HUD Homes:HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process. M&M Contractors manage and market single-family properties owned by, or in the custody of the Department. HUD-owned houses are often referred to as HUD Homes. These are homes that had an FHA-insured mortgage, the homeowners defaulted, and the lender foreclosed. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment. Currently there are two M&M Contractors:PEMCO LTD dba REO PEMCO, LTD, and BLB ResourcesThese new contracts will streamline HUD's operations, capitalize on the expertise of its potential vendors, and provide flexibility to meet changing market conditions in the REO industry.These programs are monitored by the Real Estate Owned Division (REO) of the HOC, Directed by Thomas Rose.FHA TRAININGIn 2006, FHA created the FHA Resource Center in order to help ensure prompt, accurate, and consistent responses to all inquiries. The FHA Resource Center acts as the first line of response for the majority of industry and public inquiries. FHA believes that the FHA Resource Center allows members of the industry and the general public to quickly obtain the information they need while improving the consistency and accuracy of the information FHA provides. The email address and FAQ site are integral parts of the FHA Resource Center and FHA is anxious to spread the coming changes to our internal and external partners.The new address information is: Primary email address is: email@example.comApproved Non-Profit Programs: All SAHOC Non-Profit Programs and Down Payment Assistance Programs (DAP) for San Diego are Approved by the Program Support office at: U.S. Department of Housing & Urban Development6245 E. Broadway Blvd., Suite 350 Tucson, AZ 85711Attn: SAHOC Non-profit Team and Monitored by the Program Support Division in the SAHOC, directed by Jerrold Mayer. The Non-Profit Organization in San Diego are:Community HousingWorks Realty & LendingSan Diego Community Housing Corporation DAP Organization in San Diego:Community HousingWorks Realty & LendingCurrently the San Diego Office has 14 Approved Housing Counseling Agencies BAYSIDE COMMUNITY CENTERWebsite: www.baysidecc.org COMMUNITY HOUSING WORKSWebsite: www.chworks.org COMMUNITY HOUSING WORKSWebsite: www.chworks.org FAITH BASED CDCWebsite: www.fbcdc.org HOUSING OPPORTUNITIES COLLABORATIVEWebsite: www.housingcollaborative.org MONEY MANAGEMENT INTERNATIONAL Website: www.moneymanagement.org NATIONAL ASIAN AMERICAN COALITIONWebsite: www.mabuhayalliance.org NEIGHBORHOOD HOUSE ASSOCIATIONWebsite: www.neighborhoodhouse.org NOVADEBTWebsite: www.novadebt.org SAN DIEGO HOME LOAN COUNSELING & EDUCATION CENTERWebsite: www.sdhome.org SAN DIEGO URBAN LEAGUEWebsite: www.sdul.net SPRINGBOARD – CHULAVISTAWebsite: www.credit.org SPRINGBOARD – SAN DIEGOWebsite: www.credit.org UPAC Website: www.upacsd.com
Frank Riley San Diego Conf_02_24_2012
San Diego Field Office DirectorPerspective on Challenges Facing Real Educators Frank Riley Field Office Director San Diego HUD February 24, 2012
Assignment• 1. Compare and contrast the HUD housing experience from the 2008 Mortgage Meltdown to today• 2. How large a "Player" HUD is in the Mortgage Market now compared to 2000, 2008. and now/• 3. comments on the REO properties and the "shadow inventory" of the banks• 4. Specific unique experience of the San Diego Field Office compared to other field offices in California• 5. What point of knowledge Real Estate Educators should take back to their classrooms about HUD.• 6. HUDs commitment to Financial Literacy and Home ownership education ( if any).
“A picture is word a thousand words.”Fred R. Barnard in the advertising trade journal Printers Ink,promoting the use of images in advertisements that appearedon the sides of streetcars. The December 8, 1921 issuecarries an ad entitled, "One Look is Worth A Thousand Words."Another ad by Barnard appears in the March 10, 1927 issuewith the phrase "One Picture is Worth Ten Thousand Words,“The Home Book of Proverbs, Maxims, and Familiar Phrasesquotes Barnard as saying he called it "a Chinese proverb, sothat people would take it seriously." Soon after, the proverbwould become popularly attributed to Confucius.From Wikipedia
What are the pictures of thehousing market in the past few years, this year, and outlook? Who’s taking the picture? Whose in the picture? Whose not in the picture?
