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New York State

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New York State ... 3,552,642 homes in New York State will lose value due to subprime ... the Center for Responsible Lending predicts for New York State: ... – PowerPoint PPT presentation

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Title: New York State


1
David A. Paterson Governor
Deborah VanAmerongen Chairperson
  • New York State
  • Foreclosure Crisis

2
AgendaState of Foreclosure
  • National Foreclosure Crisis
  • Foreclosure Crisis in New York
  • New Yorks Response
  • NYS Subprime Foreclosure Prevention Services
    Program
  • New York State Banking Department
  • Program Bill No. 44/Chapter 472 of the Laws of
    2008/Subprime Lending Reform Bill
  • Center for NYC Neighborhoods
  • National Foreclosure Mitigation Counseling
    Program
  • American Housing Rescue and Foreclosure
    Prevention Act of 2008
  • Foreclosure Resources
  • Question Answer Period
  • Discussion on Unmet Needs

3
Foreclosure Crisis Definitions
  • Subprime or Unconventional mortgage - For a first
    lien loan, one that has an annual percentage rate
    of three or more percentage points above the
    yield on treasury securities of comparable
    maturity measured as of the fifteenth day of the
    month immediately preceding the month in which
    the application for the loan is received by the
    lender. For a subordinate lien loan, it shall
    mean one that has an annual percentage rate of
    five or more percentage points above the yield on
    treasury securities of comparable maturity
    measured as of the fifteenth day of the month
    immediately preceding the month in which the
    application for the loan is received by the
    lender
  • Alt-A mortgage - Short for Alternative A-paper,
    is a type of U.S. mortgage that, for various
    reasons, is considered riskier than A-paper, or
    "prime", and less risky than "subprime," the
    riskiest category. Alt-A interest rates, which
    are determined by credit risk, therefore tend to
    be between those of prime and subprime home
    loans

4
National Foreclosure Crisis
  • According to Center for Responsible Lending,
    foreclosures will have the following impact in
    the United States -
  • In late 2008 through end of 2009, 2,164,000 homes
    lost through foreclosure. As a result
  • 40.6 million homes will suffer price declines
  • Decrease in home values will average 352
    billion
  • Home value per unit affected will average 8,667


5
NYS Foreclosure Crisis
  • The Center for Responsible Lending predicts
    subprime loans made in 2005-2006 in New York will
    result in
  • Approximately 32,317 homes will ultimately be
    lost through foreclosure
  • 3,552,642 homes in New York State will lose value
    due to subprime foreclosures in their
    neighborhoods
  • Average decrease in value for each home will be
    10,370
  • 36,841,416,732 will be the overall loss in the
    tax base of Counties for this period

6
NYS Foreclosure Crisis
  • For 2008-2009, the Center for Responsible
    Lending predicts for New York State
  • Approximately 122,192 homes will be lost through
    foreclosure
  • 3,552,642 homes in New York State will lose value
    due to subprime foreclosures in their
    neighborhoods
  • The projected average overall decrease in home
    values is expected to be 64,362,000
  • The average decrease in home value is 18,117

7
Filings in New York

8
New Yorks Response
  • Coordinated response among state agencies and
    local partners
  • Leveraging resources and activities
  • Ongoing communication and coordination

9
Subprime Foreclosure Prevention Services Program
  • 25 million to HTFC for development of Subprime
    Foreclosure Prevention Services Program
  • Coordination with NYS Banking Department, Office
    of Court Administration and SONYMA
  • 20 million will be awarded to not-for-profit
    counseling agencies and legal service providers
    delivering direct services
  • HTFC has contracted with NeighborWorks America
    to provide training to not-for-profit agency
    awardees
  • HTFC is currently in contract negotiation with
    Empire Justice Center to provide training to
    not-for-profit legal service providers

10
Subprime Foreclosure Prevention Program
  • Grants to empower organizations to provide
    outreach and education, counseling, mediation,
    legal representation, and court-based services on
    behalf of New York State homeowners who hold
    subprime or unconventional mortgages
  • Provide a continuum of foreclosure prevention
    services throughout New York State
  • Collaboration among multiple applicants strongly
    encouraged

11
Award Amounts
  • 20 Million available under this RFP
  • No minimum or maximum application limits
  • Grant ranges
  • Individual - 75,000 to 250,000
  • Joint - 150,000 to 750,000
  • Applicants are encouraged to evaluate the need in
    their proposed service area and estimate the
    number of households to be served within 24
    months

12
Funding Determinations
  • Total statewide demand
  • Need in proposed geographic service area
  • Collaborative approach
  • Coverage
  • Ratio of award to number of households served
  • Program funding balance which is currently
    8,116,000

13
Subprime Foreclosure Prevention Program To Date
  • -HTFC has received 47 applications to date
    totaling 28.7M
  • -There have been 27 awards totaling 11,884,000 -
    there is 8,116,000 remaining of initial 20M
    announced in RFP
  • -18 NPCs are either awardees or partners in the
    funds awarded to date
  • -Awards include not for profits serving 36
    counties including the top ten counties that
    accounted for 81 of all lis pendens filings for
    the State in the 18 month period ending 6/30/08

14
(No Transcript)
15
Subprime Foreclosure Prevention Program
  • Successful Applications
  • Outstanding collaboration
  • Continuum of services provided
  • Cost effective/streamlined services

16
Subprime Foreclosure Prevention Program -
Training
  • Training
  • NeighborWorks to provide housing counseling
    professionals in New York State over the next two
    years with the skills and knowledge they need to
    best assist their clients in foreclosure
    counseling
  • NeighborWorks contracted with Doug Dylla to
    conduct a training needs survey
  • Courses to be offered around State based on needs
    identified in survey

