www.hocmn.org state and federal housing legislation 2008: impact on foreclosure counseling in...
DESCRIPTION
Introduction History Role Network Minnesota Home Ownership CenterTRANSCRIPT
www.hocmn.org
State and Federal Housing Legislation 2008:
Impact on Foreclosure Counseling in Minnesota
www.hocmn.org
AgendaAbout the Center and Foreclosure CounselingSetting the StageNew State LegislationHousing and Economic Recovery Act of 2008Impact of Current FundingQ & A
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Introduction History
Role
Network
Minnesota Home Ownership Center
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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
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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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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
2005 20072008
(projected)
Greater MN
2,707 7,430 8,346
Metro 3,759 12,974 19,936 Total
6,466 20,404 28,282
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State Legislation 2008
New Pre-foreclosure NoticePre-foreclosure notice to homeowners
Notice with homeowner contact info to counseling agency
Counseling agencies use contact info to reach out to homeowners
Tracking referrals
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State Legislation 2008
Change in Sale Notice to HomeownerSale 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 Rightswww.LawHelpMN.org
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Housing and Economic Recovery Act of 2008
Hope for Homeowners ActAuthorizes FHA to insure up to $300 billion in 30-year fixed rate mortgages
Fact Sheet
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Housing and Economic Recovery Act of 2008
Foreclosure Protections for Service MembersEstablishes 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
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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
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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
4th Qtr. 2007
1st Qtr. 2008
2nd Qtr. 2008
Households
Served
1,338 2,092 2,669
