Presented by: Margaret Van Vliet Director OHCS. Janet Borth Assistant Attorney General DOJ. Emily Reiman Program Manager NEDCO

Transcription

1 UPDATE ON FORECLOSURE PREVENTION Presented to the Senate Interim Committee On General Government, Consumer and Small Business Protection September 17, 2013 Presented by: Margaret Van Vliet Director OHCS Janet Borth Assistant Attorney General DOJ Emily Reiman Program Manager NEDCO

2 HOMEOWNERS IN DISTRESS Oregon a Hardest Hit State High foreclosures, high unemployment 90+ day delinquency remains high: 28, ,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Days Late 2

3 FORECLOSURE PREVENTION TOOL TIMELINE Foreclosure Counseling Statewide availability Hardest Hit Funds $220M allocated in 2010 Direct assistance to homeowners Multi-State Settlement $29.2M to Oregon General Fund $466M+ to Oregon homeowners (banks) Mediation Senate Bill 1552 passed in 2012 Senate Bill 558 passed in

4 MULTI-STATE SETTLEMENT, CONT. $29.2M allocated to State General Fund Legislature allocated: OHCS $8.1M DOJ $3.8M TOTAL: $12.9M $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 OHCS & DOJ Appropriations $0 Foreclosure Counseling Legal Assistance Outreach Mediation Program Consumer Protection DA Fraud Enforcement Projected

5 OHCS USE OF SETTLEMENT FUNDS Foreclosure Counseling Statewide network enhanced, 25+ counselors Online orientation tools created Legal Assistance Partnership with Legal Aid Society of Oregon Assistance provided in-person and over phone Development of pro-bono lawyer network Outreach Creation of new foreclosure information website DOJ and OHCS collaboration for settlement outreach resulting in 80% claim rate 5

6 Janet Borth REVIEW OF FORECLOSURE AVOIDANCE PROGRAM Assistant Attorney General Oregon Department of Justice 6

7 SENATE BILL 1552 Required mediation in non-judicial foreclosures A shift toward judicial foreclosures occurred after the Niday decision Of the 25 cases that went to mediation, 13 reached agreement in mediation, with more reaching agreement after mediation Program effective 7/6/12 to 8/4/13 7

8 FORECLOSURES IN OREGON Judicial Foreclosure Filings Non-Judicial Foreclosure Filings Total * ** Source: CoreLogic, Oregon Judicial Department * Judicial Filing numbers are unofficial **Projected 8

9 SENATE BILL 558 Applies to judicial and non-judicial foreclosures Clarifies and simplifies program requirements Provides DOJ with enforcement authority New program effective August 4,

10 BENEFICIARY REQUESTS UNDER SB Beneficiary Requests for a Resolution Conference in the first 6 weeks of SB Beneficiary requests for mediation during the 13 months that SB 1552 was effective Large increase in requests by private lenders Chase and Wells Fargo are expected to begin requesting resolution conferences in the near future 10

11 BENEFICIARY REQUESTS UNDER SB 558, THROUGH % 40.00% 40.31% 35.00% 30.00% 31.78% 25.00% 20.00% 15.00% 10.00% 12.66% 8.01% Percent of total B-I Requests 5.00% 0.00% Nationstar Mortgage LLC Green Tree Servicing LLC US Bank National Association OHCS, State of Oregon - HomeStreet Bank 2.84% OHCS, State BSI Financial of Oregon - Services Siuslaw Bank 1.55% 1.29% Bayview Loans Servicing, LLC 0.26% 0.26% 0.26% 0.26% 0.26% 0.26% Wells Fargo Home Mortgage US Bank Home Mortgage Provident Funding National Mortgage Company Department of Human Services Bank of New York Mellon Trust Company, N.A. 11

12 HOMEOWNER REQUESTS UNDER SB 558 Under SB 558, homeowners wanting to request a resolution conference must first see a housing counselor who certifies whether the homeowner could qualify for a foreclosure avoidance measure 8 homeowner requests for Resolution Conference in first 6 weeks of SB homeowner requests for mediation during the 13 months that SB 1552 was effective 12

13 EXEMPT BENEFICIARIES, THROUGH 9.13 Number of Foreclosures in Previous Year to 9 10 to to to

14 Emily Reiman PERSPECTIVE FROM HOUSING COUNSELING AGENCY Opportunity Works Manager NEDCO 14

15 2013 COUNSELING TRENDS, LANE, MARION, CLACKAMAS CTY. Shift to counseling for judicial foreclosures Improved counselor training/knowledge New outreach methods Attorney partnerships Increasing servicer transfers complicate workout applications First experience with mediation 15

16 CLACKAMAS, LANE, MARION COUNTY HOMEOWNER SUPPORT Inquiries 2013 Workshop Attendees 2013 New Counseling Clients *Projected 16

17 COUNSELING OUTCOME SNAPSHOT Mortgage Foreclosed Sold Property Reinstated / Refinanced Outcome # % Foreclosure 1 0.9% Referred for Legal Assistance Sold Property 4 3.7% Reinstated / Refinanced 5 4.6% Referred for Legal Assistance 8 7.3% Mortgage Modified % Referred to Other % Withdrew % Active / Pending % TOTAL: % Active / Pending Mortgage Modified Referred to Other Withdrew 17

18 QUESTIONS? 18