This spring, NDHFA staff have been busy breaking records, breaking ground and ranking at the top of the nation!
In May, the agency received a Tier 1 ranking for the FY 2018 Q1 from HUD’s National Servicing Center for servicing Federal Housing Administration guaranteed single-family loans. The tier ranking system measures a mortgagee’s compliance with delinquent servicing guidelines and requirements in the areas of early delinquency intervention, loss mitigation engagement quantity and quality, and reporting. HUD established the tier ranking system to protect FHA borrowers from servicer non-compliance and to monitor potential servicer-specific or industry-wide delinquent servicing issues. A higher work-out ratio shows a servicer’s effectiveness in working with delinquent borrowers to keep them out of foreclosure. We are proud for scoring 97.18 percent!
Since the beginning of 2018, we’ve tracked the uptick in our FirstHome™ loan reservations. In May, they were 185 percent higher than last year, officially breaking the agency record. We received 262 loan reservations that month for $44 million in financing, which is our highest non-special event month ever. During the same time period in 2017, NDHFA recorded 141 reservations. The agency’s staff attributes private-sector lenders originating loans on our behalf and the current interest rate. NDHFA recently closed on the sale of $125 million in private activity bonds leveraging private capital to allow the agency to purchase these mortgages from the originating lenders.
Breaking ground happened at the YWCA Cass Clay Grace Gardens which will provide housing for up to 30 women and their children at-risk of homelessness, many of whom are transitioning from domestic violence situations. It was a privilege to stand with the YWCA, Lutheran Church of the Cross who is leasing the land for the project, Gate City Bank who is donating $1.5 million over 12 years for start-up costs and supportive services, ND Department of Commerce for committing $250,000 in CDBG funding for land acquisition, Housing Authority of Cass County for committing $2 million in Housing Choice Vouchers, and Beyond Shelter for developing the residence. This project is a true example of a public-private partnership that creates safe and affordable housing with supportive services unique to each family’s needs and goals to improve their economic stability and break the cycles of abuse and poverty for the next generation. The development assistance provided to the project by NDHFA is just shy of $7 million.
I hope the second half of the year keeps on track with all of the successes we’ve been able to celebrate this year.