Relief for Colorado Homeowners Colorado Attorney General’s Office
Colorado Attorney General's Office 2
As of March 2013, just over 7,000 Colorado homeowners had realized $398.0 Million in mortgage relief as follows: $50.0 Million in principal reductions to facilitate loan modifications $75.0 Million in secondary lien extinguishment $180.0 Million in loan forgiveness associated with short sales $49.5 Million in deficiency waivers $37.5 Million in the estimated savings from the refinancing benefit $6.0 Million in other relief like cash-for-keys and anti- blight efforts Colorado Attorney General's Office 3
Available to borrowers who lost their homes in foreclosure from 2008 – 2011 Borrowers filed a claim form attesting to dual track problems or foreclosure misconduct by January 18, 2013 Payments of approximately $1,480 were issued to almost 23,000 Coloradans beginning June 10, 2013 This is separate from the Independent Foreclosure Review, which issued checks in May pursuant to a settlement by federal bank regulators. www.IndependentForeclosureReview.com Colorado Attorney General's Office 4
42 pages of injunctive terms 304 Servicing Standards Implemented by October 2, 2012 Protects the integrity of the foreclosure process: Ensures accuracy of documents and standing to foreclose Monitoring of attorneys processing foreclosures Facilitates Loan Modifications: Eliminates the dual track problem Single point of contact for modification requests Timelines for consideration of a modification application No more lost documents Colorado Attorney General's Office 5
The settlement is monitored by: - Monitoring committee composed of HUD, DOJ and State Attorney General Office representatives (including Colorado). - Joseph A. Smith, Jr. , Former North Carolina Commissioner of Banking and the Office of the Mortgage Settlement Oversight. Issues quarterly reports about compliance and relief obtained by homeowners under the settlement. Monitor takes complaints from professionals associated with mortgages at: www.MortgageOversight.com Colorado Attorney General’s Office 6
Colorado’s share: $51.17 Million Custodial funds which can be used for Foreclosure Prevention, Loan Modification and Housing Programs Coordinated with the Governor’s Office, Division of Housing, Leadership from the State Senate and House, lending community and the housing community Held public meetings in February and March 2012 and received input from all interested stakeholders Colorado Attorney General's Office 7
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$18.2 Million to Colorado Division of Housing Colorado Attorney General's Office 9
Created a $13.2 million revolving fund for the construction of affordable rental housing. The Division of Housing has awarded $10.5 Million for 7 projects ◦ Will add 844 affordable apartment rental units across the state. ◦ By the time all of the funding is issued, we expect that a total of 900 affordable housing units will be made available. As these loans are repaid the proceeds will be deposited in the Housing Investment Fund, which shall be used to promote affordable housing in Colorado. Colorado Attorney General’s Office 10
$24 Million for loans to homeowners facing foreclosure who are unable to receive assistance through their mortgage loan servicer Colorado Attorney General's Office 11
This program is intended to provide limited assistance to borrowers who have experienced a temporary disruption in income, unforeseen expense, or hardship which has caused them to fall behind on their first mortgage. These borrowers can afford the existing first mortgage payment but are unable to cure their default using traditional repayment programs. Program am Goal Cure the delinquency. Provide borrowers a hand-up, not a hand-out to stabilize their housing situation and prevent them from causing serious damage to their credit to cure the default. Colorado Attorney General's Office 12
Maximum loan amount is $50,000. Funds advanced will be secured as a 0% interest, deferred subordinate lien, due on sale or transfer (not to exceed 30 years). Lender late fees must be waived. Homeowners must meet with a HUD- approved housing counseling agency that is a member of the Colorado Foreclosure Hotline to determine eligibility. Colorado Attorney General's Office 13
Coordinates with housing counselor and mortgage servicer. May interface with Public Trustee and/or foreclosure counsel as necessary. Reviews application and issues approval/denial. Requests payoff statement; prepares documents and has them properly executed and recorded; ensures proper disbursement of funds. Contact: Michelle Mitchell President Colorado Housing and Assistance Corporation (CHAC) 670 Santa Fe Drive, Denver, CO 80204 Phone: 303-572- 9445 x16 Fax: 303-573-9214 MichelleM@chaconline.org Colorado Attorney General's Office 14
Provides securitized principal reductions to enable borrowers to qualify for loan modifications with their existing lenders, where the mortgage loan servicer is unwilling or unable to provide a principal reduction or the borrower is unable to qualify for a loan modification under existing programs. Program am Goal: Cure the delinquency. Provide borrowers who cannot afford their current mortgage payment the ability to stabilize their housing situation by obtaining an affordable mortgage payment through a loan modification. Enable borrowers with a strong likelihood of success to have access to a modification. Colorado Attorney General's Office 15
Maximum loan amount is $50,000. Funds advanced will be secured as a 0% interest, deferred subordinate lien, due on sale or transfer (not to exceed 30 years). Lender late fees must be waived. Homeowners must meet with a housing counseling agency that is a member of the Colorado Foreclosure Hotline to determine eligibility. Colorado Attorney General's Office 16
Coordinates with housing counselor and mortgage servicer. May interface with Public Trustee and/or foreclosure counsel as necessary. Reviews documentation for compliance with program guidelines and issues approval/denial. Prepares documents and has them properly executed and recorded; ensures proper disbursement of funds. Contact: Megan Ferguson Loan Programs & Outreach Coordinator Funding Partners 330 S. College Ave., Suite 400 Fort Collins, CO 80524 Phone: 970-494-2021 Fax: 970-494-2022 megan@fundingpartners.org Colorado Attorney General's Office 17
$5.625 Million administered by Colorado Housing Finance Authority (CHFA) Colorado Attorney General's Office18
$5.625 25 Million Housing ng Counselin ing g Support Fee for Service: Ramp- up costs: $4.4 Million $625,000 Expansion to rural areas: Program Administration: $275,000 $325,000 Colorado Attorney General's Office 19
$1.1 Million grant and outreach campaign Colorado Attorney General's Office 20
Call to speak with a HUD-approved nonprofit housing counselor This is a FREE service available to anyone. Do not need to be in foreclosure. 4 out of 5 homeowners who meet with a counselor successfully avoid foreclosure 1-877-601-HOPE (4673) www.ColoradoForeclosureHotline.org Colorado Attorney General's Office 21
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$1.5 Million grant Colorado Attorney General's Office 23
Foreclosure can result in the loss of your home. Colorado law provides homeowners with important legal rights prior to your lender being able to foreclose on your home. Talk to a lawyer and find out your rights! Colorado Legal Services is a statewide nonprofit organization that provides lawyers and legal assistance to low-income and elderly homeowners facing foreclosure. If your house is in foreclosure, then CLS may be able to assist you (subject to certain eligibility criteria and guidelines). TO FIND OUT IF YOU ARE ELIGIBLE, CALL TOLL-FREE: 1-855 55-787 787-0888 0888 Colorado Attorney General's Office 24
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Colorado Attorney General’s website: Consumer Self Help Information, Scam Alerts and Complaint Forms www.ColoradoAttorneyGeneral.gov/mortgagesettlement Colorado Consumer Line: 1-800-222-4444 National Website: Settlement Documents, FAQs and National News www.NationalMortgageSettlement.com 26 Colorado Attorney General's Office
Colorado Attorney General's Office 27
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