National First Look Webinar - HUD Exchange

U.S. Department of Housing and Urban Development

National First Look Webinar National First Look Webinar

National First Look Programand How it Works and How it Works

M h 22 2011March 22, 2011

Community Planning and Development

PresentersPresenters:

•• Host: Kent Buhl Host: Kent Buhl • Presenters:

E i P N ti l C it• Erin Persons, National CommunityStabilization Trust (NCST)

• Tasha Harris National Community • Tasha Harris, National Community Stabilization Trust (NCST)

• Diane Lobasso, HUD CPDDiane Lobasso, HUD CPD

• Regina Montgomery, HUD CPD • Robert Peterson HUD CPD Robert Peterson, HUD CPD

U.S. Department of Housing and Urban Development • Community Planning and Development

es

Panel & ObjectiPanel & Objectives

•• Presentation with Question and Answer Presentation with Question and Answer • Overview of the National First Look program • I t ti id th h th FHA Fi t L Interactive guidance through the FHA First Lookk,

REOMatch websites


National First Look

s

National First Look Program

HUD’ National First Look ProgramHUD’s National First Look Program

• On September 1 On September 1, HUD Secretary Shaun Donovan announced• HUD Secretary Shaun Donovan announced the launch of HUD’s National First Look Program in partnership with the National Community Stabilization Trust.

• HUD’s National First Look is an expansion of the Stabilization Trust’s existing program to make First Look a more integral tool in the NSP toolbox.

• National First Look is open to all NSP Grantees with properties available from Bank of America, Chase, Citi, Freddie Mac, Fannie Mae, FHA, GMAC, Litton, NationStar, Ocwen,, Saxon ,, US Bank,, and Wells Farggo.

U.S. Department of Housing and Urban Development • Community Planning and Development 5

r

–


National Comm nit Stabili ation T stNational Community Stabilization Trust – National non-profit working with 170 NSP grantees and

more than 20 Financial Institutions, including participating National First Look REO Sellers.

– F ilit t t b th Fi t L k d li t d REO Facilitates access to both First Look and listed REO properties.

– First Look program designed to be implemented on a First Look program designed to be implemented on a flow basis, prior to property being listed via typical means, with negligible impact to Seller’s current operatitions.


m ng

tt

Seller to secure the property


Seller to complete

foreclosure, redemption and eviction process

Seller to complete


Seller performs property

inspection


inspection

Seller determines

“ Market Valueand disposition

plan

Seller determines


plan

Seller proceeds to market the

property


property

Seller incurs holding costs, market risk,

etc. until sold


etc. until sold

PropertySold

PropertySold


Seller to complete



inspection

Seller determines


plan


property


etc. until sold

PropertySold

Seller to make property


eviction process plan

Seller provides Seller provides Adjusted Sales


eviction process plan

Seller provides

available for inspection


Adjusted Sales Price

Adjusted Sales Priceavailable for

inspection


Buyer responds: Accept Decline Counter


Buyer performs property

inspection


inspection



inspection



(Elapsed time: 2 5d)

First Look Ti i


First Look Timing

ElapseElapsedd timtim ee:: 1515 -30d30d ElapseElapsedd timtim ee:: 5-15d5-15d

pp

””Seller to secure

the property

Seller to complete



inspection ”

Seller determines

“ Market Value ” and disposition

plan


property


etc. until sold

Property Sold

p

Adj d S l


p

Adj d S l

Seller provides Adjusted Sales p p yp p y





inspection

Buyer confirms interest

to inspect

-(Elapsed time: 2 -5d)



First Look Property Discount First Look Property Discount Estimated market value assuming normal market conditions and procedures through a BPO, an AVM or a full appraisal, pp

Saved holding costs of insurance, real estate taxes and maintenance Less

Avoided transaction costs of brokerage and sellers internal supervisionAvoided transaction costs of brokerage and sellers internal supervision and administrationLess

Savings in capital costs due to early receipt of proceeds Less

Possible decline in value over the holding period Less

R h bili i i d f d li d k iL Rehabilitation required for code compliance and marketingLess

Net Realizable Value Equals


er e o


OOverviiew of REOMatchf REOMatch – NCST developed REOMatch – Tool is available for free to NSP Grantees participating

as buyers with NCST

– Used to manage National First Look transactions

– Target area mapping and property acquisition management tool

– NSP grantees can use it to define target areas to street l l d t il I l d HUD d NSP t tlevel detail. Includes HUD-approved NSP target areas overlays.


er e o

t t


OOverviiew of REOMatch (cont’d)f REOMatch (cont’d) – Track National First Look transactions from initial

viewing to closing

– Communicate with NCST on all acquisitions and receive i d f NCST T ti D kcustomized support from NCST Transaction Desk

– FHA First Look properties can be viewed through REOMatch or the FHA First Look websiteREOMatch or the FHA First Look website.


res REOMatch Feat

National First Look Program TMH3

REOMatch Features

Google Maps Interface Multiple REO Sellers Document Uploads Properties

Plot Multipple Targget Excel Expport Opption Areas Transaction Tracking


FHA First Look

FHA First Look Sales Method

FHA First Look Introd ctionFHA First Look Introduction

• FHA First Look provides NSP grantees exclusive access to review and purchase newly conveyed FHA real estateto review and purchase newly conveyed FHA real estate-owned (REO) properties that are located in their NSP designated areas as approved by HUD.

