PRESERVING THE AMERICAN DREAM:Building Strong CommunitiesA Report of the Homeownership Preservation Foundation

OUR MISSION

The Homeownership Preservation Foundation (HPF)

is an independent national nonprofit

dedicated toguiding consumers onto thepath of sustainable homeownership and improving their overall

financial health.

There’s a difference between a house and a home. The former is property. The latter

is the sense of safety, serenity and family. HPF is here to support and become an

ally to anyone that has a place they call home. In 2004, we were created because

there was a crisis in the U.S. that had not been seen before. We were put in place for

homeowners in the grip of foreclosure.

As the economy and housing market make a crawling recovery, challenges and

obstacles are still prevailing. With the evolving economy, our consumers’ needs have

evolved and so have we. Communities and the people in them are still struggling.

There are homeowners who did not lose their homes to foreclosure but are still

struggling with their finances. There are homeowners who are current on their mortgage but still struggling to pay

their bills. There are new homeowners who want to understand the risks and responsibilities of homeownership.

There are those who rent who want financial education and who may become future homeowners. These are the

people HPF serve.

By educating clients, through our coaching and counseling sessions, we help paint the whole healthy financial

pictures for families and individuals. That means higher credit scores, lower debt and more savings. Every day, we

give the best we have to offer to guide homeowners, renters and buyers alike to bright financially healthy futures

and their personalized vision of the ‘American Dream’.

A home isn’t just property. It’s where we make our fondest memories, a place of privacy and security. Our personal

haven. Everyone deserves to have a place where they can lay their head at night. Whether that is your first home

or your fifth, the Homeownership Preservation Foundation is here to help people feel comfortable in the place they

call home and to build sustainable communities. HPF was there in the past to help distressed homeowners. Today

and in the future, we continue to be here to offer help, options and hope to all our consumers.

Sincerely,

David Berenbaum Chief Executive Officer

A Message from Our CEO

Who We Are: An Independent, National, Trusted Resource

The Homeownership Preservation Foundation (HPF) is an

independent nonprofit organization dedicated to guiding

consumers onto the path of sustainable homeownership

and improving their financial health.

Since its founding in 2004, HPF has served over 8

million homeowners who depend on us as a trusted,

neutral source of information and assistance.

Working one-on-one with homeowners, we provide

free, confidential and comprehensive financial and

foreclosure prevention education through our national

Homeowner’s HOPE™ Hotline—888-995-HOPE™—

which is staffed and ready to assist homeowners every

day around the clock.

Although we are an independent organization, we work

closely with private and government entities to find

sustainable housing solutions. We are recognized as

a trusted resource for homeowners across the country

and serve as the national call to action for Making

Home Affordable, the federal program that is designed

to help homeowners avoid foreclosure, stabilize the

country’s housing market, and improve the nation’s

economy. We also work closely with other government

agencies, including the U.S. Department of Housing

and Urban Development and the Consumer Financial

Protection Bureau, major banks, real estate providers

and a myriad of diverse organizations who are on the

frontlines of the country’s housing market.

For many families, the Homeowner’s HOPE Hotline is often a first

stop in the process to resolving their housing crisis issue. Calls to

the Homeowner’s HOPE™ Hotline average about 11,000 per week.

Michael had been flying high in his career as a space flight systems

analyst, but the death of his wife and a subsequent permanent

disability grounded him almost immediately. “I was going under

fast due to financial issues,” the Florida resident recalls.

Wanting to keep his house, Michael searched the Internet for help

and stumbled upon HPF.

“They told me what to expect and how long things would take. I

knew as long as I had something in the works,” says Michael, “I

had hopes of a good outcome.”

Our dedicated, trusted and caring counselors worked with Michael

to assess his family’s financial situation and guided him – as we

have more than 8 million families over the years – on a path to

avoiding foreclosure and staying in his home.

Michael found the counselor to be very helpful as they worked

with him to fill out paperwork, forwarded information to the bank

on his behalf and continued to offer assistance even after he had

worked out an arrangement with the bank. “I could still call them

and they would answer what they could. I felt that was awesome,”

he says.

And it all starts with just picking up the phone. “Don’t be afraid to

call,” Michael advises. “There is hope!”

