Unifying the Housing Industry
Hope LoanPort is a national, neutral and nonprofit utility that unifies the efforts to help families achieve and sustain homeownership. Our role is to be the digital transit way for all stakeholders in the homeownership process by facilitating collaboration and giving stakeholders the tools they need to manage their respective interests in the transaction.
Building a Lasting System It has been remarkable to witness the evolution of Hope LoanPort速 (HLP) since its creation in 2009. With homeowners struggling to save their homes from foreclosure during the Great Recession, this organization became the intersection where mortgage companies, investors and nonprofit counseling agencies put the housing market back on its feet and helped more than 400,000 homeowners during their time of need. By developing a technology platform that is transparent, secure and easy to use, we have created a unique service that is now the model for collaboration in our industry. Hope LoanPort is the only place where consumers, their advocates and the mortgage industry can exchange and manage information in real time, enabling people nationwide to achieve and sustain homeownership. Our new technology also positions us to be the conduit for all future transactions between various sectors of the housing industry. With broad support from the private sector, nonprofit credit counseling agencies and the federal government, Hope LoanPort is positioned to help unify the industry. We look forward to making our technology available to all of our stakeholders, allowing them to collaborate to achieve their goals and moving the housing market ahead.
Bill Longbrake Chairman, Board of Directors
Engaging the New Marketplace 2014 marked a clear shift in how our stakeholders use Hope LoanPort. No longer just reacting to the exigencies of the financial crisis, our partners are now strategically engaging us to support their work with families across a broader range of services. This post-crisis market is profoundly different, driven by the need to improve customer service, operational efficiency and regulatory compliance. Counselors, servicers, investors and attorneys are leveraging the uniqueness of our platform to support their transition into the new marketplace. We simplify operations by collapsing fragmented business activities and replacing multiple end-user applications with an integrated platform. These activities fit the core strengths of HLP, particularly managing documents, data and communication exchanges among multiple stakeholders. This dramatically improves oversight and allows companies to reallocate resources, streamline processes and strengthen their bottom line. As a result, we started new partnerships in 2014 which increased the volume and diversity of the transactions we handle. We expanded our technology platform to support the full range of mortgage products, from origination through servicing. Our user base continues to grow and Hope LoanPort now has more than 1,100 nonprofit credit counseling organizations, 20 of the largest mortgage servicers, the top five banks and GSEs using our technology on a regular basis. Thank you for making 2014 a very special year for HLP!
Cam Melchiorre President and CEO
timeline of events
continued on page 4
Subprime Mortgage Industry Collapses Multiply lenders declare bankruptcy
2 Hope LoanPort
HOPE NOW Alliance Created by government and private industry to find solutions for distressed homeowners
NAR announces 2007 saw largest drop in existing home sales in 25 years
Fire Sales and Takeovers Government takes over Fannie Mae and Freddie Macâ€“Merrill Lynch sold to Bank of America
Emergency Economic Stabilization Act signed Creating $700 billion Troubled Assets Relief Program (TARP)
impact Hope LoanPort began in 2009 as a solution to help homeowners and the mortgage industry facing the foreclosure crisis. In the past five years, our organization has expanded its reach to serve an even wider range of stakeholders and has become the â€œgo toâ€? technology platform for all players involved in the mortgage industry.
Counselors and Agencies
Nonprofit counseling agencies connect to HLP
2010-2011, HLP enlisted 19 of top 20 mortgage servicers
19 mortgage servicers represent 83% of all residential mortgages
Counselors use our services
Families and Individuals Helped
Estimated Value of Residential Real Estate Impacted through Hope LoanPort
2014 Annual Report 3
Unifying Efforts for Homeowner Success Hope LoanPort’s unique ability to connect multiple stakeholders has helped more than 400,000 homeowners to date. As the digital transit way, we unify these efforts and give each stakeholder the tools to manage their part of the transaction. Here’s a look at how these groups are using HLP to collaborate and help homeowners:
Counseling Intermediaries Counseling intermediaries have gained new tools for oversight and management of their affiliate agencies. They can now analyze performance by agency, program, and case type, ensuring consistent treatment for clients and providing a framework for continuous improvement. Work distribution tools allow homeowners to be assigned to an agency based on specific criteria, capacity and certifications. Finally, HLP dramatically improves financial
oversight and reporting for grants, such as HUD and the NFMC programs.
