WELCOME TO THOSE WHO ARE
IN THE ROOM AND THEN WHO IS
WATCHING TO OUR JOIN EFFORT HERE
ON A D. U. FOR. I DO WANT TO
WELCOME THE CHAIR OF HOUSING
ASSEMBLYMEMBER WICKS AND THANK
YOU AND THANK YOU TO YOUR
WONDERFUL STAFF FOR HELPING US
ORGANIZE THIS HEARING I AM VERY
VERY EXCITED TO WORK WITH
ASSEMBLYMEMBER WORKS ON ISSUES
AROUND HOUSING AFFORDABILITY AND
EQUITY WE POLICY MAKERS DO MORE
TO MAKE HOUSES WE'VE WE'VE GOT
TO DO MORE TO MAKE HOUSING MORE
AFFORDABLE AND MORE ACCESSIBLE
ACTUALLY IT IS ONE OF MY BIGGEST
PRIORITIES THIS YEAR AND AS
CHAIR OF BANKING COMMITTEE I
ALSO BELIEVE THAT LENDERS HAVE A
BIG ROLE TO PLAY IN BRINGING
CALIFORNIA TO A MORE INCLUSIVE
HOUSING FUTURE. THE GOAL OF THIS
HEARING IS TO HEAR FROM EXPERTS
AND PRACTITIONERS ABOUT THE
FINANCIAL CHALLENGES HOMEOWNERS
FACE WHEN BUILDING AN EIGHTY YOU
IN RECENT YEARS THE LEGISLATURE
HAS BEEN VERY SUCCESSFUL IN
STREAMLINING AND PROMOTING THE
USE OF ANY USE WHICH IS ACTUALLY
A KEY TOOL TO BOOST HOUSING
SUPPLY PROMOTE DENSITY AND
IMPROVE HOUSING AFFORDABILITY
BUT I REPEATEDLY FROM ADVOCATES
AND ALSO FROM STAKEHOLDERS THAT
FINANCING REMAINS A KEY STICKING
POINT. WE'VE REMOVED A LOT OF
BARRIERS FOR HOMEOWNERS BUT ONE
KEY STILL REMAINS HOW DO THEY
PAY FOR IT BUILDING AN EIGHTY
YOU IS EXPENSIVE IT OFTEN COST
HUNDREDS OF THOUSANDS OF DOLLARS
SO WHAT ARE THE OPTIONS AND WHAT
KIND OF OPTIONS DO HOMEOWNERS
HAVE IF THEY DO NOT HAVE MUCH
EQUITY OR IF THEY ARE LOWER IN
INCOME. AND WHAT WHAT DO LENDERS
ARE WHAT CAN LEADERS DO THAT
THEY ARE DOING AND WHAT CAN THE
STATE AND LOCAL GOVERNMENTS DO
TO HELP THESE ARE JUST SOME OF
THE QUESTIONS WE WILL EXPLORE
TODAY AND HOPEFULLY TODAY'S
HEARING WILL HELP GUIDE US TO
SOME SOLUTIONS TOWARD SOLUTIONS.
TO HELP OWNERS ACT- ACCESS SAFE
AND AFFORDABLE FINANCING
OPTIONS. A FEW THINGS ABOUT
TODAY'S HEARING AND THE AGENDA
THAT I WANT TO COVER FIRST DUE
TO THE ONGOING PANDEMIC EVERYONE
HERE IN THE ROOM TODAY MUST WEAR
A FACE COVERING AT ALL TIMES.
AND WE ARE PRACTICING PHYSICAL
DISTANCING IN THE ROOM AS WELL
AS THROUGHOUT THE ENTIRE CAPITAL
BUILDING. SECOND THE COMMITTEES
PUT TOGETHER A BACKGROUND
DOCUMENT OUTLINE OF THE KEY
ISSUES AROUND EIGHTY YOU
FINANCING YOU CAN FIND THAT
DOCUMENT ON EITHER OF. THE
COMMITTEE'S WEBSITE THE END OF
THE DOCUMENT ALSO INCLUDES LINKS
TO OTHER REPORTS AND OTHER
INFORMATION AND I ENCOURAGE ALL
WHO ARE WATCHING TO READ THOSE
REPORTS. AS THEY PROVIDE VERY
VALUABLE INFORMATION FINALLY THE
STRUCTURE OF THIS HEARING IS
THIS WE WILL HEAR FROM THREE
PANELISTS AND THEN WE WILL OPEN
IT UP FOR QUESTIONS FROM
MEMBERS. THEN WE WILL ALLOW THE
PUBLIC COMMENT AT THE END OF THE
HEARING AND I DO ASK THAT THOSE
CALLING IN FOR PUBLIC COMMENT
SAY THEIR NAME ORGANIZATION. AND
LIMIT YOUR COMMENTS TO NO MORE
THAN TO JUST KEEP A VERY VERY
BRIEF THIRTY SECONDS OR SO AND-
AND ON TOPIC FOR WHAT THIS
HEARING IS ABOUT. FOR THE PUBLIC
COMMENT SECTION WRITTEN
TESTIMONY CAN BE SUBMITTED TO
THE COMMITTEE BY EMAILING A. B.
M. K. DOT COMMITTEE AT ASSEMBLY
DOT CA DOT GOV. THOSE WISHING TO
CALL IN FOR PUBLIC COMMENT YOU
CAN DO SO BY CALLING ONE EIGHT
SEVEN SEVEN. SIX NINE TWO EIGHT
NINE FIVE SEVEN AND USE THE
ACCESS CODE NUMBER ONE THREE ONE
FIVE FOUR THREE SEVEN. YOU CAN
ALSO FIND THIS NUMBER ON THE
COMMITTEE WEBSITE AS WELL AS ON
YOUR TV SCREEN AND FOR THOSE
THAT ARE CALLING HIM. PLEASE
ELIMINATE ALL BACKGROUND NOISE
THIS INCLUDES MUTING YOUR
LIVESTREAM BROADCAST AND YOUR
SMART DEVICES IF YOU ARE HAVING
A PROBLEM. WITH THE MODERATED
PHONE SERVICE YOU CAN ALSO CALL
THE COMMITTEE AT NINE AND SIX
THREE ONE NINE. THREE ZERO EIGHT
ONE BY STAFF THERE WILL HELP-
AND PROVIDE YOU ASSISTANCE.
THAT'S IT SO I AM LOOKING
FORWARD TO OUR CONVERSATION AND
LEARNING MORE. THANK YOU FOR
JOINING IN WHETHER IT BE ONLINE
OR OR OVER- THE MEDIA OR IN
PERSON. I DO WANT TO HAND IT OFF
TO ASSEMBLY MEMBER- WICKS
HOUSING- SIMPLY HOUSING CHAIR
FOR OPENING COMMENTS AS WELL.
THANK YOU FOR SAFE. THANK YOU
FIRST I WANT TO THANK OUR
BANKING CHAIR- MY FRIEND IS A
MEMBER TIM GRAYSON- AND HIS
STAFF FOR THEIR PARTNERSHIP IN
ORGANIZING TODAY'S INFORMATIONAL
HEARINGS ON EIGHTY FINANCING AND
HIS COMMITMENT TO. REALLY BEING
PART OF THE SOLUTION HERE AND I
THINK THE IDEA OF BANKING
COMMITTEE HOUSING COMMITTEE
WORKING TOGETHER TO THINK
THROUGH HOW WE CAN. PROVIDE
CREATIVE IDEAS FOR FINANCING FOR
EIGHTY YEARS AND OTHER THINGS IS
A CRITICAL PART OF THE SOLUTION.
AS SHARED HOUSING COMMITTEE
ENCOURAGED ENCOURAGED BY THE
RECENT GROWTH THAT WE'VE SEEN IN
EIGHTY YOU CONSTRUCTION ACROSS
THE STATE OF CALIFORNIA
CALIFORNIA'S LEADERSHIP ON
EIGHTY YEARS IS GETTING NATIONAL
ATTENTION TO. AND WAS
HIGHLIGHTED LAST WEEK AT THE
WHITE HOUSE EVENT ON MAKING IT
EASIER TO BUILD EIGHTY USED.
THANKS TO THE LEGISLATURE'S
EFFORTS TO STREAMLINE AND
EXPEDITE THE LOCAL APPROVAL
PROCESS OVER THE LAST SEVERAL
YEARS IT'S NOW EASIER FOR
HOMEOWNERS TO BUILD EIGHTY USE.
AND JD IS. AND WE'VE SEEN A
DRAMATIC RISE IN THE NUMBER OF
EIGHTY USED IN CONSTRUCTING EACH
YEAR. IN TWENTY THIRTEEN AND
TWENTY FOURTEEN LESS THAN EIGHT
HUNDRED EIGHTY YEARS WERE
PERMITTED ANNUALLY ACROSS THE
STATE AND THEY MADE UP ABOUT. 1%
OF OUR NEW HOUSING SIX YEARS
LATER IN TWENTY TWENTY EIGHTY
YOU PRODUCTION SAW. A MORE THAN
TEN FOLD INCREASE WITH OVER
TWELVE THOUSAND EIGHT HUNDRED
NEW ADS REPRESENTING ELEVEN
POINT SIX. PERCENT OF ALL THE
HOUSING CONSTRUCTION FOR THAT
YEAR. AND WHILE THAT INCREASES
GREAT WE STILL NEED TO BUILD A
LOT MORE OF THEM. AS WELL AS
ADDITIONAL HOUSING- BUT
FINANCING THESE EIGHTY YEARS IS
THE QUESTION WE WILL TACKLE
TODAY. ARE STILL TOO MANY
HOMEOWNERS WHO WANT TO BUILD AN
EIGHTY LACKED THE FINANCIAL
RESOURCES TO BUILD ONE. THIS IS
PARTICULARLY TRUE FOR SENIORS
LOWER INCOME HOMEOWNERS AND
INDIVIDUALS WHO RECENTLY
PURCHASED THEIR HOMES AND
HAVEN'T YET HAD THE TIME. TO
BUILD UP THE EQUITY. WE KNOW
THAT EIGHTY YEARS CAN BE AND
WILL BE AN IMPORTANT TOOL FOR
ADDRESSING THE STATE'S HOUSING
CRISIS IN TODAY'S CONVERSATION.
IT'S JUST A STARTING POINT FOR
THE ONGOING EFFORTS TO
UNDERSTAND THE FINANCING
LANDSCAPE FOR HOMEOWNERS.
SEEKING TO BUILD EIGHTY YEARS.
TODAY WE HAVE THREE PANELISTS
PRESENTING AND WE'LL HEAR FIRST
FROM KORAN CALLED FROM THE URBAN
INSTITUTE. I'M HERE I'M TRYING
TO JUST SHARE MY- MY SCHOOL
THERE WE GO SECOND GRADE WE CAN
HEAR YOU WE SEE OF. AND EVERYONE
SEE MY SCREEN. YEAH WE CAN WE
CAN SEE YOUR SCREEN. OKAY TANK
YOU THANKS A LOT THANKS
COMMITTEE CHAIRS AND OUR THANKS
FOR THE OPPORTUNITY TO BE HERE
TODAY TO TALK ABOUT THIS VERY
IMPORTANT TOPIC. ON VARIOUS TO
EIGHTY WITH FINANCING MINUS
GROUNDHOG I'M A PRINCIPAL
RESEARCH ASSOCIATE WITH THE
HOUSING FINANCE POLICY CENTER AT
THE URBAN INSTITUTE OF MAKEUP
WOULD NOW IS A NONPARTISAN
RESEARCH THINK TANK BASED IN
WASHINGTON DC. BEFORE I BEGAN I
MUST STATE MY STANDARD
DISCLAIMER RICHES THAT EVEN
ABOUT EXPRESS IT TODAY ON MY
VIEWS AND MY OWN AND NOT
NECESSARILY THOSE ARE- A BIT
INSECURE PARTS TRUSTEES ARE
FUNDERS. SO LET ME START WITH A
QUICK. BACKGROUND ON EACH. AS
YOU ALL KNOW IT'S GLOWING UNIT
ALREADY LOSE OUR SENSE THESE.
SECOND COUNTING YOUR ON THE LINE
AND A SINGLE HOME- CAN IF. YOUR
HOUSE BACK CARNEGIE IN LAST WEEK
. BASEMENT APART OR A GARAGE
FROM. AND YOU ALSO NOTICE MOST
FAMILY DOES ZONE IN THE LAST
PROHIBITED EIGHTY CONSTRUCTION
BUT TODAY AS WE AS JUST MY- MANY
STATES AND STATE MANY CITIES
THAT STATES ARE INCREASINGLY
PERMITTING THE USE OF UNITS ARE
TO BE BET ON SINGLE FAMILY LOTS
TO EASE YOU KNOW WHAT IT'S
OBVIOUSLY A VERY. UNCOMFORTABLE
HOUSING SITUATION AROUND THE
COUNTRY. DESPITE THIS CHANGE IS
POSSIBLE DEVELOPMENT WILL BE
FINE AS AS WE STILL HAVE ANOTHER
MAJOR HURDLE TO BE OVERCOME THAT
COMES JACK INSTRUCTING IT TO USE
AND THAT HAS TO DO WITH
FINANCING OF THREE IT JUST
DOESN'T IS AN EFFICIENT
MECHANISM. NATIONWIDE DEALS FOR
THE CONSTRUCTION OF EIGHTY YEARS. AT ADAM AT MASSIVE SCALE. SO
GET INTO THE OF THE- I'M GOING
TO BE ANSWERING FOR. DIFFERENT
BUT- RELATED QUESTIONS FIRST
WOULD TALK ABOUT- WHAT YOU
FINANCING OPTIONS ARE TYPICALLY
AVAILABLE FOR MOST HOMEOWNERS
TODAY. ARE WHY DID YOU FINANCE
IT IS SO DIFFICULT. AND WE
TALKED. BRIEFLY ABOUT THE ROLE
OF THE FEDERAL GOVERNMENT CAN
PLAY AND RENOVATION FINANCING ON
THAT ORDER HAS PLACED AND THIS
SEGMENT AND IN THE RECENT PAST.