17
Subprime Foreclosure Prevention Program - Training
  • Now Available
  • E-Learning Course Foreclosure Basics
  • First Place-Based Class Lending Basics for
    Homeownership Counselors
  • Syracuse Workshop
  • Wednesday-Friday, November 5-7
  • ----------------------------------------------
    - Manhattan Workshop
  • Wednesday-Friday, November 12-14
  • Tentative week-long Institute training in January
    2009
  • Information www.nysdhcr.gov

18
NYS Banking Department
  • 2 million fund created by the Governor's office
    to provide financial support for counseling
    groups and legal services assisting homeowners
    facing delinquency or foreclosure, came from
    prior enforcement actions by the Banking
    Department
  • Grant funds were allocated by regions into three
    discreet funding pools, taking into consideration
    the foreclosure rates, existing resources and
    geographic areas to be served

19
NYS Banking Department
  • Pool A   800,000 was apportioned to South
    Brooklyn Legal Services, Legal Aid Society,
    Neighborhood Housing Services of New York City,
    Legal Services for New York-Staten Island,
    Cypress Hills Local Development Corp., City Bar
    Justice Center, Brooklyn Cooperative Federal
    Credit Union and Legal Services of New York-
    BronxPool B   533,000 was apportioned to
    Community Development Corporation of Long Island
    (covering Nassau Suffolk counties), Rural
    Ulster Preservation Company (covering Ulster,
    Orange and Sullivan counties), Rockland Housing
    Action Coalition (Rockland, Westchester Ulster
    counties), Housing Action Council (Westchester,
    Putnam and Rockland counties) and Nassau Suffolk
    Law Services Committee (covering Nassau Suffolk
    counties)
  • Pool C  666,000 was apportioned to The Home
    Save Coalition (with the Affordable Housing
    Partnership as the lead agency in collaboration
    with  the Albany County Rural Housing Alliance,
    Better Neighborhoods Inc., Troy Rehabilitation
    and Improvement Program (TRIP) Inc.,
    Homeownership Center, Empire Justice Center and
    Legal Aid Society of Northeastern New York),
    Homefront Inc., Syracuse Cooperative Federal
    Credit Union, the Housing Council (serving
    Rochester and Monroe County), the Buffalo Urban
    league, Keuka Housing Council (serving Seneca,
    Yates, Ontario and Wayne counties), Belmont
    Housing Resources for Western New York (serving
    Erie, Niagara, Wyoming, Genesee and Orleans
    counties), Chautauqua Home Rehabilitation and
    Improvement Corp. (Chautauqua county) and Legal
    Aid Society of Northeastern New York (Fulton
    county)

20
National Foreclosure Mitigation Counseling
Program
  • 2008 National Mitigation Foreclosure Counseling
    Program - 1st Round
  • -February 2008 NWA awarded 130M out of 180M
    appropriated by Congress
  • -3 categories of funding (HUD approved
    intermediaries, state HFAs, and NW
    organizations)
  • -Approximately 3,230,800 was distributed among
    NY and northern NJ based not for profits through
    HUD approved intermediaries
  • -SONYMA received 747,718 provide funding to
    sub-grantees
  • -Eight NeighborWorks organizations in NY received
    approximately 835,400

21
Center for NYC Neighborhoods
  • CNYCN was announced in December of 2007
  • Its mission is to aggregate resources to support
    and coordinate foreclosure prevention and
    intervention throughout NYC
  • CNYCN has exceeded expectations by raising over
    7 million for its first year of operation
  • CNYCN plans to reach over 15,000 people before
    the end of the year, and another 15,000 by June
    of 2009

22
Center for NYC Neighborhoods
  • CNYCN has already committed 3 million to support
    housing counselors, legal service providers, and
    consumer education specialists
  • CNYCN is now launching its second RFP, and plans
    to commit an additional 3 million before the end
    of 2008.  In all, CNYCN expects to support nearly
    20 organizations across NYC
  • If you or anyone you know needs assistance, call
    311 and ask for the Center for NYC Neighborhoods

23
Program Bill No. 44Chapter 472 of the Laws of
2008 Subprime Lending Reform Bill
  • Elements of the law to assist borrowers currently
    facing foreclosure
  • Pre-foreclosure Notice
  • Mandatory Settlement Conference
  • Rescue Scams

24
Program Bill No. 44Chapter 472 of the Laws of
2008 Subprime Lending Reform Bill
  • Elements of the law to prevent similar future
    crisis
  • Extending predatory lending prohibitions to a new
    class of subprime loans
  • Underwriting Standards for Subprime Home Loans
  • Duty of Care for Mortgage Brokers
  • Registration of Servicers
  • Mortgage Fraud

25
American Housing Rescue and Foreclosure
Prevention Act of 2008
  • Helping at risk borrowers - Most directly affect
    consumers communities include
  • Hope for Homeowners FHA-backed mortgage
  • 3.92 billion in CDBG funds for neighborhood
    stabilization (approximately 100 million in NY)
  • Increase funding for housing counseling new
    funding for legal services (180 million)
  • A new home-buyer credit 10 of purchase price
    up to 7,500
  • A new affordable housing trust fund

26
American Housing Rescue and Foreclosure
Prevention Act of 2008CDBG Allocation
27
Foreclosure Resources
  • www.nysdhcr.gov
  • http//www.banking.state.ny.us
  • http//www.newyorkfed.org
  • http//www.nycourts.gov
  • http//www.hud.gov
  • http//www.nw.org
  • http//www.fdic.gov
  • www.responsiblelending.org

28
Questions Discussion
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