Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

1. HOPE QUARTERLY MEETING March 27, 2014 • Martin O'Malley • GOVERNOR • Anthony G. Brown • LT. GOVERNOR • Raymond A. Skinner • SECRETARY • Clarence J. Snuggs • DEPUTY SECRETARY

2. Foreclosure Prevention Team Reginald Stanfield Director, Community Programs stanfield@mdhousing.org 410-514-7209 Virginia Tepper Director, Data & Technology Resources tepper@mdhousing.org 410-514-7359 Karen Ashby Assistant Director, Community Programs ashby@mdhousing.org 410-514-7209

3. Foreclosure Prevention Team Emilie Drasher Program Manager (410) 514-7221 Drasher@mdhousing.org Josephine Selvakumar Program Manager (410) 514-7232 Selvakumar@mdhousing.org

4. Today’s Agenda • Statewide Foreclosure Data • DHCD Marketing and Outreach • Calculating Income and Underwriting Presentation by Ocwen • NFMC Updates and Compliance • Monthly and Quarterly Reporting • Home Repurchasing Program, MHCF and Mediation Portal Updates • Prefile Mediation Discussion • Lunch • Grantee “Showcase” • New CFPB Regulations • Maryland Mortgage Program

5. Statewide Foreclosure Data

6. Foreclosure Data2012 - present

7. Foreclosure Data – Averages2012, 2013 and 2014

8. Foreclosure Data by County

9. NOI Data NOIs - Days Past Due *Majority of NOIs <360 days are more than 720 days delinquent

10. HOPE Hotline Calls Jan’13 – Feb’14 Average: 1,025

11. Housing Counseling Clients and Outcomes

12. Housing Counseling Clients and Outcomes

13. DHCD Reporting for State Stat DHCD Reports Monthly to Governor’s Office (State Stat) www.statestat.maryland.gov “Reports” tab Department of Housing and Community Development Monthly report of all HOPE activity (foreclosure filings, housing counseling and legal partners clients, outreach, etc.) Pages 5-13 (approximately)

14. Questions ?

15. DHCD Outreach and Marketing

16. Ocwen Presentation

17. NFMC Updates

18. Compliance

19. Round 8 Funding Announcement • NeighborWorksAmerica announced that $63.1 million has been awarded for Round 8 of the NFMC program. • Maryland Department of Housing and Community Development MD is awarded - $1,002,792. • The performance period for Round 8 is Oct 1, 2013 to Dec 31, 2014.

20. Round 7 updates • Round 7 amendments were sent out mid of February 2014. • Can enter clients to the portal for NFMC Round 7 as of August 2013 • Please be sure to increase your portal intake (Level I) by April 15,2014.

21. Neighbor Works NFMC Compliance NFMC Program – Counselor’s Website http://mdhope.dhcd.maryland.gov/Counseling/Pages/CounselorsPortal.aspx • Sample Client Satisfaction Survey Form • Sample NFMC Intake Form • NFMC: Making Home Affordable - Outreach and Intake Project • NFMC: Events of Default and Remedies Policy • NFMC Action Plan Template • NFMC Quality Control and Compliance Worksheet • Sample Authorization Form & Privacy Statement • National Industry Standards Code of Ethics • MD DHCD NFMC Required Documentation • MHA Checklist 10-2012

22. Special Notes About Round 8 • Steps Taken on Action Plan: Counselors notes alone do not satisfy the requirements. Verification that action took place is required. A general handout with a variety of workout options or “Actions” is not acceptable.

23. Special Notes About Round 8 • Steps Taken on Action Plan: Fax transmission sheets, e-mails, mail receipts, screenshots of portal communication or other signed verification that any action took place is required to be retained in the client file.

24. Special Notes About Round 8 • Privacy Policy: Having access to the privacy policy on the organization’s website does not satisfy this requirement unless there is affirmative confirmation and documented proof that the client has reviewed the policy in the file.

25. Special Notes About Round 8 • Privacy Policy: Clients who are given the choice to “opt-out” of the organization’s privacy policy provision allowing for the sharing of their information with affiliated third-parties and choose to do so cannot be uploaded into the DCS for payment by NFMC.

26. Special Notes About Round 8 • Verification of Action Plan: Suggestions for documenting referrals to realtors- must include 3 realtors and client signature stating they received the list. • “Referring” a client back to the servicer/lender is not considered a referral.

27. Neighbor Works Compliance • Grantees must have signed the National Industry Standards Code of Ethics and Conduct and Minimum Standard Activities for Foreclosure Intervention and Default Counseling.

