Virginia Foreclosure

Prevention Task ForceThe Foreclosure Crisis: A Regional PerspectiveThe Foreclosure Crisis: A Regional Perspective

June 19, 2008June 19, 2008

Presented by: Bill Shelton, DirectorPresented by: Bill Shelton, Director

Virginia Department of Housing and Community DevelopmentVirginia Department of Housing and Community Development

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Created in November 2007

Governor Tim Kaine formed theVirginia Foreclosure Prevention Task Force

to address the rising rates of

foreclosure in the Commonwealth.

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Virginia Foreclosure Rankings

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17

34

51

Calendar Year Quarter

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igh

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Foreclosure Start Rate Foreclosure Inventory Rate

Foreclosure Start Rate = the total number of first mortgage home loans entering the foreclosure process during the quarter as a share of total first mortgage loans in servicing.Foreclosure Inventory Rate = the total number of first mortgage home loans in the foreclosure process at the end of the quarter as a share of total first mortgage loans in servicing.

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37

Top Third

Middle Third

Bottom Third

How bad is Virginia’s foreclosure problem?

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The Task Force Charge

Chaired by Patrick Gottschalk, Secretary of Commerce and Trade (SOCT).

Task Force consists of representatives from the non-profit, advocacy, public, banking, legal, and real estate sectors.

Additional valuable partners included: the Federal Reserve Bank of Richmond, George Mason School of Public Policy, the Center for Housing Research at Virginia Tech, and the Office of the Attorney General.

The Governor charged the Task Force with:

Identifying ways to prevent the trauma of loss of home, related financial devastation, and family disruption.

Looking at possible negative impacts on communities as foreclosed homes depress property values and the real estate industry.

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Workgroup 1 - Foreclosure Impact

Objective: Monitor the economic, fiscal, and social impacts of foreclosure to identify emerging issues.

Task: Assess the impact of foreclosures in Virginia, assess the impacts on families, neighborhoods and communities, and identify emerging issues.

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Workgroup 2 – Education and Outreach

Objective: Reduce the number of homeowners impacted by foreclosure.

Task: Raise the knowledge and capacity of households in or at risk of foreclosure, enhance counseling efforts, promote best practices in loss mitigation, and increase financial literacy.

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Workgroup 3 – Regulatory Reform

Objective: Prevent future foreclosure problems. Identify potential efficiencies in currently fragmented regulatory environment.

Tasks: Review existing laws and regulations relating to foreclosure, consumer protection, and predatory lending practices to determine any needed adjustments.

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Accomplishments 239 new Foreclosure Mitigation Specialists have been trained to

provide assistance statewide (as of June 13, 2008).

An extensive outreach campaign has been launched covering television, cable, radio, and print media:

Including: PSAs in English and Spanish

Several PSAs feature Governor Tim Kaine

Education and outreach mortgage clinics for distressed borrowers:

Saturday, June 14 – Richmond, Tidewater, and Roanoke

Saturday, June 21 – Woodbridge and Chantilly

Online pre-registration is encouraged at: www.virginiaforeclosureprevention.com

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Accomplishments

Compiled and analyzed state and national statistics and data to produce Virginia composite.

Conducted focus group sessions to gather information from local governments and communities.

Facilitated the passage of Senate Bill 797 which provides additional time for borrowers to work with lenders prior to the initiation of foreclosure proceedings.

Supported the passage of foreclosure prevention related bills such as rescue scam prevention and process reform.

Initiated information website:

www.virginiaforeclosureprevention.com

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Next Steps Foreclosure Impact Summit:

July 23, 2008

Richmond, Virginia

Greater Richmond Convention Center

403 North Third Street, Richmond

Continued outreach and education to distressed borrowers to reduce impact of crisis.

Continued scrutiny of fragmented regulatory environment.

Ongoing information exchange to provide support to local governments and nonprofit service providers.

Ongoing legislative efforts – several bills are currently in the Housing Commission for continued study.

Continued monitoring of federal initiatives.