hlp annual report
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Hope LoanPort is a national, neutral and nonprofit utility that unifies the efforts to help families achieve and sustain homeownership. This is our 2014 annual report.TRANSCRIPT
Hope LoanPort is a national, neutral and nonprofit
utility that unifies the efforts to help families achieve
and sustain homeownership. Our role is to be the
digital transit way for all stakeholders in the home-
ownership process by facilitating collaboration and
giving stakeholders the tools they need to manage
their respective interests in the transaction.
It has been remarkable to witness the evolution of Hope LoanPort® (HLP)
since its creation in 2009. With homeowners struggling to save their
homes from foreclosure during the Great Recession, this organization
became the intersection where mortgage companies, investors and non-
profit counseling agencies put the housing market back on its feet and
helped more than 400,000 homeowners during their time of need.
By developing a technology platform that is transparent, secure and easy to use, we have
created a unique service that is now the model for collaboration in our industry. Hope
LoanPort is the only place where consumers, their advocates and the mortgage industry
can exchange and manage information in real time, enabling people nationwide to achieve
and sustain homeownership. Our new technology also positions us to be the conduit for
all future transactions between various sectors of the housing industry.
With broad support from the private sector, nonprofit credit counseling agencies and the
federal government, Hope LoanPort is positioned to help unify the industry. We look
forward to making our technology available to all of our stakeholders, allowing them to
collaborate to achieve their goals and moving the housing market ahead.
Bill Longbrake
Chairman, Board of Directors
Building a Lasting System
2008
Emergency EconomicStabilization Act signed
HOPE NOW AllianceCreated by government and
private industry to find solutionsfor distressed homeowners
Subprime Mortgage Industry CollapsesMultiply lenders declarebankruptcy
Creating $700 billion TroubledAssets Relief Program (TARP)
Fire Sales and TakeoversGovernment takes over Fannie Mae and
Freddie Mac–Merrill Lynch sold to Bank of America
NAR announces 2007saw largest drop in existinghome sales in 25 years
2 Hope LoanPort
2014 marked a clear shift in how our stakeholders use Hope LoanPort.
No longer just reacting to the exigencies of the financial crisis, our
partners are now strategically engaging us to support their work with
families across a broader range of services. This post-crisis market is
profoundly different, driven by the need to improve customer service,
operational efficiency and regulatory compliance. Counselors, servicers,
investors and attorneys are leveraging the uniqueness of our platform to support their
transition into the new marketplace.
We simplify operations by collapsing fragmented business activities and replacing multiple
end-user applications with an integrated platform. These activities fit the core strengths
of HLP, particularly managing documents, data and communication exchanges among
multiple stakeholders. This dramatically improves oversight and allows companies to
reallocate resources, streamline processes and strengthen their bottom line.
As a result, we started new partnerships in 2014 which increased the volume and diver-
sity of the transactions we handle. We expanded our technology platform to support the
full range of mortgage products, from origination through servicing. Our user base con-
tinues to grow and Hope LoanPort now has more than 1,100 nonprofit credit counseling
organizations, 20 of the largest mortgage servicers, the top five banks and GSEs using our
technology on a regular basis. Thank you for making 2014 a very special year for HLP!
Cam Melchiorre
President and CEO
Engaging the New Marketplace
timeline of events continued on page 4
Servicer Enrollment U.S. Mortgages2010-2011, HLP enlisted
19 of top 20 mortgage servicers
Counselors and Agencies
Nonprofit counseling agencies connect to HLP
Counselors use our services19 mortgage servicers represent83% of all residential mortgages
Hope LoanPort began in 2009 as a solution to help homeowners and the mortgage industry facing the foreclosure crisis. In the past five years, our organization has expanded its reach to serve an even wider range of stakeholders and has become the “go to” technology
platform for all players involved in the mortgage industry.