Nonprofit Counselors More than 1,100 nonprofit counseling agencies have found HLP to be a simple, secure method to get their client’s information to the right decision maker at mortgage companies. HLP incorporates a HUD-certified case management and direct connectivity with servicers, which enables a counselor to securely send a package of information, exchange messages, update individual documents, track progress on the decision and have a permanent audit trail for each case. As one counselor noted, “Hope LoanPort has really eased the process of tracking loan modification packages for us.”
HOPE NOW Alliance
forms a Technology Task Force to solve problems of homeowners communicating with servicers
Hope LoanPort Milestone
Hope LoanPort Founded
allows housing counseling agencies to submit loan modification packages that can be reviewed by servicers
4 Hope LoanPort
First Foreclosure Prevention Case
Dow Jones Industrial Average falls to 6,440
More than 1 million homes lost to foreclosure in 2010 Hope LoanPort Milestone
Designation as 501(c)(3) Nonprofit
Mortgage Servicers Servicers use HLP to make timely decisions on homeowner requests for assistance. The platform reinforces operating consistency and helps compliance with regulatory guidelines. It standardizes documents, data and business rules and eliminates lost paperwork and miscommunications, ensuring transparency for all parties throughout the process. HLP ensures that the homeowner’s requests for assistance reaches the right person, facilitates the communication and document exchanges needed and provides a secure channel for transmitting sensitive consumer data. HLP helps ensure servicer compliance with the National Mortgage Settlement and the CFPB’s Bulletin 2013-01. Attorneys Attorneys use HLP to replace faxes and overnight delivery services, speeding up
the communication process, reducing mail costs and creating a permanent audit trail of communications with the servicer.
Investors Investors use HLP to reduce losses and ensure workouts produce better performing loans. Through real-time access to the data and documents uploaded by counselors and servicers, an investor can see the progress of a transaction and intervene if needed. This view also provides insights into how the parties work together, allowing for identification of best practices, standardized proof of work completed and the ability to route work to high-performing organizations. A senior executive noted, “We are excited about Hope LoanPort’s technology as an efficient and transparent platform not only for [our] partners, but as a step in the right direction for broader industry efforts to assist distressed homeowners.” continued
HLP Enlists Servicers HLP signs 19 of top 20 mortgage servicers, accepting documents filed by homeowners for loan modification
Direct Consumer Portal HLP allows homeowners to submit workout packages directly to servicer
Hope LoanPort Milestone
Emergency Homeowner Loan Program
Camillo Melchiorre Named CEO Takes helm at Hope LoanPort
Selected by HUD and NeighborWorks as the required technology platform
2014 Annual Report 5
Expanding to New Products Hope LoanPort expanded its technology platform in 2014 to support a full range of mortgage products. These investments solidify Hope LoanPort’s position as the one technology that connects all the stakeholders for any type of housing transaction. Our new National Housing Solutions Platform (NHP) connects counselors, mortgage servicers, originators and investors in real time through its case management system. The platform supports a variety of products, both in the traditional mortgage servicing arena and mortgage originations. The ability to exchange information bi-directionally and for multiple parties to collaborate radically alters the landscape for HLP participants. It opens a world of greater opportunities for the mortgage industry, nonprofit counselors and other stakeholders to work together at scale to help consumers. This will allow any party enrolled on the platform to both
create submissions and/or receive requests for assistance directly from another party. One such use is in the home buying process, where the biggest challenge facing the housing market is the lack of qualified home buyers. The platform allows lenders to qualify higher risk, declined Hope LoanPort applicants and reverse mortgage Products Supported customers using HLP, routing Origination • prepurchase them through the platform to • refinance be paired with a counselor. As • reverse mortgages the counselor works with the Servicing family on their plan to achieve • post-purchase • early intervention homeownership, all of their • foreclosure prevention data, documents and progress • post loan modification are tracked and stored in HLP. • non-retention • mediation Once their individualized plan • MSR transfers is completed—demonstrating the required improvement in their finances and credit—the consumer is issued a prepurchase counseling certificate and can reapply for a mortgage loan.