MICHAEL’S STORY: “THERE IS HOPE”

HPF manages a network of HUD-approved

nonprofit housing and credit counseling

agencies which includes: CCCS Greater

Dallas, Clearpoint Credit Counseling

Solutions, Greenpath Debt Solutions,

Money Management International,

Springboard and Novadebt.

“It saved me from losing my home. I am very glad

I called and had a very helpful and informative

counselor. The shame of my financial situation was

lifted from my shoulders and I was able to keep my

home with the repayment program and now I am 2

months ahead on payments

— Felicitass from New Jersey

214

What We Do: Our Programs and ServicesHPF is proud of the reputation we have built and the

customer satisfaction we have earned. With each

homeowner, we learn about who is in need and what

programs and services work best to respond to those

needs.

As a result, we have created close to a dozen programs

through our national infrastructure, which include

providing support to victims of mortgage scams to

assisting our military service members returning home

from active duty.

HPF is expanding its services to provide comprehensive,

extended financial coaching to families across the

housing continuum, we do work with folks at different

points along the housing continuum today including

non-delinquent, delinquent, post-modification.

Integrating technology-based tools, including innovative

online education platforms and financial management

programs that can be accessed from a phone, tablet

or computer, coupled with our one-on-one counseling,

HPF will continue to meet the demands of its clients.

HPF continually works to better customize its services

and partners with local agencies to provide seamless,

comprehensive solutions for improving an individual’s

financial capability.

Our customized programs include:

Anti-Loan Mortgage Scam ProgramHPF is the national call to action for homeowners who

have been victims of a loan scam. Since inception we

have responded to more than 104,000 complaints from

victims.

Military Program HPF has a dedicated team of experts to help military

service members and their families navigate financial

and housing distress. Since September 2013, HPF has

served more than 6,000 military families.

Post-modification Coaching Program Our financial coaches have worked with more than

17,000 individuals to create personalized financial

plans, with clear goals, and with regular checks-ins.

Homeowners who are Current but Concerned about DefaultMany homeowners continue to face distress but have

not yet defaulted on a mortgage payment. HPF has

provided comprehensive financial advice and support to

prevent default for more than 2.8 million homeowners.

Making Home Affordable HELP ProgramSince inception, HPF has responded to 355,000

homeowners who have questions or concerns related

to the national Making Home Affordable Program.

ROBBIN’S STORY: “THEY CALLED ME.”

“SEEK HELP.”

That’s Robbin’s straight-forward advice for families who

may be facing possible foreclosure.

Robbin speaks from experience. Faced with sudden

unemployment, the North Carolina resident tried to follow

her own advice. She immediately reached out to her bank to

modify the loans on her two properties to more affordable

payments, while she looks for another job.

Robbin, who prided herself on being a good money manager

who had modest financial obligations, acknowledges that

“being a good money manager was easy when I had an

income. But it became difficult when I didn’t.” However, she

was able to stay on top of her bills – including her mortgage

payments – with the help of savings and family.

Referred to Robbin by her bank, HPF counselors offered

information on resources in her city and state that could

help Robbin during her financially challenging times. Robbin

also participated in the HPF Post-Modification Coaching

Program.

Robbin’s advice: “I didn’t know about HPF until they called

me. Seek out such organizations before you miss that

payment. As hard as it may be, don’t run from it. Don’t hide

from it. Open the mail. Collection letters don’t disappear. It

only gets worse if you try to avoid it.”

Financial CapabilityCoaching

Homeownership Foreclosure Preventionand Beyond

DID YOU KNOW?

In 2013 alone HPF referred over 372,000 families to local HUD approved counseling agencies,

programs and services. Working closely with our community based partners remains a priority.

In 2014, we hope to expand these partnerships.

How We Help: Counseling and Coaching Through the Whole ProcessHPF is committed to being a financial coach to consumers for the life of their mortgage. We have positioned our

organization as a resource that is available to help families throughout the housing continuum – from the excitement

of buying a home, to the financial commitments of maintaining a home and the challenge of sustaining homeownership

during challenging economic times.

