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AGENDA
Welcome
Introduction: Michele Johnson – Financial Guidance Center
National Mortgage Settlement: Attorney General Masto
Role of the Housing Counseling Agencies: Nelson Araujo –
Financial Guidance Center
Role of the Legal Services Agencies: Christine Miller – Legal Aid
Center of Southern Nevada & Sheryl Serreze– Nevada Legal
Services
Scams: Nevada Attorney General’s Office
Questions
NATIONAL MORTGAGE
SETTLEMENTPresented by:Catherine Cortez Masto, Attorney General
Nevada Attorney General’s Office
MULTISTATE SETTLEMENT PROVISIONS
Nationally:
1. Servicing Standards (Change of Conduct)
2. Monitoring and Oversight
3. $25 Billion relief to Homeowners
1. The first nationwide reforms to servicing standards require
Servicer must assign a single point of contact (SPOC) to most first-lien borrowers,
Servicer must follow strict timelines for short sales and loan modifications,
Servicer must stop dual track of borrowers loan,
Servicer must follow new standards for executing documents in foreclosure cases, filing affidavits based upon personal knowledge, and ending improper fees, and
Some borrowers are entitled to appeal denial of modification.
2. Servicing standards intended to apply to loans secured by owner-occupied
properties.
3. CFPB is expected to issue servicing standard regulations before settlement
sunset
NEW SERVICING STANDARDSFOR BANKS
MONITORING ANDOVERSIGHT
1. The settlement is monitored by:
Joseph A. Smith
Monitoring committee made up of State AGs, DOJ, HUD
2. The settlement started March 2012.
1. Monitor has access to each servicer’s:
Business reports
Work papers relating to the metrics
Servicing complaints
3. Monitor can interview service employees
4. Monitoring committee or any state may enforce the settlement
5. Nevada is a member of the monitoring committee
$25 Billion
$20 BillionDIRECT CONSUMER RELIEF
$750 MillionFEDERAL
GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to
Distressed Homeowner
s
MULTISTATE SETTLEMENT
DIRECT RELIEF TO DISTRESSED HOMEOWNERS ($17 BILLION)
Principal Reduction (First & Second Lien)
Facilitation of short sales
Unemployment payment forbearance or forgiveness
Relocation Assistance
Deficiency Waivers
Funding for remediation of blighted properties
Servicemember short sale program
$25 Billion
$20 BillionDIRECT CONSUMER RELIEF
$750 MillionFEDERAL
GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to
Distressed Homeowner
s
$3B
Refinancing
Underwater
Borrowers
MULTISTATE SETTLEMENT
REFINANCING UNDERWATER HOMEOWNERS ($3 BILLION)
Servicer-owned first liens
NO: FHA, VA, manufactured home, Fannie Mae or Freddie Mac loans, borrowers in bankruptcy/foreclosure in last 24 mos.
Borrower must be current (not late in last 12 mos.)
LTV > 100%
Originated before Jan. 1, 2009
Not modified in last 24 months
Pre-refi interest rate at least 5.25% (or PMMS plus 100 basis point, if greater)
$25 Billion
$20 BillionDIRECT CONSUMER RELIEF
$750 MillionFEDERAL
GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to
Distressed Homeowner
s
$3B
Refinancing
Underwater
Borrowers
$1.5 Billion
Payments to
BorrowersLost Homes to
Foreclosure
MULTISTATE SETTLEMENT
PAYMENTS TO BORROWERS ($1.5 BILLION)
Estimated payment: $1,500 to $2,000 (depending on borrower response rate)
Qualifying borrowers will be notified by mail at a future date
Criteria: Foreclosure sale between Jan. 1, 2008 and Dec. 31, 2011
Borrowers will sign a form stating that they think servicer committed an error during foreclosure
No release of borrower claims
Separate from OCC’s Foreclosure Review
BANK OF AMERICA SETTLEMENT
Nevada will receive an additional $30M
Specific Solicitation of Nevada Borrowers for Principal Reduction
Re-solicitation NHRP Population
Nevada becoming a member on Monitoring Committee
B of A will guaranty to undertake at least $750M in loan
modification and other assistance as part of the Multistate
settlement specifically in Nevada
Nevada will receive enhanced reporting above and beyond the
multistate reporting;
Enforceable in Nevada State Court
$25 Billion
$20 BillionDIRECT CONSUMER RELIEF
$750 MillionFEDERAL
GOVT
$4.25 Billion
STATE PAYMENTS
$17B
Direct Relief to
Distressed Homeowner
s
$3B
Refinancing
Underwater
Borrowers
$1.5 Billion
Payments to
BorrowersLost Homes to
Foreclosure
$2.75 Billion
Payments to States$57 Million to
Nevada
A “ONE STOP” RESOURCEAs part of national mortgage settlement funds
given to state, the AG’s Office dedicated some of these funds for “Home Again”.
INTRODUCING HOME AGAIN
A new program designed for:
Homeowners seeking loan modification
Borrowers who are current, but “underwater”
Those who lost their homes to foreclosures
Households considering homeownership
THE PROGRAM
Home Again Nevada Homeowner Relief Program is:
Offered through the Office of the Attorney General
Free of fees and charges
A partnership of HUD Counseling Agencies and Legal Aid
Services
1-855-HLP-4-NEV or HomeAgainNevada.org
PARTICIPATING HUD AGENCIES
Financial Guidance Center Nevada Legal Services Housing for Nevada Women’s Development Center Community Services of Nevada Neighborhood Housing Services Novadebt Springboard Chicanos Por La Causa
A SINGLE POINT OF CONTACT
Call Center
1-855-HLP-4-NEV
Trained counselors
English & Spanish
Convenient
HomeAgainNevada.gov
Federal Programs
Independent Foreclosure Review
Federal government effort to compensate homeowners
impacted by faulty lending practices.