• Grantees will have the opportunity to make a purchase offer on a property prior to it being made available to othher enti i ities.



FHA First Look Introd ctionFHA First Look Introduction

•• NSP grantees can purchase these properties at a 10% NSP grantees can purchase these properties at a 10% discount off of the appraised value (less any applicable commissions, etc.).

• HUD strongly encourages grantees to contact the Asset Manager and establish a relationship during the consideration period.

NOTE: FHA First Look only applies to single-family housing


Access Period Access Period • The duration of the FHA First Look pperiod is

approximately 14 business days:

– Consideration period - average 12 days from the time FHA first receives property until appraisal

– Purchase period - a 2-day window after appraisal to submit purchase offersubmit purchase offer

• After the FHA First Look period has expired, the properties will be listed for purchase under FHA’ssproperties will be listed for purchase under FHA standard sales methods (lottery, competitive sale, etc.).

• No ppreference will be available to NSP ggrantees after the FHA First Look period has expired.


Eligibilit


Eligibility

• NSP grantees NSP grantees, including Government entities and• including Government entities and Nonprofit organizations, either as:

– Direct recipients of NSP funds, orDirect recipients of NSP funds, or

– Sub-recipients (or sub-awardees) of direct NSP ggrantees

– Under NSP2, consortium members may also be included

• NOTE: For-profit entities are NOT eligible to participate in FHA First Look.



NAID Processing NAID Processing

•• NSP Grantees must apply to their FHA Home Ownership NSP Grantees must apply to their FHA Home Ownership Center for a Name and Address Identifier (NAID) with the Payee Type ‘NS’, which designates them as an eligible NSP purchaser for FHA First Look properties.

• For grantees with an existing NAID with a payee type indicating government or nonprofit, it is necessary to re-submit the application to the HOC to add the payee type ‘NS’ to yyour NAID.



NAID Processing (cont’d) NAID Processing (cont’d)

•• The approval process after submission lasts The approval process after submission lasts approximately 7-10 business days.

•• Application forms and instructions for resubmissions can Application forms and instructions for resubmissions can be found at:

http://hudnsphelp.info/media/resources/NSPPolicyAlert FirstLook 7-16-10.pdf.http://hudnsphelp.info/media/resources/NSPPolicyAlert_FirstLook_7 16 10.pdf.


http://hudnsphelp.info/media/resources/NSPPolicyAlert_FirstLook_7-16-10.pdf


Accessing FHA First Look PropertiesAccessing FHA First Look Properties

•• There are two ways to access FHA First Look properties:There are two ways to access FHA First Look properties:

– REOMatch website (reomatch.com)

– FHA First Look website (www.hud.gov/nspfirstlook)


www.hud.gov/nspfirstlook

www.reomatch.com

FHA First Look ia REOMatch


FHA First Look via REOMatch When clicking on an FHA property in REOMatch, an FHA dialogg box will appearpp



FHA First Look ia REOMatch FHA First Look via REOMatch

•• Two links will be available through this dialog box: Two links will be available through this dialog box:

– Further information about the FHA First Look Sales Method and NAID process:Method and NAID process: http://hudnsphelp.info/media/resources/NSPPolicyAlert_FirstLook_7-16-10.pdf

– Access to the FHA First Look website: http://www.hud.gov/nspfirstlook

• To initiate the transaction, the Stabilization Trust buyer will be required to access the FHA First Look website.


http://www.hud.gov/nspfirstlook

http://hudnsphelp.info/media/resources/NSPPolicyAlert_FirstLook_7-16-10.pdf

FHA First Look Website

FHA First Look Sales Method TMH2

FHA First Look Website To gain access to properties and submit bids, li ibl h ill d t th FHA Fi teligible purchasers will need to access the FHA First

Look website as seen below: WWW.HUD.GOV/NSPFIRSTLOOK


WWW.HUD.GOV/NSPFIRSTLOOK

Slide 22

TMH2 FHA First Look web demo starts here Tasha Harris, 3/4/2011

FHA First Look Website


FHA First Look Website • FEATURES

OVERVIEW:

Multiple Layer Options

Navigation Controls

Designated Area Boundaries

Mapped Properties

Property Data Table

Excel Export Option

Get Help


• HOW TO USE THE PROPERTY DATA TABLE:

FHA First Look Website (cont’d)


FHA First Look Website (cont’d) • HOW TO USE THE PROPERTY DATA TABLE:

First Property has appraisal. The two day purchase period has begun; Contact the AM Company to make offer.