S. O. S High foreclosuresSecuritization Problem Securitization Origination Problem Origination Servicing Problem Servicing
Servicing Settlement Announced Feb 9, 2012• The largest federal-state civil settlement ever obtained and is the result of extensive investigations by federal agencies,, and state attorneys general and state banking regulators across the country. The joint federal-state group entered into the agreement with the nations five largest mortgage servicers: Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC). “The agreement also requires substantial changes in how servicers do business, which will ensure the abuses of the past are not repeated.“-Sec. Donovan
Next Steps Re Investigation of Possible Mortgage Abuses in Origination and Securitization• “The agreement does not prevent the government from punishing wrongful securitization conduct that will be the focus of the new Residential Mortgage-Backed Securities Working Group. The United States also retains its full authority to recover losses and penalties caused to the federal government when a bank failed to satisfy underwriting standards on a government-insured or government-guaranteed loan.” Sec. Donovan
• Current housing recovery underperforms previous recoveries.• Shadow supply of housing has remained elevated.• New homes for sale at all-time low, new completed homes for sale the lowest since 1971.• Slight increase among Renters who consider renting to be superior to ownership…and as a result, we are seeing more single-family homes moving back into rental stock.• Doug Duncan, VP & Chief Economist• Fannie Mae, December 13, 2011
SCHOOL OF BUSINESS ADMINISTRATION Ryan RatcliffUniversity of San Diego Asst. Professor of Economics Dec. 13, 2011• Recent signs do show CA and US economy improving, but still not arobust recovery.• CA will likely see a tepid and uneven recovery through summer2012(1-1.5% job growth), and pick up some momentum into 2013.• SD and Bay Area do better, while other regions lag. High tech and BusServ. are the bright spots, but little progress in lower/middle incomejobs (Mfg & Construction).• Weak job market and continued pipeline of distress sales suggesthome prices drift sideways, with some pickup next summer.
Outlook for 2012 Alan Gin Associate Professor of Economics School of Business Administration University of San DiegoHousing Market- Positive job growth, low interest rates, lack ofconstruction positive for the market-Positives overwhelmed by foreclosures remaining athigh levels- Positive job growth, but unemployment remainshigh- Prices expected to be erratic for the next two years
San Diego Union Tribune Housing Year in Review
San Diego Union Tribune Housing Year in Review
San Diego Union Tribune Housing Year in Review
How large a "Player" HUD is in the MortgageMarket now compared to 2000, 2008. and now? FHA is a major player nationally and back in Southern Californian due to the higher loan limits, return from subprime to Prime loans, features of FHA products etc. Handout
…is to create strong, sustainable, inclusive communities and quality affordable homes for all Strengthen the housing market to bolster the economy and protect consumers Meet the need for quality affordable rental homes Utilize housing as a platform for improving quality of life Build inclusive and sustainable communities free from discrimination Transform the way HUD does business
Assist homeowners who are at risk of losing their homes dueto foreclosure Increase the number of families housed through HUD’saffordable rental housing programs Reduce the number of homeless families and chronicallyhomeless individuals Increase the number of cost-effective energy and greenretrofits of public, assisted, and other HUD supportedaffordable homes
U.S. Congress Appropriates Funds to HUD U.S. Department of Housing & Urban Development Housing: Community Public & Indian Fair Housing &Single Family Planning & Housing EqualMulti Family Development Opportunity
The Office of Housing oversees the Federal HousingAdministration (FHA), the largest mortgage insurerin the world, as well as regulates some aspectshousing industry business. Through RESPAHUD’S RESPA program insures that homeowners are providedinformation about the cost of the mortgage settlement andprotected from unnecessarily high settlement charges causedby certain abusive practices.
