PRESERVING THE AMERICAN DREAM: Building Strong Communities A Report of the Homeownership Preservation Foundation
OUR MISSION The Homeownership Preservation Foundation (HPF)
is an independent national nonprofit
dedicated to guiding consumers onto the
path of sustainable homeownership and improving their overall
financial health.
A Message from Our CEO There’s a difference between a house and a home. The former is property. The latter is the sense of safety, serenity and family. HPF is here to support and become an ally to anyone that has a place they call home. In 2004, we were created because there was a crisis in the U.S. that had not been seen before. We were put in place for homeowners in the grip of foreclosure.
As the economy and housing market make a crawling recovery, challenges and obstacles are still prevailing. With the evolving economy, our consumers’ needs have evolved and so have we. Communities and the people in them are still struggling. There are homeowners who did not lose their homes to foreclosure but are still struggling with their finances. There are homeowners who are current on their mortgage but still struggling to pay their bills. There are new homeowners who want to understand the risks and responsibilities of homeownership. There are those who rent who want financial education and who may become future homeowners. These are the people HPF serve.
By educating clients, through our coaching and counseling sessions, we help paint the whole healthy financial pictures for families and individuals. That means higher credit scores, lower debt and more savings. Every day, we give the best we have to offer to guide homeowners, renters and buyers alike to bright financially healthy futures and their personalized vision of the ‘American Dream’.
A home isn’t just property. It’s where we make our fondest memories, a place of privacy and security. Our personal haven. Everyone deserves to have a place where they can lay their head at night. Whether that is your first home or your fifth, the Homeownership Preservation Foundation is here to help people feel comfortable in the place they call home and to build sustainable communities. HPF was there in the past to help distressed homeowners. Today and in the future, we continue to be here to offer help, options and hope to all our consumers.
Sincerely, David Berenbaum Chief Executive Officer
Who We Are:
An Independent, National, Trusted Resource The Homeownership Preservation Foundation (HPF) is an independent nonprofit organization dedicated to guiding consumers onto the path of sustainable homeownership and improving their financial health. Since its founding in 2004, HPF has served over 8 million homeowners who depend on us as a trusted, neutral source of information and assistance. Working one-on-one with homeowners, we provide free, confidential and comprehensive financial and foreclosure prevention education through our national Homeowner’s HOPE™ Hotline—888-995-HOPE™— which is staffed and ready to assist homeowners every day around the clock.
Although we are an independent organization, we work closely with private and government entities to find sustainable housing solutions. We are recognized as a trusted resource for homeowners across the country and serve as the national call to action for Making Home Affordable, the federal program that is designed to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy. We also work closely with other government agencies, including the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Bureau, major banks, real estate providers and a myriad of diverse organizations who are on the frontlines of the country’s housing market.
MICHAEL’S STORY: “THERE IS HOPE” For many families, the Homeowner’s HOPE Hotline is often a first
Michael found the counselor to be very helpful as they worked
stop in the process to resolving their housing crisis issue. Calls to
with him to fill out paperwork, forwarded information to the bank
the Homeowner’s HOPE™ Hotline average about 11,000 per week.
on his behalf and continued to offer assistance even after he had worked out an arrangement with the bank. “I could still call them
Michael had been flying high in his career as a space flight systems
and they would answer what they could. I felt that was awesome,”
analyst, but the death of his wife and a subsequent permanent
he says.
disability grounded him almost immediately. “I was going under fast due to financial issues,” the Florida resident recalls.
And it all starts with just picking up the phone. “Don’t be afraid to call,” Michael advises. “There is hope!”
Wanting to keep his house, Michael searched the Internet for help and stumbled upon HPF. “They told me what to expect and how long things would take. I knew as long as I had something in the works,” says Michael, “I had hopes of a good outcome.” Our dedicated, trusted and caring counselors worked with Michael to assess his family’s financial situation and guided him – as we have more than 8 million families over the years – on a path to avoiding foreclosure and staying in his home.
