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HLP is a national, neutral and nonprofit utility that unifies the efforts to help families achieve and sustain homeownership. Our technology enables all stakeholders to collaborate by sharing the data, documents and other information needed to help people buy or retain their home.


Adapting to a Changing Marketplace As two of HLP’s founding members in 2009, we are proud of the organization’s accomplishments in seven short years. When we started HLP, our goal was to provide a reliable, secure technology platform for homeowners and mortgage servicers to exchange and track documents in the battle against foreclosures. We’ve accomplished this goal, teaming up with 19 of the 20 largest US mortgage servicers and helping more than 500,000 people seeking to sustain homeownership. Our communications platform is now the industry standard for supporting collaboration between mortgage bankers and the advocacy sector. We are also excited about our vision for the future. HLP has expanded its reach to provide the full cycle of mortgage products. HLP.guru, our unique new app, offers tech-savvy consumers a new way to qualify for a mortgage loan. Our technology is also enabling companies such as Freddie Mac to manage their counseling networks more efficiently while also expanding into mortgage originations by helping first-time homebuyers qualify for home loans. HLP enters 2017 financially fit and ready to continue meeting the needs of our stakeholders. We are launching a new advisory council to help HLP adapt and update our technology, making it more productive and efficient. We are also dedicated to providing training and other resources to continue our strong partnership with more than 1,100 HUD-approved counseling agencies across the nation. As the only nonprofit technology provider in the mortgage banking industry, HLP is well positioned to build partnerships among all institutions that care about the homeowner experience. Faith Schwartz Chairman, Board of Directors Cam Melchiorre Chief Executive Officer


HLP Adds Servicers, Expands Products HLP welcomed a new group of servicers to its platform in 2016 while expanding its product offerings to existing users. US Bank, Seterus, Ditech and Caliber Home Loans joined HLP in 2016. These additions mean 19 of the top 20 US mortgage servicers are now enrolled in HLP, accounting for more than 80 percent of all US residential mortgages. HLP’s standard interface for data and document exchange continues to be a key driver for servicers. Our platform, which connects with more than 1,100 HUDapproved counseling agencies and nearly 5,000 counselors, provides a secure way to communicate and exchange the sensitive information needed to complete a workout. HLP shortens the time frame to process loan packages, with applications processed via HLP taking approximately 35 days to close. HLP continues to expand and adapt its communications platform to meet the evolving needs of servicers, counselors and consumers. Examples include: Outreach to Borrowers. Ditech recently leveraged HLP to help comply with the borrower outreach requirements of the FHFA principal reduction program. By working with local housing counselors in target-rich zip codes, they achieved a 30 percent right-party contact ratio—a stellar achievement given the delinquency status of many of the loans. Post-HAMP Loan Modifications. HLP has adapted its communications platform to enable HUD-approved nonprofit counseling agencies

Products Supported

and consumers to submit requests for proprietary loan modifications

origination

and forward them to mortgage servicers for a decision.

Input via Servicer Advisory Council. Servicers will play a critical

• •

servicing

role in HLP’s future development as part of HLP’s new Servicer Advisory

Council. This group, set to kick off in early 2017, will provide new ideas

and valuable insights on proposed changes in HLP’s functionality that

affects servicers.

• •

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HLP Annual Report

prepurchase refinance reverse mortgages post-purchase early intervention foreclosure prevention post loan modification non-retention mediation MSR transfers


PARTNER SPOTLIGHT: All In on Helping with Homeownership Under Laura Reichel’s leadership, Ditech Financial LLC (Ditech) teamed up with HLP in 2016 to implement a variety of new programs to help people keep or buy a home. Ditech became a fully participating servicer in 2016 and wasted no time in deploying HLP to help improve service to its customers. In addition to accepting workout packages from nonprofit counselors, it worked with HLP and nonprofit counseling Laura Reichel

agency Clarifi to develop an outreach program to help distressed homeowners

eligible for the Federal Housing Finance Agency’s new Principal Reduction Modification Program. Ditech also created a program to enroll a select number of people who were not able to qualify for a home mortgage loan into HLP.guru. Each prospective homeowner has access to a free “guru”—a nonprofit housing counselor—that helps each person develop and implement an action plan to qualify for a mortgage loan. “HLP is a great option as a trusted advisor to the borrower” said Reichel, Ditech’s senior vice president, Government Agencies, Product Development and Industry Relations. “Ditech has tremendous talent to help the borrower, but having HLP as a resource is a big benefit and a great way to connect us HUD-approved housing counselors.”

