NeighborhoodLIFT Program Offers DownPayment Assistance

If you spend any time with people who work in housing or real estate, you’ll hear certain ‘catch-phrases’ repeated over and over.  One of the most pervasive phrases heard over the last couple of years is “All Real Estate is Local.”  There’s a lot of truth in that statement… and it’s one of the reasons why the Minnesota Homeownership Center’s Homeownership Advisors Network is so successful at preparing homebuyers for successful homeownership.  

The Homeownership Advisors Network is made up of almost 50 different community-based non-profit, governmental and tribal organizations throughout the state.  The members are fully engaged in housing issues in their local communities and work on finding innovative ways to promote successful homeownership.  Two members of our network, Community Neighborhood Housing Services in St. Paul and Neighborhood Housing Services of Minneapolis, who are also NeighborWorks America affiliates, have partnered with Wells Fargo to bring the NeighborhoodLIFT program to Minnesota.

The NeighborhoodLIFT program is a collaboration between Wells Fargo and NeighborWorks America designed to provide down payment assistance and homebuyer education programs to aid housing recovery in areas that have been heavily impacted by the foreclosure crisis. In Minnesota, this program includes a $9 million investment for down payment assistance grants and homebuyer education and counseling programs to help homebuyers achieve successful, sustainable homeownership in the cities of Minneapolis and St. Paul. 

Minneapolis and St. Paul are two of about two dozen cities throughout the country that will benefit from a total investment of over $170 million that Wells Fargo has committed to the NeighborhoodLift program (also known as CityLIFT in other areas).

The new initiative was announced August 28 at a press conference at a home in North Minneapolis that has recently been remodeled by Neighborhood Housing Services of Minneapolis:

L-R Glennis Ter Wisscha (Neighborhood Housing Services of Minneapolis); Dave Kvamme (Wells Fargo); Jason Peterson (Community Neighborhood Housing Service)
CLICK TO ENLARGE

Recently Remodeled Home in North Minneapolis (Press Conference)
CLICK TO ENLARGE

The program will include a free event for potential homebuyers on Friday and Saturday, September 7th and 8th at the Minneapolis Convention Center, (Hall A) from 10am – 7pm.  At the event, buyers who are interested in purchasing a home in either of the cities can work with a member of the Homeownership Advisors Network and other housing counselors to see if they qualify for any of the down payment grants available through the NeighborhoodLIFT program – up to $15,000 – even if they haven’t yet chosen a home.  There will also be opportunities for buyers to preview featured homes for sale in Minneapolis and St. Paul neighborhoods.  Consumers who would like more information about the homebuyer workshop or to register, visit www.neighborhoodlift.org.


Here’s some additional information about the NeighborhoodLIFT down payment assistance program:

• Grant amount up to $15,000 for down payment assistance for the purchase of a primary, owner-occupied residence in either Minneapolis or St. Paul (surrounding cities are not eligible).
• The grant has a 0% interest rate and is forgivable 20% each year for five years (after the fifth year of continued residence, the entire amount is forgiven).
• Household income cannot exceed 120% Area Median Income
• Purchaser does NOT have to be a first-time buyer
• Homebuyer education is REQUIRED (Home Stretch certificate is accepted if the course was taken prior to 8/28/2012.  After 8/28/2012, the Home Stretch certificate must be issued by either Community NHS or Minneapolis NHS).
• This down payment assistance can be used with OTHER down-payment programs (speak with a Homeownership Advisor at Community NHS or Minneapolis NHS for more details)
• Most importantly: this down payment assistance can be granted REGARDLESS of who you choose to use as your primary lender (you do NOT have to have a first mortgage loan with Wells Fargo to qualify for the assistance).

Mortgage Payments and Duluth Flooding

The Minnesota Homeownership Center has received word that Wells Fargo Home Mortgage has established a process to help homeowners that are dealing with the after-effects of the devastating flooding from last week's rain in Duluth.


Wells is offering up to a 45-day moratorium on loan accounts - provided homeowners notify them that they have been impacted by the flooding.  According the Wells, the moratorium stops all payments, reporting to credit bureaus, late fees, collections and any foreclosure action.


What should Wells Fargo Home Mortgage clients do if they've been affected by the flooding?  There are two options:

1. Homeowners can call a specialized customer service agent at 1-888-818-9147.  These agents can assist customers with a forbearance or workout plan if needed. They also assist with any insurance questions or claims. 
2. Customers can visit the "Getting Disaster Assistance" page on the Wells Fargo Website.  This page highlights the disaster assistance hotline and other ways Wells can help customers with claims questions or payment options.