At HPF, we believe that the long-term behavioral change is achieved when consumers are “taught to fish, rather given

fish to eat”. Our networks of HUD-approved housing counselors use a “coaching” philosophy which is a client-driven

process, rather than counselor-driven. Our counselor acts as a “coaches” and encourage, motivate and holding our

clients accountable to their commitments and ultimately meet their goals. Our coaches meet with their clients often

and develop a deep, long term relationship with them. Here at HPF, we strive to focus on long term engagement rather

than short term attention.

MEET OUR COUNSELOR - MANNY’S STORY:

“IT’S NOT JUST A 9-TO-5.”

Each year the Homeownership Preservation Foundation (HPF)

recognizes one outstanding housing counselor who goes above

and beyond to help homeowners. Manny Gonzalez is a housing

counselor at Novadebt and was chosen out of the nearly 400

counselors for his commitment to consumers and his profession.

A native of San Diego, Manny graduated from San Francisco

State University with a Bachelor’s degree in Communications. He

dreamed of serving his community as a public servant, but Manny

took what he expected would be a temporary position fell in love

with housing counseling. “I didn’t know about housing, finance

or debt,” he says, “but I had a gift for understanding people’s

problems and advocating for what they need. After day one, I was

hooked.”

From helping homeowners get a mortgage modification to giving

tips on budgeting, Manny finds a way to leave customers feeling

knowledgeable and empowered. By providing real-life scenarios to

clients, Manny’s relatability and creativity help to make financial

success accessible.

One of the biggest motivations in Manny’s career is his fellow

counselors who he describes as best in class. “They motivate me

to do my best. They drive me, every day, to be the best I can be.”

“Having the burden of possible foreclosure on my home was stressful and draining both physically and emotionally.

I was at my wits end. Making contact with HPF my counselor was truly a blessing. She truly was an ANGEL!!!

— Tina from Florida

Counseling WorksA new study released by the Urban Institute indicates housing counseling is having its intended effect of helping

homeowners. The research was done for NeighborWorks America’s National Foreclosure Mitigation Counseling (NFMC)

program and is based on the analysis of nearly 240,000 homeowners. It showed that counseled homeowners were

more likely to cure a serious delinquency or foreclosure with a modification or other type cure, stay current after

obtaining a cure, and for NFMC clients who cured a serious delinquency, avoid foreclosure altogether. More than 1.8

million homeowners have been helped by the NFMC program since its creation.

HPF has been a part of the NFMC program since 2008.

Summary of Findings

» Counseling greatly increased a homeowner’s ability to cure a serious delinquency or foreclosure. Counseled

homeowners were nearly twice as likely to receive a cure for their serious delinquency or foreclosure as non-NFMC

counseled homeowners. The study points out that counselors are more adept at identifying additional options for

homeowners, and as a result, homeowners have benefited by utilizing the best cure for their particular situation.

» Counseled homeowners were about 1.5 times more likely to not have their mortgage re-enter a troubled status

after receiving a loan modification cure. Once cured, NFMC counseled homeowners are less likely to have their

loans redefault. This effect is largely attributable to services provided by counselors, such as budgeting and financial

management skills and developing an appropriate solution given the homeowner’s financial conditions. NFMC counselors

help homeowners find alternatives to foreclosure when saving the home is not an option, and are more likely to obtain a

short sale than non-counseled homeowners.

» Counseled homeowners are nearly three times as likely to receive a loan modification cure compared to non-

counseled homeowners. NFMC counseled homeowners who received a modification had their annual payment reduced by

an average of $4,980.

“The counselor was very human and gave HOPE

that whatever the outcome, it will be the best for our

family...that is how I felt after the conversation.

— Richard from Washington

BY THE NUMBERS - COUNSELING WORKS! » 70% -- The number of

homeowners more likely to avoid foreclosure after receiving nationally certified counseling 1

» 29% -- Reduction in the de-linquency rate of first-time homebuyers who received counseling 2

» 13% -- Female callers to HPF who are single-parent female heads of house-holds 3

“I am one of those that felt there was no hope and too

embarrassed to make that first step in contacting

someone for help. Hope showed me there was no

need to be embarrassed and made speaking with the

counselor easy and free flowing.

