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Government sponsored programs

An overview of considerations when initiating a County-run Foreclosure Prevention program w/various approaches

Mark Wiseman – Director, Cuyahoga County Foreclosure Prevention Program

216.443.7461 trmnw@cuyahogacounty.us

Foreclosure Prevention

Where the heck did the County Go?

Mark Wiseman, Director Cuyahoga County Foreclosure Prevention

Program trmnw@cuyahogacounty.us 216.443.7461

Causes of problem

Community specific Predatory lending Home Improvement Fraud Economy Flipping Refusal on part of lenders to accept

deeds in lieu Workout issues

Overall premises of program

Borrowers don’t realize the need to contact lender Freddie Mac study

Practical reasons for ostrichization Collectors v. loss mit

Practical help not avail until borrower seriously delinquent

Workability issues Counselors provide a real benefit

Overall Premises (2)

Borrowers can be educated to make the proper decisions

Predatory lending exists Gov’t can be educated about their

role in stopping Fraud Follow up on building permits Educate homeowners Attack fraudulent actors

Prep work necessary for program

Agency assessment Site visits/self-appraisals Funds available v. anticipated needs

Raise money Knowledge of all players in

community Knowledge of Bad guys, Schemes,

Problem products

Prep Work (2)

Financial partners/Non-financial partners

Gov’t players must work together Capitalize on gov’tal experience

dealing w/counseling agencies Put together marketing package Credibility in public’s eyes necessary

Special circs that will foster success

Existence of non-profit community Experienced, primed, willing

Does situation need drastic action? Is Gov’t ready to act in a leadership

role? What is overall climate? Are suburbs involved?

Special circs (2)

Vacant homes costing money One Cuy Cty municipality budgeting >

$750,000/yr to maintain vacant homes Vision, insight and courage on behalf

of gov’t “Predatory lending” not exactly popular

term Local lending community willing to

take steps

Practical aspects

Does program need one intake line as destination for calls?

Counseling available to borrowers at all phases of the home loan process

Education at all phases Agencies involved in creation of

program Will County operate program v.

provide information?

Marketing Program Must complete groundwork, before

campaign starts Free Media v. Paid Media Post cards to high F/C neighborhoods Post cards while borrowers might be

targeted Billboards, TV, Radio

Freddie Mac “Don’t Borrow Trouble” is one example

Who will pay for it

May be limitations on funds available to gov’t agencies Cuy Cty – Filing fee increase and

Treasurer’s funds forbidden Lender/Foundation donations County available funds

Block grant funds General fund TANF funds

General County-run model Create link between County gov’t and

counseling agencies Provide information to borrowers

about F/C process as well Encourage borrowers to get

counseling AND to stay in their homes Use Gov’t influence to lend credibility

to efforts

General County model (2)

Create website Use direct mailings Offer educational programs Utilize resources already available Counseling is cornerstone of program

Barriers Foreclosure Rescue Scammers

$ to hire “help to contact lender” w/or w/out attorney

“We buy houses” Copy cats

Still easier to get bad loan, than to fact the music

Counseling costs money Culture change takes decades

Lucas County

Foreclosure Prevention & Intervention Task Force

Borrowers informed about various Counseling agencies

One phone number also touted Targeted mailings w/Foreclosure

Complaints contemplated

Lucas County Webpage

Located on County Homepage http://.co.lucas.oh.us/Foreclosurehelp/

Grid of agencies Foreclosure timeline, Glossary, FAQ’s

about F/C process

Franklin County

Monthly Counseling seminars for newly foreclosed upon

Borrowers informed about various Counseling agencies

Borrower owns counseling from very start

Public/Private Task Force Managing program on ongoing basis

Franklin County Webpage

Located on Treasurer’s webpage http://www.franklincountyohio.gov/treasu

rer/foreclosureint/index.html

Grid of lender contacts ! Foreclosure timeline, Tips, Seminars

Summit County

New Program Creation of a Foreclosure Prevention

Directory Creation of a mailer to go out w/new

filings Still meeting w/community leaders

and stakeholders

Summit County Webpage

Located on page for Office of Consumer Affairs http://www.co.summit.oh.us/conaffairs.ht

m

Plan is to have information relating to predatory lending and F/C prevention

Cuyahoga County

Provide one local phone number for borrower assistance (United Way)

Program capitalizes on existing network of experienced counseling agencies

Agencies own model County pays agencies for increase in

capacity caused by calls to 2-1-1

Cuyahoga County Webpage

Located on County Homepage http://www.dontborrowtroublecc.org/

Foreclosure timeline, FAQ’s, process overview.

Borrower questions answered through website

Standalone website

Fallout

Cooperation from other gov’t agencies

Increased focus on prosecutorial action

Municipalities more willing to participate in solution

Money easier to raise

Government sponsored programs

An overview of considerations when initiating a County-run Foreclosure Prevention program w/various approaches

Mark Wiseman – Director, Cuyahoga County Foreclosure Prevention Program

216.443.7461 trmnw@cuyahogacounty.us