In addition, homeowners affected by the flooding should also contact a member of the Homeownership Advisors Network if they are find themselves struggling with payments due to the flooding... or need other assistance with finding reputable help to rebuild.  For Duluth, homeowners should contact 1 Roof Community Housing.


We'll update this post, and others, as we learn what other lenders, servicers and mortgage insurers are doing to help their clients recover from the flooding.

Mortgage Settlement Announced - What it Means for Minnesota

On February 9th, 2012, the Minnesota Attorney General’s office and the Department of Commerce announced that the State of Minnesota would be participating in the Federal Foreclosure settlement with five major lenders/servicers.  These five servicers have agreed to a $26 Billion dollar settlement, through which Minnesota borrowers may be eligible for up to $280 million.


The five lenders are: Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo.  (Nine other servicers may sign on to the settlement later, we’ll update that information as it becomes available.)    It is important to note that loans owned or backed by Fannie Mae and Freddie Mac are not part of the settlement.  However, there are other programs and assistance available to some of these borrowers.  Click here for more information.


Additional information for homeowners interested in learning more about the settlement is available here: http://www.nationalmortgagesettlement.com/.  


REMEMBER:  DO NOT PAY FOR HELP.  No ‘agent’, ‘specialist’ or ANYONE should be charging you to ‘get access’ to the settlement.


WHAT DOES THE SETTLEMENT PROVIDE FOR MINNESOTA?  
Direct Payments to Borrowers.  Minnesota borrowers may qualify for financial compensation:

• Certain borrowers who lost their home to Sheriff’s Sale between the beginning of 2008 and the end of 2011, may be eligible for financial compensation of approximately $2,000* if they lost their home due to financial hardship AND 
• They were in the process of seeking a loan modification and the bank proceeded with the foreclosure anyway OR
• There were documented errors committed by the lender in the foreclosure process.

*The exact amount paid to homeowners will depend on the number of eligible borrowers who file a claim.


Refinancing Benefits. This part of the settlement allows underwater borrowers of mortgages owned by the five banks (as long as they are not backed by Fannie/Freddie) to refinance to a lower interest rate if they are current on their mortgage and have not had any late payments in the last 12 months.  The loan must have been originated prior to January 1, 2009, and have an interest rate of 5.25 percent or more. 


Principal Reductions and Other Relief. This part of the settlement will allow certain borrowers of loans owned, or in some cases serviced, by the five banks to qualify for:

• a principal reduction of their underwater mortgage and either 30 days late on the mortgage or who face ‘imminent default’;
• a forbearance  (set period of time with no mortgage payments) for unemployed borrowers, 
• short-sale assistance, 
• transitional housing assistance, 
• and other relief (details to be determined)

Beyond the financial relief and compensation outlined in the settlement, the five banks have also agreed to make substantial changes to their mortgaging and servicing standards including:

• Processing loan modification requests in less than 30 days
• Stopping the foreclosure process for homeowners who have a loan modification application pending (as long as the application is processed more than 15 days before the Sheriffs sale)
• Stopping the  foreclosure process completely for homeowners who are complying with a trial modification (either HAMP or the lenders’ in-house modification)
• Lenders must process requests for short sales (permission to sell the home for less than the outstanding mortgage loan amount) in less than 30 days.
• Lenders must assign a single point of contact to homeowners, or their foreclosure prevention counselor, who will be responsible for keeping the homeowner up to date with information about the loan, the modification process and any documentation needed.

WHAT HAPPENS NEXT?  HOW DO I APPLY?

• Over the next 30 to 60 days, settlement negotiators will be selecting an administrator to handle the logistics of the settlement and monitor compliance. 
• Over the next six to nine months, the settlement administrator, attorneys general and the mortgage servicers will work to identify homeowners eligible for the immediate cash payments, principal reductions and refinancing. Those eligible will receive letters directly from their lender/servicer.
• This settlement will be executed over the next three years. 

The exact details of how homeowners access the settlement are still being worked out.  There are steps you can be taking to make sure that you keep up to date with the settlement:

1. Contact a non-profit member of the Homeownership Advisors Network.  Foreclosure Counselors will know, as the details become available, the exact steps to take AS WELL AS know if you might qualify for any additional assistance or be able to access other programs to help prevent the foreclosure of your home.
2. Contact your lender.  If your mortgage is with one of the five current participants in the settlement, visit the National Mortgage Settlement website for links to the banks’ websites and contact telephone numbers.  

