Facilita'ng the Transfer of REO to Stabilize Neighborhoods. Neighborhood Stabiliza'on and Foreclosure Solu'ons

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Thomas Harper
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1 Facilita'ng the Transfer of REO to Stabilize Neighborhoods Neighborhood Stabiliza'on and Foreclosure Solu'ons T H E B R I D G E T O S T R O N G E R C O M M U N I T I E S

2 Na'onal Community Stabiliza'on Trust Structure Sponsors Enterprise Community Partners Housing Partnership Network Local Ini'a'ves Support Corpora'on NeighborWorks America Na'onal Urban League Na'onal Council of La Raza Na'onal Community Stabiliza'on Trust NCST LLC Core En'ty Property Acquisi'on Capacity Building Focal Point Stabiliza'on Trust REO Capital Fund LLC Financing to support local stabiliza'on programs na'onwide Local Programs City 1 City 2 City 3 2

3 Transfer of Foreclosed Proper'es Lenders MBSs Servicers Trustees Community Community Community Community 3

4 Mortgage Servicers/ Financial Ins'tu'on Par'cipa'on Na'onal First Look Program Bank of America Ci3 Chase Freddie Mac GMAC Ocwen Saxon US Bank Wells Fargo HUD/FHA NSP funds must be used Fannie Mae different process 4

5 Twin Ci'es Community Land Bank First Look Program /Twin Ci'es Community Land Bank: $30 million leveraged, $6.8 million saved through coordinated transfer of real estate- owned proper3es from ﬁnancial ins3tu3ons na3onwide to local housing organiza3ons in collabora3on with state and local governments. 731 total foreclosed proper'es purchased through the NCST First Look pre- market discount program from 2008 to date. Minneapolis only: 297 proper3es, 91 to private developers, 154 to nonproﬁt developers, and 52 to the City. Of these, 133 proper3es will u3lize Neighborhood Stabiliza3on Program funds. Insert map of TCCLB Acquisi'ons 11 proper'es were donated through the Land Bank to the City from ﬁnancial ins3tu3ons, including Fannie Mae (3), Wells Fargo (2), Bank of America (2), Chase (2) and others. 5

New York City Restored Homes Housing Development Fund Corpora'on grew out of ACA program and began buying REO proper3es in 2008 Under the REO Program, Restored Homes has been allocated $24 million in

6 New York City Restored Homes Housing Development Fund Corpora'on grew out of ACA program and began buying REO proper3es in 2008 Under the REO Program, Restored Homes has been allocated $24 million in federal and city subsidies which will leverage $32 million in private ﬁnancing. The $56 million will allow Restored Homes to purchase and redevelop 85 to100 REO proper3es over a 36- month period. To create the largest posi3ve impact, the REO Program targets the areas of greatest need, based on the highest percent of foreclosures, high cost loans and lis pendens ﬁlings. Restored Homes works with community- based partner organiza3ons to market the proper3es, iden3fy eligible homebuyers, and provide them with homeownership counseling and training. 6

7 REOMatch REOMatch is for use exclusively by par'cipa'ng NCST Community Buyers. Proprietary web- based mapping and property transac'on program: Enables REAL TIME connec3vity to NCST s property transfer plaeorm Helps Community Buyers make befer strategic decisions in property selec3on to stabilize target areas within distressed neighborhoods. Making Property Acquisi'on Faster and Smarter Mapping func3ons and downloadable property data enable Buyers to accurately pinpoint and define the status of proper3es pivotal to neighborhood revitaliza3on ac3vi3es. Creates a virtual marketplace through which First- Look and Listed REO proper3es available for sale from Stabiliza3on Trust Sellers are aggregated in one plaeorm. 7

8 Second Half of Neighborhood Stabiliza'on Looks Different Than First Half Neighborhood stabiliza3on is no longer a secret! REO Supply and Demand has changed drama3cally Homeownership vs Rental op3ons are growing Focus likely to be on REO and Pre- foreclosure solu3ons? AG Seflement the good news and the unintended consequences Private investors will they be part of the problem or the solu3on? Private capital is going to private investors; not nonprofit providers 8

9 Contact Informa'on Dawn Stockmo Community Development Manager, Midwest/Northeast Cell (773) Visit us on the Web: 9

June 26, :00 4:00pm

June 26, :00 4:00pm U.S. Department of Housing and Urban Development The National First Look Program and Beyond: Comprehensive Strategies for Accessing Property June 26, 2012 2:00 4:00pm Presenters Moderator: Jennie Vertrees,