FINALLY I'LL CLOSE IT OUT WITH A
FEW RECOMMENDATIONS ON HOW. TO
IMPROVE IF YOU FINANCE. FIRST
LET'S TALK ABOUT THE OPTIONS
THAT MOST HOMEOWNERS-
CONSTRUCTING A- I WANTED TO
QUICKLY CONSTRUCT EIGHTY WAS AND
IF YOU RAISE. ONE WHICH SEEMS TO
BE BY FAR THE MOST COMMON IS TO
USE A UNIT WITH THE HOUSEHOLD
SAVINGS AND CASH. ORDER CAPE COD
OTHER HIGH INTEREST DEBTS SUCH
AS PERSONAL LOANS AND EVEN HARD
CREDIT CARDS ARE BEING USED AND
THEN YOU ALSO HAVE REALLY SHORT
TERM LOAN OPTIONS. TYPICALLY NO
MORE THAN A YEAR OR SO. THE
SECOND- WE FINANCING PARTY USE
IS TO. HOME EQUITY AND ARE THREE
WELL KNOWN PRODUCTS ON MY
COMPUTER. WHICH IS BASICALLY
ECHOES AND SEX PRODUCT HOME
EQUITY LINE OF. AND A CASH OUT
REFINANCE. AND THEN THE THIRD
PREDOMINANT EIGHTY YOU ARE
EIGHTY FINANCING RATE IS TO ACT
WHAT IS KNOWN AS A RENOVATION.
AND THAT TO MAIN BUCKETS OF
RENOVATION FINANCING THAT AVAIL
- ONE IS THROUGH A FEDERAL
AGENCIES SUCH AS FANNIE MAE
FREDDIE MAC FHA AND VA- AND THEY
PROVIDED THAT YOU KNOW THEY WORK
WITH LENDERS TO FINANCE OUR
RENOVATION FINANCING AND THEN
YOU HAVE NON FEDERAL FINANCING
AVAILABLE FROM. PRIVATELY HELD
BANKS THREE GENES. AND STATE
HOUSING FINANCE BEGINS. THE
ISSUE IS. ALL OF THE PROGRAMS
ARE EITHER IN SCOPE OR HAVE
OTHER ACTS THAT MAKE EXTREME
DIFFICULT TO USE THEM AT. IT'S
LET'S TALK ABOUT THAT DETAILS.
CUSTOMERS HOME LENDING AND THIS
INCLUDES GENERALLY SPEAKING HOME
EQUITY LOANS HOME EQUITY LINES
OF CREDIT AS WELL AS CASH OUT
YEAH. THE ISSUE HERE FAR
ESPECIALLY FOR A HOME EQUITY
LINES OF CREDIT IS THAT THE
UNDERWRITING REQUIREMENTS ARE
EXTREMELY STRINGENT THAT IS IF
YOU LOOK AT THE DATA AND FIND
THAT AVERAGE. MICHAEL SCORE THAT
IS NEEDED TO QUALIFY FOR A HOME
EQUITY LINE OF CREDIT AS WELL IN
EXCESS OF SEVEN HUNDRED AND
SIXTY. YOU HAVE TO HAVE HIGH
ENOUGH INCOME TO QUALIFY FOR
SUCH A LONG. SECOND HOME EQUITY
LENDING WHETHER IT'S CASH OUT
REFINANCE YOUR LOCKS OR HOME
EQUITY. LOANS ARE USUALLY CAPPED
AT 80% OF THE CURRENT MARKET
VALUE OF THE PROPERTY. AMINO
ACIDS GET OUT AGAIN R. AS PEOPLE
ARE LIVING IN THEIR HOMES.
THEY'RE ALSO GETTING MORE AND
MORE PRIMARY MORTGAGE DEBT IN
FACT FOR MANY SENIORS DOWN. THE
FRONT THE VOLUME UP THE PRIMARY
MORTGAGE DEBT THAT THEY'RE
GETTING INTO RETIREMENT HAS ON
THE GROUND. SO THIS 80% CAP ON
ON. ON ON THE FOLLOWING.
ACTUALLY IT'S A HUGE BARRIER FOR
MANY OF THOSE FOLKS. AND THEN
THE THIRD MAJOR ISSUE WITH HOME
EQUITY LENDING IS THAT IT SIMPLY
DOES NOT CONSIDER THE INCOME.
THE EIGHTY YOU ARE WILL LIKELY
GENERATE AND UP IN THE FUTURE SO
IT SEEMS PERFECTLY LOGICAL TO ME
YOU ACT- YOU'LL SHOULD GET SOME
CREDIT. HE'S PARTIAL CREDIT FOR
THE RENTAL INCOME BUT YOU WOULD
GENERATE IN THE FUTURE. SO
THAT'S THE BIG ISSUE OF THE HOME
EQUITY LENDING. AND THEN AS FAR
AS THE APPRAISAL IS CONCERNED WE
HAVE ANOTHER BIG ISSUE THERE
WHICH IS- THE BACK HOME EQUITY
LENDING IS SIMPLY NOT OPTIMIZED
FOR. FINANCING. USE BECAUSE IT
DOES NOT CONSIDER. THAT IS THE
LOAN THAT YOU CAN GET IS BASED
ON PROPERTY VALUE AT THE TIME OF
THE APP WITH. NOT GONNA LET YOU
OFF THE- ONE THE EIGHTEENTH AND
IS COMPLETE MAJOR SEEMS VERY
BACKWARDS TO MAKE. ABOUT GENGHIS
ARE SOME WITH OUR- FOR MOSTLY A
WOULD BE WORTH SECOND. IS GO ON
THE SOME ISSUES NEED TO BE
WORKED OUT THERE. AGAIN ANOTHER
HUGE. THAT LET ME HOW MUCH MONEY
ARE CAN I BORROW TO FINANCE YOU
CAN SEE. LONG AND SHORT ON OF
ALL THE THIS IS. THAT CORRECT
AND IN I A PRODUCT OF FINANCE ET
. DOES NOT WORK FOR MOST. LOWER
INCOME WELL MIDDLE IN FOLKS-
ONLY WORKS BY FOR THE PROPER
OWNERS. LOTS OF YOU CAN GET HOME
THAT'S THE STAND OF SAVE. AND
HIGH ENOUGH INCOMES TO QUALIFY
FOR THIS TYPE OF MY. FOR THE
REST. OF THE WHO WON TO GET AN
EIGHTY BED THEY- TO GET ON. A
KIND OF A RANDOM I AM. BECAUSE
IT'S THE ONLY. TYPE OF. OUT
THERE. THAT TAKES ACCOUNT THE
POST CONSTRUCTION- WE CALL THE
AFTER REPAIR VALUE OF THE
PROPERTY. INTO CONSIDERATION.
AND WHAT COMES TO RENOVATION
FINANCING THERE IS PRODUCTS
AVAILABLE- YOU KNOW TO FHA THEY
HAVE TO DO PROGRAMS THAT LIMIT
FOR MANY STANDARD FORM AND THEN
THERE. ARE PRODUCTS THAT ARE
AVAILABLE FROM FANNIE MAE AND
FREDDIE MAC LET'S TALK ABOUT IT
FIRST THAT'S WHAT YOU GET
PROGRAM AS A RESPONSE- IT HAS A
LIMITED FORM WHICH ARE UNDER
WHICH THE MAXIMUM LOAN AMOUNT
THAT CAN BE BARKLEY'S THIRTY
FIVE THOUSAND DOLLARS. AND
STUPID HE WAS FROM MINOR
REMODELING AND CONSTRUCTION. YES
IT'S OBVIOUSLY. DOES NOT WORK.
MUCH FOR HER EVEN. AND THEN
THERE IS A SIGN FORM THE AVERAGE
- DO WHAT SHE COD RUNNING
FINANCING. WHICH I YOU TO BORROW
MUCH THAN THIRTY FIVE THOUSAND
BUT IT HAS SOME SERIOUS BETTER
JUST THAT LET COM. FIRST LETTER
THATWANTS TO PROVIDE THE
FINANCE. AS TO GONE CONVENTIONAL
X. THAT. AND THE LENDER TO GROUP
PROJECT PLAN. AGAINST PLAN COSTS
ESTIMATE DONE AND EVERYTHING
ELSE THAT GOES ALONG WITH
CONSTRUCTION PROJECT ON TOP OF
THAT THE LETTER HAS TO INSURE-
THAT THE QUALITY OF THE FINAL
PRODUCT IS IN LINE WITH WHAT THE
ETHICS EXPECTS. ALL OF THIS WHAT
IT DOES IS IT ADDS YES THE
SUBSTANTIAL COST THE LENDER FOR
MAKING EIGHTY ALONE BUT ALSO
EXPOSES THEM TO A LOT OF
UNCERTAINTY AND RISK HEY GUYS IF
GET OUT IF. THE JOB IS NOT DONE
TO THE SATISFACTION OF OXYGEN
REQUIREMENTS AND THE LENDERS. SO
IN MY LENDERS SIMPLY ARE YOU
KNOW THE FACT WANTED IT TURNS
LAND SCHOOL A BONA THAT'S ON
THERE. AND MANAGEMENT LET US. I
HAVE NO ABILITY TO DO THAT ONE
SKILLS AND NO WAY FOR THEM TO
BUILD THIS THAT. UP COST MOST OF
THE THEY ESTABLISH FROM THE
PROGRAM WHICH MIGHT. AND THEN
THERE ARE THE- BUT THIS TO THE
ATHLETIC. SUCH AS THE REPAIRS
START WITH AN DAYS CLOSING. I
MUST BE. IN SIX MONTHS IF THAT
DOESN'T HAPPEN AND THERE'S A
PROCESS FOR THAT THAT THE LENDER
HAS TO FOLLOW- THE BORROWER MUST
IN ADDITION FIRE RESTAURANT
CONSULTANT OVERSEE THE
RENOVATION PROCESS YEAH
ORDINATING. WITH A HARD CONSENT
AND PUT IT IN THAT THE LENDER
OUR WATER MIGHT HAVE BETTER
RELATED DELAYS ALL OF THAT YOU
KNOW INTRODUCES SO MANY ARRESTS
INSTRUCTION FOR THE PROCESS. IN
FACT MOST LENDERS ARE SIMPLY
DON'T WANT. TO- THE END THIS. IN
ANY MEANINGFUL. FINALLY THE
CORNER PERCENT OF THE AMOUNT
MUST BE SET ASIDE AS A- AND JUST
AS A AND YOU KNOW AND THE DATA.
I WANTED TO OUT THEIR- TOOK
CONTRAST THE FHA WILL TO LIMIT
FORM- LIMIT DOCTOR FIVE THOUSAND
DOLLARS MEDIAN OF WHICH IS THEM
OUT TWENTY TWO. AND THIS IS NOT
A USER QUITE A SUGGESTS AND YOUR
RUN AWAY. I WAS ABOUT SEVENTY.
THOUSAND THE. AND EIGHTY WHAT
ARE THE- COST MORE THAN THE- IN
THIS TIME OF- GENERALLY.
RENOVATION LOAN THE IS AVAILABLE
SEVEN TO MAE THEY CALL IT THE
HOME ROAD AND THAT FREDDIE MAC
THEY CALL IT THE CHOICE NOW
PRODUCT PRODUCT- THESE PROGRAMS
ARE SLIGHT MORE- IN THE BEYOND
SLIGHTLY MORE RELAXED WITH. A I
DOES INSTANCE YOU HAVE CALLED US
TO COME THE- STILL TO SET US AND
THE GST THANK AND FREDDIE. I DO
NOT REQUIRE- WHAT ARE OUTSIDE A
CONSULTANT WHICH IS THE- BUT HIS
ONE OF THE- THAT LET THIS-
DATACORE THE GST THAT'S- OUR
TRANSPORT ALL THE RISKS RELATED
TO CONSTRUCTION DELAYS AND
WORKMANSHIP ON THE LAND THAT IS.
BEST TO THE LANDER AT THE TIME
OF THE MAKING AT THAT TIME THE
LONGER MAKES THIS LOAN THE
LENDER IS EFFECTIVELY AGREEING
TO BE ON THE HOOK FOR ANY DELAYS
COST OVERRUNS FOR QUALITY
WORKMANSHIP SECTOR. AND AGAIN.
IT BRINGS US TO THE SAME ISSUE
WITH FHA WHICH IS THAT MOST
LENDERS ARE SIMPLY NOT GOING TO
TAKE THIS RISK BECAUSE THERE IS
NO WAY FOR THEM TO MANAGE THE
STRESS AND SO AGAIN. DATE. STAMP
OUT FROM THE PROGRAM. I MUST
ALSO NOTE THAT IN OF TWENTY
THIRTY NINE DAY. AT A SORT A
LIMIT- I TRIED A NEW GENERATION
LONG FROM. WHICH DOES NOT. WHICH
LENDERS OF THESE BUT IT'S A
LIMIT PROGRAM YEAH THE AMOUNT
THAT THE BAR CAN BORROW. THIS
LIKE THAT- FIFTEEN FOR OF THE
VOTE OF THE PROPERTY BUT IT'S
STILL AN INCH FROM. WHERE WE
USED. AND SO YOU'RE LEFT WITH A
RENOVATION- LANDS. BETTER DENIAL
EXCITED HIGH. WHAT YOU SEE IN
THIS CHART IS THE MORTGAGE
DENIAL RATES FOR RENOVATION
LOANS. THAT WERE MADE. IN SOME
TWENTY EIGHTEEN TO TWENTY. AND
YOU CAN SEE I. THE MEN HOME AT
LOANS TEND TO- KNOW PRIMARILY
ACROSS FOR- INFO. AND THAT'S
WHAT YOU SEE IN THIS CHART BY
THAT SHOWS UP PER AND I RATE
FOR- HOME EQUITY. DURING THIS
PERIOD. FOLLOW BY THAT LOANS
THAT HAVE BEEN OUT OF NOW I JUST
WITH 35% AGAIN TWO PRODUCTS HOME
. WOULD TYPICALLY USED. EIGHTY
YOU. ARE THAT. HIGHEST RATES
AMONG OUR- LOAN PRODUCTS THERE.