28. Neighbor Works Compliance • Authorization Forms – NFMC Authorization not other Authorization Old Forms Key Provisions – remove dates!! Form must explicitly state that the client is authorizing (a). the agency to submit client-level information to the Data Collection System for the NFMC grant, (b). NFMC to open files to be reviewed for program monitoring and compliance purposes, and (c). NFMC to conduct follow-up with the client related to program evaluation.

29. Neighbor Works Compliance • Disclosure Language I understand that (organization name) provides information and education on numerous loan products and housing programs and I further understand that the housing counseling I receive from (organization name) in no way obligates me to choose any of theseparticular loan products or housing programs.

30. NFMC Level 1 Counseling Defined Level 1 Counseling - All of these completed documents must be in client file: • Intake – DHCD Portal, CMS, or HOPE LOAN PORT® • Signed Authorization with NFMC language not credit authorization or mortgage authorization • Budget • Action Plan – NFMC Compliance Worksheet • Screen for Making Home Affordable. Documentation that a screening occurred for each type of available assistance should be included in the Action Plan and client file. .

31. NFMC Level 2 Counseling Defined Level 2 Counseling - These completed documents must be in client file: • Signed Authorization with NFMC language, • Verified budget (income and debt,) • Documentation of Action Plan, • Close-out documentation. (No longer required)

32. Key Points to Remember • Adherence to the Industry Standards • Training for new counselors • Stay current – HUD, MHA, etc. • Reducing number of - open cases. • Continue to do outstanding work • Communicate with DHCD about what is going on in your agency.

33. Key Points to Remember • Signed Ethics to hopecounselors@mdhousing.org • Review NFMC requirements • Increase your portal intake by April 15,2014. • Compliance with Housing Counseling Standards • Make links with Legal Service Providers

34. Compliance and Monitoring • Program Time Frames • Client File Requirements • Reporting Dates • Random Review Process • NFMC Member Site www.nfmcmembers.org • NFMC Monthly WebExes

35. Questions ?

36. MONTHLY AND QUARTERLYREPORTING

37. Dates to Remember Monthly Reports • 5th of the month Wait Time Survey • 5th and 20th of the month AG/MHCF and NFMC Quarterly Reports (Jan-Mar) • April 10th Next Quarterly Meeting – June 11, 2014

38. Questions ?

39. MHCF, Foreclosure Relief Home Repurchase Program,and Mediation Portal Updates

40. Housing Counseling E-Newsletter • Wait Time Survey Link • Registration for meetings and trainings • Reminders for reporting • Upcoming events • Program and grant updates and announcements • Complaint submission forms • And more!

41. MHCF Updates • All agencies that sent all required documentation should have already received the first disbursement. • Payment will be delayed if DHCD did not receive all documents including corporate resolutions, documentation for the Maryland Solicitations Act, witnessed signature pages and/or SDAT compliance. • If DHCD has not received all documentation, your agency has already been notified by Karen Ashby.

42. Foreclosure Relief Home Repurchase Program

43. Mediation Portal Updates • Contracts with IndiSoft • Issues with HLP or other software • Lender participation • Portal workgroup?

44. Prefile Mediation

45. Maryland Prefile Foreclosure Mediation by Owen Jarvis March 27, 2014 St. Ambrose Housing Aid Center Hope Quarterly Meeting

46. What is Prefile Mediation? • Foreclosure mediation that occurs prior to the filing of the Order to Docket. • Started in November 2012 as an alternative to postfile mediation. • Has not been widely participated in – only 57 prefile mediation requests for the life of the program.

47. Requesting Prefile Mediation • Borrower may only elect to participate if it is offered by the secured party. • Must be requested within 25 days of the date the Notice of Intent to Foreclose is sent. • Application is sent to the secured party, who sends it to the Office of Administrative Hearings within 5 days for scheduling.

48. Before Prefile Mediation • Office of Administrative Hearings schedules prefile mediation within 60 days of request and sends notice to borrower. • Borrower must submit list of required documents. • Borrower must participate in housing counseling services prior to attending prefilemediation.

49. At Prefile Mediation • Confidential discussion between the borrower, a representative of the secured party, and an Administrative Law Judge. • Review of documents submitted and status of loss mitigation. • Discussion of potential retention and liquidation options. • Written agreement may be entered into voluntarily.

50. Why participate in Prefile? • Presents an earlier opportunity for loss mitigation than postfile. • Foreclosure is placed on hold, delaying filing of Order to Docket. • Fee is paid by the lender, unlike in postfile.