Larry Hogan

Governor

Boyd Rutherford

Lt. Governor

Kenneth C. Holt

Secretary

Maryland Mortgage Program Triple Play

in Prince George’s County

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Foreclosures in Maryland

• Maryland has 23 counties and one subdivision--Baltimore City

• Maryland was hit hard by foreclosureso Ranked in the top five percent in U.S. foreclosures

• Prince George’s County was the hardest hit in the stateo From 2008 to the end of 2012, 30 percent or more

of the foreclosures in Maryland were in Prince George’s County

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Prince George’s County – Percentage of State Foreclosures

-

1,000

2,000

3,000

4,000

5,000

6,000

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Total Foreclosure Activities Share of the State

Volume Share of Maryland

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• Created in collaboration between Maryland Department of Housing and Community Development, Maryland Attorney General, and Prince George’s County Government

• County provided $6M from their allocation of the State Attorney General’s Mortgage Servicing Settlement

• Triple Play was developed to expedite the distribution of the settlement funds

MMP Triple Play: Process

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• Used existing lender processes• Lenders closed and fronted the loan; DHCD

reimbursed after closing• DHCD was then reimbursed from the Attorney

General’s Settlement by invoice• County identified 14 zip codes as priorities based on

foreclosure activities• Uniform set of rules regarding the Down Payment

Assistance (DPA) and the grant

MMP Triple Play: Process

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• Up to $10,000 in DPA in a zero percent deferred loan available to all Triple Play homebuyers throughout Prince George’s County

• PLUS an additional $10,000 GRANT for homebuyers purchasing in one of the 14 select zip codes

PLAY #1: DOWN PAYMENT & CLOSING COST ASSISTANCE!

MMP Triple Play

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Interest rate a quarter of a percent below regular MMP rates

PLAY #2: REDUCED RATE!

MMP Triple Play

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Maryland DHCD waived the fee for a mortgage credit certificate purchased along with a Triple Play loan

(lenders could still charge their fee)

PLAY #3: WAIVED FEE FOR A MARYLAND HOMECREDIT!

MMP Triple Play

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• Minimal Marketing Cost• Announced at a press event with the county

Marketing

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• Utilized our lender network and worked closely

with the Prince George’s County Association of

Realtors, including offering special Continuing

Education (CEU) classes for realtors

Marketing

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• Reached out to Hispanic advocates

• Primarily used website and e-blasts to reach lenders and realtors

• Significant outreach and literature drops to libraries and large church congregations

Community Outreach

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Homebuyers using the MMP Triple Play could purchase any eligible property in Prince George’s County.

To qualify for the $10,000 grant, the property had to be in a select zip code (shown in red)

MMP Triple Play

Washington, DC border

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14 Select Zip Codes:20706 - Lanham20710 - Bladensburg20722 - Brentwood20737 - Riverdale20743 - Capitol Heights20744 - Fort Washington20745 - Oxon Hill 20746 - Suitland20747 - District Heights20748 - Temple Hills20772 & 20774 - Upper Marlboro20784 & 20785 - Cheverly

ELIGIBILITY FOR THE $10,000 GRANT

MMP Triple Play

Extra funding provided to certain

zip codes – easily tracked!

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Benefit to the County

• 28 percent of those who used the program came from outside the county

• Average move was 11 miles from where they lived to where they purchased

• 395 new homeowners - average purchase price of $224,235

• 62 percent of the loans were in the zip codes qualifying for extra funding

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Benefit to the Department

• 42 lenders participated – 10 percent increase

• Program opened on November 20 and closed on April 8 – less than 5 months

• 100 percent increase in the average activity over the past 5 years

•$84M in closed mortgage activity

•Average loan amount of $213,815

•Due to cut in interest rate we realized a 35 percent reduction in margin

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Reservations

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Reservation Activity Comparison

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PreviousState

PreviousCounty

CurrentCounty

TriplePlay Loans

CA Los Angeles Prince George's 1DC Washington Prince George's 41VA Alexandria Prince George's 23MD Anne Arundel Prince George's 6MD Baltimore County Prince George's 7MD Calvert Prince George's 1MD Charles Prince George's 6MD Howard Prince George's 1MD Montgomery Prince George's 23MD Prince George's Prince George's 286

Total 395PG% 72.4%

Other% 27.6%

Prior Residences

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Geographic Benefit toPrince George’s County

Previous Counts Current Counts

(11/20/14 to 04/08/15)

Triple Play Map

Number of AddressesMMP Triple Play Zip Codes

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• The 35 percent decrease in gross margin was made up by a 100 percent increase in total volume

• Business we would have not received• Volume has remained steady at 21 percent• As the $6M limit was reached, the grant portion of Triple

Play was closed and Double Play was instituted• Sixteen loans outstripped the County funds; DHCD used

their own funds for deferred DPA loans

Income to the Department

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• $1M in Baltimore City Fundso Creating a $2,500 DPA Grant

• $2M in State “Rainy Day” Fundso Creating a $5,000 DPA Grant

• Reduction in rate by .25 percent• MCC fee waived

Next Up – Maryland Grand Slam

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• For Prince George’s County– Efficient and effective process to quickly

disseminate funds– Focused for highest benefit to hard hit

communities– Attracted new residents– Helped stabilize affected areas

• For Maryland DHCD– Increased income– Increased number of approved lenders– Relieved pressure on limited DPA funds– Increased number of participating realtors

Win-Win

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For additional information, please contact:

Maryland Department of Housing and Community Development

Kenneth C. Holt, Secretary of Maryland DHCDTiffany P. Robinson, Assistant Secretary, Director of CDA

• Cecilia WellerBusiness Development Manager

301-429-7798

• Amy GrutznerDirector of Single Family Housing301-429-7763

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