Insights on Foreclosure and Pre-purchase Trends in NYC Housing Market

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Explore the transition from foreclosure to pre-purchase counseling facilitated by Gabe del Rio at the HomeSmart NY Conference. Gain valuable insights on current foreclosure services, pre-purchase programs, and key data trends in the NYC housing market. Discover statistics showing a surge in residential foreclosures while also delving into purchase statistics for New York State. Dive into first-time homebuyer study findings for a comprehensive understanding of market dynamics.

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Transitioning from Foreclosure to Pre-purchase Counseling/Advisory Facilitated Group Discussion HomeSmart NY Conference Gabe del Rio, Springboard CDFI / NMC

Introductions Name Organization Position/Role What you hope to get out of today s session

Where are we today? Dot Exercise: What foreclosure services are you providing today? (Counseling, Packaging, Mediation, Classes or Outreach Events, Contract work for Servicers/Investors, Other) Are you seeing a change or shift in demand for services? (Foreclosure +/-/steady, Pre-purchase +/-/steady) Did your organizations keep your pre-purchase programs active throughout your foreclosure services provision? (Yes they have been steady, Yes but reduced volume, No we shifted capacity to foreclosure) What pre-purchase programs are you providing today? (HBE In Person, HBE Online, Pre- purchase Counseling, Loan Packaging, Down Payment Assistance, 1stMortgage Loans, Realty) Experience

What the data says: Foreclosure statistics for NYC may tell a tale (Statewide was unavailable) NYC residential foreclosures up 42% Y-o-Y, soaring to levels not seen since Q3 2009. Particularly bad in Brooklyn & Staten Island, with 105% and 91% Y-o-Y, reflecting 264 and 105 residential homes scheduled for auction respectively In Q2 2017, the number of pre-foreclosure cases filed over all of NYC was under the 3000 mark, registering a 7% Y-o-Y decrease. Finally cycling through??

What the data says:

What the data says: Purchase statistics for NY State and lots of great data can be found at the New York Association of Realtors. Based on August NYSAR report (shows low supply and a market that is heating up) YTD Days on market down 10.8% YTD New Listings down 2.3% YTD Closed Sales up 2.5% YTD Median Sales Price up 6.4% YTD Average Sales Price up 5.2% YTD Affordability Index down 9.2% Homes for Sale down 10.3% Months Supply down 12.5% to 6.3 months.

What the data says: First Time Home Buyer Study info from Genworth: Between 1994 and 2016, FTHB purchased an average 1.8 million single-family homes each year, 1/3rdof all single family homes sold and 45 percent of the purchase mortgages originated. Contributing over 60% of the sales growth in the housing market over the past 5 years and 85% of the growth in the past 2 years. First-time homebuyers have always demonstrated a greater need for low down payment mortgage products. Between 1994 and 2016, 73 percent of first-time homebuyers chose such products compared to 30-50 percent for repeat homebuyers. Mortgage products with a lower down payment will likely have a higher first-time homebuyer mix.

What the data says: Urban Institute Missing Homeowner Study with NY extrapolated numbers 6.3 million missed homeowners nationally from 2009 to 2015 Over 1 million households per year who should be entering homeownership and qualify to buy a home under strict underwriting criteria 6% of US population lives in the state of NY, so during the 6 year period of the study, NY missed about 385,000 new home buyers! That s a rate of over 64,000 households per year who need better access to credit in NY state alone.

What have we learned from the crisis? Table Exercise Brainstorm 15 mins Group Share - Top Item from Each Identify the STRENGTHS that your organization gained during your response to the foreclosure crisis. Identify the STRENGTHS of the service delivery model that allowed our industry to serve Identify the WEAKNESSES that you presently perceive in your service delivery and business/revenue model or what you see on the horizon in that regard

Finding the opportunity in it all The Chinese word for "crisis" (simplified Chinese: ; traditional Chinese: ; pinyin: w ij ) is composed of two Chinese characters respectively signifying "danger" and "opportunity". Opportunity is missed by most people because it is dressed in overalls and look like work. Thomas Edison If opportunity doesn t knock, build a door. Milton Burle

What have we learned from the crisis? Table Exercise Brainstorm 10 mins Group Share Top 3 ideas Identify the OPPORTUNITIES Table 1 - Housing Stock Table 2 - Education Table 3 - Technology Table 4 - Finance / Lending Table 5 - Target Audiences or Market Segments Table 6 - Partnerships

Home Buyer Services Value Propositions Table Exercise Brainstorm 15 min Group Share Top 3 What value can your organization bring a prospective home buyer? What additional tools and resources would enable you to increase that value to clients? What do home buyers need in order to be successful in your market? Where are the service-gaps in your market to help your mission clients succeed?

