Ohio Hardest-Hit Fund
Counselor RFQ
Ohio HHF Program
• The HHF program is an extension of the Troubled Asset
Relief Program under the Emergency Economic
Stabilization Act of 2008 administered by the U.S.
Department of Treasury
• The full application submitted to the U.S. Treasury is
available at www.ohiohome.org.
• All elements of the proposal are subject to change
pending final approval by the U.S. Treasury.
HHF Housing Counseling
• Eligible Applicants:
– Funds are only available to HUD Approved Housing
Counseling Agencies.
– An agency that is a recipient of OHFA’s HUD Housing
Counseling Grant is considered a HUD Approved
Housing Counseling Agency for HHF Funding.
HHF Housing Counseling
• Schedule of Events:
RFQ Issuance Date
July 7, 2010
Bidder’s Conference
July 13, 2010
Written Questions from
Applicants
July 15, 3020
5:00 pm (EDT)
Responses to Applicant
Questions
July 19, 2010
5:00 pm (EDT)
Proposals Due
July 28. 2010
5:00 pm (EDT)
Completion of Evaluations
August 6, 2010
Contracts Awarded
August 13, 2010
Agreements Executed
August 25, 2010
Start Date of Services
October 1, 2010
HHF Housing Counseling
• Written questions should be submitted via email to
HHFCounselor@ohiohome.org.
• The Application Survey, RFQ Narrative, and FAQ’s are
posted at:
http://www.ohiohome.org/homebuyer/hardesthit.aspx
HHF Housing Counseling
• Triage and Intake Services
– Agency works with applicants to prepare a detailed
budget, action plan, gather documents, and make
recommendations on which HHF program(s) would
best benefit the homeowner.
– Also, duties could include facilitating communication
with the homeowner’s current loan servicer.
Proposed Payment Schedule
• The total payment per approved case is limited to $700.
Payment will be as follows:
– OHFA will allow an advance to a contracted HHF
Counseling Agency in an amount equal to $100 per
allocated case up to a maximum of $50,000 within 7
days of execution of contract.
– OHFA will transfer to a contracted HHF Counseling
Agency $200 within 30 days for any cases that meet
HHF eligibility criteria for which either a conditional
commitment or a commitment has been issued by
OHFA.
Proposed Payment Schedule (continued)
• Final Payment
– OHFA will transfer to an HHF Counseling Agency
$300 upon releasing funds on behalf of the borrower
within 30 days of the release if agency received an
advance.
– If an agency did not receive an advance or has
completed 50% of their allocation or 500 cases,
whichever is less, the amount will be $500.
Sources of Funds
• A contracted HHF Housing Counseling Agency shall not
bill more than one federal source of funds per household
served.
• Exceptions will be allowed for households served and
billed prior to October 1, 2010 under either NFMC or
HUD that qualify for HHF Assistance.
Allocation of Counseling Units
• Initially, 9,250 counseling units will be allocated by area.
A chart is available in the Counselor RFQ Narrative.
• OHFA reserves the right to reallocate based on demand
and performance six (6) months after launch of the HHF
Program.
Submitting the RFQ
• OHFA requires the applicant to submit the application by
completing the questionnaire available online at
www.ohiohome.org .
• The applicant may submit in .pdf format via email to
HHFCounselor@ohiohome.org IF technical difficulties
are experienced and documented.
• All supporting documentation REQUESTED ON THE
QUESTIONNAIRE should be sent via email to
HHFCounselor@ohiohome.org with the subject line of
“SUPPORTING DATA [name of agency] – RFQ”
Evaluation Requirements
Current Staff Qualifications
15
Counseling Results
25
Current Service Model
20
• The minimum number of points
must be 75 for an agency to be
selected.
Proposed HHF Capacity
20
Compliance
10
• The applicant’s score is not an
indication of the number of
counseling units that will be
allocated to an agency.
Other Qualifications
5
Preparing and Submitting the
Proposal
5
• The point system on the right
will be used to rate the
responses to this RFQ.
SAFE Act
• All agencies should assume the SAFE Act will apply.