Homeowners foreclosed or in foreclosure process
between January 1, 2009 to December 31, 2010
Potentially eligible for a direct payment.
Expires December 31, 2012.
To apply, go to: www.independentforeclosurereview.com
Federal Programs
Making Home Affordable
HAMP - Home Affordable Modification Program
• Assistance for homeowners in default, or at risk of
defaulting, on their mortgage.
HARP 2.0 - Home Affordable Refinance Program
• Homeowners with a FannieMae or FreddieMac insured
loan who are current on their mortgage, may refinance
at current market rates regardless of loan-to-value.
State Programs
Nevada Hardest Hit Funds
Principal Reduction Program- Eligible homeowners may qualify for a principal reduction of
up to $100,000. Mortgage Assistance Program
- Eligible homeowners who are unemployed or underemployed may qualify for assistance of up to $1,000.00 toward mortgage payment - maximum of 9 months.
Principal Curtailment Program- Works in conjunction with HARP 2.0.- Eligible borrower may receive an additional $50,000 principal
reduction. Reinstatement
- Assist qualified homeowners by offering up to $12,500 in assistance in bringing a past due mortgage to current status.
State Programs
Nevada Foreclosure Mediation Program
Resource to assist homeowner and lender in reaching
resolution regarding mortgage in partnership with
trained mediator.
Minimal expense, non-binding.
Homeowners of owner-occupied property have 30 days
after being served with a Notice of Default to elect to
participate in mediation
Other Programs
Fannie Mae Partnership Financial Guidance Center and Community Services of Nevada
have direct access to a dedicated team to provide quicker, more efficient assistance to homeowners with Fannie Mae insured mortgage loans.
Wells Fargo Partnership Financial Guidance Center has direct access to a dedicated team
to provide quicker, more efficient assistance to homeowners with Wells Fargo, Wachovia or ASC serviced/insured mortgage loans.
Many OTHER financial counseling services are available too!
ROLE OF THE LEGAL SERVICES
AGENCIES Presented by:
Christine Miller, Legal Aid Center of Southern Nevada &
Sheryl Serreze, Nevada Legal Services
LEGAL REFERRAL WHEN:
Mediation
Judicial Foreclosure
HOA Foreclosure
Review of legal Documents
Homeowners Facing Eviction
Bankruptcy
Predatory Lending
Identity Theft
Lending Scams
LEGAL AID CENTER OF SOUTHERN NEVADA
Documentation is not required
Income guidelines:
Household Max. Monthly Income 1
$4,125.92 2$4,715.34 3$5,304.76 4$5,894.16 5$6,365.70 6$6,837.24
LEGAL AID CENTER OF SOUTHERN NEVADA
Free community legal education classes
Foreclosure
Bankruptcy
Others
Ask A Lawyer
General consumer issues
www.lacsn.org
NEVADA LEGAL SERVICES
Free community legal education classes
Documentation required
No income guidelines
Southern & Northern Nevada office
www.nlslaw.net
Victims pay upfront money to receive assistance in modifying their home loan. - HUD housing counselors will assist
homeowners for free.
In most cases the HUD counselors know more about loan modifications and the programs available to homeowners than any other entity.
LOAN MODIFICATION FRAUD
AG Masto worked hard to create and pass AB 284 to protect Nevada property owners from fraudulent foreclosure.
A.B. 284 has not stopped foreclosures in Nevada it has only caused the banks to follow a required legal course for foreclosures.
Nevada has followed the national trend for reductions and increases in foreclosure patterns.
ROBO SIGNING FRAUD
Pay upfront money and company will make sure you get the multistate settlement monies owed to you for the banks foreclosing on your home.
– HUD housing counselors will assist homeowners for free.
MULTISTATE SETTLEMENT FORCLOSURE PAYOUT
SCAMS
PRINCIPAL REDUCTION SCAMS
Pay money upfront and company will get you a principal reduction on your home mortgage loan. – There is no guarantee that a principal reduction
will be given. The decision is the banks to make.– HUD housing counselors will assist homeowners
for free.
Nevada HUD counselors know what programs exist and which ones the homeowner might qualify for.
People are recording false documents removing the lien holder from the deed of trust with the County recorder's office.
RECORDING FALSE DOCUMENT SCAMS
Requires a fee in advance Guarantees a specific outcome to stop the
foreclosure or loan modification Advises the homeowner to – stop paying the mortgage company – make the loan payment to the company or
individual.
AVOID ANY COMPANY OR INDIVIDUAL THAT:
Report Problems
Report the following national mortgage settlement problems to the Office of Mortgage Settlement Oversight:
Foreclosure/Documentation, Fee, Loan Modification, Loss Mitigation, Customer Service, Third Party Provider, Military Personnel, Bankruptcy, Force-Placed Insurance, Community Blight Problems, Tenant Rights
Submit an online complaint at www.mortgageoversight.com.
Report Problems
Report problems to the AG’s office by submitting a written complaint.
For instructions, call the AG’s Consumer Protection Hotline at 702-486-3132 or visit
ag.nv.gov.
Nevada Attorney General’s Office
Consumer Protection Hotline:702-486-3132
Website: Ag.nv.gov
Email:
Facebook: NVAttorneyGeneral
Twitter: @NevadaAG
YouTube: NevadaAG
Nevada Attorney General’s Office
Contact Information:
Russell D. Smith, Chief Deputy Atty. Gen.Phone: 702-486-3348Email: [email protected]
JoAnn Gibbs, Chief Deputy Multistate Counsel Phone: 702-486-3789Email: [email protected]
Ursula Silva Kazarian, Paralegal Phone: 702-486-4524Email: [email protected]