“
It saved me from losing my home. I am very glad I called and had a very helpful and informative
HPF manages a network of HUD-approved nonprofit housing and credit counseling
counselor. The shame of my financial situation was
agencies which includes: CCCS Greater
lifted from my shoulders and I was able to keep my
Dallas, Clearpoint Credit Counseling
home with the repayment program and now I am 2 months ahead on payments — Felicitass from New Jersey
Solutions, Greenpath Debt Solutions, Money Management International, Springboard and Novadebt.
214
What We Do: Our Programs and Services HPF is proud of the reputation we have built and the customer satisfaction we have earned. With each homeowner, we learn about who is in need and what programs and services work best to respond to those needs. As a result, we have created close to a dozen programs through our national infrastructure, which include providing support to victims of mortgage scams to assisting our military service members returning home from active duty. HPF is expanding its services to provide comprehensive, extended financial coaching to families across the
housing continuum, we do work with folks at different points along the housing continuum today including non-delinquent, delinquent, post-modification. Integrating technology-based tools, including innovative online education platforms and financial management programs that can be accessed from a phone, tablet or computer, coupled with our one-on-one counseling, HPF will continue to meet the demands of its clients. HPF continually works to better customize its services and partners with local agencies to provide seamless, comprehensive solutions for improving an individual’s financial capability.
Our customized programs include: Anti-Loan Mortgage Scam Program HPF is the national call to action for homeowners who have been victims of a loan scam. Since inception we have responded to more than 104,000 complaints from victims.
Homeowners who are Current but Concerned about Default Many homeowners continue to face distress but have not yet defaulted on a mortgage payment. HPF has provided comprehensive financial advice and support to prevent default for more than 2.8 million homeowners.
Military Program HPF has a dedicated team of experts to help military service members and their families navigate financial and housing distress. Since September 2013, HPF has served more than 6,000 military families.
Post-modification Coaching Program Our financial coaches have worked with more than 17,000 individuals to create personalized financial plans, with clear goals, and with regular checks-ins.
Making Home Affordable HELP Program Since inception, HPF has responded to 355,000 homeowners who have questions or concerns related to the national Making Home Affordable Program.
ROBBIN’S STORY: “THEY CALLED ME.” “SEEK HELP.” That’s Robbin’s straight-forward advice for families who may be facing possible foreclosure. Robbin speaks from experience. Faced with sudden unemployment, the North Carolina resident tried to follow her own advice. She immediately reached out to her bank to modify the loans on her two properties to more affordable payments, while she looks for another job. Robbin, who prided herself on being a good money manager who had modest financial obligations, acknowledges that “being a good money manager was easy when I had an income. But it became difficult when I didn’t.” However, she was able to stay on top of her bills – including her mortgage payments – with the help of savings and family. Referred to Robbin by her bank, HPF counselors offered information on resources in her city and state that could help Robbin during her financially challenging times. Robbin also participated in the HPF Post-Modification Coaching Program.
Robbin’s advice: “I didn’t know about HPF until they called me. Seek out such organizations before you miss that payment. As hard as it may be, don’t run from it. Don’t hide from it. Open the mail. Collection letters don’t disappear. It only gets worse if you try to avoid it.”
DID YOU KNOW?
encies, ed counseling ag ov pr ap D U H l ca ilies to lo a priority. over 372,000 fam partners remains ed d rr se fe ba re F ity P H un e m m on In 2013 al y with our co es. Working closel ic rv se d an s . m ra prog these partnerships nd pa ex to pe ho In 2014, we
How We Help: Counseling and Coaching Through the Whole Process HPF is committed to being a financial coach to consumers for the life of their mortgage. We have positioned our organization as a resource that is available to help families throughout the housing continuum – from the excitement of buying a home, to the financial commitments of maintaining a home and the challenge of sustaining homeownership during challenging economic times. At HPF, we believe that the long-term behavioral change is achieved when consumers are “taught to fish, rather given fish to eat”. Our networks of HUD-approved housing counselors use a “coaching” philosophy which is a client-driven process, rather than counselor-driven. Our counselor acts as a “coaches” and encourage, motivate and holding our clients accountable to their commitments and ultimately meet their goals. Our coaches meet with their clients often and develop a deep, long term relationship with them. Here at HPF, we strive to focus on long term engagement rather than short term attention.