Coming in 2017 Foreclosure Mediation. Our technology enables courts and government agencies to streamline the mediation process. HLP provides a secure exchange of case data, documents, and all communications through a central repository and makes mediation sessions more productive by providing a permanent audit trail of all documents. Look for expansion of this service into several new jurisdictions and improved functionality. Homeowner Connect. Now used by 15 servicers, our direct consumer portal enables homeowners to apply online directly to the servicer for assistance. Since US Bank began using the website in August, it has generated several thousand applications for loan modifications, improving customer satisfaction and the bank’s productivity. Look for a major upgrade in 2017 that will include on-demand counselor support, new automated tools to gather needed information and configurable data and document sets.

Neutral. Collaborative. Transparent.

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HLP.guru – A Breakthrough App HLP expanded its services in 2016 to help mortgage originators reach more first-time home buyers through our HLP.guru platform. By year end, four national organizations—Wells Fargo Housing Foundation, Nationstar, Ditech and Finance of America—supported the use of HLP.guru to help prospective customers qualify for a mortgage loan. The new app is designed to connect a tech-savvy generation of consumers with the home buying process. HLP.guru gives first-time homebuyers—including those previously declined for a mortgage loan—the tools needed to manage their credit, improve their borrowing capacity and connect with a certified nonprofit housing counselor. “HLP.guru is a breakthrough that puts borrowers in control,” said Mark Cole, HLP’s executive vice president and chief strategy officer. “With the app’s advanced analytics and the help of their own ‘guru’, prospective homebuyers can develop their own plan to buy a home.” The gurus providing advice and guidance to consumers are HUD-certified nonprofit housing counselors from around the country. Once a person enrolls in HLP.guru, they can connect to a housing counselor that will help them develop an action plan aimed at qualifying for a mortgage loan. In addition to its value to consumers, HLP.guru offers powerful tools to real estate agents and lenders to create, manage and predict a pipeline of potential new customers. It serves as an incubator for prospective customers that have expressed an interest in homeownership, but need help to qualify. HLP.guru allows the referring organization the ability to support, communicate with and improve outcomes for these customers. Finally, it helps lenders address regulatory compliance issues related to the Credit Repair Organizations Act and the Community Reinvestment Act.

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HLP Annual Report


PARTNER SPOTLIGHT: Putting the Guru in HLP.guru Clarifi President Patty Hasson says HLP.guru is giving people new hope that they can become homeowners. In 2016, the Philadelphia-based HUD-approved counseling agency experienced a 40 percent increase in pre-purchase housing counseling as more people sought help to buy their first home. HLP.guru will give them a chance to help even more people in 2017 and beyond. Patty Hasson

“We see HLP.guru as a unique new way to connect with people that want

to own a home,” Hasson says. “And it gives counselors a new opportunity to work with lenders by helping their clients understand their borrowing capacity, build a plan to improve their credit score and qualify for a mortgage.” Clarifi’s pre-purchase counseling is primarily delivered for residents near the agency’s offices in Pennsylvania and New Jersey and Delaware. However, people referred from HLP.guru will come from across the nation. Once enrolled in HLP.guru, consumers have free access to a housing counselor—their “guru”—to help them build a financial plan to move towards homeownership.

Coming in 2017 Affinity Groups. HLP is working to develop new partnerships with a variety of affinity groups and offer them access to HLP.guru. These partnerships are intended to help the groups’ members qualify for a mortgage loan, and many will be assigned a counseling guru to help develop a financial plan for homeownership. Expanded Counselor Access. Many counselors are interested in offering HLP. guru to their clients but lack the financial resources to provide it to them at an affordable cost. HLP is seeking funding from philanthropic organizations to help subsidize HLP.guru’s costs for more clients, which will improve homeownership rates for more low and moderate income families.

