HECM Property Charge Loss Mitigation Counseling and Aging Network 101 Webinar. January 21, :30PM EST

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1 HECM Property Charge Loss Mitigation Counseling and Aging Network 101 Webinar January 21, :30PM EST

2 Agenda Counseling Guidelines 2:00pm 2:50pm EST Wiki 101 2:50pm to 3:00pm Aging Network 101-3:00pm 3:30pm EST

3 Laura Barriere Welcome Reverse Mortgage Project Manager, Training Division NeighborWorks America

4 Property Charge Loss Mitigation Counseling Guidelines Betsy Cromwell Housing Policy Specialist FHA Single Family Development Program Support Division

5 Primary Objectives 1. Establish Contact between Borrower And Servicer 2. Assist borrower by Assess Finances Identify Resources to Increase Income or Lower Expenses Identify Resources for transition out of home

6 Expected Outcomes Upon completion of loss mitigation counseling, borrowers will understand the reverse mortgage foreclosure process, and the consequences of not resolving their delinquency have completed a full overview of their financial situation have worked with the counselor and servicer to negotiate a manageable repayment plan, if allowed; and understand the options available to resolve their delinquency and maintain their property charges going forward.

7 HECM Borrower Categories Curable with own resources Curable with access to additional resources Not Curable; Will need access to transition resources

8 Expected Outcome (cont) If the BenefitsCheckup analysis indicates the borrower may qualify for benefits, the counselor will assist the borrower in filling out all the appropriate benefit program application forms and sending the forms to the appropriate social service agencies; OR refer the borrower to a local AAA if they are unable to assist with filling out the benefit program application forms.

9 Expected Outcome (cont) If the borrower determines that he cannot afford to or is unwilling to bring the loan current or no longer wants to keep the home, the counselor will assist the borrower in transitioning out of his home to other suitable housing; OR refer the borrower to a local AAA if they are unable to help the client transition to a new living situation

10 Steps Outlined in Counseling Guidelines 1. Initial Contact 2. Intake 3. Authorization for Service 4. Power of Attorney Considerations 5. Explanation of Foreclosure Process 6. Complete Budget Review and BCU 7. Research and identify other sources of income/benefits 8. Advise borrower about other sources of income 9. Servicer Contact 10. If repayment plan approved, Support Borrower in assembling required documentation for servicer 11. If repayment plan not possible, work with borrower and servicer to identify exit strategies, including available transition services within borrower community. 12. Research and identify resources for transition to new housing 13. Post Counseling Follow up

11 Initial Contact

12 Quick Check Initial Contact (cont) Who is your HECM servicer who is their letter from? Who else have you contacted regarding this letter from your servicer? Does borrower have a copy of the letter with them or that can be sent to counselor? Is the letter over 30 days old? If so, the counselor will initiate a 3-way call with the servicer to determine if it is still possible to work out a repayment plan. What is your goal for counseling outcome?

13 Intake Borrower(s) name(s) Property Address Telephone Numbers Date of birth Social Security Number Name of/contact info for Servicer Loan Number Status of all property taxes Amount past due Estimated annual pmt Status of homeowners insurance Estimated annual premium Estimated home value Total debt on home Names, Relationship & Contact info of others residing with borrower Actions already taken? Power of Attorney? Have you gathered materials for conversation about budget?

14 Authorization for Service Counselor Loan Servicer Borrower Other Services

15 Power of Attorney Considerations Definition of Power of Attorney (POA) Must be durable and for financial matters If contacted by individual holding POA for borrower, contact servicer to ensure they have documentation on file. If Yes, you can work with individual If No, documentation must be updated with servicer before counseling can proceed.

16 Explanation of Process Unpaid Property Taxes Servicer is alerted to nonpayment Attempts to contact borrower Servicer Pays Taxes From borrower HECM LOC, if available Advance funds, if no HECM funds available Attempts to collect advanced funds and ensure no repeat Delinquency Letter Loss Mitigation Efforts Gives Repayment borrower 30 Plan days to Identify respond other Provides resources referral to counselor Due and Payable Request Made to HUD by servicer Must include list of loss mitigation efforts HUD Approval Notification of Borrower Servicer begins Foreclo Legal sure Action Process

17 Budget Review Checklist from HUD Model Property Charge Delinquency Counseling Letter

18 Benefits CheckUp

19 Identifying Sources of Income or Savings Benefits CheckUp Local Property Tax Assistance Utility Program Home Repair/Energy Savings

20 Linking Borrower to Sources Income or Savings Eldercare Locator Partnership for Prescription Assistance National Shared Housing Center Legal Services Corporation Nonprofit Referral Services

21 Repayment Plan Time limits tied to amount owed Must address payments going forward If repayment plan approved, HECM loss mitigation counselors are expected to support Borrower in assembling required documentation for servicer

22 Servicer Contacts Institution Bank of America Teresa Massingham Susana Mariscal Tressa Westbrook Generation Mortgage Predra Campbell Mark Flenoury Victoria Aicher Michael Henry Celink Nicole Cortes x.1005 Additional Team Dedicated to T&I , x.2101 Financial Freedom Karen Compton Debra Jarreau James B. Nutter Diane Turner - Tax Ext 6306 Diane.Turner@jbnutter.com Suzette Cutcliff -Tax Ext 6327 Suzette.Cutcliff@jbnutter.com Reverse Mort Solutions Harry Weaver hweaver@rmsnav.com Zuriel Rosales Ext 7121 Zuriel.Rosales@swmc.com Sun West Mortgage Lucy Burgess Ext 7418 Lucy. Burgess@swmc.com Wells Fargo Team of Five People rmsdefaultcollections@wellsfargo.com

23 Research and identify resources for transition to new housing Eldercare Locator National Shared Housing Center

24 Fraud Prevention Message to Clients Distressed homeowners are often targets for unscrupulous and sometimes criminal third-party scammers, con-artists and thieves. If you are contacted by anyone who is not your reverse mortgage servicer or lender, offering to work on your behalf for a fee or claiming you qualify for a loan modification, you should contact: HUD Office of the Inspector Federal Trade 877-FTC-HELP 800-CALLFBI

25 HECM Loss Mitigation Action Plan an outline of steps to achieve their goals; a manageable repayment plan approved by the servicer, if possible; budget analysis with recommendations on how to free up income to pay for property charges; BenefitsCheckUp print-out of benefits for which the borrower may qualify, and Contact information for the local AAA, and other state and local

26 Post Counseling Follow up Advise servicer of counseling session outcome, if appropriate Schedule follow up appointment with borrower in days Additional follow-up within days to determine if the borrower has made progress on their action plan to bring the account current. If the borrower has not implemented their action plan, the counselor will: provide additional assistance to help the borrower bring their delinquency current, or refer the borrower to the local AAA for additional guidance and counseling.

27 Questions? Utilize Q&A Feature on Webex, OR Send to

28 Wiki 101 Amy Ford, Reverse Mortgage Program Assistant NeigborWorks America

29 Aging Network 101 Greg Case Acting Director of the Office of Home and Community Based Services Sherri Clark, Senior Aging Services Program Specialist