Cuyahoga County Foreclosure Prevention Program, 2012 Evaluation

1. Cuyahoga County Foreclosure Prevention Program, 2012 Evaluation Molly S. Schnoke Center for Community Planning & Development Levin College of Urban Affairs Cleveland State University June 28, 2013

2. Foreclosure Prevention • CCFPP Objectives, 2012 • Coordinate outreach to homeowners and connect them to counseling and/or court mediation resources • Raise and distribute funding and other resources to partner counseling agencies • Monitor the scope and nature of the evolving foreclosure crisis • Advocate for and support legislative initiatives at the state and federal level that better address the local foreclosure crisis. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

3. Cuyahoga County Foreclosure Prevention/Counseling Highlighted Funding2012 • $250,000 from Block Grant Funds • $100,000 from Saint Luke’s Foundation for Mediation Plus Counseling programming. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

4. Program Components, 2012 • UWS First Call For Help, 211 • Nonprofit housing counseling agencies • Community Housing Solutions • Cleveland Housing Network • Neighborhood Housing Services of Greater Cleveland • Empowering and Strengthening Ohio’s People • Home Repair Resource Center • Foreclosure mediation support program (mediation plus counseling) • Cuyahoga County Department of Development • Evaluation Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

5. Trends • Agencies are seeing clients with different issues than in the past. • The economy. Job loss or loss of income is the number-one reason people seek assistance. • Underwater mortgages. “Almost everyone has negative equity.” • Foreclosure filings continue to rise in the suburbs. • 65% have bad credit scores. • Delays by banks in filing for foreclosure, delays in getting a resolution. (Restoring Stability) • HAMP modifications are not always sustainable. • Short pay-offs are still rare but increasing. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

6. Underwater Mortgages • Prevents the homeowner from selling the home unless he or she can cover the loss out of pocket • Leads to foreclosure • The extent to which a mortgage is underwater is the single best indicator that the mortgage will go into default. (Laurie S. Goodman, Amherst Securities Group) • Short Sales • Processing backlog due to legal challenges Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

7. Clients Served March 2006-December 2012 • homeowners seen by housing counselors at participating agencies: • 4,883 in 2012(highest number) • 16,635 total Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

8. Counseling Trends Molly S. Schnoke Levin College of Urban Affairs, Cleveland State University

9. Foreclosure Filings Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

10. Foreclosure Mediation Trends • More homeowners are seeking mediation • Approximately 25% of mediation cases are re-defaults. Many from pre-HAMP period. • Starting to see some principal reductions • Foreclosure Mediation Support Program (counselors on site) saw 242 clients, about 14% of pre-mediations. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

11. Foreclosure Mediation in Cuyahoga County, Ohio • May 2008- Cuyahoga County Court of Common Pleas adopts a foreclosure mediation program in response to Ohio Supreme Court exhortation. • In April 2010, Cuyahoga County Foreclosure Prevention Program and Mediation Program agreed to have counselors on site and available to assist homeowners—Foreclosure Mediation Support Program Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

12. Mediation Highlights Molly S. Schnoke,Levin College of Urban Affairs, Cleveland State University

13. Counseling Plus Mediation • Counselors are on-site on Mondays and Fridays. • Who requests mediation? • Who requests counseling plus mediation? • Geographic distribution: 38% of FC filings were in Cleveland, 27% of mediation clients seeing counselors were from Cleveland, 43% of all counseling clients were from Cleveland. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

14. Kathryn W. Hexter, Levin College of Urban Affairs, Cleveland State University “Facing the Foreclosure Crisis in Greater Cleveland,” Federal Reserve Bank of Cleveland, June 2010

15. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

16. Successful Outcomes, 2008-2012 Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

18. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

20. Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

21. Highlights of Findings Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

22. Recommendations • Counseling system • Implement targeted outreach and education • Pilot a hybrid approach using telephone counseling for a small segment of the population • Continue leadership and convening role • CCFPP as part of a broader housing strategy, including affordable housing, sustainable homeownership and rental opportunities on a regional basis • Support strategic neighborhood investments • Data, data, data Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

23. Recommendations • CCFPP as part of a broader housing strategy: • Strengthen formal links and communication with First Suburbs, VAPAC, Case, CSU, Counselors, Mediators and others • Create a two-way early warning system • Explore the creation of an emergency housing fund • Continue advocacy • Federal programs that work. • Principal reduction • Regulatory Reform (consumer protection and credit system) Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University

24. Next Steps Molly S. Schnoke, Levin College of Urban Affairs, Cleveland State University