SO JUST TO SUMMARIZE THE KEY AT
THE VERY IF YOU- SINGLE BARRIER
IS THE FACT THAT FEDERAL. BUT
IT'S A- THANK YOU MA'AM FREDDIE
MAC ONE LENDERS COSTS. DON'T
HAVE ANY WAY TO MITIGATE THE
REST OFTEN DELAYS AND COST
OVERRUNS BUT EVEN THE RESPECT
PROJECT MIGHT NEVER BE- COMPLETE
IT- THE SECOND BARRIER IS THAT
MOST OF THESE LENDING PROGRAMS
DO NOT CONSIDER THAT RENTAL
INCOME THE EIGHTY YOU WILL
GENERATE AND EVEN THE RENOVATION
PROGRAMS OUT THERE. TODAY I DO
NOT- INCIDENTAL INCOME. AGAIN
THIS IS THIS ISSUE FOR LOW
INCOME- AND SENIOR SWIMMER TO
CONSIDER AND USE BUT JUST DON'T
HAVE COMES ARE HIGH IN. ON AND
THEN YOU HAVE THE ISSUE AROUND
THE LENDING CAP WHICH IS SET AT
EIGHTY PERCENT- THE APPRAISAL
ISSUE AND THEY DON'T TAKE INTO
ACCOUNT AFTER REPAIR VALUE OFF
THE- INTO ACCOUNT. AFTER REPAIR
VALUE OF THE HOME AND FOUND. AND
THEN AS NOW A- H. I THINK THAT
DOES GET I MEANT ALARM. IS THAT.
EIGHTY LOANS ARE RENOVATION
LOANS IN GENERAL ARE SMALLER IN
SIZE THAN MENTIONED EARLIER. THE
AVERAGE VENTILATION LOAN IN
TWENTY TWENTY WHAT ABOUT SEVENTY
FIVE THOUSAND DOLLARS. FOR
LENDERS LOOKING AT THAT COLOGNE
AND COMPARING IT TO A HOME
PURCHASE LOAN THAT COULD EASILY
BE YOU KNOW 400-500-6000
DOLLARS. A LENDER HAS EVERY
INCENTIVE TO MAKE. A LOAN TO A
BAR WENT BACK ONCE YOU GET A
BIGGER LOAN BECAUSE THAT'S HOW
THAT DOES GET COMPENSATED THE
LAUNCH OF THE LOAN AMOUNT. I HAD
THAT COMPENSATION ITSELF I THINK
THERE'S ALSO A SMALL LOAN. AT
ASPECT TO THE RENOVATION
FINANCING. ISSUE BECAUSE IT JUST
MEANS- LET US DO NOT HAVE THE
SAME INCENTIVE TO MAKE A
RENOVATION LOAN. AS THAT WOULD
HAPPEN YOU KNOW FIVE. IS THAT
LIKE A MEDICARE. LOAN OR HOME
PURCHASE OR OR. IT MIGHT SEEM
THAT WITH ALL THESE ISSUES GOING
WITH FEDERAL FINE. AND ALL THESE
HURDLES. THAT WE SHOULD
SOMETHING DIFFERENT THAT YOU
KNOW WE SHOULD THINK OF WHAT
PRIVATE MARKETS. YOU MIGHT LOOK
AT OR YOU KNOW WHAT WOULD BE
GOOD THE STATE LEVEL. BUT HERE
IS THE PROBLEM. THIS CHART SHOWS
. THE RENOVATION FINANCING WHILE
YOU. ARE AGAIN FOR THE THREE
YEAR PERIOD FROM TWENTY EIGHTEEN
TO TWENTY TWENTY. A TOTAL OF
FIFTY BILLION AND RENOVATION
LENDING- WAS ORIGINATED DURING
THIS PERIOD. AND FORTY FIVE OUT
OF THAT FIFTY BILLION 90% UP
BACK WHAT'S FEDERALLY BACKED-
THROUGH FANNIE MAE FREDDIE MAC
FHA AND BE. ONLY FIVE. BILLION
WISE NON FEDERALLY BACKED THE
REASON I. SHOW THE SLIGHTEST
DIGEST. OUR DRIVES. HOME THE
POINT THAT. YEAH IS THE ARTIST.
RENOVATIONS THE ARTIST. EIGHTY
FINANCE ISSUE. JUST BECAUSE OF
THIS SCALE OF THE FIVE DOT
GOVERNMENT SPACE THE SOLUTION TO
THE EIGHTY FINANCE PROBLEM HAS
TO FLOW THROUGH THE- FEDERAL
HOUSING FINANCE. INFRASTRUCTURE
JUST BECAUSE OF THE SCALE AND A
HALF THAT THE FEDERAL AGENCIES.
BACK TO THE SPACE. AND I ALSO
WANTED TO SHARE- YOU KNOW ONE
SLIDE ON HOLD PRESERVATION THIS
IS NOT STRICTLY YOU USE BUT WHAT
THIS IT WAS SHOWS. IS THAT
DISTRIBUTION ARE THE NATIONWIDE
HOUSING STOCK UP ABOUT FORTY
MILLION BASED ON THE YEAR YOUR
PET AND CAN SEE HERE IS. THAT
ABOUT 12% OFF OUR HOUSING STOCK
NATIONALLY WAS BETTER- IN THE
YEAR NINETEEN THIRTY NINE OR-
15% WAS BUILT BETWEEN NINETEEN
FORTY AND NINETEEN. FIFTY NINE
AND SO ON AND SO FORTH AND THE
VERY LAST CALL AND YOU CAN SEE
THE CUMULATIVE SHARE FOCUS ON
THAT THIRD ROW FROM THE TOP- YOU
CAN SEE THAT. ABOUT 50% OF. THE
NASH NATION'S HOUSING STOCK. OR
JUST OVER HALF OF IT WAS- IS
MORE THAN FORTY YEARS OLD. A
QUARTER OF NATIONAL STOCK IS
MORE THAN. YEARS OLD NOW WHY DO
I BRING THIS UP ON ANY-
FINANCING HEARING. BECAUSE
HOUSING. FINANCING IS ALSO
FINANCE YOU CAN. IT USING
RENOVATION FINANCING WHICH WE
ALL KNOW IT'S NOT WORKING AS
OPTIMALLY AS IT SHOULD BE. SO
THE POINT IS IF HE CAN FIX
RENOVATION FINANCING B. YOU WILL
NOT ONLY ADDRESS THE ISSUE OF
THE PROSPECTIVE EIGHTEEN
FINANCING. BUT WILL ALSO MAKE IT
EASIER FOR FOLKS TO PRESERVE
HOUSING BECAUSE AT THE END OF
THE DAY. HOUSING UNIT THAT IS
KEPT FROM GOING OBSOLETE IN THE
HOUSING UNIT THAT'S BASICALLY
ADDED BACK TO THE HOUSE AND
STACK AND WE DESPERATELY NEED
THAT IN THIS- IRAQ. YOU KNOW
RAPIDLY ESCALATING HOUSE PRICES. AND RENTS ACROSS THE NATION.
SO ASK SLIDE JUST ARE YOU BUT
THE THING WE CAN DO TO IMPROVE
ON THE AVAILABILITY OF ANIMATION
FINANCING. ARE FIRST AND
FOREMOST I THINK WE HAVE TO
ABSOLUTELY OVERCOME. THAT RISK
THAT THAT WINDOW STAYS THAT IS
THEY HAVE. THEY HAVE NO EASY WAY
OF MITIGATING RISK. CONSTRUCTION
AND SO THEY NEED SOME ASSURANCE
THAT CONSTRUCTION WOULD BE
COMPLETED ON TIME AND WITHIN
BUDGET IN THIS CABINET MEETING
AND A COUPLE OF MINUTES I THINK.
NOW SOME OF YOU MIGHT REMEMBER
BACK IN TWENTY. FIFTEEN TWENTY
SIXTEEN THE CITY OF DETROIT BUT
IT WAS- YOU KNOW FACING THAT
COLLECT OFF- ABANDONED HOMES-
THAT HAD FALLEN INTO DISREPAIR-
THAT JUST ALL THAT FROM. WHAT
THEY DID IS THAT THE SAME.
TEAMED UP WITH DEPOT TO THE BATH
HOUSE IN SOUTH ABANDONED HOMES.
AND A MASSIVE MASSIVE SCALE AND
SO THEY MANAGED VANTAGE OF THIS
APPROACH BUT AT HOME PEOPLE WAS
ABLE TO HIRE CONTRACTORS FROM
ITS EXISTING APPROVED VENDOR
LIST. AND SO THAT MADE SURE THAT
GAVE THE CITY OF DETROIT
CONFIDENCE THAT THE WORK WOULD
BE DONE IN A PROFESSIONAL
MANNER. AND THE CONTRACTORS THAT
YOU MIGHT EXPECT ON THIS LIST
ARE SUBJECT TO QUALITY STANDARDS
BACKGROUND CHECKS AND A LOT OF
OTHER READING. BRAIN SURE A
CERTAIN. MINIMUM LEVEL OF
QUALITY. AND THEN ON TOP OF
THAT. THE BEST LIST. LOGIC THE-
LABOUR BACK IT'S THE PAINT WAS
MATTER .COM ACCOUNTS WITH.
CARPET STAND SO COULD. HI YOU TO
BRING THESE NICKI YEAH AND YOU
KNOW AT MY BY THE THAT YOU HAVE
AND BUGS AND THEN. TRY THE LABOR
. WHEN STAR LIKE AND HIGHLY.
MANNER AND BENEFIT FROM THE
LARGE ECONOMY OF SCALE. THE FOR
THIS MODEL MUST ADVISE OPTED OUT
SHOPPING. BUT A DATE. BEYOND A
REASONABLE. THAT THE MOUNTAIN
CAN ABSOLUTELY WORK. SO THAT'S
ONE APPROACH THAT- ONE CAN THINK
OFF SOMETHING THAT'S MARKET
AROUND THAT- ARE THEN THERE IS
ANOTHER YOU KNOW I DON'T WANT TO
THROW OUT THERE. AND THAT HAS TO
DO WITH- ACTIVITY. EIGHTY UNITS-
WHAT THE THINGS THE STATE COULD
DO AS SORT OF MY TO SEE DAY AND
SEND TO HELP. THAT CAN START
ACTUALLY BUT USE. AN ADVANTAGE
OBVIOUSLY IS THE IF YOU ARE THIS
YEAR THAT IS. BE ASSEMBLED OR
PARTIALLY IN A FACTORY THEN YOU
ARE TAKING OUT OF THE QUESTION A
LOT THE CONSTRUCTION. DRESS THAT
LINGERS ON THE HOPE FOR TODAY
YOU ALSO HAVE A STANDARD PRODUCT
. IT'S LOWER COST TO BUILD. ITS
AGAIN IT'LL CUT CODE SO. WELL
THAT IS NOT AN ISSUE. AND SO IN
IN A MOMENT SOUNDS A LOT OF
PROBLEMS- THAT ONE SEES WITH THE
SITE. USING GOOGLE ACCORDING
SOME SORT OF A TAX INCENTIVE FOR
HOMEOWNERS THAT DO THIS BECAUSE
IT WILL MAKE IT EASIER. FOR
LENDERS TO PROVIDE FINANCING.
AND THEN YOU COULD ALSO LOOK AT.
CENTRES FOR HOMO THAT EIGHTY
YOU. THE SECTION EIGHT HOLDERS
AND THAT MAN THAT SHE HAD A IT'S
YOU WANT TO MOVE WORLD THERE. WE
WANT TO. DENTAL AND TO BE
CORPORATE INTO UNDER. SECTION
EIGHT MIGHT GIVE LAND SOME SUCH
. THAT THAT PERHAPS THAT THE
RISK OF THAT AND- NOT. HANK YOU
. THEY HAVE. HAVE HOW ABOUT YOU. AND FINALLY- IN TERMS OF
IMPROVEMENTS TO LAND AS I
MENTIONED EARLIER- YOU
UNDERWRITING IN MY- PROVIDER
MEANS THAT THE PERSON CREDIT FOR
FUTURE RENTAL INCOME. BECAUSE
AGAIN THIS IS NOT- THIS IS NOT A
NICE TO HAVE THIS IS. THIS IS
SOMETHING WE ABSOLUTELY NEED. IF
WE WANT TO ENCOURAGE MORE LOWER
INCOME HOMEOWNERS AND SENIOR
HOMEOWNERS ARE LIVING ON FIXED
INCOMES TO BE ABLE TO OBTAIN
THIS TYPE OF FINANCING. YOU HAVE
TO FIX THAT PRETZELS. AND I'D
GET TO A WORLD WHERE WE'RE DOING
APPRAISALS ON AFTER THE PAIR
BASES. TODAY THIS IS DIFFICULT
IN OUR BECAUSE OF LACK OF COUNTS
BUT OVER TIME. AS MORE AND MORE
EASE GET. AND THEN YOU HAVE AND
ACCOUNTS OF THEIR OPEN A NEW.
THEY SHARED BE A PROBLEM THE
MESSED WITH- CITY AGAIN TODAY IS
THAT MAJOR FERRY AMONG. LIMITS
AMOUNT OF MY THEY CAN- WE HAVE
TO RAISE THAT ON MAXIMUM LOAN TO
BUY AFTER EIGHTY. EIGHTY PER OF
HIGHER NUMBER NINETY MAYBE 95%
AND YOU CAN. CONSIDER OF
MOTIVATE DO WITH THIS
SPECIFICALLY. AS LONG AS THE
FUNDS ARE USED TO FINANCE EIGHTY
WAS BECAUSE AGAIN 80% CAP WAS
LARGELY PUT IN PLACE AFTER THE
LAST RECESSION TO. PREVENT
HOMEOWNERS FROM GETTING OVER
LEVERAGED AND SO WHAT IS WHAT
THE CAP YOU COULD THINK OF WERE
. RELAX THE GAP AS LONG AS THE
FUNDS ARE USED TO FINANCE IT
USED. AND THEN THE FINAL THING
ON THE SECOND THING- IS JUST A
LITTLE- YOU KNOW CORPORATE
OBJECTIVES. FOR A- REAL- YOU
KNOW EIGHTY YOU'LL FIND A
APPROACH. AND YOU KNOW AGAIN YOU
GOT RIGHT NOW THAT IS THAT HE-
PUSH. IN THE INDUSTRY AMONG THE
REGULATORS IN WASHINGTON DC ON
INCORPORATING MORE
NONTRADITIONAL- DATA- MORTGAGE
APPLICANTS AND THIS INCLUDES YOU
KNOW SOMEONE'S RENT PAYMENT
HISTORY. INCLUDES EAGLES HAITIAN
PAY PAYING THAT TELECOM BILLS
THAT BANK CASH. ALTHOUGH NOT
STILL THERE SEVEN DAYS EARLY
STAGES OF THIS. LONGER TERM I
THINK THERE'S NO REASON YOU
COULD INCORPORATE SOMETHING LIKE
THAT THE APPROVED HOMEOWNERS. OR
EVEN FINANCING AS WELL.
