Mortgage Payment Program Workshop

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					            North Carolina Housing Finance
                        Agency




            North Carolina Foreclosure
                 Prevention Fund
            Mortgage Payment Program
5/18/2012
Telamon Corporation
We are a HUD Certified multi-state organization offering a wide range of housing
services in 10 states. We offer educational and consumer services including
financial literacy training, foreclosure prevention and mitigation services,
transitional housing and self-help housing development options. We also operate
other multi-state housing programs.

Our housing development projects include new housing design and
development, housing weatherization, rehabilitation, farm labor housing
development , low-income housing tax credit projects, and training and technical
assistance.

In recent years, our focus has grown to include people struggling with pending
foreclosures and loss of their home. In all cases, projects are focused on helping
families work toward a sound financial future, and acquire a housing solution
that is right for them.

                                                                                     2
    WORKSHOP
   PRESENTATION

  Overview of NCHFA’s
Mortgage Payment Program

                       3
 Overview of NCHFA MPP
Mortgage Payment Program Overview:

• Pay the monthly mortgage payments (s) and other mortgage
  expenses not escrowed while the homeowner is searching
  for employment or enrolled in a re-training program

• Bring a delinquent mortgage current for a homeowner who
  has returned to work or recovered from a temporary
  program eligible financial hardship and who has the ability
  to resume the regular monthly mortgage payments


                                                                4
    Mortgage Payment Program
• Meeting eligibility criteria DOES NOT
  guarantee approval for Mortgage
  Payment Program assistance
• The final eligibility requirements will be
  confirmed by NCHFA staff
• The homeowner must also meet
  applicable underwriting guidelines

                                               5
  MPP Types of Assistance
• Job Search – Short Term Assistance
• Job Training Education – Long Term
  Assistance
• Reinstatement – One – Time
  Assistance
• Second Mortgage Refinance
  Program
                                       6
Job Search – Short Term Assistance
• Unemployed homeowners who
  need assistance with their mortgage
  payment(s) and/or mortgage-
  related expenses while looking for
  work. Not more than 6 months
  delinquent at time of application for
  12 months of assistance

                                      7
Job Training Education – Long Term Assistance

• Unemployed homeowners who need
  assistance with their mortgage
  payment(s) and/or mortgage-related
  expenses while completing job training,
  certification and education programs to
  improve skill set.
• No more than 6 months delinquent at
  time of application for 24 months of
  assistance
                                                8
     Reinstatement – One – Time
              Assistance
• A homeowner who has recovered from a program
  eligible financial hardship or is re-employed and can
  now resume the monthly mortgage payment(s)
  based on his/her new income and other debts.
• This type of assistance is appropriate when the
  homeowner needs help only to bring the mortgage
  and/or mortgage-related expenses current.
• The homeowner must meet minimum debt-to-
  income ratio requirements.


                                                      9
     Second Mortgage Refinance
             Program
• Works with the Reinstatement – One Time
  Assistance.
• Maximum assistance is $30,000 to extinguish the
  unaffordable second mortgage.
• Must demonstrate need. 31% of monthly gross
  income is not sufficient to meet payments of the 1st
  and 2nd loans. (principal, interest, taxes, insurance
  and HOA fees)



                                                      10
      MPP Program assistance will be
       provided in the form of a loan
•   Funds used to pay the monthly mortgage payment(s) will
    be disbursed by the Agency directly to the loan servicer on
    behalf of the homeowner.
•   Funds will be in the form of a 0% interest , non-recourse,
    and deferred-payment forgivable loan which will
    subordinate to current mortgages.
•   The loan will be forgiven in full after 10 years provided the
    homeowner remains in the home.
•   The forgiveness clause will reduce the loan amount by 20%
    a year every year provided the homeowner stays in the
    home after 5 years. The loan must be paid back if the
    home is sold, refinanced or is no longer owner occupied
    prior to the maturity date.
                                                                11
    MPP Eligibility Criteria:
• North Carolina Homeowner
• Legal US Resident or Legal Alien
• Occupy property as primary residence
• Through no fault of own, experience
  financial hardship event on or after January
  1, 2008
• Satisfactory 6 month mortgage payment
  history prior to financial hardship event