Financial Capability Coaching
Homeownership
Foreclosure Prevention and Beyond
MEET OUR COUNSELOR - MANNY’S STORY: “IT’S NOT JUST A 9-TO-5.” Each year the Homeownership Preservation Foundation (HPF) recognizes one outstanding housing counselor who goes above and beyond to help homeowners. Manny Gonzalez is a housing counselor at Novadebt and was chosen out of the nearly 400 counselors for his commitment to consumers and his profession. A native of San Diego, Manny graduated from San Francisco State University with a Bachelor’s degree in Communications. He dreamed of serving his community as a public servant, but Manny took what he expected would be a temporary position fell in love with housing counseling. “I didn’t know about housing, finance or debt,” he says, “but I had a gift for understanding people’s problems and advocating for what they need. After day one, I was hooked.” From helping homeowners get a mortgage modification to giving tips on budgeting, Manny finds a way to leave customers feeling knowledgeable and empowered. By providing real-life scenarios to clients, Manny’s relatability and creativity help to make financial success accessible. One of the biggest motivations in Manny’s career is his fellow counselors who he describes as best in class. “They motivate me to do my best. They drive me, every day, to be the best I can be.”
“
Having the burden of possible foreclosure on my home was stressful and draining both physically and emotionally. I was at my wits end. Making contact with HPF my counselor was truly a blessing. She truly was an ANGEL!!! — Tina from Florida
Counseling Works A new study released by the Urban Institute indicates housing counseling is having its intended effect of helping homeowners. The research was done for NeighborWorks America’s National Foreclosure Mitigation Counseling (NFMC) program and is based on the analysis of nearly 240,000 homeowners. It showed that counseled homeowners were more likely to cure a serious delinquency or foreclosure with a modification or other type cure, stay current after obtaining a cure, and for NFMC clients who cured a serious delinquency, avoid foreclosure altogether. More than 1.8 million homeowners have been helped by the NFMC program since its creation. HPF has been a part of the NFMC program since 2008.
Summary of Findings »»
Counseling greatly increased a homeowner’s ability to cure a serious delinquency or foreclosure. Counseled homeowners were nearly twice as likely to receive a cure for their serious delinquency or foreclosure as non-NFMC counseled homeowners. The study points out that counselors are more adept at identifying additional options for homeowners, and as a result, homeowners have benefited by utilizing the best cure for their particular situation.
»»
Counseled homeowners were about 1.5 times more likely to not have their mortgage re-enter a troubled status after receiving a loan modification cure. Once cured, NFMC counseled homeowners are less likely to have their loans redefault. This effect is largely attributable to services provided by counselors, such as budgeting and financial management skills and developing an appropriate solution given the homeowner’s financial conditions. NFMC counselors help homeowners find alternatives to foreclosure when saving the home is not an option, and are more likely to obtain a short sale than non-counseled homeowners.
»»
Counseled homeowners are nearly three times as likely to receive a loan modification cure compared to noncounseled homeowners. NFMC counseled homeowners who received a modification had their annual payment reduced by an average of $4,980.
“
The counselor was very human and gave HOPE that whatever the outcome, it will be the best for our family...that is how I felt after the conversation. — Richard from Washington
BY THE NUMBERS - COUNSELING WORKS! »» 70% -- The number of homeowners more likely to avoid foreclosure after receiving nationally certified counseling 1 »» 29% -- Reduction in the delinquency rate of first-time homebuyers who received counseling 2 »» 13% -- Female callers to HPF who are single-parent female heads of households 3
“
I am one of those that felt there was no hope and too embarrassed to make that first step in contacting someone for help. Hope showed me there was no need to be embarrassed and made speaking with the counselor easy and free flowing. — Sharon from Maryland
1- Gabriela Avila, Hoa Nguyen and Peter Zorn, April 2013. The Benefits of Pre-Purchase Homeownership Counseling. 2- U.S. Department of Housing and Urban Development (HUD), May 2012. Foreclosure Counseling Outcome Study: Final Report Housing Counseling Outcome Evaluation. 3 - The Homeownership Preservation Foundation
BY THE NUMBERS - HPF!