ESPECIALLY THOSE WHO MAY JUST GO
MAYBE APPROACH- MAYBE DISAPPROVE
OR FINANCE TODAY AT THE MARKET.
AND THE LAST SECOND YOU'RE ON IT
YOU'RE IS. I GUESS I MENTIONED
EARLIER A LOT OF HOMEOWNERS USE
THEIR CASH AND SAVINGS AND OTHER
HIGH INTEREST DEBTS PERSONAL
LOANS ARE. CONSTRUCT EIGHTY WE I
THINK WE ABSOLUTELY HAVE TO HAVE
A WAY FO THESE HOMEOWNERS TO
REFINANCE THESE PRODUCTS AND PAY
OUT THESE HAD INTEREST. IN
SUSTAINABLE- BUT THAT- BY THE
FINANCE M. TRADITIONAL REACH
NANCY. PRODUCT THAT'S AVAILABLE
IF IT'S WITH FEDERAL AGENCIES OR
EVEN FOR THE PRIVATE SECTOR. SO
THAT'S ALL I HAVE AGAIN I WANT
TO THANK YOU FOR THE OPPORTUNITY
TODAY AND WILL TURN IT BACK OVER
HERE. THANK YOU SO VERY VERY
MUCH FOR THAT PRESENTATION CON
AND WE ARE NOW GOING TO GO TO
OUR NEXT PANELIST. FRANCESC
MARTI WITH THE CALIFORNIA
HOUSING FINANCE AGENCY. THANK
YOU THANK YOU. SHARES GRACE AND
- WEEKS MEMBERS OF THE COMMITTEE
HELLO PANELISTS MEMBERS OF THE
PUBLIC. MY NAME IS FRIENDS ASK
MARTY AND I'M THE DIRECTOR OF
LEGISLATION AND POLICY FOR THE
CALIFORNIA HOUSING FINANCE
AGENCY KNOWN AS COLLEGE AFFAIR.
I AM JOINED TODAY BY HELLO
MARTIN OUR DIRECTOR OF BUSINESS
DEVELOPMENT AND STAKEHOLDER
RELATIONS AND ALSO BY. CHERYL
SILVA WHO IS THE PROJECT LEAD
FOR NEAL EIGHTY YOU GRANT
PROGRAM. THANK YOU FOR THE
OPPORTUNITY TO SPEAK BEFORE YOU
TODAY ON THIS IMPORTANT TOPIC
OF- FINANCING EXCESS REDOING
UNITS ALREADY USED ASK FOR YOUR
SUPPORT AS WE LAUNCH OUR NEW
EIGHTY YOU GRANT PROGRAM. AS
MANY OF YOU KNOW. HFA IS THIS OR
OF THE HOUSE LENDER WITH US
QUITE RATING AND THIS THING
GOVERNANCE. WE ARE. A MULTI
THOUGHT LOANS- AND ALSO THIS
TIME THE LARGEST RELY OF DOWN US
FOR FIRST TIME HOME BUYERS IN
CALIFORNIA. AND THIS COMBINATION
OF EXPERIENCE IN HOME OWNERSHIP
AND DEVELOPMENT FINANCE MEANS
THAT COLLECTOR FACE PARTICULARLY
WELL POSITIONED. TO STAR IN THE
STATES. FIRST DIRECT I NEED YOU
- PROGRAM. SO TODAY I WILL
PROVIDE YOU- WITH TOUCH BASE
PERSPECTIVE ON THE EIGHTY YOU.
FINANCE LANDSCAPE FOLLOWED BY AN
UPDATE ON WHERE OUR PROGRAM A
NEW PROGRAM IS AND WHERE IT IS
GOING NEXT. IN ANALYZING THE
EIGHTY YEAR HIGH ESCAPE AS WE
WERE DESIGNING THE PROGRAM. FOR
MADE BARRIERS TODAY AND I THINK
YOU'RE GONNA SEE A LOT OF
OVERLAP WITH ONE MY- FELLOW
PANELISTS JUST DESCRIBED. THE
FIRST BATTERY IS THAT THE EIGHTY
YEAR LET MARKET ISN'T A MERE AS
A OF THIS FAMILY. LENDING
NUMBERS THERE ARE FAR
PARTICIPANTS I'M NINETY PRODUCTS
IN THIS SPACE- KENNISON IN MY
PREVIOUS FINALIST- ALLUDED TO
THERE ARE A VARIETY OF REASONS
FOR THIS- FOR INSTANCE SOME
TRADITIONAL MORTGAGE LENDERS ARE
RESISTANT TO TAKING ON. THE
CONSTRUCTION MONITORING AND
VERIFICATION PROCESS THAT IS
OFTEN REQUIRED IN EIGHTY YOU
CONSTRUCTION LOANS- ANOTHER
IMPORTANT REASON IS THE LACK OF
GOOD APPRAISALS APPARATUS DO NOT
YET HAVE A RELIABLE AND
CONSISTENT METHODOLOGY FOR
VALUING. AT U. S. THEY CONTINUE
TO RELY UPON. HARD TO FIND
COMPARABLES. THE SECOND MAIN
BARRIER THESE BORROWERS ACCESS
TO IT YOU STICK THIS IS
PARTICULARLY TRUE. FOR MIDDLE
AND MODERATE INCOME BORROWERS
HOLLAND FOR BORROWERS WITH
LIMITED HOME EQUITY. BOOK AND
NOT ACCESS A HOME EQUITY LOAN OR
HOME EQUITY LINE OF CREDIT. I
WENT TO THIS CHALLENGE AND AS
WAS MENTIONED PREVIOUSLY AS WELL
MOREOVER SKATING I USED EIGHTY
YOU FUTURE RENTAL INCOME TO
QUALIFY FOR A CONSTRUCTION
WORKER- ALONE ANIMATION ALONG OR
EVEN TO REFINANCE AFTERWARDS AND
THAT IS FOR FANNIE. MAE AND FHA
RULES. A THIRD BARRIER THE HYPE
COSTS THE CALIFORNIA IT IS
NUMBER FORTY CENTS TO SEE AN
EIGHTY YOU COSTING UPWARDS OF
THREE HUNDRED THOUSAND DOLLARS
TO BUILD. IF THE HOMEOWNER
INTENDS TO RENT A UNIT. RENTAL
INCOME NEEDS TO BE SUFFICIENT TO
COVER THE MORTGAGE PAYMENTS.
PROPERTY TAXES INSURANCE AND
MAINTENANCE AT A MINIMUM AND
WHILE CERTAIN AREAS CERTAINLY
COMMAND RENTS THAT ARE
SUFFICIENT TO JUSTIFY THESE HIGH
CONSTRUCTION COSTS COSTS.
HOMEOWNERS IN LOWER RENT AREAS
MAY STRUGGLE TO JUSTIFY THE COST. OF AN- ACCIDENT. ON THE FOURTH
OF RECENT. IS RISING INTEREST
RATES ARE SEVERAL OTHER LENDERS
AND WE WORK WITH AT COLLEGE OF
FATE I EXPECT NEW HOME
RENOVATION LOANS TO SLOW DOWN
SIGNIFICANTLY AS INTEREST RATES
ISE AND THIS IS BECAUSE THESE
PRODUCTS REQUIRE. HOMEOWNERS TO
REFINANCE OUT OF THEIR EXISTING
HISTORICALLY LOW RATE FIRST
MORTGAGE RIGHT. OFF. SO AS WE
DISCUSSED. OUR NEW LOOK AT
PROGRAM IT ISN'T FOR THE
COMMITTEE TO KEEP IN MIND THAT
SUSTAINABLE HOMEOWNERSHIP IS AT-
SHUTTLE BELLER- IN HELLO COLLEGE
IF YOU THINK ABOUT THIS WE WANT
TO MAKE SURE THAT- THROUGH SOUND
UNDERWRITING STANDARDS AND I'M
DOING ANOTHER GUARD RAILS.
PARTICIPATING HOMEOWNERS HAVE
THE FINANCIAL STABILITY AND THE
SUPPORT. TO AVOID THAT EIGHTY
PROTECTION ON. AND SO ALEX
PLAYED ALL THESE ISSUES INTO
CONSIDERATION WHEN DESIGNING OUR
BROAD STRATEGY TO TACKLE.
FINANCING ON OUR MULTI PRONGED
APPROACH HAS TO BE MADE
COMPONENTS THE FIRST COMPONENT
OF THE FIRST PROBLEM IS STANDING
UP THIS STATE EIGHTY YOU. RIGHT
THIS SECOND HE'S EXPANDING THE
BLOOD BANKERS AND THAT INCLUDES
THE TALKING TO LOCALITY CDFI.
AND OTHERS AND FINALLY THE THIRD
PROBLEM IS PARTNERING WITH
EIGHTY YOU MANUFACTURERS AND
TO CONSUMERS. SO TO IS DOING
WORK ON ALL THREE TRACKS SIMILAR
TENUOUSLY AND WE HAVE INVESTED
SIGNIFICANT TIME IN CONSTRUCTING
THE INFRASTRUCTURE TO SUPPORT
HIS FIRST PROBLEM THAT PROGRAM
THAT THE GRANT PROGRAM. TO
ENSURE THAT WE HAVE SUFFICIENT
LENDING CAPACITY. TO FULLY
SCALED UP AROUND. THE FIRST
PHASE IS BECOMING FULLY
OPERATIONAL AS WE SPEAK HI WHICH
WILL PAVE THE WAY FOR THE SECOND
AND THIRD ROUNDS OF THE STRATEGY
TO COME TO FRUITION LATER IN
TWENTY TWENTY TO. HANDLE SOME
TINY THREE. SO ARE ABOUT PROGRAM
IS. TO BE A STRONG INCENTIVE BUT
WITH AN IMPORTANT SOCIAL EQUITY
FOCUSED HANNITY'S DELIVER.
MILLION REQUEST SYSTEM SIMILAR
TO COLLEGE A FACE DOWN PAYMENT
ASSISTANCE PROGRAM WHICH IS A
PROVEN. I'M SEASON METHOD ALSO
SALEABLE FINANCING SO IN A
NUTSHELL. OUR NEW PROGRAM
DEPLOYED A HUNDRED MILLION
DOLLARS. TO PROVIDE HOMEOWNERS
WITH. THE FIVE THOUSAND. DOLLARS
TO HELP THEM BUILD AN EIGHTY AND
IT IS EXPECTED TO PRODUCE FOUR
THOUSAND. EIGHT USE OVER THE
NEXT FEW YEARS. OUR SOCIAL MEDIA
OBJECT OBJECTIVES ARE REFLECTED
HOW WE DESIGN THE ELIGIBILITY
CRITERIA. TO PARTICIPATE A
HOUSEHOLD HAS TO BE OVERCOME
WHICH IS A IT'S A 100% THERE
MIGHT. BE LOW AND MODERATE
INCOME AND HAVE LESS THAN 20% IN
HOME EQUITY. ALREADY LONG
MODERATE INCOME QUALIFIED CENTER
TRACK WHICH. ARE IS A
CONCENTRATED POVERTY. THESE WERE
THE REAL WHERE THEY WOULD ENSURE
THAT WILL FOLK ON THOSE WHO CAN
NOT SIMPLY GET. AS I'M BEFORE.
INSURING THE LONG TERM ECONOMIC
SUSTAINABILITY OF THIS THESE
PROJECTS IT IS AN ABSOLUTE
PRIORITY OF THAT PROGRAM. AND SO
COLLEGE IF THEY WILL DEPLOY
FINDS THE BEGINNING OF THE
CONSTRUCTION PROCESS TO HAVE.
THE MOST IMPACT HOMEOWNERS WHILE
ENSURING THAT THE EAGLES ARE
BUILT SO PAIRING THESE RATS WITH
WHEN A PATIENT FINANCING. IS KEY
TO MAKING SURE THAT THE BORROWER
IS SUCCESSFUL BECAUSE THE
LENDERS ARE ACTUALLY INVOLVED IN
EVERY STEP OF THE PROCESS. AND
MAKE SURE THAT THE WORK IS NOT.
INITIALLY ARE ANY OF MASS-
MAINLY DEPLOYED THROUGH
CULTIVATE EXISTING LENDER
NETWORK WHICH HAS A BROAD
GEOGRAPHIC PRESENCE THROUGHOUT
CALIFORNIA AND THIS IS HOW THE
PARENTAL WORK A HOMEOWNER FIRST
APPLIES FOR RENOVATION LOAN
THROUGH ACKNOWLEDGES. WITH
CENTER DOWN THE LEFT THEIR ROLES
THREE DEVELOPMENT COST INDICATES
PERMIT FEES DESIGN SITE PREP
WORK INTO THE LONG AND THEN SEND
THE APPLICATION OVER TOUCH A
THING THE CARD TO PAY APPROVED
WIRES THAT KATIE ROCK FUNDS
DIRECTLY TO THE CONSTRUCTION AS
WELL AND THAT ACTUALLY ALLOWS
THE VENDOR TO REDUCE. THE
PRINCIPAL AMOUNT DUE ON THE- HI
. AND THEN I HAVE THE BECAUSE
WITH ONE PAGE INFOGRAPHIC THAT
DESCRIBES SCHOOL. A JOKE OUT OF
IT HAS BEEN ALSO. MEETING WITH
MAE TO A- JULIE DATA YOU FINANCE
OPTIONS AND WAYS TO INCREASE.
