Welcome Introduction: Michele Johnson – Financial Guidance Center National Mortgage Settlement: Attorney General Masto Role of the Housing Counseling

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

JoAnn Gibbs

I think we should leave in the Agency/Organization Names, but not the individuals since different people may be representing at different times. For instance, I know AnnaMarie is not going to be presenting at most of the Events. "Scams and AG Contacts" would be more descriptive since we are also giving AG Civil and Multistate contact information at the end of the presentation.

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

JoAnn Gibbs

I WOULD MOVE SERVICING STANDARDS UP TO NUMBER 4 SINCE IT IS AN INTEGRAL PART OF THE BANKS ONGOING RESPONSIBILITIES.

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

JoAnn Gibbs

I am not sure about this slide, is it an index of the presentation? If so it should come in earlier in the presentation.

$25 Billion


$750 MillionFEDERAL

GOVT

$4.25 Billion

STATE PAYMENTS

$17B

Direct Relief to


s

$3B

Refinancing

Underwater

Borrowers


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)

JoAnn Gibbs


$25 Billion


$750 MillionFEDERAL

GOVT

$4.25 Billion

STATE PAYMENTS

$17B

Direct Relief to


s

$3B

Refinancing

Underwater

Borrowers

$1.5 Billion

Payments to

BorrowersLost Homes to

Foreclosure


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

JoAnn Gibbs


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


$750 MillionFEDERAL

GOVT

$4.25 Billion

STATE PAYMENTS

$17B

Direct Relief to


s

$3B

Refinancing

Underwater

Borrowers

$1.5 Billion

Payments to

BorrowersLost Homes to

Foreclosure

$2.75 Billion

Payments to States$57 Million to

Nevada

HOMEOWNERS STILL NEED HELP.

NOW THEY HAVE A PLACE TO TURN.

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

HOME AGAIN WEBSITE

HomeAgainNevada.org1-855-HLP-4-NEV

NationalMortgageSettlement.com

1-866-430-8358

ROLE OF THE HOUSING

COUNSELING AGENCIES

Presented by:Nelson Araujo, Financial Guidance Center

Programs & Services

Federal Programs

State Programs

Lender/Servicer Proprietary Programs

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

http://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

SCAMSPresented by:


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.


Consumer Protection Hotline:702-486-3132

Website: Ag.nv.gov

Email:

[email protected]

Facebook: NVAttorneyGeneral

Twitter: @NevadaAG

YouTube: NevadaAG


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]

mailto:[email protected]

QUESTIONS & DISCUSSION