                                                 12
    MPP Basic Exclusion Requirements

Homeowner cannot have:
•   A Chapter 7 or Chapter 13 Bankruptcy that has not
    been discharged or dismissed
•   Been convicted of a mortgage related felony in the
    last 10 years
•   Unpaid principal balance of mortgages that exceed
    $275,000
•   Seller financed mortgage
•   Current pending litigation on primary residence
    mortgage
                                                     13
    MPP Property Requirements
•   Primary Residence must be located in North Carolina
•   The primary residence can be
       A single family home
       Condominium or townhouse
       Manufactured or mobile home on foundation
       permanently affixed to real estate owned by the
       homeowners
       A duplex where the owner occupies one unit as their
    primary residence
•   The owner cannot have more than one property other than
    their primary residence (unless part of self-employed
    business)
                                                              14
MPP Underwriting Criteria:

   NEED for ASSISTANCE

    ABILITY TO RESUME

     LOAN-TO-VALUE
                             15
                   MPP Example

                    Hardship Date
Under-employed
Hardship date is date applicant experienced two
    consecutive months of income reduction

•   Verified by 3 months of pay stubs
•   Verified by notarized letter from the employer



                                                     16
                   MPP Example

                           Hardship
Under-employed
•   An applicant that loses their job due to no fault of their own, and takes
    another job paying less money does not have an employment issue.
    They are not eligible for the Mortgage Payment Program.




                                                                            17
       MPP Loan Process
          To Complete the Application Process
•   Provide and complete all of the Documents as
    required on the Workshop Checklist
•   Complete Financial Budget – all expenses and
    income will be reviewed by the Counselor
•   Analysis and Assessment of your application will be
    completed by the Counselor prior to submission
•   Telamon will up-load and submit Loan Application
    and supporting Documents to the NC Housing
    Finance Agency. This is an electronic submission.
                                                      18
      MPP Loan Process –
   NC Housing Finance Agency
• NCHA’s Processor is given the file for review
• NCHFA’s Underwriter gets the file to complete the
  review
• NCHFA’s Loan Review Committee (May be
  Conducted)
• NCHFA request lender and other parties
  information to establish payment amounts
• NCHFA conducts Legal Review
• NCHFA’s Documents are prepared for loan closing
  and sent to Telamon Corporation
                                                      19
         MPP Loan Process –
         Counselor Agency
• We receive the Closing Documents from
  NCHFA
• We schedule the Loan Closing with you
• Loss payee is added to homeowners
  insurance policy; required by NCHFA
• Telamon Records the Deed of Trust and the
  Notices. There is no cost for the recording.
• The Closing Documents are returned to the
  NC Housing Finance Agency
                                                 20
       MPP Loan Process –
   NC Housing Finance Agency
• Receives the Signed Closing
  Documents from Telamon
• NCHFA establishes the payment
  schedule for the Mortgage
  Payments and Relevant Parties
• Process takes about 15-30 days to
  process and establish the payment
                                      21
  50 Targeted or “Hardest Hit” Counties

Alamance    Chowan      Lenoir        Rutherford
Alexander   Clay        Lincoln       Scotland
Alleghany   Cleveland   McDowell      Stanly
Anson       Columbus    Mitchell      Surry
Ashe        Davidson    Montgomery    Swain
Beaufort    Davie       Nash          Vance
Bladen      Edgecombe   Northampton   Warren
Burke       Gaston      Person        Washington
Cabarrus    Graham      Randolph      Wilkes
Caldwell    Halifax     Richmond      Wilson
Caswell     Harnett     Robeson       Yancey
Catawba     Iredell     Rockingham
Cherokee    Lee         Rowan
                                                   22
       MPP Supporting Documents
               Checklist
•   Bank Statement most recent month
•   Pay Stub
•   Unemployment Benefits history of payments or Benefit Award
•   Appraisal associated with Deed of Trust to set market value of home
•   Current Mortgage Statement and 12 month payment history statement
    prior to the financial hardship (primary loan)
•   Mortgage Payment History (this maybe required)
•   Promissory Note
•   Warranty Deed
•   Homeowners Association Dues Statement
•   Proof of Flood Insurance only if not escrowed