19/20
Estimated Value of Residential Real Estate Impacted through Hope LoanPort
Families and Individuals Helped
83%
2014 Annual Report 3
impact
2010 20112009
Camillo MelchiorreNamed CEO
HOPE NOW Allianceforms a Technology Task Forceto solve problems of homeownerscommunicating with servicers
Direct Consumer PortalHLP allows homeowners tosubmit workout packagesdirectly to servicer
Foreclosures PeakMore than 1 million homes lost to foreclosure in 2010Hope LoanPort Milestone
First ForeclosurePrevention Case Hope LoanPort Milestone
Designation as501(c)(3) Nonprofit
Hope LoanPort Milestone
Emergency HomeownerLoan Program
Takes helm at Hope LoanPortHope LoanPort Founded
allows housing counseling agencies tosubmit loan modification packages that
can be reviewed by servicers
HLP Enlists ServicersHLP signs 19 of top 20 mortgageservicers, accepting documentsfiled by homeowners for loanmodification
Dow Jones Industrial Average falls to 6,440
Selected by HUD and NeighborWorksas the required technology platform
4 Hope LoanPort
Hope LoanPort’s unique ability to connect
multiple stakeholders has helped more than
400,000 homeowners to date. As the digital
transit way, we unify these efforts and give
each stakeholder the tools to manage their
part of the transaction. Here’s a look at how
these groups are using HLP to collaborate
and help homeowners:
Counseling
Intermediaries
Counseling intermediaries
have gained new tools for oversight and
management of their affiliate agencies. They
can now analyze performance by agency,
program, and case type, ensuring consistent
treatment for clients and providing a frame-
work for continuous improvement. Work
distribution tools allow homeowners to be
assigned to an agency based on specific
criteria, capacity and certifications. Finally,
HLP dramatically improves financial
oversight and reporting for grants, such as
HUD and the NFMC programs.
Nonprofit Counselors
More than 1,100 nonprofit
counseling agencies have found HLP to
be a simple, secure method to get their
client’s information to the right decision
maker at mortgage companies. HLP
incorporates a HUD-certified case
management and direct connectivity with
servicers, which enables a counselor to
securely send a package of information,
exchange messages, update individual
documents, track progress on the
decision and have a permanent audit
trail for each case. As one counselor
noted, “Hope LoanPort has really eased
the process of tracking loan modification
packages for us.”
Unifying Efforts for Homeowner Success
2010 20112009
Camillo MelchiorreNamed CEO
HOPE NOW Allianceforms a Technology Task Forceto solve problems of homeownerscommunicating with servicers
Direct Consumer PortalHLP allows homeowners tosubmit workout packagesdirectly to servicer
Foreclosures PeakMore than 1 million homes lost to foreclosure in 2010Hope LoanPort Milestone
First ForeclosurePrevention Case Hope LoanPort Milestone
Designation as501(c)(3) Nonprofit
Hope LoanPort Milestone
Emergency HomeownerLoan Program
Takes helm at Hope LoanPortHope LoanPort Founded
allows housing counseling agencies tosubmit loan modification packages that
can be reviewed by servicers
HLP Enlists ServicersHLP signs 19 of top 20 mortgageservicers, accepting documentsfiled by homeowners for loanmodification
Dow Jones Industrial Average falls to 6,440
Selected by HUD and NeighborWorksas the required technology platform
2014 Annual Report 5
Mortgage Servicers
Servicers use HLP to make
timely decisions on home-
owner requests for assistance. The platform
reinforces operating consistency and helps
compliance with regulatory guidelines. It
standardizes documents, data and business
rules and eliminates lost paperwork and
miscommunications, ensuring transparency
for all parties throughout the process. HLP
ensures that the homeowner’s requests for
assistance reaches the right person, facil-
itates the communication and document
exchanges needed and provides a secure
channel for transmitting sensitive consumer
data. HLP helps ensure servicer compliance
with the National Mortgage Settlement and
the CFPB’s Bulletin 2013-01.
Attorneys
Attorneys use HLP to replace faxes
and overnight delivery services, speeding up
the communication process, reducing mail
costs and creating a permanent audit trail of
communications with the servicer.
Investors
Investors use HLP to reduce
losses and ensure workouts produce better
performing loans. Through real-time access
to the data and documents uploaded by
counselors and servicers, an investor can see
the progress of a transaction and intervene if
needed. This view also provides insights into
how the parties work together, allowing for
identification of best practices, standardized
proof of work completed and the ability to
route work to high-performing organizations.