What drives your revenue engine today? Full Group Discussion Where are the largest sources of income (categories not individual funders)? What kinds of value do you bring to those sources, or what problems do you solve for them? Are the largest sources sustainable, increasing, or decreasing? What kinds of fee income are you earning? Are you seeing any new or emerging opportunities for fee income or earned revenue?

Sneak Peak at NMC Revenue Model Show your CRA Bank Partners the impact you are making through NMC production reports that show who the investor on each loan was and the CRA eligibility of all loans produced. You already provide pre-purchase education & counseling, and good counseling sessions require almost everything you ll need to submit a package (at borrower s request). One Counselor/Advisor can educate & serve 250-300 households per year even with a low pull-through, that will generate over 30 new homeowners. With a minimal production goal of only 30 homebuyers using the NMC platform & model: HBE & Counseling Income: $15,000 Packaging Income: $24,000 Both HBE & Packaging: $39,000 $10,000 Citi $50,000 Wells Fargo $40,000 US Bank $30,000 HBE & C Chase $20,000 Packaging Fannie Mae Both $- Freddie Mac Regional Banks

What does success look like? Full Group Discussion - Share If you could have everything you wanted or needed for your organization to succeed in its homeownership mission what would that look like? How would people explain what your organization successfully does for home buyers (in one short sentence)? Individual Exercise 5 mins Write a SMART Goal for your home buyer program outcomes (include # educated and # new homebuyers) Success is where preparation and opportunity meet Bobby Unser

Market & Marketing Knowing your market is important because reaching it is everything! Group Discussion/Sharing What kinds of marketing or outreach activities are you doing? Are you attracting the right targeted audience? Describe your target audience What tools and resources do you need in order to increase your marketing efforts? What partnerships with Realtors, Home Builders, and Lenders are working well today? Business is found outside of the office what external relationships and board/committee/association representation do you spend time investing in?

Marketing on a Budget The basics in building a brand & marketing start with a good website one that is adaptive to mobile screens for easy viewing on smart phones. Clear value propositions and CALLS TO ACTION Content that is regularly updated and deep for visitors to spend time with Use both Google Analytics (free) and Google Ad-word Grants (up to $10K per month free) requires some SEO assistance which can be outsourced for a low cost Tip: NMC Members receive a discount with Raindrop Marketing who provides websites, SEO, and branding services.

Marketing on a Budget Social Media: Facebook & Instagram at a minimum free and low cost low time investment from a staffing perspective can be scheduled for a year in advance Tip: make the leadership team additional FB Admins and post pics from events, with client success stories, and with sponsors & partners. Tip: NMC Members are provided with sample social media calendars, posts, and training.

Marketing on a Budget Co-marketing with Realtors B2B outreach efforts to connect with the first place people go when they want to buy a home and you can actually send them clients and help promote them! Flyers can be co-branded and printed by you for their Open Houses low cost copies Brochures can be placed in their offices and you want to focus on the Realtors who are helping First Time Home Buyers who they should think of you as adding value to. Tip: NMC Members are provided with templates and tools for this very purpose.

Marketing on a Budget Home Buyer Events Not just HBE Great opportunity for sponsors to cover hard costs (food, space, radio ads) Use Press Releases start with a template, low time investment, free if published Make sure that the WORDS you are using speak to people s aspirational selves and tease at the depth of insight you can provide them Partner up with Realtors selling the lowest priced homes in your community to make a best deals in town open house tour that starts with coffee, treats, and an orientation by your organization with a co-branded open house tour map tip: use sponsor prizes.

Marketing on a Budget Online Home Buyer Education do you have one on your website? Frameworks and eHome America are the largest providers, and both now send clients back to the partner agency for completion. Online client intake and class or event registration Tip: Try EventBrite or other online plugin providers for low cost and easy e-commerce on class registration and fee intake/charges. Tip: NMC Members are provided with a suite of web-based client engagement tools

Wrap-up Action planning & Next Steps for Transitioning What changes to your program offerings are needed? Associated training for staff? What staffing changes will position you best? What sales and business development skills do you have or need on your team? What do you want to keep and what do you want to let go of as you pivot your service model forward? Communication strategy for staff, board, stakeholders

Wrap-up Put your plan in place to grow your pre-purchase social enterprise sustainably Put resources and time into marketing your value proposition Align your value propositions with revenue generating opportunities Grow to serve more, and be ready for the Millennial generation of home buyers, and what that means for your market area For more information on the Nationwide Mortgage Collaborative and to submit your interest in joining, see mortgagecollaborative.org