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1
2
Learning from the past
- Collaboration
- Affordability
- Borrower Support
Mary Lee Widener President and CEO 1 Learning from the past CAB - - PowerPoint PPT Presentation
Mary Lee Widener President and CEO 1 Learning from the past CAB - - PowerPoint PPT Presentation
Mary Lee Widener President and CEO 1 Learning from the past CAB C ollaboration A ffordability B orrower Support 2 Redlining A long outdated practice of drawing red lines on maps to guide loan officers to not lend in
SLIDE 2
SLIDE 3
3
“Redlining”
- A long outdated
practice of drawing red lines on maps to guide loan officers to not lend in the redlined areas.
1960s and 1970s
SLIDE 4
4
Collaboration
- Nonprofit Sector
– Pull via new public/private partnerships
- Public Sector
– Push via Law and Regulation From the Beginning to Present
SLIDE 5
5
Affordability
- A responsive mortgage
insurance industry
- Responsive secondary
markets
- And responsive rating
agencies
- Education
- A loan they could pay
back
- Post-funding support
- A different approach to
loss mitigation
– Patient Capital
Borrower Support
From the Beginning to Present
SLIDE 6
6
Median Household Income NHSA NeighborWorks Loans 1983 to 2006
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 United States NHSA Clients
SLIDE 7
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CAB Works
Total Delinqency
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Q1.2001 Q2.2003 Q3.2005 NHSA Portfolio MBAA NonPrime MBAA FHA
Foreclosure Starts
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
Q1.2001 Q2.2003 Q3.2005 NHSA Portfolio MBAA NonPrime MBAA FHA
NHSA Portfolio Financing
SLIDE 8
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Accessing the Capital Markets
- Standardization
- Automation
- More transparent process
- Growing acceptance
- Shift to capital markets financing
1999 to Present
SLIDE 9
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Capital Markets Financing
Total Delinqency
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%
Q1.2001 Q2.2003 Q3.2005 NHSA MBS MBAA Prime MBAA FHA
Foreclosure Starts
0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20%
Q1.2001 Q2.2003 Q3.2005 NHSA MBS MBAA Prime MBAA FHA
NHSA MBS Sales Financing
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- Challenges Remain
– NIMBYism
- Overlooks economic vibrancy of diverse
communities
– Sustainability
- Ability of borrowers to pay over long term
- Adequate return for investors
- Appropriate compensation to nonprofit service
providers
– Subprime Lending
Looking to the Future
SLIDE 11
11
The new CAB is technology driven
Investors Neighborhood Stakeholders Loan Servicers Government Subsidy Providers Conventional Credit Alternative Credit Mortgage Insurance Nonprofit Educators CRA Lenders GSEs Your Seat?