HPF Stats
»» 8 million – Distressed homeowners who called the HOPE Hotline since 2004 »» 732,783 – Families served by HPF in 2013 »» 170 – Languages available to consumers when they call the HOPE Hotline 24 hours a day, 7 days a week, 365 days a year
“
I felt that a weight had been lifted from my shoulders; counselor was professional, courteous, and sympathetic to my situation. I felt assured that we would do everything possible to retain my home, find agreeable terms and payments. I should’ve contacted you earlier, and saved a lot of sleepless nights.” — John from Maine
BETTIE’S STORY: “ I WAS NOT A STATISTIC.” While our nation may be recovering from financial stress, not
Several months passed and Bettie sank deeper into debt and
every community is recovering at the same pace. In fact, over 2
depression. The Colorado resident decided to call the Homeowner’s
million households remain in serious delinquency or foreclosure,
HOPE Hotline counselor spent time with me and broke everything
2.5 times higher than the pre-crisis average. HPF continues to
down. First, he told me not to give out information to the company
receive more than 2,500 calls each business day, from families
that called me. Then he went over my paperwork and explained
across the country, who are struggling with the legacy of the
why I was not eligible for a modification on my second mortgage.
housing crisis.
He told other things that I could do and even got on the phone with me and my bank.”
That includes Bettie. Bettie admits that the conversation with the counselor didn’t Depressed and out of work due to a disability, Bettie was seeking
start off on a positive note. “He caught me on a bad day,” she
to modify her second mortgage to a lower interest rate. Her
remembers. “I was not in the best of spirits when I first talked
bank had turned her down. A company had called her to offer
to him. I was very negative.” Sensing her down mood, Bettie says
assistance with refinancing, but Bettie was not comfortable
the counselor wouldn’t let her off the phone and even offered
sharing information over the phone with a company that was
resources to help her deal with her emotional state. “He went
unfamiliar to her.
way beyond the call of his practice,” says Bettie. “I felt he was concerned about the individual. I was not a statistic. I was impressed with his skill set, the time he took.” The counselor helped Bettie set financial goals and encouraged her to keep in touch. Bettie’s advice to struggling homeowners: “Call the Homeowner’s HOPE Hotline as many times as you need again. They are here to help.”
“
My financial coach was very helpful and gracious during my time of need. She sure helped to pull me out of a very dark period in my life. Not much scarier than the thought of losing your home! Thanks again for all of your help.”
— Jacqueline from Michigan
HPF Bringing Back The American Dream The Problem: A staggering number of Americans have been faced with foreclosure during our country’s current economic turmoil. Unemployment, underemployment, and other unforeseen factors have created impossible financial conditions for many people. While the economy is recovering, time are still hard for many . Since the beginning of the crisis began, family’s net worth has plummeted 39 percent . Many who want to be homeowners cannot due to weaknesses in their credit and financial profiles. Minority and low to moderate income borrowers have been the hardest hit. In 2012, AfricanAmericans and Latinos represented only two percent and five percent, respectively, of total purchase originations. The dream of homeownership is inching away from one of the largest segments of the U. S. populations—millennials (26-34 years olds). Over the next five to 10 years household growth in this population will grow to eight million. Unfortunately for many millennials homeownership will be just a dream. This age group continues to be plagued by significant debt, most taking the form of student loans. A recent study showed that 42% of millennial say their debt is overwhelming—that is two times what baby boomers say when asked the same question . Many millennials are also minorities and have low to moderate incomes.
HPF’s Response – Driving Financial Capability and Homeowner Readiness: HPF is developing a platform that responds to these communities and expands opportunity for sustainable homeownership. In response to changes in the markets, we are expanding to include a financial coaching approach that drives homeownership preparation and financial capability. We are combining our proven and effective coaching model which provides online tools and education to individuals, with the support of a financial coach to drives longterm behavioral change. As families begin to rebuild after the economic crisis and look toward to gaining access to homeownership, we are poised to serve them with trusted, effective, programs and services that help them navigate the path to sustainable homeownership.
