Page 1

unifying the efforts to help families achieve and sustain homeownership —

2017 Annual Report


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.


Measurably Better Results As HLP enters its 10th year of operation, we continue to transform our organization to meet the marketplace’s changing needs. Our creation in 2009 provided the industry with a neutral, collaborative technology platform that helped stave off a tsunami of foreclosures. Since then, we have connected more than 600,000 families with the help they needed to keep their home or become homeowners. But nearly a decade later, the mortgage market is radically different. HLP has responded by delivering products with a 360-degree view of customers across the full mortgage cycle. We are bringing new ideas to servicers, HUD-approved counseling agencies and other partners while working relentlessly to improve our technology to better meet your needs. These changes are already delivering significant value in several ways. The re-launch of our HomeownerConnect.org portal is helping increase successful workouts and cut costs for servicers. Our rapid response to Hurricanes Irma and Harvey helped thousands of other homeowners receive a quick forbearance, relieving worries while they made plans to fix or rebuild their homes. Our new, innovative home buyer preparation and post-purchase programs are also helping thousands of first-time homeowners. We are set to become a force in foreclosure and bankruptcy mediation following recent approvals from government agencies and courts in Florida and Pennsylvania. In the following pages, you will read how HLP makes a profound difference in the lives of homeowners while delivering savings and improving regulatory compliance for stakeholders. We are well positioned to help servicers and lenders scale their efforts by connecting nonprofit counselors into the process. We look forward to working with you to continue helping people nationwide achieve and sustain homeownership. Sincerely, Mark Cole Chief Executive Officer


Hope LoanPort began in 2009 as a solution to help homeowners and the mortgage industry facing the foreclosure crisis. In the past nine years, our organization has expanded its reach to serve an even wider range of stakeholders and has become the “go to” technology platform for all players involved in the mortgage industry.

Counselors and Agencies

Nonprofit counseling agencies connect to HLP

Servicer Enrollment In 2017, HLP was utilized by 18 of top 20 mortgage servicers

U.S. Mortgages Mortgage servicers representing 80% of all residential motgages

Counselors use our services pg

Families and Individuals Helped

Estimated Value of Residential Real Estate Impacted through Hope LoanPort

(That’s 131 Billion Dollars!)


successfully submit a workout package, when using live online chat/phone support on HomeownerConnect.org

used our Disaster Assistance portal to connect with servicers, to provide updated contact information and request assistance. This process took less than 5 minutes and resulted in a forbearance for 85%—at a fraction of the time and cost for traditional calls and letters.

became mortgage-ready within 6 months after enrolling in HLP.Guru. Supported by nonprofit housing advisors, these families raised credit scores by 30+ points, addressed DTI issue and got practical help with the home buying process— for less than $100.

first payment defaults and delinquencies for first-time and LMI borrowers, thanks to monthly outreach/support calls, texts and emails from nonprofit housing coaches.

to implement standard HLP solutions, at a 75-80% lower price than internally-sourced options. Plus, our collaborative design lowers cost, reduces risk, and shares industry learnings.

2017 HLP Annual Report

3


“Agility is a strength of the HLP organization. Their response to the recent hurricanes is a great example of how well they help us assist our customers.”

—Scott Rodeman, US Bank


Turnkey Disaster Assistance Speeds Relief When Hurricanes Harvey and Irma severely damaged its’ customers homes, US Bank turned to HLP to help them quickly and efficiently. One of the nation’s largest mortgage servicers with approximately 2.1 million mortgages, US Bank moved quickly after each hurricane to promote HLP’s HomeownerConnect.org via a link on its webRodeman

site and direct email to customers. By answering a few simple

questions, more than 4,000 customers that suffered property damage from the hurricanes could electronically communicate the damage they incurred and request help. HLP’s system immediately made this information about each customer available to US Bank, which quickly provided help. “We were able to provide a forbearance solution to almost all of them without a phone call,” says Scott Rodeman, US Bank’s senior vice president of Mortgage Collections. “If we didn’t have HLP’s website support, it wouldn’t have been nearly as effective.” HLP helps US Bank improve the customer experience while also helping the bank significantly reduce its costs. In addition, once a Disaster Assistance case has been filed, information in HLP’s database can be used for any additional requests without starting a new case. “Agility is a strength of the HLP organization,” says Rodeman. “Their response to the recent hurricanes is a great example of how well they help us assist our customers. Within two weeks of Hurricane Harvey’s landfall in late August, HLP had its Disaster Assistance Request Form up and running. HLP’s ability to leverage one platform to meet the complex individual needs of multiple servicers underscores the value they add to our industry.”