Even if your bank is not participating in the settlement, or they are, but your loan is backed by one of the Government Sponsored Entities, it is important that you take steps right away if you are struggling with your mortgage.  Contact a foreclosure counselor TODAY to learn about the WIDE ARRAY of programs, helps and assistance that are available to Minnesota homeowners.  Counseling is FREE and non-biased.  The sooner you call, the more options you have available, and remember, NEVER PAY FOR HELP!

Independent Foreclosure Reviews

Banks have begun complying with enforcement action.  Homeowners may be able to receive compensation on foreclosures conducted in 2009 and 2010


Under enforcement actions taken by the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and Office of Thrift Supervision, more than a dozen large mortgage servicers are required to correct a number of problems with their servicing, loss mitigation and foreclosure processes.  These servicers are also required to engage independent firms to conduct reviews of foreclosure activities that took place during 2009 and 2010. 


Borrowers are eligible to submit a Request for Review to the independent consultants IF:

1. their loan was serviced by one of the 14 servicers or their affiliates (see list below), 
2. the property is, or was, their primary residence, and 
3. their loan was “active in the foreclosure process” between 1/1/2009 and 12/31/2010.
   
   Active in the process can mean:

• Sheriff’s sale occurred on the property
• Loan was referred to foreclosure but the sale did not take place due to a payment plan, modification, or non-retention option; and 
• Loans were referred to foreclosure but are still in delinquency.

BE CAREFUL!!
National media outreach will begin soon, and millions of homeowners will be notified by mail about the review process and will receive instructions for submitting a five-page Request for Review Form. As with any major announcement of this kind, we anticipate a number of copycat services and scams to pop up.


The independent reviews are free of charge and homeowners should never have to pay for foreclosure intervention services. 


If anyone asks you to pay for their help with a review... or sends you to a website other than the national website that has been set up by the OCC, be careful... it might be a scam!


The national website is: http://www.independentforeclosurereview.com/


Additional Information:
Requests for Review must be received by April 30, 2012. The independent consultants will confirm receipt of the form within one week, though the full reviews are expected to take several months to complete. The consultants will evaluate whether the homeowner suffered financial injury through servicer errors, misrepresentations or deficiencies in their foreclosure practices. In cases where findings indicate a homeowner suffered financial injury as a result of servicer practices, compensation or other remedies will be provided. The exact form of remediation is uncertain.


A copy of the OCC news release is here. 


Participating Lenders and Servicers (As of 11/2/2011)
     America’s Servicing Co.
     Aurora Loan Services
     Bank of America
     Beneficial
     Chase
     Citibank
     CitiFinancial
     CitiMortgage
     Countrywide
     EMC
     EverBank/EverHome Mortgage Company
     GMAC Mortgage
     HFC
     HSBC
     IndyMac Mortgage Services
     MetLife Bank
     National City Mortgage
     PNC Mortgage
     Sovereign Bank
     SunTrust Mortgage
     U.S. Bank
     Wachovia Mortgage
     Washington Mutual (WaMu)
     Wells Fargo Bank, N.A.

As always... if you have any questions about this Independent Foreclosure Review or are looking for ways to prevent the foreclosure of your home, contact a FREE, Non-Profit foreclosure prevention counselor that is a member of the Homeownership Advisors Network!  To find your local counselor, click here.

Dodd-Frank Reform Act & QRM Impact on Minnesota

Training for Housing, Lending & Real Estate professionals.

On Tuesday, May 24th, the Minneapolis/St. Paul Business Journal reported that, according the Federal Reserve Bank of Minneapolis, one in three banks in Minnesota are still struggling to recover from the foreclosure/financial crisis.

With this backdrop... Minnesota's mortgage lenders now face the uncertainties created by the implementation of the definition of "Qualified Residential Mortgage" (Section 941) of the Dodd-Frank Reform Act.  This section of the Act will require all financial institutions that securitize mortgage loans to retain at least five percent of the credit risk, and proposes strict definitions for Qualified Residential Mortgages that can be securitized.

Two of the Minnesota Homeownership Center's partners, Minnesota Housing Partnership and Wells Fargo will be hosting two events offering affordable housing advocates, lending and Real Estate professionals the opportunity to learn more about the Dodd-Frank Financial Reform Act and how the definition of Qualified Residential Mortgages may impact affordable homeownership in Minnesota and the country.

Paul Weech, executive vice president for policy and member engagement at the Housing Partnership Network and expert on the Dodd-Frank Reform Act will be the featured speaker at both sessions.

Participants will learn about:

• What does the definition of QRM mean for homeownership?
• What is the perspective of Minnesota’s non-profit housing organizations, lenders & government leaders of QRM?
• What opportunities exist to influence the final definition of QRM?