AWARENESS FOR CUTS PAGE IN YOUR
PROGRAM AND ON THAT NOTE WE WERE
REALLY PROUD TO ADD THAT OUR
PARTNERSHIP AND CONSERVATION
PROGRAM WAS RECENTLY. RECOGNIZED
AT THE WHITE HOUSE CONFERENCE
CALL ON EIGHTY THIS WEEK. THE
FIRST GRANT WE FUNDED- WITH THIS
PROGRAM- ONCE COMBINED WITH A
FANNIE MAE HOMESTYLE RENOVATION
LOAN AND WE'RE USING THIS AS A
CASE STUDY. TO SHOWCASE HOW OUR
PROGRAM. AND FINALLY MAY WORK
TOGETHER. SO IN THE LAST MONTHS
COLLEGE IF THEY DATA BECAUSE YOU
ITS PROGRAM HAS BEEN- IT THE
LENDER ONBOARDING. WHICH IS
CRITICAL IN BUILDING THE
DELIVERY NETWORK FOR IT TO
DELIVER THIS ASSISTANCE. WE NOW
HAVE A CRITICAL MASS OF SIX
FULLY ONBOARDED LANDERS AND
INCLUDE BIG NAMES LIKE ALONE
PEOPLE GUILD. AND HOME RICH AND
THAT ALSO PROVIDES A REALLY
ROBUST GEOGRAPHIC BRANCH
COVERAGE WE'RE IN THE PROCESS OF
AWARDING AN ADDITIONAL EIGHT
LETTERS FOR A TOTAL OF UP TO
FORTY PARTICIPATING LENDERS
EXPECTED. IN THIS FIRST PHASE
TRY THIS VERY MOMENT IN TIME
WE'RE ALSO STARTING A FULL SCALE
MARKETING COMMUNICATIONS
PAID MICROTARGETINGDIGITALIZED
SO CAN SOCIAL MEDIA AND SHARON
COMPLICATION TOOL KITS WITH A
RANGE OF COMMUNITY PARTNERS. OUR
EXPECTATION IS THAT. HOMER
APPLICATION WILL START SCALING
UP SIGNIFICANTLY IN THE NEXT IN
THE COMING WEEKS AND MONTHS. AS
I EXPLAINED PREVIOUSLY COLLAGEN
FACE STRANGULATED ROACH THAT
ALSO SEEKS TO EXPAND THE LENDER. NETWORK AND BUILD PARTNERSHIPS
. JUST PART OF THIS PRONG OF THE
LONG TERMS. OKAY ALREADY MEETING
WITH ORIGINAL GOVERNMENT
AGENCIES OAKLAND VENUS VEHICLE
AND HOW DO YOU. IN THE- WILL PAY
PHASE AND OUR INTEREST.
INTERESTED IN. ARE YOU PRO
ARRIVED WITH THEIR PROBLEMS. AND
WE HAVE ALSO BEEN TALKING TO
SEVERAL CREDIT UNIONS. AS I
MENTIONED THERE IS ALSO A THIRD
PROMPTED THE STRATEGY OR WE'LL
GONNA BE COLLABORATING WITH
EIGHTY YOU MANUFACTURERS AND
BUILDERS AND BUILDING
PARTNERSHIPS HOW TO REACH TWO
WELL KNOWN AT MANUFACTURERS SUCH
AS PERPETUAL HOMES IS ALREADY
UNDER WAY. IN THE FUTURE WE ALSO
EXPECT TO PARTNER WITH SOME OF
THESE MANUFACTURERS LENDING
PARTNERS. TO CREATE A TRUE ONE
STOP SHOPPING EXPERIENCE SO.
THAT HOMEOWNERS CAN ACCESS ET
YOUR CONSTRUCTION AND FINANCING
HI AND CONSERVATION. IN ONE
SINGLE PLACE. SO WE HOPE THAT
THIS BROUGHT YOU AN OVERVIEW OF
OUR THOUGHTS ARE CALLING IF THEY
HAVE THE UNIT ALIGNS PLAZA AS I
DO SUMMER OF OUR- EIGHTY YOU
OVER EIGHTY YOU. GRANT PROGRAM
THANK AGAIN FOR THE UPPER TO
STEP TODAY. HI I'M FROM THE
MIDWEST IN IN EIGHTY YOU. WE ARE
A- TO ANSWER YOUR QUESTIONS
THANK YOU. THANK YOU SO FRIENDS
OF MARTI OF YOU FOR THE
PRESENTATION VERY INFORMATIVE.
AND NOW WE WILL GO TO OUR NEXT
PRESENTER. TRISH ELLINGSON THAT
SENIOR VICE PRESIDENT CHIEF
LENDING OFFICER FOR SAN MATTEO
CREDIT UNION. HI GOOD MORNING
EVERYONE- I AM REALLY HAPPY TO
BE HERE THIS MORNING ON THIS
BEAUTIFUL DAY- TO TALK WITH YOU
ABOUT EIGHTY FINANCING. I DO
HAVE A PRESENTATION- THAT I
BELIEVE- THERE WE GO HERE IT IS
GOT EVERYBODY SEE THAT. YEAH WE
CAN SEE A PERFECT OKAY GOOD
GOOD- I ALSO WANT TO THANK GOD
CHAIRMAN'S- GRAYSON AND WHISK-
AND ALSO THAT WEEKS AND ALSO THE
COMMITTEE TO FOR ALLOWING ME TO
SHARE. A LITTLE BIT ABOUT-
EIGHTY YOU FINANCING COMING FROM
THE PERSPECTIVE OF A PRODUCT
THAT WE ACTUALLY CREATED AT SAN
MATTEO CREDIT UNION. AND KIND OF
TALK THROUGH A LITTLE BIT ABOUT
SOME OF THE OTHER OPTIONS THAT
THE TWO PANELISTS ALSO AHEAD OF
ME SPOKE TO- WITH A LITTLE BIT
OF REDUNDANCY MAYBE BUT I THINK
IT'S REALLY IMPORTANT JUST TO
TALK THROUGH THAT- AND GIVE A
LITTLE. BIT OF BACKGROUND ON WHY
SOME OF THESE DIFFERENT PRODUCTS
WOULD WORK FOR AT SOME OF THE
BORROWERS AND NOT FOR ALL OF
THEM BECAUSE I THINK IT HELPS
US- YOU KNOW WE'RE TALKING ABOUT
IRAQ ACTUALLY- REALLY ALIGNED
SO. I THINK WE'LL LOVE GET
STARTED HERE WILL GO TO THE NEXT
SLIDE. THANK YOU I'M AT
FINANCING OPTIONS WE DID TALK
THROUGH A MINUTE BRIEFLY GO OVER
SOME CASH CASH OUT REFINANCES-
TALK ABOUT WHY A LOT OF PEOPLE
ARE NOT WANTING TO REFINANCE
AND- ONE OF THE- PANELISTS ALSO
SPOKE TO THAT. A BECAUSE OF THE
INTEREST RATES AND SO WE'LL TALK
THROUGH WHAT THAT LOOKS LIKE- I
WOULD LIKE TO HEAR A LOT ABOUT
SOME HOME EQUITY LINES OF
CREDIT. A FIXED RATE SECOND
MORTGAGES WHY SOMEONE WOULD
CHOOSE THAT MAYBE OVER A LINE OF
CREDIT. TO DO AN EIGHTY YOU-
PROJECT AND BUILD AND THEN ALSO.
I WANT TO FINISH UP WITH TALKING
ABOUT AS SAM A TEAR CREDIT
UNIONS AT U. CONSTRUCTION. HE
WALKED PRODUCT THAT WE- CREATED-
WITH WORKING WITH ONE OF OUR
MUNICIPALITIES- STARTED IN
TWENTY NINETEEN AND SO WE'RE
REALLY EXCITED ABOUT THE PRODUCT
AND WHAT IT CAN BRING TO. SOME
OF THE LOWER INCOME- YOU KNOW
BORROWERS THAT ALSO DON'T HAVE A
LOT OF EQUITY SO ALL. SHARE ALL
THAT WITH YOU TOO AS WE KEEP
GOING FORWARD HERE. BACKSIDE SO
OPTIONS THE FINANCE WE HAVE CASH
RIGHT THAT OFFERS LOTS OF
FLEXIBILITY TO BUILD BASED ON
YOU KNOW DEPENDING ON YOUR
LIQUID FUNDS- THE DIFFERENCE IN
THIS IS THE BARS WOULD PAY THE
CONTRACTOR DIRECTLY THEY COULD
HIRE A PROJECT MANAGER IF THEY
WANT TO ALSO IT'S NOT NECESSARY
OBVIOUSLY YOU HAVE CASH YOU CAN
DO WHAT YOU WANT BECAUSE CASH IS
KING- AND THERE'S NO LOAN
CLOSING COSTS ON THIS SO IT
SAVES THE PERSON OF BUILDING THE
EDIE YOU A LOT OF MONEY UP FRONT
VERSUS TRYING TO GET A LOAN SO.
CASH IS KING IN MANY WAYS BUT
THEN WE LOOK AT THE CASH OUT
REFINANCES AND THEY ARE THE
RESTRICTED 280% OF THE LOAN TO
VALUE- YOU CAN GET A FIXED OR
ADJUSTABLE RATE PRODUCTS WE HAVE
SOME OPTIONS THERE BARBARA GETS
INSTANT CASH THOUGH DIFFERENCE
IN THIS VERSE IS DOING LIKE A
HOME EQUITY LINE OF CREDIT THEY
START TO PAY BACK ON THAT- LOAN
AS SOON AS IT'S FUNDED AT
PERSONALLY- MANAGE THE COST OF
BUILDING THEIR OWN EATING YOU SO
THEY THEY AGAIN CAN THEY'LL HIRE
A CONTRACTOR THEY CAN ALSO HIRE
A PROJECT MANAGER. TO HELP
OVERSEE THAT BUT YOU KNOW I'VE
BEEN IN THE BUSINESS FOR ABOUT
THIRTY TWO YEARS AND I'VE DONE A
LOT OF CONSTRUCTION LOANS AND
FOR ANYBODY THAT'S NOT FAMILIAR
WITH IT IT'S NOT AN EASY
ENDEAVOR TO TAKE ON BECAUSE YOU
DON'T UNDERSTAND IT AND THERE'S
LOTS OF MOVING PARTS TOO
INCLUDING YOU KNOW THE SPECS ON
YOUR PROPERTY WHICH YOU CAN'T
CAN'T BUILD ON AND- ALL THE
COSTS THAT THEY'RE IN IN THAT GO
ALONG WITH IT SO FINDING A
PROJECT MANAGER ACTUALLY IS
REALLY HELPFUL AND SOMETHING
LIKE THIS ESPECIALLY IF YOU'VE
NEVER HAD AN OPPORTUNITY TO- DO
CONSTRUCTION LENDING. BECAUSE OF
THE MANY MOVING PARTS THAT ARE
THERE SO SOME PEOPLE DO OPT TO
DO THAT EVEN IF YOU'RE JUST
DOING CASH OR CASH OUT REFINANCE
AND I'LL TELL YOU A LITTLE BIT
LATER TOO WIDE FOR THAT ACTUALLY
IS REALLY GOOD AND HELPS THE BAR
WORDS BECAUSE IT'S- IT HELPS
PROTECT THEM ACTUALLY TO HAVE
SOMEBODY AS A PROJECT MANAGER
ALONG THE LINE I'M IN IN THE
CLOSING COSTS OF COURSE- CLOSING
BECAUSE AVERAGE ABOUT 1% OF THE
LOAN AMOUNT SO AGAIN IF YOU DO
CASH OUT REFINANCES THERE'S A
COST TO THAT PERSON IS ACTUALLY. USING CASH IF YOU HAVE A
LIQUID FUNDS AND- IF YOU YOU
KNOW YOU WERE. YOU'RE RIGHT
LOCKED SO YOUR RATES LOCKED ON A
CASH. REFINANCE TYPE OF A LOAN.
WHICH OFFERS PEOPLE A LOT OF
SECURITY SO IT DOESN'T HAVE THAT
MOVEMENT IN THERE. WHERE THEY'RE
WORRIED ABOUT THAT THAT RATE
GOING UP WHICH WOULD ALSO MAKE
THE PAYMENT GO UP TO. SO NOW WE
TALK ABOUT A HOME EQUITY LINE OF
CREDIT FOR ANYBODY WHO'S NOT
FAMILIAR WITH THEM. THEY WORK A
LOT LIKE A CREDIT CARD. THANK
YOU YOU GET A CERTAIN AMOUNT
THAT YOU ARE GIVEN FOR YOUR LOAN
AND WHATEVER YOU DRAW ON THAT
THAT'S WHEN YOU START TO PAY
BACK ON IT. SO AGAIN WE DID
SPEAK A LITTLE BIT ADD TO THIS
WITH THE TWO OTHER PANELISTS
THAT IT ONLY GOES TO AN 80% LOAN
TO VALUE. SO THAT DEFINITELY IS
A LOOK AT RESTRICTING FOR.
BORROWERS THAT MIGHT NEED MORE
EQUITY IN AND- WE'LL TALK ABOUT
THAT A LITTLE BIT YOU'RE TO.
INTEREST ONLY PAYMENTS DURING
THE DRAW PERIOD TYPICALLY YOUR
HOME EQUITY LINES OF CREDIT.
THEY HAVE A DROP. OF ANYWHERE
BETWEEN TEN AND FIFTEEN YEARS.
AND THEN AFTER THAT IT BECOMES A
FULLY AMORTIZED LOAN FOR THE
REMAINDER OF THE TERM. SO BUT
FOR THE BEGINNING PIECE OF IT
YOU ONLY HAVE TO PAY INTEREST
ONLY DURING THAT DROP PERIOD AND
YOU CAN PAY DOWN PRINCIPAL
ANYTIME YOU WANT TO SO THERE'S
DEFINITELY SOME FLEXIBILITY
THERE. IT ALSO MAKES FOR LOWER
PAYMENTS ON AN INTEREST ONLY
PERIOD. THAT PAYMENT PERIOD-
PAYMENTS ARE BASED AGAIN ONLY
AGAINST THE DRAWN AMOUNT SO
THAT'S SOMETHING TO KEEP INTO
CONSIDERATION WHEN. A PERSON IS
TRYING TO DO A HOME EQUITY. LINE
OF CREDIT TO BUILD. A AN EIGHTY
YOU- BASED ON SOME OF THE OTHER
TOPICS THAT WERE ROUGHT UP
EARLIER. WHICH COULD BE THAT IT
MAY NOT. AND IT MAY NOT BECOME.
