transferred From NCCOB to NCHFA • House Bill 484 / S.L. 2011-288 to transfer the Emergency Program to Reduce Foreclosures to NCHFA passed in June 2011and became effective July 1, 2011 • Direct administration of the program and staffing transitioned to NCHFA • NCCOB retained administration of the pre foreclosure filings database, servicing invoicing and the Commissioner retained authority to grant 30 day extensions • The basic funding allocations for administrative costs, counseling services and legal services remain unchanged in the legislation

  6. Procedural Elements of SHFPP • Servicers required to send a pre-foreclosure notice to homeowners at least 45 days prior to filing foreclosure proceeding • Servicers must file notice electronically with NC Court System (NCCOB database) within 3 days of mailing the letter to the homeowner • Extension of pre-foreclosure period by 30 days if further efforts give reasonable prospect to avoid foreclosure (homeowner working with counselor) • Compliance with pre-foreclosure notice and filing periods is evidenced by printed “Home Loan Certificate” presented at the foreclosure proceedings

  7. Guiding Principles of SHFPP Efforts • Help reduce unnecessary foreclosures by facilitating communication between homeowners, servicers and housing counselors prior to the filing of the foreclosure • Promote mutually beneficial resolutions for homeowners and investors, but must not interfere with contracts or impose solutions • Provide North Carolina homeowners with free resources such as housing counseling and legal services as they work with servicers on alternatives to foreclosure

  8. SHFPP Benefits All Parties

  9. SHFPP Homeowner Outreach & Agency Referral • The agency sends a “FC Help Letter” to homeowners with notice of the availability of free housing counseling • Homeowners call the statewide toll- free number and are connected to counseling partners by the SHFPP call center • Network of 37 counseling partners provide face to face and telephone counseling sessions • SHFPP staff assist counselors and homeowners in facilitating communication with servicers

  10. Program Activity (2011) • Servicers have submitted 94,000 initial home loan filings • Counseling partners have conducted 12,000 foreclosure prevention counseling sessions with homeowners • Nearly 2,000 foreclosures prevented and 7,500 since the program was established in 2008 • Statutory 30 Day Extensions were granted on 1,500 cases and 4,000 since the program was established in 2008

  11. Closing • The program continues to be an effective resource in the fight to reduce foreclosures in North Carolina • We will continue to enhance the program to serve the needs of all program partners keeping in mind the overall objective (foreclosure reductions)

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