ELMORE. (Elderly Mortgage Assistance Program) 2015 NCSHA Conference Presentation September 29, 2015

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1 ELMORE (Elderly Mortgage Assistance Program) 2015 NCSHA Conference Presentation September 29, 2015

2 Introduction Floridians were significantly impacted by the Great Recession ; our housing market dropped almost 60 percent and unemployment rose to 12 percent Our senior population was greatly affected by the recession Nearly a quarter (24.6%) of Florida s pop. in 2014 was million persons will be 75+ by 2020 In a 2013 DOEA study, 21% of Florida s seniors reported having difficulty paying their housing related expenses

3 Reverse Mortgage Crisis Thousands of older Floridians have reverse mortgage loans in default because of sustained hardships that resulted in their inability to pay the property charges Property charges are defined as property taxes, homeowners insurance and homeowners and/or condo association dues) on the home Failure to pay these property charges may result in the servicer foreclosing on the home, because the servicer must now pay costs In general, senior homeowners have less options or capacity to address this crisis

4 What is a Reverse Mortgage Commonly known as home equity conversion mortgages or HCEMs Purpose is to supplement senior homeowners limited incomes Depending on the RM terms, payments to the homeowners are normally spread out over a number of years; it may also be set up like a home equity line of credit, taken in one lump sum, or a combination of set ups to help homeowners deal with financial burdens Homeowner still required to pay property charges Loan paid back at sale of home or death of homeowner

5 ELMORE funded under Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets (HFA Hardest-Hit Fund) ELMORE The Elderly Mortgage Assistance Program was designed by our Division of Homeownership s Programs to assist low- to moderateincome senior homeowners facing HECM foreclosure due to the inability to pay the property charges on their homes These homeowners have been paid all the equity in their home under the HECM ELMORE s intent is to help eligible homeowners remain in their homes by paying past-due property charges that were paid on behalf of the borrower by the servicer, in addition to paying up to 12 months of upcoming property charges.

6 ELMORE Benefits Up to $25,000 in ELMORE funds is available for a qualified senior homeowner Pay off property charge arrears through services Provide funding to pay the next 12 months of property charges The loan is forgivable at 50 percent per year with a two-year term Telephone and in-person assistance completing the application process Completion of a BenefitsCheckUp, which is a National Council on Aging program to assist seniors with finding benefits for which they may be eligible on a local, state and/or national basis.

7 Who is Eligible A legal US citizen or lawful permanent resident with HH income lower than 140% AMI for the area Have a reverse mortgage secured by a property in Florida, serviced by regulated financial institution Reside in the house as the primary residence Have fallen behind on property charges due to a hardship such as medical expenses, reduction in income, home repairs, divorce, disability, unemployment or under employment Can afford property charges payments once caught up through this program.

8 Major Challenges Identifying 5,000 to 7,000 at-risk homeowners Marketing to fearful and skeptical elderly homeowners Helping senior homeowners apply for the Program Determining homeowner eligibility in a timely manner Addressing homeowners ability to sustain home after the assistance is provided 8

9 Partners Florida Department of Elder Affairs Fannie Mae Aging and Disability Resource Centers/AAAs National Council on Aging Foreclosure Counseling and Advisor Agencies

10 Results to Date 3,861 applications received 685 homeowners determined eligible to receive assistance paying past due and near future property charges Average financial assistance: $14,093 per HH 800 in determination pipeline 2376 determined not eligible or withdrew app

11 Who has Benefited Servicers The Public Elderly Homeowners

12 For More Information Contact: David Westcott FHFC Director of Homeownership Programs ELMORE Program URL:

13 THANK YOU We Make Housing Affordable Presenter: Bill Aldinger, Assistant Policy Director/Supportive Housing Coordinator Florida Housing Finance Corporation