IN TWELVE MONTHS AND IF YOU HAVE
A SHORTER TERM LOAN THAT MIGHT
NOT BE SOMETHING. THAT WOULD
WORK IN CASE THAT THE
CONSTRUCTION OF THE UNIT GOES
LONGER. IT IS AN ADJUSTABLE RATE
SO THERE'S ANOTHER PART OF THIS
LONG THAT. SOME PEOPLE AREN'T
COMFORTABLE WITH BECAUSE THE
RATES CAN MOVE ON THEM IT'S NOT
A FIXED RATE. ALONE ITHAS A
TWENTY FIVE YEAR REPAYMENT TERM
THE MAJORITY OF THEM DO WHETHER
THEY HAVE A TEN YEAR DROP OR A
FIFTEEN YEAR DRAWN. AND THE
BORROWER MANAGE THE PAYMENT
MANAGES THE PAYMENTS TO THE
CONTRACTORS ON THESE TYPES OF
LOANS. SO ONE OF THE DOWNSIDES
FOR THAT WOULD BE THAT IF THEY
ARE NOT FAMILIAR WITH.
INSTRUCTION OR HOW THE
CONSTRUCTION PART OF IT WORKS.
UP BASED ON WHAT THE CONTRACTOR
IS SAYING IS COMPLETED ON THEIR
PROPERTY- IT'S REALLY ANOTHER
OPTION TO FOR THEM TO DO A
PROJECT MANAGER WHO IS SEPARATE
FROM. THE CONTRACTOR. THAT
ACTUALLY YOU KNOW PROTECTS HOW
THE DRAWS ARE REQUESTED. BASED
ON THE ACTUAL WORK THAT'S FINE.
SO THAT'S THAT'S HOW A HOME
EQUITY LINE OF CREDIT WORKS. ON
THE FIXED RATE SECOND MORTGAGES.
YOU KNOW YOU HAVE BETWEEN A FIVE
TEN AND FIFTEEN YEAR TERM THAT
YOU CAN CHOOSE. IT'S A SHORTER
TERM LOANS YOU'RE GONNA HAVE
HIGHER PAYMENTS SO THAT'S ALSO
THE DOWNSIDE TO THAT BECAUSE
IT'S NOT AS EASY TO QUALIFY FOR
THESE LOANS. ARE BECAUSE THE
PAYMENTS ARE HIGHER SO YOU HAVE
TO LOOK AT WHAT THE PERSON'S
DEBT TO INCOME RATIO IS AND- AND
THIS MAY OR MAY NOT WORK FOR
THEM. FIXED RATE SECOND
MORTGAGES TYPICALLY HAVE- A
LOWER RATE TWO BUT BECAUSE THE
TERM IS LONGER AGAIN THAT THE
QUALIFYING IS A LITTLE HARDER-
AND THESE ALSO GO. UP TO AN 80%
LOAN TO VALUE ONLY. THANK THE
PAYMENTS BE. RIGHT WHEN THE LOAN
FUNDS SO IT'S A LITTLE BIT
DIFFERENT THAN A HOME EQUITY
LINE OF CREDIT WHERE YOU'RE ONLY
EIGHTEEN. AS THE LOAN. PROCEEDS
ARE DRAWN. BUT WHEN YOU ACTUALLY
DO A FIXED RATE SECOND YOU GET
THE MONEY RIGHT AWAY SO YOU PAY
BACK ON IT STARTING FROM THE DAY
THAT IT FINDS. A BORROWER WOULD
ALSO MANAGE THE PAYMENTS TO THE
CONTRACTORS ON THIS TYPE OF A
LOAN. AT THE END OR HIRE A
PROJECT MANAGER TO HELP THEM
ALONG THE LINES TO. SO NOW I
WANT TO TALK A LITTLE BIT ABOUT.
OUR HISTORY WITH. THIS PRODUCT
THAT WE CREATED IT'S CALLED V.
ET YOU. ARE KEY LOCK
CONSTRUCTION LOAN AND WE STARTED
ACTUALLY WE MET WITH THE- WITH
CEMETERY COUNTY. OF HOUSING IN
MARCH OF TWENTY NINETEEN. AND
THEY'VE REALLY BROUGHT US TO THE
TABLE TO SAY THAT THEY WERE
TRYING TO FIGURE OUT HOW THEY
CAN HELP ASSISTANCE PEOPLE
WITHIN THE COUNTY. TO BUILD AN
EIGHTY YOU WHEN THEY'RE LOOKING
FOR SOMEONE TO HELP THEM WITH
THE FINANCING OF IT AND- AND WE
HAD SORT OF TALKED A LITTLE BIT
ABOUT MAYBE DOING SOME TYPE OF
EIGHTY YOU FINANCING BUT HADN'T
REALLY. COME UP WITH A PRODUCT
OR PROGRAM YET SO WE MET WITH
THEM IN TWENTY NINETEEN AND THEN
WE WENT BACK TO THE OFFICE AND
SAT DOWN AND REALLY. PUT PEN TO
PAPER TO TRY AND FIGURE OUT HOW
COULD WE DO THIS SO THAT. WE
WOULD BE ABLE TO HELP NOT JUST
THOSE THAT WOULD QUALIFY WITH
THE HIGHER RATES. AND THE HIGH
VALUES BUT- I'M SORRY HIGHER
INCOME AND HIGH VALUES BUT SOME
OF THOSE ALSO THAT WERE IN OUR
BACKYARD THAT DEFINITELY DIDN'T
FALL INTO EITHER OF THOSE
CATEGORIES SO WE WANTED TO- AS A
CREDIT UNION AS WE ALWAYS DO
HELP OUR COMMUNITY AND- WE CAME
UP WITH A PRETTY ROBUST PRODUCT
THAT I THINK- IS. IT'S HELPING
OUT PEOPLE TO ACTUALLY LOOK AT
THE OPTION NOW THAT THEY MIGHT
BE ABLE TO AFFORD THIS AND I'LL
TALK ABOUT THAT IN A MINUTE BUT-
WE ALSO WORK WITH HELLO HOUSING
WHICH IS A NONPROFIT THAT
SUPPORTS HOMEOWNERS IT'S A- IT'S
A ONE STOP SHOP AND IT HELPS
WITH. ALL PHASES OF BUILDING AN
EIGHTY YOU AND INCLUDING THE
DESIGN- THE COSTS THEY ACTUALLY
REFER BUILDERS. AND THEY ARE THE
PROJECT MANAGERS SO THEY WALK
THE BAR WORSE THROUGH EVERYTHING
FROM THE INITIAL PLANS TO
PERMITTING. WHICH IS SUCH AN
IMPORTANT PIECE OF THIS FOR-
PEOPLE THAT AREN'T FAMILIAR WITH
CONSTRUCTION LENDING AND PATENT
CONSTRUCTION BUILDING AND HOW
TO. HOW TO ACTUALLY MANAGE THE
WHOLE PROJECT SO. THEY'VE BEEN A
REALLY GREAT SOURCE WITH US THEY
ALSO. CREATED A PILOT. WHERE
THEY BELIEVE THEIR- SERVICES TO
SIXTEEN PEOPLE. IN A LOTTERY
WERE ABLE TO- WINS THE LOTTO FOR
FURTHER SIR. WHICH RUN. TWENTY
DOLLARS. FOR WHAT THEY ACTUALLY
DO SO THEY DID THAT FOR FREE.
I'M IN A PILOT PHASE THAT THEY
WENT THROUGH AND NOW THEY HAVE
EXTENDED IN THERE NOT ONLY IN
SAN MATEO COUNTY THERE UP IN
ALAMEDA AND- A FEW OTHER PLACES
TOO I THINK IN SAN FRANCISCO SO.
THAT WAS REALLY HELPFUL AND
BENEFICIAL FOR. THE
COLLABORATION TO WORK WITH THEM
TO TALK THROUGH. WHAT OTHER
OPTIONS CAN WE DO TO OFFER TO
OUR BORROWERS THAT ARE TRYING TO
DO THIS BUT- BUT THEY DON'T KNOW
HOW AND SO THAT'S ANOTHER.
OPTION AN OPPORTUNITY THAT WAS.
PRESENTED IN AND THEY'RE DOING A
GREAT JOB- WE DID END UP
LAUNCHING THE PRODUCT IN TWENTY
TWENTY. AS YOU CAN SEE WE'VE
ONLY FUNDED THREE HE LARK
CONSTRUCTION LOANS WHICH- WHICH
DOESN'T SOUND LIKE A LOT BUT
WE'VE HAD A LOT OF- PEOPLE
APPLYING FOR THESE LOANS THAT
DIDN'T. NEED THIS TYPE OF A
LOAN. AND WHAT WE DO IS WE LOOK
AT THE- THE- THE APPLICATION AND
THE APPLICANT THEMSELVES TO SEE
IF THIS IS SOMETHING THAT WOULD
BENEFIT THEM. OR IF ANOTHER
OPTION OPPORTUNITY WOULD BE
BETTER FOR THEM AND SO WHATEVER.
WHATEVER TYPE OF LOAN FITS THEIR
NEEDS FOR THEIR FAMILY. IS WHAT
WE'RE ACTUALLY TRYING TO PUT
PEOPLE INTO AND- THIS IS JUST AN
OPTION THAT WILL HELP THOSE THAT
ARE LOOKING FOR SOME ADDITIONAL
HELP TO ACTUALLY QUALIFYING. AND
WE'VE CONVERTED BAR WAS TO MANY
OTHER DIFFERENT PRODUCTS WE NOT
NECESSARILY THE CASH ONES
BECAUSE I DON'T HAVE THE CASH TO
DO THIS BUT WE'VE DEFINITELY
DONE SOME CASH OUT REFINANCES.
WE'VE DONE HOME EQUITY LINES OF
CREDIT. AND ALSO- A COUPLE OF
SIX SECONDS ACTUALLY IN OUR
NEIGHBORHOOD- WE OFFER- THE
OTHER PART OF IT THAT WE LEARN
TO WAS. IT THE PIECE OF THIS
THAT'S REALLY IMPORTANT IS TO
THE CREDIT UNION AND BANKS IN
GENERAL IS. EDUCATING FARMERS
AND YOU KNOW WE'RE OFFERING
COMES WITH SOME EIGHTY FINANCING
VIRTUAL SEMINARS ARE GONNA START
THOSE THIS YEAR. YEAH THERE WAS
A LITTLE BIT OF A SLOW DOWN IN
THE PROCESS FOR US TO GO THROUGH
BECAUSE OF THE PANDEMIC. YOU
KNOW THERE'S A LOT OF PEOPLE
WORKING AT HOME LIKE PROBABLY
SOME OF YOU AND MYSELF THAT ARE
LOOKING AT THEIR KITCHEN AND THE
BATHROOMS NEEDING TO BE
REMODELED. AND SO THE
CONTRACTORS ARE REALLY STRETCHED
RIGHT NOW THERE'S NOT AS MANY
OUT THERE AND THEY'RE NOT AS
AVAILABLE. AND YOU KNOW
SOMETIMES THEY CAN'T EVEN COME
OUT TO START LOOKING AT BUILDING
YOUR PROPERTY FOR THREE TO SIX
MONTHS AND SO. THAT'S ACTUALLY
SLOW THIS DOWN JUST A LITTLE BIT
ON ON THAT LEVEL TOO SO- WE'LL
GO TO THE NEXT SLIDE AND WE'LL
TALK A LITTLE ABOUT THE
CONSTRUCTION HE LIKE IT'S- IT'S
A TEMPORARY SHORT TERM LOAN. I
IS DESIGNED TO HELP THE
BORROWERS FINANCE IN EIGHTY YOU
ON THEIR OWNER OCCUPIED PROPERTY
ONLY- WE ACTUALLY ALLOW YOU TO
USE YOUR YOUR FUTURE VALUE AND
FUTURE RENTAL INCOME AND I'LL
SHARE THAT WITH YOU IN A MINUTE
YOU'RE ABOUT HOW THAT WORKS WITH
OUR GUIDELINES ARE- AND IT'S
REALLY FOR. YOU TO YOU. THE
PURPOSE OF REALLY PRINT
PRODUCING INCOME ON YOUR HOME OR
TO PROVIDE A REDUCED AROUND
THREE. AM YOU KNOW HOME ON THEIR
PROPERTY A LOT OF EASY TO USE
OR- LIKE STUDENTS COMING BACK
HOME- THAT ARE LIVING HOME NOW
BECAUSE THEY CAN'T AFFORD TO
LIVE IN THE BAY AREA OR YOU KNOW
WE'RE SEEN OTHERS THAT ARE
ASKING. YOU KNOW THEY HAVE
SOMEBODY THAT THAT THEY NEED TO
LIVE ON THEIR PROPERTY TO HELP
THEM. YOU KNOW WHAT THEIR DAY TO
DAY FUNCTIONS AND WE'VE SEEN
OTHERS THAT I. HAVE HAD THEM.
BUILT THAT ARE HAVING PEOPLE
THAT. WERE HELPING THEM. LIVING
IN THE EIGHTY YOU NOW SWITCH
OVER WHEN THE. HOMEOWNER IS YOU
KNOW. AS HIS AGE OUT OF THE
HOME. AND THEY NEED A SMALLER
PLACE LIVE BUT THEY STILL NEED
SOMEBODY. AND THEY DON'T WANT TO
GO INTO A- CONVALESCENT HOME SO
WE'VE SEEN THAT HAPPEN TO WHERE
THE- THE HEALTH CARE PERSON. WAS
LIVING IN THE EIGHTY WAS
ACTUALLY MOVED INTO THE- MAIN
HOME AND THE HOMEOWNERS HAVE
MOVED INTO THE EIGHTY YOU SO.
THEY CAN STILL STAY ON THE
PROPERTY SO THAT'S ALSO ANOTHER
BENEFIT OF THIS TO PRESS THAT
WERE SEEN THAT WE'RE LEARNING
MORE ABOUT IT EVERY DAY
ACTUALLY- NEXT LINE. SO THE
CONSTRUCTION HE LOCK SO WHAT IS
IT IT'S A TWELVE MONTH LINE OF
CREDIT. IT'S IN SECOND LIEN
POSITION IT HAS AN INTEREST ONLY
PAYMENTS. IT IS A VARIABLE RATE.