SESSION 1: Webinar
Date & Time: Wednesday, June 1st, 9-10am CST

SESSION 2: Live Panel Discussion
Date & Time: Thursday, June 16th, 8 - 11:30am CST
Location: Wilder Foundation, St. Paul, MN

To register (pre-registration required) or to learn more about the topics covered, visit the registration page here: http://qrmminnesota.eventbrite.com/

Center Board Member Recognized: Top Woman in Finance

The Minnesota Home Ownership Center is proud to publicize the fact that Muffie Gabler, long-time Center board member, has been recognized by Finance and Commerce as one of only 50 “Top Women in Finance” in Minnesota. In addition, Muffie was chosen to join Finance and Commerce’s “Circle of Excellence” as she had previously been honored as a Top Woman in Finance in 2007.

The Top Women in Finance award is given to principals, partners, executive vice presidents, CFOs, CEOs and managing directors at not only financial institutions and lenders but also leaders of businesses small and large throughout Minnesota who have shown innovation, leadership, or some other notable qualities in the area of finance.

In addition to being one of the principal drivers of the creation of the Minnesota Home Ownership Center, Muffie has been an integral part of the Affordable Housing arena in Minnesota and countless affordable housing initiatives and community development projects would never have gotten off the ground without Muffie’s assistance.

Winners were recognized during a dinner and program on November 10th at the Hyatt Regency in Minneapolis. For a complete list of honorees, visit the Finance and Commerce article here.

Foreclosure Prevention Opportunity for Wells Fargo Customers

The Minnesota Home Ownership Center is pleased to be working with representatives from Wells Fargo Bank to help Wells Fargo customers (and others) learn about options that may help homeowners overcome payment challenges & understand how to avoid foreclosure.

In addition to a PERSONAL meeting with Wells Fargo representatives to discuss possible workout options (loan modification), homeowners will get information about the foreclosure process in Minnesota and the different resources that are available to avoid foreclosure.

This workshop is FREE and open to the public! (Customers from other lenders can visit with Counselors)

Event Info:
June 5th & 6th
10:00am - 7:00pm
Minneapolis Convention Center
1301 Second Avenue South
Minneapolis, 55403

For More info: Click Here
For Map/Driving Directions, Click Here

Registration Recommended: www.wfhmevents.com/leadingthewayhome

Wells Fargo Home Preservation Event

I came across an interesting article at American Banking News about Wells Fargo, that I thought I'd share with you all.  The article states that Wells Fargo now performs THREE modifications for every ONE foreclosure on owner-occupied properties.  In addition, Wells has more than doubled their "Home Retention" staff in 2009 to over 15,000 people.

Yes, we know that big banks, like Wells, still have a LONG WAY to go (no flame wars, please). -  But Wells' commitment to keeping people in their homes was on display here in St. Paul at the RiverCentre on Wednesday and Thursday.  Hundreds of homeowners were able to meet face-to-face with representatives at Wells Fargo to discuss their options for avoiding foreclosure.

The event was EXTREMELY well organized... here's a "behind-the-scenes" picture of the loss mitigation scheduling chart the organizers used:  (Click to enlarge)

The Center's applauds all efforts that large banks like Wells make to openly engage with struggling homeowners, and our counseling network was pleased to be able to participate. 

Here are a few follow-up pictures of some of the Foreclosure Counselors that were on-hand during the event:

(Aliesha Kruck (L), Twin Cities Habitat for Humanity; Rock O'Bannon (R) Minneapolis NHS)

(Celeste Tometz, City of St. Paul PED)

(Dana Snell (L) from the Center speaks with Laura Carroll and Celeste Tometz of the City of St. Paul PED)

One other fun picture I thought I'd add... in the 'waiting lounge', Wells had set up a small movie screen with inflatable chairs for the kids (and grown-ups) to watch movies while they waited:

Are other lenders & servicers interested in hosting similar events? the Center would be pleased to assist.  Contact us for more information.

If you're a struggling homeowner that wasn't able to attend... or don't have a Wells Fargo loan... help is still available!  To find your local Foreclosure Counselor, click here.

Foreclosure Help for Wells Fargo / Wachovia Customers

The Minnesota Home Ownership Center and its network of non-profit Foreclosure Counselors are pleased to have been invited to participate with Wells Fargo Home Mortgage (and Wachovia Mortgage) at a large-scale event that begins tomorrow, February 17th at the RiverCentre in St. Paul.