A senior executive noted, “We are excited
about Hope LoanPort’s technology as an
efficient and transparent platform not only
for [our] partners, but as a step in the right
direction for broader industry efforts to
assist distressed homeowners.”
stakeholders
continued
2013 20142012
National Mortgage SettlementFive largest mortgage servicers agree toprovide $26 billion in relief to distressedhomeowners and governments—HLPnamed as a model to be emulated, if not used, as a required web portals
Investor PortalHLP begins development of investor portal with Fannie Mae
Home Sales Recover
National HomeownershipSolutions Platform Launched
Monthly sales of new single familyhomes reach highest level in six year
Bank of America ExpansionEstablishes HLP as preferredchannel for all third parties
to submit packagesWells Fargo IntegrationLaunches a large-scale, enterpriseintegration project with HLP, addingsupport for mediation and bankruptcy
Dow Jones IndustrialAverage hits 18,000
Hope LoanPort Milestone
Mortgage ServicingRights TransferImplemented a utility to allowingtransfer of workouts-in-progressfor MSR cases between servicers
Hope LoanPort Milestone
Added Non-RetentionOptions to Platform Hope LoanPort Milestone
Attorneys Join Portal
6 Hope LoanPort
Hope LoanPort expanded its technology
platform in 2014 to support a full range of
mortgage products. These investments
solidify Hope LoanPort’s position as the one
technology that connects all the stakehold-
ers for any type of housing transaction.
Our new National Housing Solutions
Platform (NHP) connects counselors,
mortgage servicers, originators and in-
vestors in real time through its case man-
agement system. The platform supports a
variety of products, both in the traditional
mortgage servicing arena and mortgage
originations. The ability to exchange in-
formation bi-directionally and for multiple
parties to collaborate radically alters the
landscape for HLP participants. It opens
a world of greater opportunities for the
mortgage industry, nonprofit counselors
and other stakeholders to work together at
scale to help consumers. This will allow
any party enrolled on the platform to both
create submissions and/or receive requests
for assistance directly from another party.
One such use is in the home buying pro-
cess, where the biggest challenge facing
the housing market is the lack of qualified
home buyers. The platform allows lenders
to qualify higher risk, declined
applicants and reverse mortgage
customers using HLP, routing
them through the platform to
be paired with a counselor. As
the counselor works with the
family on their plan to achieve
homeownership, all of their
data, documents and progress
are tracked and stored in HLP.
Once their individualized plan
is completed—demonstrating
the required improvement in their finances
and credit—the consumer is issued a pre-
purchase counseling certificate and can
reapply for a mortgage loan.
Expanding to New Products
Hope LoanPort Products Supported
Origination • prepurchase
• refinance
• reverse mortgages
Servicing• post-purchase
• early intervention
• foreclosure prevention
• post loan modification
• non-retention
• mediation
• MSR transfers
Robust, Secure and Fully-Managed Hosting Environment. Our platform applications and data are hosted in an enterprise-class environment with
the highest levels of availability, recovery, security, and responsiveness. This environment meets all key industry certifications and undergoes regular onsite
and remote audits, plus performance monitoring and penetration testing. It is a fully redundant, highly available configuration that is certified to ensure the
highest levels of uptime, with enhanced managed services to ensure our mission-critical applications are always up and running at optimum levels.
Regular External Audits. HLP meets the vendor requirements as
an approved technology-solution provider for our mortgage servicer
and financial institution customers. Since these companies are subject
to audits by CFPB, OCC and other regulators to ensure compliance with
FFIEC (Federal Financial Institutions Examination Council) information
technology standards, they regularly audit HLP for compliance. We
completed more than 20 such in-depth audits and reviews in 2014 and
are committed to maintaining a platform and environment that meets all
regulatory compliance expectations.
Industry-Leading Security. We understand the special responsibil-
ities that come with handling confidential consumer data. Our hosting
environment obtains an annual SOC 2, Type 2 Service Auditor’s Report
and undergoes quarterly Payment Card Industry compliance scanning,
the industry’s highest standards. There are seven levels of physical
access security and 24x7x365 monitoring by onsite data security
services to identify vulnerabilities and remediate issues. Annual code
application scans, regular third party audits and HLP’s own full-time
security staff offer additional layers of protection.