National Mortgage Settlement
Bank of America Expansion
Five largest mortgage servicers agree to provide $26 billion in relief to distressed homeowners and governments—HLP named as a model to be emulated, if not used, as a required web portals
Establishes HLP as preferred channel for all third parties to submit packages Hope LoanPort Milestone
6 Hope LoanPort
Added Non-Retention Options to Platform
Hope LoanPort Milestone
Attorneys Join Portal
Wells Fargo Integration Launches a large-scale, enterprise integration project with HLP, adding support for mediation and bankruptcy
Robust, Secure and Fully-Managed Hosting 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.
Hope LoanPort National Housing Platform
Advocates (counselors, attorneys)
Investors and Guarantors
Regular External Audits. HLP meets the vendor requirements as an approved technology-solution provider for our mortgage servicer and financial institution customers. Since these companies are subject to audits by CFPB, OCC and other regulators to ensure compliance with FFIEC (Federal Financial Institutions Examination Council) information technology standards, they regularly audit HLP for compliance. We completed more than 20 such in-depth audits and reviews in 2014 and are committed to maintaining a platform and environment that meets all regulatory compliance expectations.
Industry-Leading Security. We understand the special responsibilities that come with handling confidential consumer data. Our hosting environment obtains an annual SOC 2, Type 2 Service Auditorâ€™s Report and undergoes quarterly Payment Card Industry compliance scanning, the industryâ€™s highest standards. There are seven levels of physical access security and 24x7x365 monitoring by onsite data security services to identify vulnerabilities and remediate issues. Annual code application scans, regular third party audits and HLPâ€™s own full-time security staff offer additional layers of protection.
Investor Portal HLP begins development of investor portal with Fannie Mae
Hope LoanPort Milestone
Mortgage Servicing Rights Transfer Implemented a utility to allowing transfer of workouts-in-progress for MSR cases between servicers
Home Sales Recover Monthly sales of new single family homes reach highest level in six year
Dow Jones Industrial Average hits 18,000
National Homeownership Solutions Platform Launched
2014 Annual Report 7
stewardship 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 no debt and with more than $207,000 in net income. As a 501(c)(3) nonprofit, we take very seriously our responsibility for using our contributed and earned revenues efficiently. In 2014, more than 82 percent of expenses were dedicated to program services.
Financial Supporters During our first five years, we have been fortunate to have the support of a broad range
of financial supporters, which include: Bank of America
Bayview Loan Servicing
Carrington Mortgage Services Chase Home Finance Citi Mortgage
Fannie Mae Financial Services Roundtable
First American Hope Now HSBC Finance IndyMac/One West Bank LoanCare Servicing
NationStar Mortgage NeighborWorks America
Ocwen Loan Servicing
PNC Mortgage $5,966,121
Residential Credit Solutions Select Portfolio Servicing
2014 Revenue â€“ $6,173,942 8 Hope LoanPort
Shellpoint Mortgage Servicing SunTrust Mortgage
Wells Fargo Home Mortgage
leadership HLP Board of Directors Bill Longbrake, Board Chair Executive-in-Residence, Robert H. Smith School of Business, University of Maryland John Dalton President, Housing Policy Council, Financial Services Roundtable Jonathan Fiechter Senior Advisor, Systemic Policy Partnership Ira Goldstein President, Policy Solutions, The Reinvestment Fund Rick Levy Executive Director, Lift Up Africa Steve Oâ€™Connor Senior Vice President, Public Policy & Industry Relations, Mortgage Bankers Association Faith Schwartz Senior Vice President, Government Solutions, CoreLogic David Stevens President and CEO, Mortgage Bankers Association (Director Emeritus) Stuart Tryon Special Agent in Charge, Criminal Investigative Division, United States Secret Service
HLP Management Camillo Melchiorre President, Chief Executive Officer, Member of Board of Directors Mark Cole Executive Vice President, Chief Strategy Officer Nick Figlo Senior Vice President, Solutions Design and Analytics Samantha Friedman Senior Vice President, Product Development and Client Services Louann Bernstone Director, Vendor Management, Risk, and Compliance Scott Lake General Counsel