2017 HLP Annual Report

5


“Our ability to help people using a self-service tool, such as HomeownerConnect.org, is a new way for us to assist distressed homeowners and help them sustain homeownership.” —Todd Emerson, credit.org


“Chat” Coaches Double Success Rates Combining HLP’s technology platform with a live, online, HUD-approved, “chat” counselor is helping more distressed homeowners get the help they need. Housing coaches from credit.org are now providing online “chat” services to help homeowners on HLP’s HomeownerConnect.org portal. The coaches answer questions Emerson

and provide other assistance to help anyone complete and submit

their request for a loan modification to their mortgage servicer. The coaches are making a big difference, with data showing that homeowners who use a chat counselor are twice as likely to successfully submit a loan modification application with all of the required documents “People seeking to avoid foreclosure and other help online can now receive immediate, custom assistance from a highly trained and experienced housing coach,” said Todd Emerson, credit.org’s chief executive officer. “Our ability to help people using a self-service tool, such as HomeownerConnect.org, is a new way for us to assist distressed homeowners and help them sustain homeownership.” Combining HLP’s technology communications platform and credit.org’s online chat service is a model designed to work well for homeowners and mortgage servicers. “We’ve always been a technology provider to the mortgage industry,” Mark Cole, HLP’s chief executive officer. “But by connecting nonprofit agencies directly with homeowners, or prospective homeowners, HLP and credit.org can provide a much higher value proposition for everyone.” The HLP-credit.org partnership is part of a new strategic relationship between the two organizations to provide “best in class” services to homeowners, particularly as more people seek assistance via online mediums. Credit.org, headquartered in Riverside, California, was founded in 1974 and is one of the largest national nonprofit counseling agencies in the US.

2017 HLP Annual Report

7


Helping First-Time Homebuyers Succeed A mortgage company owned by a Native American Indian tribe is working with HLP to make sure its first-time homeowners make mortgage payments on time and get the financial education they need to succeed. The new post-purchase outreach and financial education program administered by HLP will help nearly 10,000 Ferguson

first-time homeowners in its first year. The program is part of an

agreement with CBC Mortgage Agency, a federally-chartered tribal government agency owned by the Cedar Band of Paiutes of the Paiute Indian Tribe of Utah. It provides down payment assistance to borrowers nationwide that qualify for FHAguaranteed mortgage loans. New homeowners receiving down payment assistance from CBC’s Chenoa Fund are supported during their first year of homeownership by monthly calls, emails and texts from a HUD-approved nonprofit housing advisor. Experienced counselors from MMI will target each homeowner’s specific needs to help them make their mortgage payments on time. As the nation’s largest nonprofit, HUD-approved counseling agency, MMI has the ability to customize its outreach. “We know that housing counselors deliver positive results that are otherwise simply not possible,” said Michelle Jones, MMI’s chief development officer. “Providing proactive education to at-risk consumers will stabilize households and significantly reduce the likelihood of future default.” The program’s initial results are impressive: first-year payment problems for new homeowners have dropped by 30 percent compared to those that did not receive outreach and education. The incentive to succeed is significant because CBC will forgive a second mortgage needed to buy the home for homeowners making 36 consecutive months of mortgage payments. “Our affordable housing programs help many people unable to save money for a down payment to purchase their first home,” said Richard Ferguson, CBCMA’s President. “We increase the pool of available buyers by offering down payment assistance in the form of gifts or a second mortgage. We encourage responsible homeownership and appreciate HLP’s role in making that possible in the marketplace.”

8

Neutral. Collaborative. Transparent.


“We encourage responsible homeownership and appreciate HLP’s role in making that possible in the marketplace.” —Richard Ferguson, CBC Mortgage Agency


Improving the Mediation Process Already used in more than 29,000 cases, foreclosure and bankruptcy mediation is set to grow faster in 2018, helping all the stakeholders resolve cases more quickly for less cost. Philadelphia’s Residential Mortgage Foreclosure Diversion Program will begin using HLP’s foreclosure mediation portal in early 2018 to help thousands of homeowners in the city of Brotherly Love get a timely resolution of their cases. All data and documents required by the foreclosure mediation program will be available and stored on HLP’s technology platform. HLP’s technology was chosen for several reasons: it minimizes delays and disputes among all parties involved in the mediation process by providing timely, accurate information to view on the database. In addition, all information for each case is secure and can only be viewed by the parties involved in each case. The unified, centralized platform also enables program changes for all cases to be made quickly and is accessible to all parties while meeting compliance regulations. The US Bankruptcy Courts in the Middle and Southern Districts of Florida have given HLP approval to offer its mediation portal there, giving mortgage servicers and debtor attorneys a new option in processing thousands of bankruptcy cases annually faster and more efficiently. The portal offers several benefits that accelerate the mediation process and save money. It enables attorneys to easily communicate and exchange data and documents, while tracking the status of any case in real time. It also provides complete transparency and security while building a permanent audit trail since none of the documents, messages and case notes entered into the system can be deleted. Errors are reduced because there are no lost or disputed documents and each party is able to input and update information in the portal about each case.

10

Neutral. Collaborative. Transparent.


“HLP’s technology minimize delays and disputes among all parties by providing real-time, accurate information for all parties to view.”