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Connecting the Industry to Help Homeowners More organizations are recognizing the power of engaging nonprofit counselors to help their customers with issues related to homeownership. Unfortunately, most organizations don’t have the systems or tools to manage these counseling relationships as effectively as possible. HLP’s technology has bridged this gap and is now helping GSEs, government agencies, mortgage companies and housing agencies incorporate counseling into their customer service. Two major agreements in 2016 demonstrate how HLP makes this connection and solidifies our position as the industry standard for collaboration between mortgage companies and HUD- approved counseling agencies. Modernizing Freddie Mac’s Borrower Help Centers HLP signed a three-year agreement with Freddie Mac which includes building the communications interface with Freddie’s 13 Borrower Help Centers. The technology will help Freddie better track activity and manage data within its counseling networks. This new platform enables Freddie Mac to see activity in real-time, manage performance versus agreed-upon goals and exchange sensitive consumer data in a secure environment. Counselors in the Help Centers began using HLP’s communications platform in December 2016 to send data and documents. Freddie Mac is leaning on the HLP platform to modernize the communication technology among the advocacy sector, lenders and the GSE’s. Better Technology for Government The Pennsylvania Housing Finance Authority (PHFA) chose a comprehensive deployment of HLP systems to help it operate more efficiently. These tools support PHFA’s mission of providing affordable homeownership and rental apartment options for senior adults, low- and moderate-income families, and people with special housing needs. The HLP systems include a performance management dashboard, case management system for counselors, servicing and mediation platforms, consumer direct portal, affiliate management and HLP.guru. In addition, two other Pennsylvania programs will use HLP as their communica­tion and document exchange platform: the Pennsylvania Homeowners’ Emergency Mortgage Assistance Program and the Residential Mortgage Foreclosure Diversion Program.

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HLP Annual Report


PARTNER SPOTLIGHT: A Unique Partnership—Freddie Mac and HLP When the partnership was announced in April, Freddie Mac’s Danny Gardner saw plenty of potential for HLP to be the catalyst in generating more new mortgage loans among first-time homebuyers. “Our Borrower Help Centers and Network are on the housing industry’s front lines, working with families in local communities,” said Gardner, vice president of affordable lending and access to credit at Freddie Mac. Writing in the July 2016 issue of Mortgage Banking magazine, Gardner also Danny Gardner

emphasized the importance of HLP’s technology to future mortgage

originations. Here are some of HLP’s critical benefits, according to Gardner: • HLP safely and securely connects nonprofit agencies, thousands of borrowers and the nation’s servicers so they can conduct business more quickly and efficiently. • It has the potential to give lenders and counselors a secure way to join forces and recruit eligible, qualified, first-time borrowers; low and moderate-income households and borrowers from historically underserved communities.

Coming in 2017 Fee for Service Programs. To counter the reduction in federal grants to HUDapproved counseling agencies, HLP is working closely with servicers, lenders and investors to expand “fee-for-service” programs. These programs provide servicers with direct benefits by engaging counseling agencies with a specific project or program. HLP is enhancing the administrative and oversight capabilities of the counselor performance dashboards to include invoicing and tracking if a servicer adopts a feefor-service program for housing counselors. Fair Housing Initiatives. HLP has built an intake portal and case management system to improve data collection and processing of fair housing complaints. The technology will standardize and simplify data gathering for each complaint while the case management system provides the status of each case during a HUD review. To promote fair housing, HLP plans to provide the platform for counseling agencies and engage a variety of other national organizations to help educate homeowners about their fair housing rights.

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HLP’s Advantage–Our Technology Partners HLP’s primary technology partners—IndiSoft, CE Analytics and Hosting.com—are a critical part of our ability to deliver on our mission. These three organizations bring unique capabilities that ensure HLP’s systems and tools meet the needs of all of our stakeholders. • IndiSoft has been a key strategic partner since the inception of our organization. Established in 2005 and led by Sanjeev Dahiwadkar, IndiSoft is a software development company that develops, licenses and supports a Software-as-a-Service model for default servicing in the financial services industry. Its RxOffice system powers our Hope LoanPort, Performance Management Dashboard, Affiliate Management, Mediation and Homeowner Connect platforms. Without IndiSoft’s vision, technical expertise and commitment, HLP would not have been able to achieve its mission. •  CE Analytics, a privately held firm headquartered in Dallas, built the platform technology for HLP.guru. Led by Chief Executive Officer Ed DeShields, CE designs, builds, licenses and hosts its credit simulation solutions for a variety of businesses. Its unique apps can help eliminate the ambiguity in raw credit data and speed credit qualification. Known for their innovation, CE Analytics was among the first companies to offer a proprietary consumer credit score “free” to consumers and to use computational modeling technology to show how behavior affects credit by giving access to the credit model itself. •  Hosting.com manages HLP’s technical infrastructure, making us available to our clients 24/7. Under the leadership of CEO Joel Daly, Hosting.com provides 2,000+ global customers with always-on compliant cloud solutions that empower them to grow, innovate and reduce risk. Hosting.com owns and operates six strategically located data centers under an ITIL-based control environment validated for compliance against HIPAA, PCI DSS and SOC (formerly SAS 70) frameworks and their cloud-enabled solutions are consistently included in the Gartner Magic Quadrant.