— Sharon from Maryland

1- Gabriela Avila, Hoa Nguyen and Peter Zorn, April 2013. The Benefits of Pre-Purchase Homeownership Counseling.2- U.S. Department of Housing and Urban Development (HUD), May 2012. Foreclosure Counseling Outcome Study: Final Report Housing Counseling

Outcome Evaluation.3 - The Homeownership Preservation Foundation

“I felt that a weight had been lifted from my shoulders; counselor was professional, courteous, and sympathetic to

my situation. I felt assured that we would do everything possible to retain my home, find agreeable terms and

payments. I should’ve contacted you earlier, and saved a lot of sleepless nights.”

— John from Maine

BY THE NUMBERS - HPF!

» 8 million – Distressed homeowners who called the HOPE Hotline since 2004

» 732,783 – Families served by HPF in 2013

» 170 – Languages available to consumers when they call the HOPE Hotline 24 hours a day, 7 days a week, 365 days a year

HPF Stats

BETTIE’S STORY: “ I WAS NOT A STATISTIC.”

While our nation may be recovering from financial stress, not

every community is recovering at the same pace. In fact, over 2

million households remain in serious delinquency or foreclosure,

2.5 times higher than the pre-crisis average. HPF continues to

receive more than 2,500 calls each business day, from families

across the country, who are struggling with the legacy of the

housing crisis.

That includes Bettie.

Depressed and out of work due to a disability, Bettie was seeking

to modify her second mortgage to a lower interest rate. Her

bank had turned her down. A company had called her to offer

assistance with refinancing, but Bettie was not comfortable

sharing information over the phone with a company that was

unfamiliar to her.

Several months passed and Bettie sank deeper into debt and

depression. The Colorado resident decided to call the Homeowner’s

HOPE Hotline counselor spent time with me and broke everything

down. First, he told me not to give out information to the company

that called me. Then he went over my paperwork and explained

why I was not eligible for a modification on my second mortgage.

He told other things that I could do and even got on the phone

with me and my bank.”

Bettie admits that the conversation with the counselor didn’t

start off on a positive note. “He caught me on a bad day,” she

remembers. “I was not in the best of spirits when I first talked

to him. I was very negative.” Sensing her down mood, Bettie says

the counselor wouldn’t let her off the phone and even offered

resources to help her deal with her emotional state. “He went

way beyond the call of his practice,” says Bettie. “I felt he was

concerned about the individual. I was not a statistic. I was

impressed with his skill set, the time he took.” The counselor

helped Bettie set financial goals and encouraged her to keep in

touch.

Bettie’s advice to struggling homeowners: “Call the Homeowner’s

HOPE Hotline as many times as you need again. They are here to

help.”

“My financial coach was very helpful and gracious during my time of need. She sure helped to pull me out of

a very dark period in my life. Not much scarier than the thought of losing your home! Thanks again for all of

your help.”

— Jacqueline from Michigan

8 MILLION New millennial households in the next 5- 10 YEARS

HPF Bringing Back The American Dream

The Problem:

A staggering number of Americans have been faced with foreclosure during our country’s current economic turmoil.

Unemployment, underemployment, and other unforeseen factors have created impossible financial conditions for many

people. While the economy is recovering, time are still hard for many . Since the beginning of the crisis began, family’s

net worth has plummeted 39 percent . Many who want to be homeowners cannot due to weaknesses in their credit

and financial profiles. Minority and low to moderate income borrowers have been the hardest hit. In 2012, African-

Americans and Latinos represented only two percent and five percent, respectively, of total purchase originations.

The dream of homeownership is inching away from one of the largest segments of the U. S. populations—millennials

(26-34 years olds). Over the next five to 10 years household growth in this population will grow to eight million.

Unfortunately for many millennials homeownership will be just a dream. This age group continues to be plagued by

significant debt, most taking the form of student loans. A recent study showed that 42% of millennial say their debt

is overwhelming—that is two times what baby boomers say when asked the same question . Many millennials are also

minorities and have low to moderate incomes.

HPF’s Response – Driving Financial Capability and Homeowner Readiness:

HPF is developing a platform that responds to these communities and expands opportunity for sustainable

homeownership. In response to changes in the markets, we are expanding to include a financial coaching approach

that drives homeownership preparation and financial capability. We are combining our proven and effective coaching

model which provides online tools and education to individuals, with the support of a financial coach to drives long-

term behavioral change.

