Changing for the Better

2014 NCSHA ConferenceOctober 21, 2014

Peter Walsh, Director of Homeownership and Customer Service

Changing for the Better

• Jumpstart homebuying while promoting our programs and services

• Multi-pronged approach– Engage and provide improvements and expanded

customer service to lender partners– Under umbrella of “Changing for the Better,” inter-

related initiatives to improve lender participation and thereby expand our portfolio and reach within the state

Business Development

• Highlight what makes us unique in the market– Low cost financing opportunities:• low down payment• mortgage insurance savings• refinancing and new home products • home improvement financing (203k and

introduction of streamline 203k)

Business Development (cont.)

• Dramatic changes to improve program flexibility for lenders– More attractive pricing• Flexible pricing options

– Mortgage limits replace income limits• Faster and easier to determine program eligibility

– Improved systems• More closely follow private investor formats

Staff Changes• Lender Services Manager– Liaison between Participating Lenders /Mortgage

Brokers and Rhode Island Housing– Grows network of lenders and broker partners– Assures loans properly structured/meet submission

and secondary market guidelines• Increased customer service to lender partners– Various staff serve as additional liaisons to lenders– Answer questions, provide high level of attention and

responsiveness

Outreach and Partnerships• Regular meetings with RIMBA– Previously viewed as “competition”– Recognized they are key to expansion of our portfolio and reach

to targeted customers

• Addressed concerns and broke down barriers– Met with top 5 lenders to address concerns and discuss

improvements

• Outside Consultant– Current market knowledge

Outreach and Partnerships (cont.)• Training sessions– In-person and webinars

• Joint marketing efforts– Co-branded marketing– Joint media outreach– Regular e-news to lender partners

• Networking and informational events– Lender Breakfast

• Online Homebuyer Education

Homeownership Microsite• For homebuyers/homeowners,

lender partners and realtor community

• Highlights and markets role of lender partners– Hyperlinks to their websites– Contact information

Good for our Lender Partners• Provide lending opportunities only available

through HFAs• Increased lender compensation/ fewer

regulatory requirements• Improved processing: similar to other

secondary market buyers• Promote partnership, not competition

Good for our Lender Partners (cont.)• Pricing Change– Interest rate on seconds now standardized =

easier for lender partners– Now same rate as primary

• One lender now able to do own underwriting vs sending to us

• Added 4th rate lock period

Good for our Lender Partners• Introduction of FirstHomes Tax Credit (MCC)– Helped to spur homebuying activity– 285 registered, half through lender partners

Good for Rhode Island Housing• Increase in overall income to Rhode Island

Housing– Helps us fund other programs in support of our

mission

• Application loan volume up 92% yr-over-yr• Closing volume up 62%• Number of Participating Lenders who have funded

loans has grown almost 180%

Good for Rhode Island Housing (cont.)• Removal of Overlays = increased loan volume– 9/1/2013 – 8/31/2014: over $21 million in FHA

loans that would not have otherwise occurred– Resulting in $421,000 we wouldn’t have made

• Streamline 203k – Increased business– React to market needs in state

Results to Date • More Rhode Islanders aware of our products and

services• More Rhode Islanders benefited from our programs• Relationships with lenders expanded and

strengthened• Exceeded loan production goals• Financial benefit to support unfunded housing efforts

in state

Thank You!

Contact Information:Peter Walsh, Director of Homeownership and Customer ServicePhone: 401-457-1148Email: pwalsh@rhodeislandhousing.org