AND ITS ADVANCE MONTHLY SO WE DO
THE DRAWS ON THIS LOAN. EACH
MONTH AND- WE SET IT UP AS A
TWELVE MONTH LINE OF CREDIT THE
REASON WHY WE DID THE- THE TERM
ON THIS IS BECAUSE WE WANTED TO
MAKE SURE THAT THERE WAS. A AN
END PERIOD. FOR THE R. WORD TO
KNOW THAT ONCE THIS PHONE ENDS
ONCE THE LOAN ENDS IN TWELVE
MONTHS THE CONSTRUCTION HAS TO
BE COMPLETED. AND THAT'S REALLY
THE END FOR WHAT WE'RE TRYING TO
GET TO FOR THEM TO COMPLETED IN
A TIMELY MANNER AND HAVE THE
pPROPERTY TYPE AGAIN IT'S A-
EXISTING SINGLE FAMILY HOME
IT'S- OWNER UP. OCCUPIED AS THE
PRIMARY RESIDENCE. OF THE DRAWS
ARE PAID OUT MONTHLY WITH A 10%
RETAINED EDGE- THERE'S- THERE
SUBMITTED BY THE PROJECT
MANAGERS SO THAT'S ONE OF THE
THINGS THAT WE ACTUALLY DO
REQUIRE AND I'LL TALK ABOUT
THAT- INTERNET LATER SLIDE- AND
THEN WE ALSO HAVE A TEN PERCENT.
RETAINED EDGE THAT'S RELEASED ON
THE LAST DRAW REQUESTS SO. WE
NEED TO SEE A- CERTIFICATE OF
COMPLETION FROM THE CITY AND
THEN ONCE WE RECEIVE THAT BUT
THE LAST STRAW THEN WE PAY OUT
THE CONTRACTORS THAT THE
REMAINING. MONEY THAT'S OWED TO
THEM ALSO. GOOD IN THE NEXT
FIVE. SO SOME OF THIS. ON THIS
LOAN WHICH IS EXCITING FOR US IS
THAT THE BORROWER CAN BORROW UP
290% OF THE AS COMPLETED VALUE
SO WE ACTUALLY OFFER THAT FUTURE
VALUE WHICH- THE PANELISTS
EARLIER WERE TALKING ABOUT- AND
WE CAN ALSO USE THE FUTURE
POTENTIAL THREATS AND SO WHAT WE
DO IS WE HAVE THE APPRAISER- GO
OUT. AND DO AN ASK COMPLETED
VALUE INCLUDING THE EIGHTY YOU.
AND THEN THEY ALSO DO A RENTAL
SURVEY ON TOP OF THAT FOR
WHATEVER TYPES OF- COMPATIBLE SO
THEY CAN GET IN THE AREA. THAT
ALSO INCLUDE AN EIGHTY YOU FOR
WHATEVER THE RATS ARE ON THERE.
AND WE ALLOW THEM TO USE THAT TO
QUALIFY. OUR MAXIMUM LOAN AMOUNT
IS FOUR HUNDRED THOUSAND DOLLARS
AND- YOU KNOW I'VE SEEN THESE.
THESE MODULAR HOMES THAT WE
TALKED ABOUT TO THAT THEY CAN
BUILD AND YOU KNOW THEY GO UP TO
START SOME OF MY TWO HUNDRED
FIFTY AND THEY GO UP TO I'VE
SEEN EIGHT HUNDRED THOUSAND
ACTUALLY- BUT YOU KNOW FORTY
THOUSAND IS THE MAXIMUM THAT
WE'RE COMFORTABLE DOING RIGHT
NOW. AND WAIT THE MAJORITY OF
THE ONES THAT WE'VE DONE I'VE
BEEN ALL UNDER THAT LIKE AROUND
THREE TWENTY IS KIND OF WHAT OUR
AVERAGE- COST HAS BEEN. THE
SCENE. OF THE LAWN CAN ACTUALLY
INCLUDE THE FEES FOR THE PLANS.
AND THE PERMITS THE TITLE
UPDATES- THE APPRAISAL. AND THEN
WE ALSO OFFER- IN THERE YOU CAN
PUT SIX MONTHS OF YOUR PAYMENTS
ON YOUR INTEREST. FOR THE LOAN
YOU CAN BUILD THAT INTO THE LOAN
SO WILL ACTUALLY PAY YOUR-
MONTHLY PAYMENT FOR THE FIRST
SIX MONTHS OUT OF YOUR LOAN
PROCEEDS. OUR LOAN REQUIREMENTS-
WE HAVE TO HAVE A FULL OF
MORTGAGE LOAN APPLICATIONS JUST
LIKE APPLYING FOR ANY OTHER-
HOME LOAN- WE UTILIZE A PROJECT
MANAGER- WE- WE DON'T USE THE
LIES WE REQUIRED THAT THE BAR
WOULD UTILIZE. A PROJECT MANAGER
THAT IS NOT AN EMPLOYEE OF THE
CONTRACTOR. AND THE REASON FOR
THAT IS THERE YOU KNOW A THIRD
PARTY ESSENTIALLY AND THEY ARE
THERE TO PROTECT THE- BAR WORK
TO MAKE SURE THAT. THE
CONTRACTOR TO STAYS ON TIME AND
THEY COMPLETE YOU KNOW THE
PHASES THAT THERE SAID THEY SAID
THEY WOULD DURING THAT. SAYS
SCHEDULE THAT WE GET AT THE VERY
BEGINNING OF THE PROCESS OF THE
LOAN APPLICATION. SO THEY KEEP
THEM ON TRACK TO CLOSE WITHIN
TWELVE MONTHS. AND THEY ALSO
HAVE TO CONFIRM THE CONSTRUCTION
PLAN- IN THAT IT CAN BE
COMPLETED WITHIN THE BUDGET AND
THE SCHEDULE SO. THAT'S WHY
WE'VE RECORDED THAT- IN OUR-
PROJECT FOR THE IN OUR IN OUR
CONSTRUCTION SHE LOCKED WE ARE
REQUIRING A PROJECT MANAGER ON
ANY OF THE OTHER ONES THAT WE DO
WE DON'T REQUIRE THAT WE JUST
TALK THROUGH THAT WITH THE
MEMBER TO EDUCATE THEM THAT
THERE'S ANOTHER OPTION THAT THEY
MIGHT WANT TO LOOK AT. IF
THEY'RE DOING A CASH CASH OUT
REFINANCE HE BARKER A FIX SECOND
MORTGAGE- BECAUSE IT'S NOT
REQUIRED BUT THIS WE FEEL LIKE
PROTECTS OUR MEMBERS BY DOING
THAT WITH THIS ONE- THE BORROWER
COMPLETES THE HE LOCK BUILD LOAN
AGREEMENT. WHERE THEY ACTUALLY
ARE SIGNING IN THAT- THEY ARE.
GREEN TO HIRE A PROJECT MANAGER
USE A CONTRACTOR THAT HAS A
LICENSE WITH THE STATE- AND-
THAT THEY ARE VERIFYING THE COST
BASED ANALYSIS THAT THEY AGREE
TO THAT. THAT'S THE COST OF
THEIR- PROJECT TO BE BUILT. BUT
WE DO REQUIRE PRE CONSTRUCTION
AS COMPLETED APPRAISAL SO WE
DON'T WANT TO GO IN AND DO THIS
LOAN FOR ANYBODY THAT'S ALREADY
STARTED CONSTRUCTION BECAUSE
THERE'S HEALTH AND SAFETY
REASONS BEHIND THAT AND SO WE
CAN'T LOAN TO ANONE UNLESS THEY
ACTUALLY- HAVE THE PRE
CONSTRUCTION- AS- COMPLETED
APPRAISAL DONE. AND THEN WE
REQUIRE A FINAL- RECERTIFICATION
OF THAT APPRAISAL SO AFTER
TWELVE MONTHS WHETHER THEY
REFINANCE INTO A FIXED SECOND
MORTGAGE IF THEY'RE GOING TO
REFINANCE INTO A NEW FIRST
MORTGAGE- WE WOULD JUST NEED A
RESTART OF THE APPRAISAL SO THEY
DON'T HAVE TO GO BACK AND PAY
FOR A FULL APPRAISAL. YEAH I
NEXT I. AM GUIDELINES SORGE.
LOAN VALUE GOES UP 290% AS I
SAID. AND 75% OF THE POTENTIAL
RENTS USED TO QUALIFY OR- WE
ALLOW FOR THE FOR THE BORROWERS
SO. THOSE TWO ITEMS ALONE- HAVE
HELPED THE THREE THAT WE HAVE
BEEN ABLE TO DO. THAT THEY HAD
TAKEN OUT A HOME EQUITY LINE OF.
CREDIT CONSTRUCTION LOAN BECAUSE
OF THE FACT THAT THEY DIDN'T
HAVE AS MUCH- EQUITY IN THE
PROPERTY AND THEY NEEDED THAT
SO. THAT THE DIFFERENCE FOR WHAT
WE'RE LOOKING OUT ON THESE IS
THAT ARE THE FIRST MORTGAGE HAS
TO BE KEPT AT EIGHTY PERCENT. OF
THE VALUE OF THE HOME AND THEN
THE SECOND MORTGAGE COULD BE THE
ADDITIONAL 10% SO WE GO UP 290%
OF THE FUTURE VALUE BUT THE
FIRST MORTGAGE STILL HAS TO STAY
AT EIGHTY PERCENT. OUR MAXIMUM
DEBT TO INCOME RATIO WAS FORTY
EIGHT PERCENT. ARE ON OUR
MEDICAL MINIMUM FIGHT GO SCORE
ACTUALLY SIX EIGHTY SO I WOULD
GO A LITTLE BIT LOWER THAN WHAT
AS SOME OF THE OTHER PANELISTS
WERE. WERE SATING THAT- WHAT
WAS ON THERE SO- BECAUSE WE FEEL
LIKE IT'S DEFINITELY. ARE AT 40%
WITH A SIX EIGHTY CREDIT SCORE
YOU KNOW WERE ABLE TO HELP A LOT
OF PEOPLE THAT ARE IN THAT- THAT
THAT MEDIUM RANGE RIGHT THERE.
IN OUR RATE IS ACTUALLY THE BUT
THE WALL STREET JOURNAL PRIME
INDEX MINUS ONE AND A QUARTER.
SO RIGHT NOW TODAY OUR FLOORS AT
2% WHICH IS- OUR CURRENT THE
PRIME RATE IS AT THREE POINT TWO
FIVE. AND SO WE'RE DOWN AT THE
FLOOR AT TWO SO. WE FEEL THAT
IT'S A PRETTY. AGGRESSIVE RATE
FOR OUR MEMBERS- IN ITS INTEREST
ONLY PAYMENTS TO DURING THIS
TIME PERIOD THAT THEY HAVE THE
LOAN. AND THEY CAN PAY PRINCIPAL
DOWN ANYTIME THEY WANT SO IT
THERE'S NO WAY THAT PREPAYMENT
PENALTY OR ANYTHING ALONG THOSE
LINES IF THEY WANT TO DO THAT
DURING THE CONSTRUCTION PHASE
THEY CAN'T. TO FOR SURE.
ALTHOUGH THE NEXT LINE. SO THESE
ARE SOME OF THE STEPS THAT WE-
THAT WE SHARED WITH THE
POTENTIAL BORROWERS LIKE EXPLORE
YOUR FINANCING OPTIONS LIKE SEE
WHAT ELSE IS OUT THERE THAT
MIGHT BE MORE BENEFICIAL TO YOU.
VERSUS YOU DOING A CASH OUT
REFINANCE BECAUSE SO MANY PEOPLE
HAVE REFINANCED OVER THE LAST
TWO TO THREE YEARS AND I'VE
GOTTEN THOSE GREAT LOW RATES ON
THEIR FIXED MORTGAGES AND- THEY
DON'T WANT TO TOUCH THOSE. SO
WHAT'S ANOTHER OPTION FOR THEM
TO BE ABLE TO DO THAT WHERE THEY
COULD BUILD. AND- ALSO STILL
HAVE A DECENT. MORTGAGE PAYMENT
THAT THEY WOULD BE ABLE TO.
BENEFIT FROM SOMEBODY RENTING SO
THEY WOULD STILL BE ABLE TO PAY
THEIR TAXES AND INSURANCE AND
THAT THE PRINCIPAL ON THE LOANS.
AT CONTACT YOUR CITY PLANNING
DEPARTMENT. YOU'LL FIND OUT WHAT
THE PERMITTING IS HOW HOW LONG
DOES IT TAKE YOU TO GET PERMITS
TO GO THROUGH. LOOK AT WHAT THE
SIZE EIGHTY YOU IS THAT YOU CAN
BUILD ON YOUR PROPERTY AND- AND
CAN YOU DO A MODULAR HOME NOT
EVERYBODY CAN DO THAT BECAUSE
THEY MIGHT NOT HAVE THE SPACE TO
GET. THE MODULAR PIECES IN AND
THEY'D HAVE TO USE A CRANE TO GO
OVER THE BACKYARDS WE'VE SEEN
SOME OF THAT AND PALO ALTO
BECAUSE THE- THE PROPERTY LINES
ARE SO CLOSE. I DISCUSS
RESOURCES AVAILABLE TO HELP
WITH. YOUR EYES I SPOKE EARLIER
ABOUT- USING- THAT WE WORKED
WITH HELLO HOUSING AND THEY
DESIGNED THEY TOOK THE THEY TELL
YOU WHAT THE COSTS ARE THEY HELP
YOU WITH THE PERMITS. THEY
DEFINITELY MANAGE THE PROJECT.
AND THEN IN ADDITION TO THAT
THEY ALSO OFFER LANDLORD
TRAINING SO. THERE'S PEOPLE THAT
HAVE NEVER YOU KNOW HAD OWNED A
RENTAL PROPERTY BEFORE AND THEY
DON'T KNOW WHAT IT MEANS TO HAVE
A TENANT HOW DO YOU SEARCH FOR
IT TENANTS HOW DO YOU FIND
QUALIFIED TENANTS. YOU KNOW
ALONG THOSE LINES SO THAT'S-
WHAT SOME OF THOSE OTHER
RESOURCES CAN HELP WITH THAT-
EFFORT ALSO. EPA CAN'T DO EAST
PALO ALTO CAN'T IT WAS ANOTHER-
GROUP THAT'S DOING THE SAME
THING AS HELLO HOUSING AND IT'S
DONE IN EAST PALO ALTO. AND
THEY'RE WORKING NOT ONLY WITH-
YOU KNOW WE DO THIS ON. A
REGULAR EATING YOU WE DO THIS ON
A JUNIOR IN YOU. BUT THEY'RE
ALSO WORKING WITH THE THOSE THAT
HAVE HAPPENED. PROPERTIES THAT
ARE ALREADY BUILT- THAT HAVE- IN
EIGHTY WHEN THERE THAT MAY NOT
BE. UP TO CODE AND UP TO STAY.