As families begin to rebuild after the economic crisis and look toward to gaining access to homeownership, we are

poised to serve them with trusted, effective, programs and services that help them navigate the path to sustainable

homeownership.

DID YOU KNOW?

Our extensive national experience echoes the findings of

independent researchers that “intensive, extended en-

gagement” monitoring and support for individuals, timed

to coincide with financial decision points, produces better financial

health. Evidence strongly suggests that the improvements in borrower performance

also produce compelling economic benefits for communities.

African-Americans and Latinos represented only 2 percent and 5 percent of total purchase originations in 2012, respectively

2% African Americans5% Latinos

Total Purchase Originations

2012

Hispanic communities saw their median wealth fall by 66 percent66%

African American families saw their wealth fall by 53 percent53%

Facts and Financials 2013

HPF by Program

6.47%Scam

1.56%Other

80.20%Comprehensive

financial counseling

11.78%Help

Households

Married with dependents 33.76%

Single adult 22.04%

Married without dependents 15.93%

Female-headed single parent household12.15%

Other 9.78%

Male-headed single parent household 3.64% Two or more

unrelated adults 2.70%

Age Range

1% .07%

7%

36%

42%

14%

Unknown Under 21 Over 6551-6536-5021-35

Reason for Default

Reduction of Income 38.18%

Unemployed13.96%

Not in Default12.44%

Illness 8.60%

Excessive Obligations 6.38%

Other 6.97%

Marital/Relationship Problems4.45%

Payment Adjustment 1.16%

Death in Family 1.52% Death of Borrower

0.84%

Business Failure 1.04%

Male43.24%

Female56.67%

Gender

of our clients are Low Income

Extremely Low (<30%)

Very Low (<50%)

Low (<80%)

Not LMI (>80%)

14.46%

21.18%

28.13%

36.23%

63.7% Race

White60.35%

Black of African American 26.92%

Other multiple race 7.81%Asian 2.86%

Other 2.05%

2014 Program Expenses

91.5%Program

8.6%Mgmt, General

and Fundraising

2013 Hispanic Indication

14.65% Yes

85.35%No

Our Partners Thank you to our philanthropic, business and nonprofit partners. Collectively we make a difference!

American General

America’s Servicing Company

BAC Home Loan Services

Bank of America, NA

Bank of America Foundation

Carrington Mortgage Services, LLC

Chase Home Finance, LLC

Citicorp Mortgage

Citifinancial Mortgage

CitiMortgage

Ditech

EMC Mortgage

Fannie Mae

Fannie Mae Foundation

First Franklin

Freddie Mac

GMAC Mortgage, Inc.

GMAC Mortgage, LLC

Home Loan Services, Inc.

Homecomings Financial Network

HomEq Servicing

Homeward

Housing Partnership Network

HSBC (Household)

IndyMac Bank

JP Morgan Chase

JP Morgan Chase Foundation

Lender Business Process Services

Met Life

MMI

National City Mortgage

National Community Reinvestment Coalition

Nationstar Mortgage LLC

NeighborWorks America

Ocwen Financial Corporation, Inc.

OneMain Financial

PNC Bank, National Association

PNC Mortgage

Select Portfolio Servicing

Seterus

Springleaf Financial

Suntrust Mortgage

Wachovia Mortgage, FSB

Washington Mutual

Wells Fargo Bank, NA

Wells Fargo Financial

Wells Fargo Home Lending

Wells Fargo Home Mortgage

Wells Fargo Housing Foundation

Wilshire Credit Corp

ThankYou!

Our Team:Our Board

Sharon Sayles Belton - Vice ChairBarrett BurnsJoe DonovanBruce A. GottschallSanjeev Handa - Chair

Chris HerbertPrue LaroccaJill Kanin LoversBruce ParadisJeff Rohr

Executive Staff

David BerenbaumChief Executive Officer

Ken DuncanChief Financial Officer

Julie SteinhagenChief Operating Officer

For More Information:

The HOPE Hotline

Homeownership Preservation Foundation

7645 Lyndale Ave. S.,Suite 250Minneapolis, MN, 55423Office: 612-230-4020

1030 15th Street NW,Suite 530 EastWashington, DC, 20005

For counseling, please call1-888-995-HOPE™ directly.

www.995hope.org

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