“Strengthens the housing market to bolster the economy and protect consumers”, and “meets the need for quality affordable rental homes”SINGLE FAMILY HOUSINGPrograms include mortgage insurance on loans to purchase newor existing homes, condominiums, manufactured housing,houses needing rehabilitation, and for reverse equity mortgagesto elderly homeownersMULTIFAMILY HOUSINGPrograms provide mortgage insurance to HUD-approved lendersto facilitate the construction, substantial rehabilitation,purchase and refinancing of multifamily housing projects andhealthcare facilities
HUD Homes FHA Training and Events Approved Non-Profit Programs Housing Counseling Foreclosure Assistance Homeownership Marketing & Outreach
HUD Homeownership Centers (HOC) Insures single family FHA mortgages, assures FHA mortgage quality, helps homeowners & homebuyers through effective housing counseling, & oversees the selling of HUD homes HUD National Servicing Center (NSC) Works with FHA homeowners and their FHA lenders to find creative solutions to avoid foreclosure, provides direction and training to mortgage lenders and Housing Counseling Agencies, who are then better able to provide assistance to homeowners
The San Diego Field Office is located in Section 9 and FHA related programs are handled by the Santa Ana Homeownership Center. The Santa Ana Homeownership Center (SAHOC) serves the states ofAlaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon andWashington. It also serves the Pacific Islands of American Samoa,Guam, & the Commonwealth of the Northern Marianas.
•According to Core Logic, 17 of the top20 U.S. zip codes with the highestnumber of home foreclosures in 2011 arelocated in the SAHOC jurisdiction; nineof the top 20 are in Nevada.
To create equal housingopportunities for all personsliving in America byadministering laws thatprohibit discrimination inhousing on the basis of race,color, religion, sex, nationalorigin, age, disability, andfamilial status
Secretary Donovan’s Report on FY2013 HUD Budget-During the past two years, FHA helped nearly one millionhomeowners refinance into stable, affordable mortgages andinsured loans for more than 1.8 million homebuyers—more than77percent of whom were first-time homebuyers. By providingliquidity at a time when it was desperately needed,-FHA has served hundreds of thousands homeowners and has hada positive effect on the many industries involved in the housingmarket—realtors, homebuilders, lenders, and those who servicenew homes with furniture and appliances.
Secretary Donovan’s Report on FY2013 HUD Budget-Nationwide, FHA finances nearly one-third of home purchaseloans and a fifth of refinance loans, and has been especiallycritical to helping first time homebuyers and minorityborrowers to realize the American dream.-Fully 60 percent of all African-American and Hispanichomebuyers using mortgages rely upon FHA financingand more than 30 percent of all FHA-insuredhomebuyers are minorities.-More than half of all African Americans whopurchased a home last year and 45 percent ofHispanics did so with FHA financing.
Secretary Donovan’s Report on FY2013 HUD Budget FHA is the largest government insurer of mortgages in the world, insuring more than 39 million home mortgages and 53,000 multifamily project mortgages since 1934, and holds a portfolio in excess of $1 trillion today. In Fiscal Year (FY) 2013, HUD is requesting $400 billion in loan guarantee authority for the Mutual Mortgage Insurance Fund, which will provide an estimated 1.2 million single-family mortgages (a projected $149 billion in loan volume).
12 Month Trend 25000 20000Endorsements 15000 10000 5000 0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Endorsed 18948 20794 19468 19228 20825 19206 20532 18657 18355 18414 19522 22374 1st Time 9340 11119 11227 11987 13257 12546 13571 11841 11132 10900 11393 12195 Minority 4129 4695 4565 4977 5415 5369 5816 5129 4842 4710 4983 5239 HECM 1564 1644 1360 1100 1225 1158 1204 1242 923 768 807 986 LI 13925 15434 14703 14447 16041 15013 16049 14601 14383 14260 16152 17352 Refinance (F) 5353 4862 3918 3165 2936 2341 2264 2443 3407 4149 5245 6195
Santa Ana HOC Info•The SAHOC currently has 55 approved nonprofit agencies buying HUD homesand assisting first-time buyers,.•The SAHOC REO inventory at the end of January 2012 was down over50.0% from January 2011.•The average FICO score in the SAHOC jurisdiction in the 1Q ofFY 2012 was about 700.•The average forward loan in the first quarter of FY 2012 in ourarea was approximately $215,000down from about$229,000 in2011. All types of refinance transactions are up, which is not surprising due to the current mortgage market and Fannie and Freddie have lower mortgage limits .
