TEN_30_12_Acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TRAINING AND EMPLOYMENT NOTICE NO. 30-12 DATE April 5 2013 TO STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS STATE LABOR COMMISSIONERS STATE UI DIRECTORS AMERICAN JOB CENTERS FROM JANE OATES s Assistant Secretary SUBJECT Mortgage Relief for Unemployment Insurance UI Claimants and Unemployed Workers at American Job Centers AJCs 1. Purpose . This notice is intended to alert the workforce investment system of a national partnership among the Departments of Housing and Urban Development HUD Treasury and Labor DOL to expand awareness of mortgage relief for UI claimants and unemployed workers and to lay out the actions required to implement the partnership. 2. Background . The Obama Administration s unprecedented housing recovery efforts including assistance to homeowners through the Federal Housing Administration FHA and the Making Home Affordable MHA programs have helped millions of families modify their mortgages and avoid foreclosure. In addition two federal programs FHA s special unemployment forbearance and MHA s Home Affordable Unemployment Program UP allow qualifying homeowners to reduce or suspend mortgage payments for 12 months or more. Lastly the Administration s Hardest Hit Fund HHF provides billions more in aid for homeowners in states hit hardest by the economic crisis. Further details and relevant Web sites on all three of these programs are found in the Frequently Asked Questions section of this notice. While thousands of unemployed borrowers have been able to reduce or suspend their mortgage payments through these programs many more have never heard of these programs or do not know they are eligible for relief. To further the Administration s efforts to help struggling families obtain relief Acting Secretary of Labor Seth D. Harris sent a letter to all governors announcing a partnership to promote the Administration s foreclosure prevention programs through local Workforce Investment Boards WIBs and AJCs. This notice is intended to encourage local WIBs and AJCs to identify opportunities to promote the Making Home Affordable program and other mortgage assistance to those who may benefit. 2 3. Action Requested . DOL HUD and Treasury ask that local WIBs and AJCs provide leadership in sharing information on these mortgage relief programs for unemployed workers to help them avoid losing their homes. Below are suggested strategies to promote awareness of these important programs through the workforce system Web sites Provide pop-ups or links to information on MHA programs www.MakingHomeAffordable.gov and 888-995-HOPE 4673 from UI and workforce system Web sites Call Center Provide recorded messages with information referring homeowners to 888-995-HOPE 4673 while UI call center claimants are on hold Mailings Send targeted mailings regarding mortgage forbearance options to UI claimants from state workforce agencies Partnerships with Housing Finance Agencies For those states that received funding through HHF please see list in Frequently Asked Questions section below partner with your state housing finance agency to help reach eligible homeowners. American Job Centers AJCs o Ask the homeownership status of your UI claimants and other customers and connect eligible homeowners with HUD-approved housing experts at 888-995-HOPE 4673 o Display posters on MHA s UP in prominent places o Distribute brochures and fact sheets on MHA s UP to customers and UI claimants o Reorder brochures and posters as needed at no cost through www.MHAStorefront.com and o Facilitate AJC participation in MHA HOPE Now events that include participation from HUD and Treasury. The Department of Treasury will be mailing a toolkit of resources to AJCs in April. 4. DOL Treasury and HUD Resources . There are several resources available to assist state workforce agencies WIB and AJC staff in providing information on mortgage relief programs for unemployed jobseekers and others who may benefit. These include The Reemployment Portal on the CareerOneStop Web site http www.careeronestop.org reemployment includes information on MHA programs as well as information on other housing resources. Previous DOL guidance describes the partnership between DOL and the HOPE NOW alliance including telephone hotline and Web site information is available in Training 3 and Employment Notice No. 12-09 available at http wdr.doleta.gov directives corr doc.cfm DOCN 2814 Information on MHA and its UP program HHF FHA s loss mitigation programs and other relevant unemployment forbearance programs is all available online o MHA Home Page http www.makinghomeaffordable.gov pages default.aspx o HOPE Hotline http www.makinghomeaffordable.gov Pages homeowners hopehotline.aspx o MHA Unemployment Resources http www.makinghomeaffordable.gov programs unemployed- help Pages default.aspx o Webinar Training on MHA s UP https www.hmpadmin.com portal learningcenter advisors webinars.jsp o HHF http www.treasury.gov initiatives financial-stability TARP- Programs housing hhf Pages default.aspx o FHA s Loss Mitigation Programs http portal.hud.gov hudportal HUD src program offices housing sfh nsc lo ssmit o FHA s Save Your Home Tips to Avoid Foreclosure Brochure http portal.hud.gov hudportal documents huddoc id fha saveyourhome.pdf 5. Webinar on Resources for Unemployed Homeowners . WIB and AJC staff are invited and strongly encouraged to attend a webinar specifically designed to support this joint effort. This webinar will be presented jointly by DOL Treasury and HUD and will cover the related mortgage-assistance programs informational Web sites downloadable fact sheets presentations hold messages web banners and more. Join the webinar to find out more about what resources are available and how to access them. The first of these webinars is scheduled for Thursday April 25 from 2 00 p.m. 3 30 p.m. ET. Register today at www.HMPadmin.com DOL . 