• Agencies should submit Action Plans to OHFA through
staff that is compliant with SAFE Act requirements.
Staffing Suggestions
• The Ohio HHF Program is temporary in nature. Once
funding runs out, there is no assurance or suggestion
that future funding will be available.
• OHFA has had success using employees from temporary
agencies and contract employees.
• OHFA’s internal positions will be staffed with “project
employees” which are limited to the term of the project.
Program Options
•
•
•
•
Rescue Payment Assistance Program
Partial Mortgage Payment Assistance Program
Mortgage Modification with Principal Reduction Program
Transition Assistance Program
Borrower Eligibility Criteria
• Income at or below 115 percent of area median income
• First mortgage debt less than the FHA maximum loan
amount
• Liquid assets equal to less than three months mortgage
payments, excluding retirement accounts
• Hardship due to involuntary loss or reduction to income,
divorce, disability, or illness resulting in a loss of income
or significant medical expense
Maximum Benefit
• The maximum benefit is $15,000 in target counties and
$12,000 in non-target. Details are available in the
proposal to Treasury.
• A borrower may use any combination of programs as
long as they meet the eligibility criteria and do not
exceed their maximum benefit.
Rescue Payment Assistance Program
• A one time payment secured by a forgivable second
mortgage to pay delinquent PITI, escrow shortage or
other arrearages
• Encourages Servicer to waive fees
• Borrower must demonstrate ability to sustain mortgage
payments for six months or more – unemployment
compensation or assistance under the Partial Mortgage
Payment Assistance Program will be considered.
Partial Mortgage Payment Assistance
Program
• Will support unemployed homeowners by assisting with
their mortgage payments for up to 12 months.
• To remain eligible, homeowner must pay their affordable
monthly payment which is calculated as 31% of their
income with a minimum of 25% of the mortgage
payment.
• Homeowner will resume regular payment at the end of
12 months or two months after resuming employment.
• Homeowner may access before using the Making Home
Affordable Unemployment Program.
Mortgage Modification with Principal
Reduction Program
• Funds will be used to provide an incentive to
lenders/servicers to reduce homeowners’ mortgage
principal balance to the level necessary to achieve a
loan modification with a target of 115% of loan to value
or less.
• To qualify, borrower must have a loan to value ratio of
115% or more.
• Lender/Servicer must match contribution through
principal forbearance or forgiveness. The Responsible
Homeowner Reward program by Loan Value Group may
be used.
Transition Assistance Program
• Incentive for Short Sale/Deed-In-Lieu Option where
Lender/Servicer waives any right to deficiency judgment.
• Borrower must not be eligible for HAFA or Cash For
Keys option from Lender/Servicer.
• $3,000 will be paid to the Servicer with the
understanding that $1,500 of that is to be passed
through to borrower for relocation.
• Payments to secondary lien holder to clear title may be
made in the amount of 10% of the second lien balance
up to $2,500.
Client Flow
• Client will enter system through CounselorDirect online
intake, SDO Call Center, or directly through counseling
agency.
• Agency will develop Action Plan and Budget.
• Agency will collect supporting documentation and submit
to OHFA electronically.
• OHFA will review Action Plan and documentation and
either reject or issue a commitment. The commitment
may be conditional if action is required on the part of the
servicer. OHFA will reserve funds at this point.
Client Flow
• OHFA will issue commitment to counseling agency.
• If conditional, counseling agency will notify OHFA and
provide documentation when servicer has made
determination.
• OHFA will issue final commitment, arrange for closing at
a local title company (except if Transition Assistance)
and issue funds on behalf of the borrower.
Software
• OHFA has contracted with CounselorDirect and HOPE
LoanPort to streamline the intake, submission, and
processing of HHF borrowers.
• Every agency will be required to submit all information
electronically.
• Extensive training will be available.
Mandatory Training
• All counselors will be required to participate in training
through a variety of means.
Contact Information
Stephanie L. Spruill, J.D.
Housing Counseling Manager
Ohio Housing Finance Agency
57 E Main Street
Columbus OH 43215
614.387.1662
SSpruill@ohiohome.org
www.ohiohome.org