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HLP Annual Report


A Robust, Secure Environment Our platform applications and data are hosted in an enterprise-class environment with the highest levels of availability, recovery, security, and responsiveness. This environment meets all key industry certifications and undergoes regular onsite and remote audits, plus performance monitoring and penetration testing. It is a fully redundant, highly available configuration that is certified to ensure the highest levels of uptime, with enhanced managed services to ensure our mission-critical applications are always up and running at optimum levels. “We have a responsibility to handle each consumer’s personal information with the utmost care,” says Louann Bernstone, senior vice president of risk, governance and compliance. “We invest a significant amount in technology, management and staff to make certain that our customers’ data is secure.”

Compliance. As an approved technology provider for the nation’s largest financial institutions, HLP undergoes regular reviews to ensure compliance with regulatory standards. In addition, we must meet regulations established by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. HLP’s application and infrastructure also helps our clients meet regulations on safety and security. Beyond simply meeting regulatory safety and security requirements, HLP also integrates a secure channel of communication between the banks and their customers from within the application to provide continuity on communications.

Permanent Audit Trail. Since its inception in 2009, HLP has not lost a single document, message or piece of data submitted through the HLP system. It also stores more than two million documents, enabling any party to have a complete record of each case.

Reliability. The technology platform is fully redundant, which means all systems and data are identically mirrored between the primary and back-up data sites. This capability enables HLP to provide uninterrupted service and that the portal is available nearly 100 percent of the time. Our customers want to be able to access our system whenever they need it.

Neutral. Collaborative. Transparent.

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Practicing Fiscal Stewardship Our leadership team and board of directors work together to ensure we provide the highest quality services to as many stakeholders as possible, while maintaining long-term fiscal stability. We ended this past year fiscally strong, with more than $167,000 in net income. As a 501(c)(3) nonprofit, we take very seriously our responsibility for using our contributed and earned revenues efficiently. In 2016, 82 percent of expenses were dedicated to program services.

15% 3%

82%

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HLP Annual Report


Financial Supporters During our first seven years, we have been fortunate to have the support of a broad range of financial supporters and customers, which include: Bank of America Bayview Loan Servicing Caliber Home Loans

IndiSoft

Carrington Mortgage Services

LoanCare Servicing

CE Analytics

M&T Bank

Chase Home Finance

Nationstar

CIT

NeighborWorks America

Citi Mortgage

Ocwen Loan Servicing

CityVision Services

Pennsylvania Housing Finance Authority

Ditech Financial

PennyMac

Fannie Mae

PNC Mortgage

Finance of America

Radian

Financial Services Roundtable

Residential Credit Solutions

First American

Select Portfolio Servicing

Freddie Mac

Seterus

Hope Now

Shellpoint Mortgage Servicing

Hosting.com

SunTrust Mortgage

HSBC Finance

US Bank Wells Fargo Home Mortgage Wells Fargo Housing Foundation

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2016 Board of Directors Chairman

Faith Schwartz

Senior Advisor, Accenture Credit Services

Secretary/Treasurer

HLP Management Camillo Melchiorre

President and CEO (member of Board of Directors)

William A. Longbrake Executive-in-Residence Robert H. Smith School of Business, University of Maryland

Mark Cole

Executive Vice President, Chief Strategy Officer

Sydney Garmong

Louann Bernstone

Partner
 Crowe Horwath, LLP

Senior Vice President, Risk, Governance and Compliance

Ira Goldstein President, Policy Solutions The Reinvestment Fund

Steve O’Connor

Senior Vice President, Public Policy & Industry Relations Mortgage Bankers Association

David Stevens

President and CEO
 Mortgage Bankers Association (Director Emeritus)

Stuart Tryon Special Agent in Charge,
 Criminal Investigative Division
 United States Secret Service (Retired)

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HLP Annual Report

Thank You for Your Service In 2016, two of our longtime board members completed their terms of Board service:

John Dalton President, Housing Policy Council Financial Services Roundtable

Jonathan Fiechter

Senior Advisor
 Systemic Policy Partnership

Many thanks to John and Jonathan for their invaluable contributions to HLP’s success over the past 7 years.


unifying the efforts to help families achieve and sustain homeownership

hlp.org 100 International Drive • 23rd Floor • Baltimore, Maryland 21202

HLP 2016 Annual Report  

A review of each line-of-service and how HLP worked to fulfill our mission to help families achieve and sustain homeownership.

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