SEGMENT 1:
Mark Kaufman, Deputy Commissioner of Financial Regulation,
Department of Labor, Licensing and Regulation


- Foreclosure prevention starts with sound underwriting –
- Spotting problems in the portfolio early is the key
- Proactive outreach in any way possible is essential – trying to refi out
- Avoiding REO – need to facilitate short sales which appear to take far too long

SEGMENT 2:
Jane Azia, Director of Non-Depository Institutions and Consumer Protection,
New York State Banking Department

Early identification. Need early intervention for at-risk accounts.
    a. Example of New York law requiring pre-foreclosure notice.
    b. Data from the State Foreclosure Prevention Working Group demonstrates the increasing need
        for proactive stance.

Streamlined modifications. Once at-risk accounts are identified, time is of the essence.
    a. Can’t rely on laborious individual workout plans, need more systemic approaches to loan
        modifications.
    b. The FDIC’s management of IndyMac and the multi-state settlement with Countrywide are
        examples of such streamlined processes.

Utilization of government programs. State and federal resources exist to help institutions in preventing unnecessary foreclosures.
    a. The expansion of FHA through the “Help for Homeowners” refinance program- the Department
        encourages lenders to become FHA-approved so that they can participate directly.
    b. State programs, such as the Operation Protect Your Home forums and grants to nonprofits for
        foreclosure prevention counseling, also help the industry in responding to large numbers
        of distressed homeowners.

Responsible disposition of REO. Even though the best opportunity to avoid a business loss is to prevent foreclosure, once the institution has taken possession of the property it is important to return it quickly to productive use.
    a. New York State has a new program, the Neighborhood Stabilization Initiative (NSI), which is
        designed to facilitate the purchase of REO.
    b. NSI also provides rehabilitation grants to restore the properties to move-in condition.

SEGMENT 3:
Garth Rieman, Director of Housing Advocacy and Strategic Initiatives,
National Council of State Housing Agencies

- State Housing Finance Agencies (HFAs) are great partners in today’s market. They can still raise
  capital, they have pricing and underwriting terms that allow for continuous affordable lending to low
  and moderate-income homebuyers even in today’s market. Their portfolios are stable and they are
  still in good shape.
- Congress recently provided helpful tools for HFAs and lenders to prevent and address
  foreclosures. HFAs can use single-family bond proceeds for refinancing and new loans.
- FHA insurance can help people buy and stay in their homes.
- HUD’s new Neighborhood Stabilization Program should help communities turn around REOs and
  make them available to new homebuyers. States and locals are also trying other initiatives.
- HFAs and other entities participate in NeighborWorks America’s National Foreclosure Mitigation
  Counseling Program and HUD’s counseling program, which also help homeowners avoid
  foreclosure and can be good partners for banks and credit unions.

SEGMENT 4:
Deborah Boatright, Director of Northeast District,
NeighborWorks® America

- Professionally trained non-profit housing counselors are a valuable resource in resolving mortgage
  issues with borrower.
- Feedback from the housing counseling field--improving the loss mitigation process and preventing
  re--defaults.
- Community partnerships and innovative strategies can reach borrowers earlier--best practices from
  around the country.