Streamlining Government Agencies’ Work The Pennsylvania Housing Finance Agency (PHFA) is using HLP’s case management system and affiliate management portal to better manage its work with more than 77 nonprofit counseling agencies across the state. These agencies are responsible for filing approximately 20,000 cases annually with PHFA, which provides affordable homeownership and rental apartment options for senior adults, low- and moderate-income families and people with special housing needs. Modernizing the reporting process last year had an immediate impact, allowing PHFA to better manage its agencies and reduce the time needed to process a variety of documents. As a result, counselors can spend more time helping homeowners because they are sending all of their documents in one format, simplifying the billing and payment process for these organizations. Until it adopted HLP’s system in mid-2017, the counseling agencies were caught in a web of outdated technology. They were using five different systems to submit their data, an inefficient, time-consuming process for the agencies and PHFA. HLP is providing a custom reporting system that will significantly reduce the time needed to generate and file reports. Through HLP’s affiliate management portal, PHFA is able to provide stronger administrative oversight and targeted support to its nonprofit counseling agencies. This system provides a variety of relationship management tools that include: an electronic filing cabinet for storing required documents, automated reminders for tasks and deadlines, customized auditing tools for reviewing work, a dashboard for program announcements and news, and a secure communications channel to reach all or a specific group of agencies. All these tools will help simplify, secure and standardize PHFA’s support for its agencies.

12

Neutral. Collaborative. Transparent.


Turning Applicants Into New Customers Lenders are gaining new mortgage customers through HLP.guru. By referring prospects and declined applicants, Ditech and Finance of America are among 15 organizations using this new technology to cultivate new homeowners. Many families have poor credit, too much debt or lack the savings Reichel

needed for a down payment. HLP.guru is a new app that connects

a tech-savvy generation of consumers with advanced analytics that put prospective homeowners in control of the home buying process. The individualized action plans offer insights to credit scores and other factors related to qualifying for a mortgage. The program also offers on-demand access to certified nonprofit housing counselors for assistance and advice. The results are impressive, with 27% of declined applicants enrolled in the program becoming mortgage-ready within 6 months and at a cost of less than $100 per applicant. “The app is easy to access from mobile devices and simple to navigate,” said Laura Reichel, Senior Vice President, Government Agencies, Product Development and Industry Relations for Ditech Financial LLC. “HLP.guru provides a service that millennials have come to expect. We also believe it will help the applicant become comfortable assessing an affordable housing payment in addition to their other monthly debt.” Other HLP.guru benefits include: •  Reduced compliance risk by utilizing a 501(c)(3) organization to assist your customers. •  Deeper insights into customer behavior and readiness. • Improved CRA results by sponsoring subscriptions for targeted customers add in-depth reporting on progress toward readiness.

2017 HLP Annual Report

13


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 Softwareas-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.

14

Neutral. Collaborative. Transparent.


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 are committed to handling each consumer’s personal information with the utmost care and therefore 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.

2017 HLP Annual Report

15


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. As a 501(c)(3) nonprofit, we take very seriously our responsibility for using our contributed and earned revenues efficiently. In 2017, 85 percent of expenses were dedicated to program services.

12% 3%

85

% Revenue $2,775,916

Expenses $2,770,000

16

Neutral. Collaborative. Transparent.


Our Financial Supporters During our first eight years, we have been fortunate to have the support of a broad range of financial supporters and customers, which include: Bank of America

HSBC Finance

Bayview Loan Servicing

IndiSoft

Caliber Home Loans

LoanCare Servicing

Carrington Mortgage Services

M&T Bank

CBC Mortgage, Chenoa Fund

Nationstar

CE Analytics

NeighborWorks America

Chase Home Finance

Ocwen Loan Servicing

CIT

Pennsylvania Housing Finance Authority

Citi Mortgage

PennyMac

CityVision Services

PNC Mortgage

Ditech Financial

Radian

Fannie Mae

Residential Credit Solutions

Finance of America

Select Portfolio Servicing

Financial Services Roundtable

Seterus

First American

Shellpoint Mortgage Servicing

Freddie Mac

SunTrust Mortgage

Hope Now

US Bank

Hosting.com

Wells Fargo Home Mortgage Wells Fargo Housing Foundation

2017 HLP Annual Report

17


Our Leadership HLP Management

Larry Gilmore

Mark Cole

Vice President National Community Lending, HSBC

President, Chief Executive Officer

Ira Goldstein 2017 Board of Directors

President Policy Solutions, The Reinvestment Fund

Chairman

Faith Schwartz

Ramesh Lokre

President, Saicon Consultants

Senior Advisor, Accenture Credit Services

Secretary/Treasurer

William A. Longbrake

Sydney Garmong

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

Partner,
 Crowe Horwath, LLP

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)

Camillo Melchiorre Co-Founder, HLP

18

Neutral. Collaborative. Transparent.


hlp.org


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

2017 Annual Report  

A comprehensive review of HLP initatives, programs and accomplishments in 2017

2017 Annual Report  

A comprehensive review of HLP initatives, programs and accomplishments in 2017