Second Property in consideration period; Contact the AM CCompany tto inspectt; Wait f it for Email il notification off appraisal toi W E tifi ti i l t make offer

Third Property has no AM Company assigned; Wait for EmailThird Property has no AM Company assigned; Wait for Email notification that the AM has been assigned.


u c ased be a ced t o o e t S u ds




•• HOW TO CONTACT THE ASSET MANAGER (AM) HOW TO CONTACT THE ASSET MANAGER (AM)

Click on the button

Read the Requirements in the pop-up window

You’re Eligible to purchase

You have signatory authority You have signatory authority

Property is in your designated area

Purchased will be financed in part or in whole with NSP fundspa

Follow program rules, such as Affordability, Tenant Protections, Environmental Review, etc.

Click on the button





ABC Management

Mrs. Green

Street, City, State, Zip

100-222-3333

100-222-3333

[email protected]

Note that multiple AM Companies may work in your geographic area. Thus, individual properties may have different AM Companies assigned to each other assigned to each other.



Inspections and Offers Inspections and Offers

•• Purchasers will receive emails notifications from the FHAPurchasers will receive emails notifications from the FHA First Look website if one of three things happens:

1.A new FHA First Look property appears in thegrantee's designated area.

2.A new property has an Asset Manager assigned, thus giving the purchaser a contact for inspections andgiving the purchaser a contact for inspections and offers.

3.An appraisal is comppleted on a new proppertyy,, thuspp p beginning the 2-day window to make an offer. The offer period will run for two (2) business days after notice of the appraisal has been transmitted.



Inspections and Offers (cont’d) Inspections and Offers (cont’d)

•• The appraised value The appraised value will be available on the FHA First will be available on the FHA First Look website.

NOTE:NOTE: Only those individuals listed by the grantee asOnly those individuals listed by the grantee as having signatory authority to purchase properties may submit offers.

Offers submitted by those without signatory authority will be rejected by Asset Managers.


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P chase Agreements and Closing Purchase Agreements and Closing

• The standard FHA single family sales contract The standard FHA single family sales contract – HUD• HUD Form 9548 – must be used: http://www.hud.gov/offices/adm/hudclips/forms/files/9548.pdf

• Contingent contracts will be accepted, which will allow purchasers time to satisfy NSP program requirements, such as environmental reviews and other requirements.


http://www.hud.gov/offices/adm/hudclips/forms/files/9548.pdf


P h A t d Cl i ( t’d) Purchase Agreements and Closing (cont’d)

•• Guidance for contract contingency language can be Guidance for contract contingency language can be viewed at: http://www.hud.gov/offices/cpd/communitydevelopment/p rograms/neighborhoodspg/pdf/cond_purchase_agreeme nt.pdf

• Closing timeframe is 30 days.

• Extensions to the 30-day closing timeframe may be d b b i (i f fapproved on a case-by-case basis (i.e. for purposes of

completing required environmental reports).


http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/cond_purchase_agreement.pdf

Contact Information


Contact Information

•• FHA Homeownership Centers: FHA Homeownership Centers: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

FHAFHA FiFirst L t Look Websit ite:• k W b http://www.hud.gov/nspfirstlook

• Community Connections Helpdesk: Information Center: 1-800-998-9999, Option 2

E-mail: [email protected]


mailto:[email protected]


http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

Contact Information


Contact Information

•• Stabilization Trust Community Development Stabilization Trust Community Development Manager Office: (214) 710 – 3400Office: (214) 710 3400

Email: [email protected]



e s o r

Gi Feedback

TMH1

Give us your Feedback

•• Answer a few short questions Answer a few short questions • Please click on the link and give us your

feedback:feedback: http://www.surveymonkey.com/s/3DSRDQZ

Your opinion is valuable!!!Your opinion is valuable!!!

THANK YOUTHANK YOU


http://www.surveymonkey.com/s/3DSRDQZ

rces

Additional ResoAdditional Resources…..

•• Who to Contact Who to Contact • FAQs


Who To Contact Who To Contact • I need to apply for an NAID number, I need the ‘NS’

pp yayee type added to myy NAID Number , or I haveyp , questions regarding the status of my NAIDapplication. – Contact the FHA Homeownershipp Center ((HOC)) that

has jurisdiction over single family transactions in your state. A complete list of HOCs can be found at: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm.

