SHFPP Overview - the North Carolina Housing Coalition!

Report
North Carolina Housing Finance Agency
Mary Holder
Reduce foreclosures
Establish partnerships among
housing counselors, legal aid,
mortgage servicers and community
organizations
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 Initially established in October 2008, “Emergency Program
to Reduce Home Foreclosures” (H.2623; S.L. 2008-226)
 Temporary Two-Year Program (November 2008 thru
October 2010)
 Applied to only “Subprime” loans originated between 2005
and 2007
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Act to Amend and Extend the Emergency Program to Reduce
Foreclosures, (S 1216; S.L. 2010-168)
Extends SHFPP to May 31, 2013
Beginning November 1, 2010, scope expanded to cover all
“home loans”
Establishes State Home Foreclosure Prevention Trust Fund
◦ One-time filing fee of $75
◦ Used toward admin costs, counseling and legal services
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House Bill 484 / S.L. 2011-288 to transfer the Emergency
Program to Reduce Foreclosures to NCHFA passed in June
2011and became effective July 1, 2011
Direct administration of the program and staffing transitioned
to NCHFA
NCCOB retained administration of the pre foreclosure filings
database, servicing invoicing and the Commissioner retained
authority to grant 30 day extensions
The basic funding allocations for administrative costs,
counseling services and legal services remain unchanged in
the legislation
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Servicers required to send a pre-foreclosure notice to
homeowners at least 45 days prior to filing foreclosure
proceeding
Servicers must file notice electronically with NC Court System
(NCCOB database) within 3 days of mailing the letter to the
homeowner
Extension of pre-foreclosure period by 30 days if further
efforts give reasonable prospect to avoid foreclosure
(homeowner working with counselor)
Compliance with pre-foreclosure notice and filing periods is
evidenced by printed “Home Loan Certificate” presented at
the foreclosure proceedings
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 Help reduce unnecessary foreclosures by facilitating
communication between homeowners, servicers and
housing counselors prior to the filing of the foreclosure
 Promote mutually beneficial resolutions for homeowners
and investors, but must not interfere with contracts or
impose solutions
 Provide North Carolina homeowners with free resources
such as housing counseling and legal services as they work
with servicers on alternatives to foreclosure
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The agency sends a “FC Help Letter” to homeowners with
notice of the availability of free housing counseling
Homeowners call the statewide toll- free number and are
connected to counseling partners by the SHFPP call center
Network of 37 counseling partners provide face to face and
telephone counseling sessions
SHFPP staff assist counselors and homeowners in facilitating
communication with servicers
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Servicers have submitted 94,000 initial home loan filings
Counseling partners have conducted 12,000 foreclosure
prevention counseling sessions with homeowners
Nearly 2,000 foreclosures prevented and 7,500 since the
program was established in 2008
Statutory 30 Day Extensions were granted on 1,500 cases and
4,000 since the program was established in 2008
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The program continues to be an effective resource in the fight
to reduce foreclosures in North Carolina
We will continue to enhance the program to serve the needs
of all program partners keeping in mind the overall objective
(foreclosure reductions)
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