                                                                          23
          MPP Supporting Documents
                  Checklist
•   Proof of Homeowner’s Insurance only if not escrowed
•   Property Tax Statement only if not escrowed
•   IRS 1040
•   IRS 4506-T
•   NCHFA’s Third Party Authorization Form
•   Business returns and all schedules
•   Year-to-Date Income Statement
•   Profit and Loss Statement
•   433-D Installment Agreement for delinquent taxes
•   Enrollment Verification Letter/ Intent to Graduate Letter




                                                                24
         MPP Supporting Documents
                 Checklist
•   Child Support or Alimony Verification
•   SSI or SSDI Award Letter
•   Confirmation of Medical Hardship and the date of the doctor’s determination:
•   Death Certificate
•   Divorce Decree or Separation Agreement
•   Loss Mitigation or Loan Modification Verification
•   Notice of Foreclosure Hearing and/or sale date
•   Credit Report Authorization & Privacy Disclosure Form
•   Hardship Affidavit
•   Monthly Budget



                                                                            25
  Assistance Payments
• Mortgage Payment Program Loan proceeds
  are paid directly to loan servicer and
  includes:
  – (P) Principal
  – (I) Interest
  – (T) Taxes (property)
  – (I) Homeowners Insurance
  HOA dues may be paid if regularly paid on a
    monthly basis
                                                26
    Can the MPP Program Stop a
            Foreclosure?
• YES and NO
• The NCHFA will review the application
• If the homeowner is more than 90 days
  delinquent and meets all the eligibility and
  underwriting MPP guidelines, a stay of
  foreclosure will be placed for 120 days; while
  your loan is reviewed, approved or denied,
  and closed.

                                               27
   Stay of Foreclosure; What it
            Doesn’t Do
• Does not prevent collection
  calls
• Does not prevent derogatory
  credit bureau reporting
• Does not suspend late charges
                                  28
       What Happens At Closing
• You may hire an attorney to review your closing
  documents or attend the closing, Telamon does not
  provide legal advice for the closing process
• Telamon Corporation performs the closing:
   You will meet with the Counselor and notary in our
   office to complete the application process
   Documents will be reviewed, signed and notarized
   All borrowers are required to attend the closing.


                                                    29
    What Happens After Closing?
 Follow-up and Close out Counseling
• One-Time Assistance: One close out session within
  90 days of reinstatement
• Short-Term Assistance: Two follow-up sessions
  during term of assistance, provide one close-out
  session within 90 days of assistance
• Long-Term Assistance: Up to 7 sessions: 1 monthly
  session within the first 3 months, follow up sessions
  every 6 months until assistance ends, 1 close-out
  session within 90 days after assistance

                                                      30
                  Applying for MPP
                    Next Steps
• Make sure that the Pre-Eligibility form package is completed and
  returned to Telamon staff at the end of this workshop.
• Write hardship affidavit using the form provided
• Submit all copies of required documents contained in the packet and on
  the checklist to Telamon Corporation
• The Counselor will review the documents
• If all documents are submitted and complete the Counselor will call to
  schedule an appointment to complete the application process and
  submit the application
• If incomplete you will be notified concerning the missing documents that
  you must submit to complete your application. If these documents are
  not submitted within ten (10) business days, all documents will be
  returned to you and your file will be closed

                                                                        31
          The Bottom Line
• An appointment WILL NOT be made
  with the Mortgage Payment Program
  Counselor until ALL OF THE required
  documents are complete and have been
  submitted to Telamon Corporation
• Your Mortgage Payment Program
  Application CAN NOT BE SUBMITTED
  until you meet with the Counselor
                                     32
     For Further
Eligibility Questions
        go to:
www.ncforeclosureprevention.gov


 Call 1-888-623-8631
                                  33
Telamon Corporation
Contact Information
  919-899-9911
  leave a message
  www.telamon.org
       e-mail:
Housing@telamon.org
                      34

				
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