– Email your application to one of the following HOC -NSP NAID addresses for expedited processing: D NSP NAIDDENHOC@h dDenver: NSP–[email protected] Philadelphia: NSP–[email protected] Atlanta: NSP–[email protected]@ Santa Ana: NSP–[email protected]


mailto:NSP�[email protected]




http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

o


Who T Contact Who To Contact

•• My HUD approved NSP target areas are displayed My HUD approved NSP target areas are displayed incorrectly in the FHA First Look website – Grantees should send an email to

[email protected]

• I am havingg trouble contactingg the a ggent listed for an FHA First Look property and am unable to gain access for inspection purposes –C t t th HOC d k t k ith th Contact the HOC and ask to speak with the

GTR/GTM for the asset manager in question.



o


Who t Contact Who to Contact

•• I have questions about the bidding process or I have questions about the bidding process or closing/title related issues – Contact the asset managger indicated on the FHA First

Look website. If you have difficulty reaching the asset manager, contact the HOC to request assistance.



Freq entl Asked Q estionsFrequently Asked Questions

•• Who is responsible for ordering an appraisal? Who is responsible for ordering an appraisal? – The Asset Manager handles the appraisal process.

–HUD t l t t t t th HUD strongly encourages grantees to contact the Asset Manager and establish a relationship during the consideration pperiod

• How do I find out who the Asset Manager is for my area? – Asset Managers are listed on the FHA First Look

website at:

http://www.hud.gov/nspfirstlook U.S. Department of Housing and Urban Development • Community Planning and Development


–

t t


Freq entl Asked Q estions (cont’d) Frequently Asked Questions (cont’d) • We currently purchase foreclosed FHA properties by

bidding on the HUD website and receive a 10% discount.bidding on the HUD website and receive a 10% discount. Does the new FHA First Look program replace theexisting bidding process?

FHA First Look is a new sales method for NSP grantees FHA First Look is a new sales method for NSP grantees only.

– FHA First Look does not replace any of FHA’s standard single family disposition proceduressingle family disposition procedures.

– Not having an ‘NS’ payee type added to your NAID does not preclude you from buying non-FHA First Look

ti th h h d dproperties through the standard process.

– Purchasers do not bid online during the FHA First Look periodperiod. Purchasers interested in an FHA First Look Purchasers interested in an FHA First Look property must contact the Asset Manager directly.



FAQs (cont’d) FAQs (cont’d) • Can an NSP grantee obtain their own third-party

appraisal, and if it differs from the FHA appraisal, is theappraisal, and if it differs from the FHA appraisal, is the purchase price negotiable?

– No, FHA REO property appraisals and the establishment of the property sales price are responsibilities that are assigned to Asset Managers.

– FHA appraisals are the only valid appraisal for FHA First Look purchases.

•• Are Asset Control Area (ACA) properties included FHA Are Asset Control Area (ACA) properties included FHA First Look?

– No ACA properties will remain separate from those FHANo, ACA properties will remain separate from those FHA properties offered through FHA First Look.



FAQs (cont’d) FAQs (cont’d)

•• Can eligible purchasers make an offer at any point in Can eligible purchasers make an offer at any point in the 14-day FHA First Look period or just during the two-day offer period? – No, NSP requirements preclude purchasers from

making an offer until the appraised sales value has been establishedbeen established.

– Once the appraised value has been calculated and the purchaser has been notified of the appraisal-the purchaser has been notified of the appraisal based sales price, the purchase period is initiated, and lasts for two (2) business days.




•• Will purchasers be working with just one asset Will purchasers be working with just one asset manager in their target area or will there more than one asset manager? – There may be more than one asset manager for a

given area. Their assignments are property-specific. Interested purchasers must confirm the propertyInterested purchasers must confirm the property agent contact information for a given property through the FHA First Look website:






•• Who determines the discount and how is it Who determines the discount and how is it calculated? – The asset manager will calculate the FHA First Look

salles di discountt. – If an eligible NSP grantee uses a real estate broker to

helpp facilitate the ppurchase, there will be a fee for that service. This fee will be subtracted by the asset manager from the FHA First Look sales discount provided to the grantee.

– The FHA First Look discount sales price cannot beless than 1% off the listed sales price after all commissions and other fees are accounted for.



FAQs (cont’d) FAQs (cont’d) • Can purchasers view FHA properties in REOMatch

after the FHA First Look period has expired and they after the FHA First Look period has expired and theyare available through the competitive bidding process? – FHA First Look property files will only be posted to

REOMatch during the FHA First Look period. Oncethis period has expired and a given property has not b h d it i l i l d d th been purchased, it is no longer included among those properties that can be viewed on REOMatch.

– FHA REO properties that are available for ppurchasep p under standard single family disposition processescan be viewed at the HUD Home Store site:

http://www hudhomestore comhttp://www.hudhomestore.com


http://www.hudhomestore.com

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