FHA National Servicing Center• The goal of HUDs National Servicing Center (NSC) is to work with FHA homeowners and their FHA lenders to find creative solutions to avoid foreclosure. NSC staff also provide direction and training to mortgage lenders and Housing Counseling Agencies, who are then better able to provide assistance to homeowners.• National Servicing Center (NSC): (877) 622-8525• http://portal.hud.gov/hudportal/HUD?src=/program _offices/housing/sfh/nsc/nschome
Home Affordable Modification Program (HAMP) An official program of the Departments of the Treasury & Housing and Urban Development• If youre not unemployed, but youre still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP). HAMP can lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income, which usually provides savings of hundreds of dollars per month.• Making Home Affordable is planning enhancements to the HAMP Program. Detailed information will be available for mortgage servicers in February 2012. The expanded program for homeowners is expected to be available in May 2012.• Handout or go to website:• http://www.makinghomeaffordable.gov/pages/default.aspx
Making Home Affordable An official program of the Departments of the Treasury & Housing and Urban Development Making Home Affordable (MHA) is the Obama Administrations initiative that helps struggling homeowners get mortgage relief through a variety of programs that aid in mortgage modifications, interest rate reductions, refinancing, deferred payment or transitioning out of your home while avoiding foreclosure. Before you begin, please explore the available programs and learn more about MHA. The more you understand your options, the easier it will be when you speak to a housing expert or your mortgage servicer.http://www.makinghomeaffordable.gov/Pages/default.aspx
Making Home Affordable Programs• Home Affordable Modification Program SM (HAMPSM)• Principal Reduction Alternative SM (PRA)• Second Lien Modification Program (2MP)• FHA Home Affordable Modification Program (FHA-HAMP)• USDA’s Special Loan Servicing• Veteran’s Affairs Home Affordable Modification (VA-HAMP)• Home Affordable Foreclosure Alternatives Program (HAFA)• Second Lien Modification Program for Federal Housing Administration Loans (FHA- 2LP)• Home Affordable Modification Program for Rural Development Loans (RD-HAMP)• Home Affordable Refinance Program (HARP)• FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance)• Home Affordable Unemployment Program (UP)• Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)•
The FHA Resource CenterAre you a consumer with questions about... Buying a home?Qualifying for a loan?FHA loans?Down payment assistance?HUD Homes?Are you an industry partner with questions about... FHA loan products?Processing issues?Mortgage credit guidelines?Property analysis guidelines?Search www.hud.gov/answersOur online knowledge base helps you find answers 24/7.Email firstname.lastname@example.orgWere open 24/7.Note: The Resource Center can now accept emails with attachments. To ensureproper attention to the attachment please reference it within the body of the email.Phone Monday-Friday, 8 a.m. to 8 p.m. ET,Tollfree: (800) CALL-FHA or (800) 225-5342
FHA Contact Info• FHA staff are available to help answer your questions and assist you to better understand your options as an FHA borrower under these loss mitigation programs. There are several ways you can contact FHA for more information, including:• Call the NSC at (877) 622-8525• Call the FHA Outreach Center at 1-800-CALL FHA (800-225- 5342)• Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339.• Email the FHA Resource Center• The Online FHA Resource Center•
What has helped in San Diego?• HUD-approved Housing Counseling Agencies, with umbrella agency Housing Opportunities Collaborative.• Local efforts such as HOME clinics put on by the Housing Opportunities Collaborative.
HOUSING OPPORTUNITIES C O L LA B O R AT I V EMISSIONThe Collaborative promotes housing for all by:• providing community outreach and maintaining an informational clearinghouse.• promoting quality housing counseling and education, as well as financial literacy.• providing testing and enforcement of housing laws.• fostering homeownership and other housing opportunities for all persons.
HUDs commitment to Financial Literacy and Home ownership education ( if any).Home Ownership Education through HUD-ApprovedHousing Agencies-Handout.First-Time Homebuyers Programs- HandoutHOME Clinics in cooperation with partners, particularlyHousing Opportunities Collaborative.FHA Industry TrainingsFinancial Literacy- Working with partners-City-CountyReinvestment Task, PHAs Family Self-Sufficiency Programs, Participation In Smart Money Workshops.
What’s the Picture of the Housing Market in San Diego and surrounding counties?
What point of knowledge Real Estate Educators should take back to their classrooms?About HUD: FHA is the largest government insurer of mortgages in the world, insuring more than 39 million home mortgages and 53,000 multifamily project mortgages since 1934, and holds a portfolio in excess of $1 trillion today. FHA loan limits, underwriting standards, programs matter in the market. HUD is broader than FHA. It is also the HOME Program, CDBG, Fair Housing and Equal Opportunity, Healthy Homes, Rental Assistance Programs, the Department is focusing on Sustainability,= Energy Efficiency ,SMART Growth, Revitalizing neighborhoods…
What point of knowledge Real Estate Educators should take back to their classrooms?The importance of their role asEducators