8 MILLION
New millennial households in the next 5- 10 YEARS
DID YOU KNOW? findings of rience echoes the pe ex l na tio na e iv enOur extens ensive, extended nt “i at th s er ch ar als, timed independent rese support for individu d al an g rin ito on m uces better financi od pr gagement� , ts in po rformance on si ancial deci ents in borrower pe em ov pr im e to coincide with fin th at th strongly suggests unities. health. Evidence benefits for comm ic om on ec ng lli pe also produce com
66%
Hispanic communities saw their median wealth fall by 66 percent
53%
African American families saw their wealth fall by 53 percent
2% African Americans 5% Latinos
Total Purchase Originations 2012
African-Americans and Latinos represented only 2 percent and 5 percent of total purchase originations in 2012, respectively
Facts and Financials 2013 HPF by Program 6.47% Scam
Households
1.56% Other Other
11.78%
Male-headed single parent household 3.64%
9.78%
Help
Two or more unrelated adults 2.70% Married with dependents 33.76%
Female-headed single parent household 12.15%
Married without dependents 15.93%
80.20% Comprehensive financial counseling
Age Range
Single adult 22.04%
Reason for Default 36% Marital/Relationship Problems 4.45%
7%
Death in Family 1.52%
Death of Borrower 0.84%
Excessive Obligations 6.38% 42% 14% 1%
Business Failure 1.04%
Other 6.97%
Reduction of Income 38.18%
Illness 8.60%
.07%
Unknown Under 21
Payment Adjustment 1.16%
21-35
36-50
51-65 Over 65
Not in Default 12.44%
Unemployed 13.96%
63.7%
Race
of our clients are Low Income Asian 2.86%
14.46%
Other multiple race 7.81% Other 2.05%
Extremely Low (<30%)
21.18% Very Low (<50%) White 60.35%
28.13% Low (<80%)
36.23% Not LMI (>80%) Black of African American 26.92%
2013 Hispanic Indication
Gender
14.65% Yes 85.35% No Male 43.24%
2014 Program Expenses 8.6%
Mgmt, General and Fundraising
91.5%
Program
Female 56.67%
Our Partners Thank you to our philanthropic, business and nonprofit partners. Collectively we make a difference! American General
JP Morgan Chase
Americaâ&#x20AC;&#x2122;s Servicing Company
JP Morgan Chase Foundation
BAC Home Loan Services
Lender Business Process Services
Bank of America, NA
Met Life
Bank of America Foundation
MMI
Carrington Mortgage Services, LLC
National City Mortgage
Chase Home Finance, LLC
National Community Reinvestment Coalition
Citicorp Mortgage
Nationstar Mortgage LLC
Citifinancial Mortgage
NeighborWorks America
CitiMortgage
Ocwen Financial Corporation, Inc.
Ditech
OneMain Financial
EMC Mortgage
PNC Bank, National Association
Fannie Mae
PNC Mortgage
Fannie Mae Foundation
Select Portfolio Servicing
First Franklin
Seterus
Freddie Mac
Springleaf Financial
GMAC Mortgage, Inc.
Suntrust Mortgage
GMAC Mortgage, LLC
Wachovia Mortgage, FSB
Home Loan Services, Inc.
Washington Mutual
Homecomings Financial Network
Wells Fargo Bank, NA
HomEq Servicing
Wells Fargo Financial
Homeward
Wells Fargo Home Lending
Housing Partnership Network
Wells Fargo Home Mortgage
HSBC (Household)
Wells Fargo Housing Foundation
IndyMac Bank
Wilshire Credit Corp
Thank You!
Our Team: Our Board Sharon Sayles Belton - Vice Chair Barrett Burns Joe Donovan Bruce A. Gottschall Sanjeev Handa - Chair
Executive Staff David Berenbaum Chief Executive Officer Ken Duncan Chief Financial Officer Julie Steinhagen Chief Operating Officer
Chris Herbert Prue Larocca Jill Kanin Lovers Bruce Paradis Jeff Rohr
For More Information: The HOPE Hotline
Homeownership Preservation Foundation 7645 Lyndale Ave. S., Suite 250 Minneapolis, MN, 55423 Office: 612-230-4020
1030 15th Street NW, Suite 530 East Washington, DC, 20005
For counseling, please call 1-888-995-HOPE™ directly.
www.995hope.org
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