Using Neighborhood Data to Support Foreclosure Prevention

and Intervention

MCIC (Metro Chicago Information Center)

17 N. State Street, Suite 1600

Chicago, IL 60602

www.mcic.org

Urban Affairs Association – Annual Meeting

March 7, 2009

MCIC (Metro Chicago Information Center)

Our purpose

Nonprofit, independent research and

consulting firm since 1990

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Better information produces better decisions

Focus on quality of life issues and human needs

Helping those doing good…do better

Research and Prevention in Chicago

Source: Chicago Sun-Times, 3/3/09

Regional Homeownership Preservation Initiative (RHOPI)

• Collaboration between counseling agencies, planning entities, financial institutions, research organizations and other partners

• Four working groups:

(1)Homeowner/Homebuyer Counseling (2)Refinance and Financial Resources(3)Foreclosed Properties(4)Research.

MCIC’s Foreclosure Research

• focus on helping housing counseling providers track their own prevention strategies • explore counseling data in the context of foreclosure filings

• research in ‘real time’

- MacArthur Foreclosure Prevention Initiative

- Fannie Mae cross-site applied research with Urban Institute and other NNIP partners

Tracking Foreclosure Filings

Challenges with foreclosure data and methodological decisions:

- What to do with multiple filings?- How can multiple research and housing organizations work from the same data set for efficiency and accuracy?

Tracking Counseling and OutreachBaseline Sept Oct Nov Dec Jan Annual Total

Intakes Conducted

Number of Intakes 10 19 11 20 17 11 78

Total 10 19 11 20 17 11 78

Total Counseling Sessions

Imminent Danger - Owner (current on payments, but anticipating changes in financial circumstances) 2 4 2 0 1 5 12

Delinquent - Owner 6 12 8 16 20 19 75

In Foreclosure - Owner 2 3 4 5 3 2 17

Renter 0

Total 10 19 14 21 24 26 104

Length of time from intake to case close

Less than 1 month 1 2 2 3 8

1-3 months 3 1 7 6 17

3-6 months 3 9 9

more than 6 months 7 0

Case in Progress 18 9 18 14 11 70

Total 10 19 14 21 24 26 104

Total Client Outcomes - Owners

Foreclosure Prevented, Not displaced

Brought Mortgage Curent (1) 0

Forbearance (2) 1 1

Loan Modification (16) 3 1 1 5 7

NHS bridge loan/refinance 0

Conventional refinance (15) 0

Received second mortgage (17) 0

Partial claim (FHA only) (53) 1 0

Repayment Plan 3Reverse Mortgage 0

Total Preventions, not displaced 4 0 2 1 0 8 11

Foreclosure Prevented, but displaced

Executed a Deed-in-lieu (3) 1 1

Sold property/chose alternative housing (4) 4 4

Pre-foreclosure sale (51) 1 0

Total Preventions, but displaced 1 0 0 0 4 1 5

Foreclosed

Mortgage Foreclosed (5) 2 1 1 3 5

Bankruptcy (54) 1 1

Total Foreclosed 2 1 1 0 3 0 5

Unresolved

Currently Receiving Prevention/Budget Counseling (18) 18 9 18 14 10 69

Referred to another social service or emerg. asst. agency (52) 0

Referred for legal assistance (56) 1 2 1 4

Debt Management Plan (55) 1 1

Withdrew from counseling (57) 3 1 3 5 9

Total Unresolved 3 18 11 20 17 17 83

Total Preventions 5 0 2 1 4 9 16

Total Displaced 3 1 1 0 7 1 10

Total Client Outcomes - Owners 10 19 14 21 24 26 104

Sample monthly report20 reports compiled each month

Data aggregated by community area

Compiled reports provide housing counselors with

an internal tracking system,

and provide MacArthur with a

new method investment evaluation

Tracking Counseling and Outreach, continued

Data Source: Greater Southwest Development Corporation

A deeper look at individual

counseling records of one

MacArthur partner organization

Putting it all together: What have we learned so far, and how can this research

assist housing counseling agencies?

1. Tracking housing counseling and foreclosure filings on a broad basis will always be an estimate due to data availability and standardization issues

2. A meaningful and accurate method of quantifiying community organization techniques as a tool for foreclosure prevention is critical

Putting it all together, continued

3. Even considering data challenges, monthly snapshots of foreclosure prevention, intervention and filings provide a way to start identifying community trends, and inform counselors of potential need gaps and outreach opportunities

Putting it all together, continued

4. Analyzing individual counseling data allows for deeper exploration of these relationships - research that has both programmatic and policy implications for housing counseling agencies

Anne P. Cole

Community Development Consultant

acole@mcic.org

312.580.2592

MCIC (Metro Chicago Information Center)

17 N. State Street, Suite 1600

Chicago, IL 60602

www.mcic.org