Hope LoanPortNational Housing Platform
Homeowners
Advocates(counselors, attorneys)
CounselingIntermediaries
Investors andGuarantors
MortgageOriginators
MortgageServicers
2013 20142012
National Mortgage SettlementFive largest mortgage servicers agree toprovide $26 billion in relief to distressedhomeowners and governments—HLPnamed as a model to be emulated, if not used, as a required web portals
Investor PortalHLP begins development of investor portal with Fannie Mae
Home Sales Recover
National HomeownershipSolutions Platform Launched
Monthly sales of new single familyhomes reach highest level in six year
Bank of America ExpansionEstablishes HLP as preferredchannel for all third parties
to submit packagesWells Fargo IntegrationLaunches a large-scale, enterpriseintegration project with HLP, addingsupport for mediation and bankruptcy
Dow Jones IndustrialAverage hits 18,000
Hope LoanPort Milestone
Mortgage ServicingRights TransferImplemented a utility to allowingtransfer of workouts-in-progressfor MSR cases between servicers
Hope LoanPort Milestone
Added Non-RetentionOptions to Platform Hope LoanPort Milestone
Attorneys Join Portal
2014 Annual Report 7
our platform
Practicing Fiscal Stewardship. Our leadership team and board of directors work together to ensure we
provide the highest quality services to as many stakeholders as possible, while maintaining long-term fiscal
stability. We ended this past year fiscally strong, with no debt and with more than $207,000 in net income. As
a 501(c)(3) nonprofit, we take very seriously our responsibility for using our contributed and earned revenues
efficiently. In 2014, more than 82 percent of expenses were dedicated to program services.
Financial Supporters
During our first five years,
we have been fortunate to have
the support of a broad range
of financial supporters,
which include:
Bank of America
Bayview Loan Servicing
Carrington Mortgage Services
Chase Home Finance
Citi Mortgage
Fannie Mae
Financial Services Roundtable
First American
Hope Now
HSBC Finance
IndyMac/One West Bank
LoanCare Servicing
M&T Bank
NationStar Mortgage
NeighborWorks America
Ocwen Loan Servicing
PennyMac
PNC Mortgage
Radian
Residential Credit Solutions
Select Portfolio Servicing
Shellpoint Mortgage Servicing
SunTrust Mortgage
Wells Fargo Home Mortgage
2014 expenses
Expenses
Revenue
Management
Program Services
Fundraising
82%
15%
3%
2014 Revenue – $6,173,942
$6M
$5M
$4M
$7M
$3M
$2M
$1M
2010
$1,081,899
$2,630,301
$5,836,432$6,173,942$6,166,887
$3,160,855
$5,187,087
$5,707,262
$5,966,121
2011 2012 2013 2014
(Unaudited)
8 Hope LoanPort
stewardship
leadership
HLP Board of Directors
Bill Longbrake, Board Chair Executive-in-Residence,
Robert H. Smith School of Business, University of Maryland
John Dalton President,
Housing Policy Council, Financial Services Roundtable
Jonathan Fiechter Senior Advisor,
Systemic Policy Partnership
Ira Goldstein President, Policy Solutions, The Reinvestment Fund
Rick Levy Executive Director,
Lift Up Africa
Steve O’Connor Senior Vice President,
Public Policy & Industry Relations, Mortgage Bankers Association
Faith Schwartz Senior Vice President,
Government Solutions, CoreLogic
David Stevens President and CEO,
Mortgage Bankers Association (Director Emeritus)
Stuart Tryon Special Agent in Charge,
Criminal Investigative Division, United States Secret Service
HLP Management
Camillo Melchiorre President, Chief Executive Officer, Member of Board of Directors
Mark Cole Executive Vice President, Chief Strategy Officer
Nick Figlo Senior Vice President, Solutions Design and Analytics
Samantha Friedman Senior Vice President, Product Development and Client Services
Louann Bernstone Director,
Vendor Management, Risk, and Compliance
Scott Lake General Counsel