Facilitating Transfer of REO to Stabilize Neighborhoods. Racquel Reddie Community Development Director Southeast USA

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1 Facilitating Transfer of REO to Stabilize Neighborhoods Racquel Reddie Community Development Director Southeast USA 1

2 NCST - What We Do Creating the bridge to stronger neighborhoods The National Community Stabilization Trust is a non-profit intermediary organization offering innovative programs and services to state and local governments, and community-based housing providers to expedite the productive reuse of foreclosed and vacant properties to stabilize neighborhoods and to create affordable housing opportunities for underserved families. Property Disposition Facilitating the effective transfer of foreclosed and abandoned properties to localities and community based orgs Mortgage Resolution Investment & asset management aimed at resolving delinquencies and assisting homeowners Technology Award-winning mapping and property transaction technology Capacity Building Organizing local collaborations through NCST sponsor organizations and industry partners Focal Point Work with policymakers serving as an industry voice for foreclosure remediation and neighborhood stabilization 2

3 NCST: By the Numbers 20,000 Since 2009, NCST has conveyed more than 20,000 properties to community buyers, who in turn, rehabilitate and resell those homes at a discount to owner-occupants $1.3 Billion In our first ten years of operation, NCST conveyed $1,329,583,896 in real estate back to the community through local housing providers 1,400 The number of low-value, non performing notes NCST has resolved through our Reclaim Project investment management aimed at resolving delinquencies and assisting homeowners Our programs serve 604 community buyers 65% Through the Neighborhood Stabilization Initiative (NSI) program, 65% of the distressed properties transferred to local housing providers have been located in LMI communities $179 Million Our community buyers have saved over $179 million by buying their properties at a discount through NCST s programs. The buyers utilize these savings to run other community programs 6,000 The number of donation properties accepted through NCST by organizations 3,000 Our buyers operate in 48 U.S. states, which includes 3,000 cities and nearly 4,000 zip codes

4 NCST Acquisition Programs Property Disposition Strategies First Look NSI Second Look Donations ALVS 4 Subsidiary Services Tools that add capacity, promote efficiency, and improve local strategies Neighborhood Diagnostics Transaction Services Stabilizing Neighborhoods Financing Direct capital provider and advisor on innovative financing REO Capital Fund Mortgage Alternatives

5 PROPERTY DISPOSITION acquisition program benefits Communities have the opportunity to access REO in targeted areas prior to the properties being listed in the open market Financial institutions have the opportunity to sell or donate to a buyer who has dedicated funding and an incentive to improve the neighborhood while minimizing hold times (Figure 1) Helps Community Buyers target properties in stabilization focus areas Local government entities can coordinate NCST activity within a given geographic market to provide program efficiencies and improve effectiveness (Figure 2) Allows Community Buyers to beat opportunistic investors to the properties puts the Community Buyer in the drivers seat Purchase and Donation Agreements are pre-approved, localized by State, and NSP Program supported Properties are sold directly to the Community Buyers NCST does not enter the chain of title Figure 1 Figure 2 5

6 To help protect your privacy, PowerPoint has blocked automatic download of this picture. To help protect your privacy, PowerPoint has blocked automatic download of this picture. To help protect your privacy, PowerPoint has blocked automatic download of this picture. POST-FORECLOSURE STRATEGIES Neighborhood Stabilization Initiative (NSI) Target Markets: Akron, OH Atlanta-Sandy Springs-Roswell, GA Baltimore-Columbia-Towson, MD Chicago-Naperville-Elgin, IL Cincinnati, OH-KY-IN Cleveland-Elyria, OH Columbus, OH Dayton, OH Detroit-Warren-Dearborn, MI Jacksonville, FL Miami-Fort Lauderdale-West Palm Beach, FL New York-Newark-Jersey City, NY- NJ-PA Orlando-Kissimmee-Sanford, FL Philadelphia-Camden-Wilmington, PA-NJ-DE Pittsburgh, PA St. Louis, MO Tampa-St. Petersburg-Clearwater, FL Toledo, OH NSI Goals: Effectively match distressed properties with responsible community buyers for property renovation and resale to prevent further blight and provide affordable housing opportunities Assist distressed communities in executing their building demolition plans Support a properly functioning housing market and bolster local economies 6

7 NEIGHBORHOOD STABILIZATION INITIATIVE (NSI) timing considerations Established timelines help streamline the closing process 48 Hours Express Initial Interest on New Properties 2-7 Business Days Inspect Properties 8 h Business Day Confirm Interest to Receive Pricing 48 Hours Accept or Decline Offer Price 48 Hours Return Signed Purchase Agreement 7

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10 NCST technology platforms REOMatch Web-based property mapping and acquisition tool used by NCST and its partners to show properties Personalized REOMatch portal for each Community Buyer Enables real time property updates and status changes Mapping functions and downloadable property data enable Buyers to accurately pinpoint and define the status of properties Community Buyers should log in to respond to every opportunity made available REOTrack Hosts all properties acquired through NCST from participating sellers Customized REOTrack portal for each Community Buyer hosting only their acquisitions Simplifies reporting on development and disposition activities by showing buyers what is required for each asset

11 NCST technology platforms REOMatch 11

12 National Community Stabilization Trust contact info Racquel Reddie Community Development Director, SE USA Office: Direct: Cell: Onboarding Team Distribution List: NCST Resources: Program Guide, user manuals, buyer success stories and other resources available to on our website: Follow Us: Facebook LinkedIn Twitter 12