6. Frequently Asked Questions . Question What is the Making Home Affordable program Answer The Making Home Affordable program is a critical part of the Obama Administration s broad strategy to help homeowners obtain mortgage relief and avoid foreclosure. Eligible borrowers can lower their monthly mortgage payments and get into more stable loans at today s low rates. It also provides options to help unemployed homeowners temporarily reduce or suspend mortgage payments for at least 12 months. And for those homeowners for whom ownership is no longer affordable or desirable the program can provide a way out while avoiding the burden of foreclosure. 4 Question What is the Homeowner s HOPE Hotline Answer The Homeowner s HOPE Hotline at 888-995-HOPE 4673 is a free comprehensive assistance and housing counseling service that helps homeowners obtain the information and advice they need to work toward a mortgage relief solution. The hotline is available 24 hours a day 7 days a week and in over 160 languages. Question What is Home Affordable Modification Program HAMP Answer HAMP is an MHA program that may lower monthly mortgage payments in order to make them more affordable and sustainable for the long-term. The program is available to homeowners who struggling to make their mortgage payments. Additional details are available at http www.makinghomeaffordable.gov programs lower- payments Pages hamp.aspx . Question What is Home Affordable Unemployment Program UP Answer UP is an MHA program that provides assistance to unemployed homeowners. Homeowners qualified for UP benefit from a temporary reduction in or suspension of their monthly mortgage payments for at least 12 months. Question Who is eligible for Home Affordable Unemployment Program UP Answer Homeowners are eligible to apply if they qualify for unemployment benefits obtained their mortgage on or before January 1 2009 and owe no more than 729 750 on their homes. Additional information is available at http www.makinghomeaffordable.gov programs unemployed- help Pages up.aspx . Question Which mortgage servicers offer Home Affordable Unemployment Program UP Answer There are more than 100 HAMP-participating servicers that offer UP to eligible unemployed homeowners. Homeowners may determine whether their mortgage company is participating in UP by visiting http www.makinghomeaffordable.gov get-started contact-mortgage or by calling 888-995-HOPE 4673 . Question What is the FHA s Loss Mitigation Program Answer FHA s loss mitigation program can assist eligible borrowers with FHA-insured loans obtain mortgage relief and avoid foreclosure. Home retention options allow FHA borrowers to resolve their delinquency. FHA also provides help for unemployed FHA borrowers who can take advantage of forbearance to reduce mortgage payments for up to 12 months while they seek employment. Where homeownership is no longer affordable FHA offers homeownership disposition programs as alternatives to foreclosure. Additional information is available at http portal.hud.gov hudportal HUD src program offices housing sfh nsc lossm it. 5 Question Who can take advantage of FHA s Loss Mitigation Program Answer Only FHA borrowers are eligible for FHA loss mitigation including forbearance. FHA borrowers who are having trouble making their mortgage payment should contact their servicers. For further information FHA borrowers may call HUD s National Servicing Center at 877-622-8525. Please refer to FHA s Save Your Home brochure. http portal.hud.gov hudportal documents huddoc id fha saveyourhome.pdf . Question What is the Hardest Hit Fund HHF Answer The Administration established the Hardest Hit Fund in February 2010 to provide targeted mortgage assistance to families in states hit hard by the economic and housing downtown. The Hardest Hit Fund is managed by 19 state housing finance agencies with funding from Treasury. The following housing finance agencies administer HHF funds Alabama Arizona California Florida Georgia Illinois Indiana Kentucky Michigan Mississippi Nevada New Jersey North Carolina Ohio Oregon Rhode Island South Carolina Tennessee and Washington DC. For more information about HHF visit http www.treasury.gov initiatives financial-stability TARP- Programs housing hhf Pages default.aspx . Question How can the Hardest Hit Fund HHF help the unemployed Answer The Hardest Hit Fund helps responsible homeowners who have lost their jobs by paying their mortgage while they search for new employment. It also assists financially distressed homeowners who have incurred late payments and associated arrearages by reinstating their mortgages and or permanently modifying them in order to prevent foreclosure. Each participating state offers its own locally tailored version of these programs please visit your state s Hardest Hit Fund Web site in order to learn more about how to access benefits. The following Treasury HHF page contains links to all 19 programs http www.treasury.gov initiatives financial-stability TARP- Programs housing Pages Program-Documents.aspx . 7. Inquiries . Information about MHA programs is available at 888-995-HOPE and www.MakingHomeAffordable.gov . 8. Attachment . Letter to governors on foreclosure prevention efforts.