Homeowners will be able to sit down face-to-face with representatives from Wells Fargo Home Mortgage and Wachovia Mortgage to discuss their options for avoiding foreclosure.  Event planners expect hundreds of struggling homeowners will be helped at the event.

Are you a Wells Fargo or Wachovia Mortgage customer struggling with your mortgage payments? If so, you're invited get the answers:

Event Details:
February 17th and 18th
10:00am - 7:00pm
St. Paul RiverCentre, Grand Ballroom
175 West Kellogg Blvd. St. Paul, MN

Walk-Ins Welcome, but pre-registration is recommended:
www.wfhmevents.com/leadingthewayhome

For an event flyer, click here.

For a map to the RiverCentre, click here.

Representatives from the Minnesota Home Ownership Center will be on hand as well as Foreclosure Counselors from:

• Community Neighborhood Housing Services
• Community Action Partnership of Suburban Hennepin
• Minneapolis Neighborhood Housing Services
• Neighborhood Development Alliance (NeDA)
• Twin Cities Habitat for Humanity
• Washington County Housing & Redevelopment Authority

Unable to attend?  Not a Wells Fargo customer... but struggling with your mortgage?  Don't delay... contact a FREE foreclosure prevention counselor TODAY for advice and options.  To find YOUR local Foreclosure Counselor, click here.

Success: a follow-up email we received

Back in December, the MN Home Ownership Center, with the help of 14 non-profit foreclosure counselors from the Center's network of providers, more than a dozen additional volunteers, and representatives from Wells Fargo Bank, held a workshop on foreclosure avoidance that was attended by hundreds of homeowners from Minnesota's SE Asian community.  (More info on the event here).

Today the Center received a follow-up email from one of the volunteers at the event:

I volunteered at this event to learn more about the foreclosure process so I could better serve my members. After learning about this event, I strongly encouraged one of my members, who was in foreclosure to attend the event. I was thrilled when she attended, knowing she was already in 4+ months of not paying her mortgage. I am very happy to report that today, I learned, with the assistance of your workshop and being connected to a foreclosure specialist, she was able to qualify for modifying her mortgage and has decreased her monthly payments from $950 to a more manageable $674. The most rewarding part of this, is knowing that she, her husband (both who are disabled) and their 7 children will still have somewhere to live. Thank you for all the hard work you do.

These are the success stories that keep us motivated here at the Center.  Our mission is "Succesful Home Ownership"... and we're glad we were a part of this family's success! 

The Center is currently finalizing its Foreclosure Counseling Report for 2009 which we'll be releasing in the coming weeks.  The report aggregates thousands of stories like the one above.  Stay tuned for more information.  (You can subscribe to receive our blog posts via email on the right-hand side of this page, or subscribe to our RSS feed here).

For more information on events, workshops and future trainings, visit the Center's website here.

This Saturday - Dec 5 - Workshop for Struggling Homeowners

SATURDAY DECEMBER 5th

9:00am - 1:00pm (Open House)

South High School

3131 19th Avenue South, Minneapolis

The Center is continuing its preparations for a large-scale workshop for struggling homeowners in the Twin Cities Metro area Asian community. More than 12 non-profit Foreclosure Counselors will be on hand and dozens of volunteers will be working diligently to assist homeowners that may not know where to turn for help. Representatives from Wells Fargo bank will also be participating to assist clients whose loans are serviced by Wells. (Dozens of other lenders have been invited and may also participate)

The Center has conducted a direct mailing of over 15,000 letters - many signed by local mayors from Minneapolis, St. Paul, Brooklyn Park, Brooklyn Center, Plymouth, Richfield and Bloomington to let consumers know about the event! The event has been highlighted in local Asian newspapers and on several radio programs.

At the event, homeowners will be able to hear a presentation about the foreclosure process in Minnesota and the kinds of help and assistance offered by the non-profit network of counselors, get information about how to contact a housing counselor that speaks their language and, if they'd like, even have a brief appointment with one of those housing counselors to get some of their questions answered directly.

English, Hmong, Vietnamese, Laotian, Chinese (both Cantonese and Mandarin) Korean, Khmer (Cambodian) Japanese and even Spanish-speaking counselors and volunteers will be present!

Do you speak a SE Asian language? Would you like to volunteer to make a difference to struggling families? Contact John Reynolds at the Center ASAP to volunteer. (There will be a training at the Center on Friday, December 4th, 9:00am for volunteers)

You can still help us spread the word! Please post the flyer or share with your friends/family/clients (they don't have to be Asian!). A copy of the flyer, with additional information about the event, is available here. For copies in Hmong or Chinese, visit our website here.