A RoadMap for HOPI: 20072009 NHS of Chicagos Home Ownership Preservation Initiative

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A RoadMap for HOPI 2007-2009NHS of Chicagos
Home Ownership Preservation Initiative
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In The Past Three Years

• The Home Ownership Preservation Initiative (HOPI)
  has saved
• Homeowners
• Lenders
• The City of Chicago
• Over 287 Million Dollars!

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Foreclosure Starts Reduced by 20 (2002-2005)
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With Your Help, NHS of Chicago HOPI Delivered

• Counsel and Educate over 4,000 people
• Goal 3,000 individuals
• Result 4,328 individuals
• (144 of goal)
• Prevent 1,328 foreclosures
• Goal 1,500 foreclosures prevented
• Result 1,304 foreclosures prevented
• (88 of goal)
• Reclaim 330 buildings
• Goal 300 reclaimed buildings
• Result 330 reclaimed buildings
• (110 of goal)

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• Whats Next Creating a HOPI Roadmap for
  2007-2009
• Methodology
• Analyzed NHS of Chicagos and HOPI capabilities
  and processes
• Informational interviews with partners
• Conducted online survey with partners
• Explored partnership opportunities
• Developed a research agenda
• Identified specific and measurable goals for
  2007-2009

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• Learning What HOPI Partners Value
• National visibility and leadership of HOPI on
  this issue
• Heightened awareness of problem and costs of
  foreclosure
• Research showing effectiveness of foreclosure
  prevention efforts
• NHS of Chicago as a Learning Laboratory for
  national pilot strategies
• A forum for networking with industry
  representatives
• Building partnerships with nonprofits

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• Partner Recommendations
• Creation of a formal Steering Committee
• Better reporting on results to partners
• More applied research projects
• Increased marketing and promotion activities
• More involvement of servicing staff from partner
  organizations
• More ongoing communications with partners
• Improved REO relationship
• Expanded outreach to new partners

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• Suggested HOPI Research Topics
• Evaluation of the cost and benefits of HOPI
  strategies
• Documentation of the direct and indirect costs of
  foreclosures
• Case studies on the causes and impacts of
  foreclosure on individual families
• Study of consumer behaviors and decision-making
  process of defaulting homeowners
• Research on mortgage or appraisal fraud and
  strategies to address them

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• HOPI Mission Statement
• HOPI is a public-private partnership dedicated
  to preserving homeownership through foreclosure
  prevention, loss mitigation, and individual
  intervention.
• HOPI partners are committed to developing
  innovations and promoting best practices in
  lending, servicing and default counseling in
  order to prevent or mitigate the devastating
  social and financial costs of foreclosure.
• HOPI partners are committed to carrying out
  and expanding the HOPI program including the
  research and development efforts in Chicago to
  serve as a model for the entire nation.

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• Proposed HOPI Goals 2007-2009
• Counsel and educate 5,000 families
• Prevent 1,500 foreclosures throughout Chicago
• Reclaim 350 buildings throughout Chicago
• Continue National Learning Laboratory
• Test at least three new intervention strategies
• Assist in replicating successful HOPI strategies
  in 5 cities nationwide
• Conduct at least 3 research projects
• Develop Policies and Best Practices
• Pursue Next Stage issues
• Mortgage Fraud
• Engage Wall Street
• Refine understanding of borrowers in distress
• Address issues of exotic new loan products

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A Partnership Approach to Preventing
ForeclosureRegional and National Efforts

• NHS of Chicago HOPI
• Preventing foreclosures through direct contact
  and service to borrowers
• National Model A Pilot Program
• Demonstrating success of components
• Assisting with local replication
• Promoting best practices for industry
  partnerships
• Applied Research
• A Learning Laboratory
• Borrower information and practices
• Research and development site to test
  applications
• Promotion and marketing of foreclosure issues

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A Partnership Approach to Preventing
ForeclosureRegional and National Efforts

• NeighborWorks America
• Center for Foreclosure Solutions
• National hotline and connection to local entities
• Replication of local partnerships with HOPI
  components
• Training counselors and not-for-profit
  organizations in loss mitigation techniques and
  processes
• Promotion of industry and partnership best
  practices

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Components of HOPI 2007-2009

• Set up formal steering committee with partnership
  structure
• Strengthen existing partnerships with new goals
  and strategies
• Recruit new partners
• Provide regular and value-added communications
• Work with other innovative industry efforts
• Test new programs and applied research projects

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HOPI Partner Benefits

• NHS services to borrowers resulting in increased
  borrower contact and saves
• Public and other resources focused on issue
• Testing and improving foreclosure prevention
  strategies for replication elsewhere
• Providing a platform and model for national
  leadership on issue
• Networking and mutual sharing with industry
  colleagues on foreclosure issues
• Promoting best practices
• Use of trademarked HOPI logo in materials and
  website

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HOPI Partner Responsibilities

• Commitment to HOPI goals and mission
• Financial support of HOPI / NHS Chicago
• Responsible and responsive loss mitigation
  contact
• Institutional commitment to improve servicing and
  loss mitigation efforts
• Creative solutions about the impact of
  origination practices on foreclosure.
• Willingness to share best practices and data for
  applied research
• Provide feedback on HOPI servicing insights to
  loan origination quality control efforts
• Participate in substantially decreasing vacant
  buildings

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Next Steps

• Review and incorporate comments from
• todays discussions into RoadMap
• Obtain new commitments from existing partners for
  2007-2009
• Identify and recruit new partners
• Set up HOPI Steering Committee
• Engage partners through new goals