AND SO THEY'RE TRYING TO HELP
WITH- WORK WITH THEM ALL. SO
THERE THEY'RE MANAGING THOSE
PROJECTS PROJECTS ALSO SO
THERE'S OTHER RESOURCES OUT
THERE TO HELP OUR BORROWERS. AND
THEN AGAIN IDENTIFY THE TYPE OF
UNIT AS THEY SAID YOU WANTED
YOUR MODULAR A STICK BUILT. A
MODULAR DEFINITELY CAN GO UP A
LOT QUICKER. AND THEY'RE YOU
KNOW BUILT TO STANDARD YOU DON'T
HAVE AS IT DOESN'T TAKE AS LONG
SO THEY CAN START TO ACTUALLY.
EARN THEIR THEIR RENTAL INCOME
FASTER- PUTTING UP A MODULAR
UNIT AND- THERE ARE SO MANY OF
THESE NEW MODULAR. UNIT BUILDERS
THAT ARE OUT IN THE BAY AREA
THAT WE'RE WE'RE WE'RE TALKING
TO ALL THE TIME ABOUT DIFFERENT
OPTIONS AND OPPORTUNITIES TO BE
ABLE TO HELP THEM TO. AND THEN
MEET WITH CONTRACTORS TO GET
THEIR VOTES THAT'S THE OTHER
THING WE WANT TO SHARE WITH THEM
THAT. IT'S NOT JUST THE ONE
PERSON THAT YOU CAN TALK TO
THERE'S DIFFERENT CONTRACTORS
THAT ARE OUT THERE AND- YOU KNOW
RESOURCES HELP. WITH FINDING OUT
GOOD CONTRACTORS ALSO BECAUSE
THEY ARE DEFINITELY TIED IN WITH
THOSE. WITH THE RESOURCES- LIKE
HELLO HOUSING THEY KNOW A LOT OF
THE CONTRACTORS AND THEIR
GENERAL CONTRACTORS THEMSELVES
ALSO. SO THAT'S THEM THAT'S PART
OF THE STEPS THAT WE SHARE WITH
EVERYBODY AND THEN I THINK. OUR
LAST FLIGHT YES SO. YOU KNOW I
JUST WANT TO THANK YOU FOR
HAVING ME I'M I'M SUPER EXCITED
ABOUT THIS. OPPORTUNITY FOR JUST
EIGHTY YEAR GROWTH ALL OVER
CALIFORNIA AND I KNOW THAT. THAT
WHERE WE'RE LOCATED IN THE BAY
AREA IT'S DEFINITELY WARRANTS
DAMAGING- COUNTY. YEAH THERE'S
NOT A LOT OF. HOUSING PROSPECTS
FOR PEOPLE THAT ARE NOT YOU KNOW
HIGH COST THAT. THAT IN OUR
BACKYARD WE HAVE THE OPPORTUNITY
TO HELP SO. REALLY REALLY
EXCITED ABOUT THE OPPORTUNITY
AND JUST HAVING THE CHANCE TO
HAVE THIS CONVERSATION. WITH
EVERYONE TODAY SO THANKS A LOT.
DRIZZLING SOME. YOUS VERY MUCH
FOR THAT PRESENTATION AND IT
SOUNDS LIKE- YOU ALL AT CEMETERY
CREDIT UNION. ARE REALLY GOING
ABOVE AN BEYOND TO. HELP WITH
THE HOUSING AND ESPECIALLY IN
THE- IN THE AREA OF EIGHTY USE I
DO WANT TO BRING IT BACK TO BOTH
COMMITTEES. FOR QUESTIONS. DO
ANY OF THE MEMBERS HAVE
QUESTIONS OF ANY OF THE
PANELISTS AND I. KNOW THAT-
FELLOW CHAIR- CHAIR WICKS HAS A
QUESTION AND THEN WE'LL GO TO
ASSEMBLY MEMBER WARD. THANK YOU
SHARE GRAYSON- SO ONE OF THE
THINGS THAT CAME UP WAS THE
CONCERN THAT LENDERS CAN EASILY
MITIGATE THE RISK THAT
CONSTRUCTION WILL GET DELAYED-
IN THIS THIS IS A CHALLENGE IN
TERMS OF LENDING- OR EVEN HALT
AT SOME POINT NOT COMPLETED- YOU
KNOW I KNOW WE'VE DONE QUITE A
BIT OF LEGISLATION YOU'RE DOING
SURE RADIOS ARE STREAMLINED AND
THEY CAN GET THROUGH THE
PROCESS- BUT FROM. AN ANYONE
FEEL FREE TO ANSWER THIS
QUESTION I HAVE A SECOND ONE AS
WELL BUT WE'LL START WITH THIS
ONE- IS THERE ANYTHING ELSE YOU
THINK WE CAN DO LEGISLATIVELY TO
ENSURE TAT STREAMLINING HAPPENS
YOU KNOW WE'VE HAD AGAIN SOME
BILLS HAVE GONE INTO EFFECT THAT
HOPEFULLY WILL NOT MITIGATE
AGAINST THAT BUT- ANYTHING ELSE
WE CAN DO ON OUR END TO ENSURE
THE STREAMLINING. IS CONSISTENT
. FOR WHOEVER WANTS TO TAKE THAT. OKAY A TECHNOCRATIC ADDED- SO
I THINK I'D MENTIONED EARLIER
AND WHEN WILL YOU GET THAT
STREAMLINING IS ODD TO HAVE- YOU
KNOW HOW TO INCENTIVISE IN SOME
FASHION THESE FACTORY ROAD IN
OUR HOMES ARE ANALYZED- HOMES
THAT YOU KNOW IN SOME CASES I
REALIZE THAT WE JUST MENTIONED
MIGHT NOT BE FEASIBLE TO HAVE A
FACTOR BUT- YOU KNOW IF YOU'RE
YOU OUT. IF YOU HAVE TO GET INTO
ONE OF ACCURACY OFFENSE RIGHT
BUT YOU KNOW YOU MAY LOOK AT
FINALIZED ON GIVE ME A LOOK AT
OTHER AREAS THAT AFFECT YOU BUT
HOMES MIGHT BE USEFUL AND MIGHT
WORK BETTER SO I THINK THAT IS
ONCE ONE AVENUE THAT YOU CAN
TAKE TO MINIMIZE THAT RISK
ONLINE FIRST. AND FOR YOU KNOW
ANY PRETTY ENOUGH THAT J. AND
SPEND MORE AID YOU CONSTRUCTION.
I THINK THERE'S ALSO A LOT OF-
PROMISED- YOU KNOW THE BEACH
PROGRAM THAT MAY. EARLIER I HAVE
. AGAIN NOT IN. ANY PARTICULAR-
AND YOUR COMPANY BUT YOU AT
PEOPLE COME IN AND THEY USE THAT
NETWORK OFF YOU KNOW APPROVED
CONTRACTORS. TO DO THE WORK AND
THAT GAVE THE CITY OF DETROIT
AND THE PHILANTHROPIC PARTNER
THE CONFIDENCE AND THE COMFORT.
THEY NEEDED TO YOU KNOW.
COMMITTED THIS PRICE AND YOU
KNOW WHAT DONE. ACTUALLY SOLVE
THE- PROBLEM THAT THEY WERE
TRYING TO SOLVE WHICH WAS IN A
PRISON YEAH. BEGIN AGAIN. IS
NINE YOU KNOW GUYS COULD THINK
ABOUT POSSIBLY DOING SOMETHING
ALONG THOSE LINES STATE ARE TO
HAVE MAYBE A CENTRAL REPOSITORY
THE CONTRACTORS CENTRAL CLEARING
HOUSE FOR- YOU KNOW CONTRACTORS
THE POOL SO EVERY LETTER DOES
NOT HAVE TO DO IT ON THEIR OWN
AND GIVE YOU THE BEST TIME TO
GET MORE STANDARDIZATION INTO
THE PROCESS. AND MAKE IT MAD AND
REDUCE COSTS AND UNCERTAINTY OR
LETTERS TO THE LITTLE THINGS
THAT WORKED OUT THERE AS
POSSIBLE. YOU KNOW WHAT SOLUTION
MIGHT WANT. THANK YOU I AM THAT
M. WELL NOT QUITE THIS IS A- I
THINK IT SHOULD BE NOTED CIVIL
ONE- TO MISS ELLINGTON- EDITING
YOUR PRESENTATION YOU SAID THAT
SO FAR YOU ALL FUNDED THREE HE
LOT CONSTRUCTION LOANS. I'M JUST
CURIOUS THE NUMBER SEEMS LOW
OBVIOUSLY THE PROGRAM JUST
STARTED IN SEPTEMBER TWENTY
TWENTY BUT IS IT. IS THE
CHALLENGE YOU'RE NOT GETTING
ENOUGH APPLICATIONS OR THAT IT'S
JUST STARTING DO YOU FORESEE IT
GETTING BIGGER. YEAH GREAT
QUESTION SO WE HAVE YOU KNOW
AGAIN I. FEEL LIKE THE- PANDEMIC
SLOWED DOWN THE CONSTRUCTION. AT
FOR THE OPPORTUNITY FOR PEOPLE
TO ACTUALLY START THAT THE
CONSTRUCTION BUILDING BUT I
DON'T THINK THAT'S THE ISSUE.
WITH US WE'VE ACTUALLY HAD QUITE
A FEW- THAT WE'VE HAD. AND APPLY
FOR THE LOAN IT'S JUST WE'VE
BEEN ABLE TO CONVERT THEM TO A
DIFFERENT TYPE OF LOAN THAT
SUITED THEM BETTER SO IT WAS
MORE COST EFFECTIVE. TO DO A
COUPLE OF DIFFERENT OPTIONS FOR
THEM SO WE ACTUALLY HAD PROBABLY
LIKE. I THINK CLOSE TO NINETEEN
I THINK OR TWENTY FIVE. NINETEEN
OF TWENTY IS SOMEWHERE AROUND
THERE LOAN APPLICATIONS THAT
HAVE COME IN. BUT WE'VE ACTUALLY
CONVERTED THE MEMBERS OVER
BECAUSE IT JUST MADE MORE SENSE
TO THEM FINANCIALLY NOT TO DO
THIS LOAN AND THEY DIDN'T NEED
THE- ADDITIONAL RENTAL- AND THEY
DID NOT NEED THAT RENTAL INCOME
THEY DIDN'T NEED THE ADDITIONAL
- PERCENTAGE TOO FOR THE LOAN
FOR THE LOAN TO VALUE SO DIDN'T
NEED TO GO 290% SO WE WERE ABLE
TO ACTUALLY MOVE THEM INTO A
BETTER PROGRAM WHICH- IS PART OF
WHAT WE WANT TO DO ANYWAY WE
DON'T WANT TO PUT SOMEBODY IN
THIS LONG THAT'S A TWELVE MONTH
LONG TERM BECAUSE- IT DOES COST
THEM AT THE END TO DO A
REFINANCE AGAIN SO OUR GOAL FOR
OUR MEMBERS IS TO. SAVE THEM AS
MUCH MONEY AND HELP THEM WITH
THEIR FINANCES. YOU KNOW ALONG
THE WAY INCLUDING- JUST DOING A
ONE ONE ONE IF WE CANNOT FRONT.
THANK YOU ASSEMBLYMEMBER WORK
YOU'RE RECOGNIZED THANK YOU
CHAIRS- THANK YOU FOR PUTTING
TOGETHER THIS INFORMATIONAL
HEARING TODAY REALLY HELPFUL AS
WE'VE SEEN ESPECIALLY IN MY
COMMUNITY USE BE A VERY
ATTRACTIVE AND INTERESTING
OPPORTUNITY FOR A LOT OF HOUSING
STARTS AS WE EXPEDITED IN. THE
CITY OF SAN DIEGO. THE SUN. I
THINK- THE- AS WE'VE EXPEDITED
THE STREAMLINING FOR BEING ABLE
TO PURCHASE THE- HEAVY USE
CONSTRUCTED- JUST. THROUGH BASE
CITY PERMITTING PROCESS HE'S WE
SAW A RAPID INCREASE IN THE
TRACKING THIS- OF THIS HOUSING
TYPE AND THEN I ALSO WANNA GIVE
A SPECIAL SHOUT OUT TO THE SAN
DIEGO. HOUSING COMMISSION THAT
ALSO HAS WORKED FOR MODEL TYPES
OF EDU CONSTRUCTION SO YOU CAN
HAVE SORT OF A MENU OF SIX
DIFFERENT- SORT OF PRE NOT DEAD.
EVEN EVEN BEFORE PREFABRICATED
HOME TYPES BUT AS THE MODELS ARE
RIGHT THERE AND IF YOU LIKE ONE
OF THOSE IF IT'LL FIT NICELY ON
YOUR PROPERTY. IT HELPS YOU OVER
THE CITY- FINANCING CITY
PERMITTING PROCESS BUT ALSO I
THINK MAKES A LITTLE TRACK OF
LESS RISKY FOR A LENDER TO GET
IN THERE KNOWING THAT THIS IS
GOING TO BE. REALLY EXPEDITED
THROUGH- AND I APPRECIATE YOUR
WORKS IS- NEW YORK NOTICE IS
WELL ABOUT YOU KNOW THE KEY
LOCK- UTILIZATION THERE AND I
GUESS I WANTED TO ACT. AS LITTLE
MORE BROADLY I'M PROUD FOR MR
CALL- YOU KNOW WHAT ARE WE
SEEING RIGHT NOW MAYBE OVER THE
PAST YEAR OR EIGHTEEN MONTHS. IN
THE AGGREGATE OF THE
ATTRACTIVENESS OF THESE
DIFFERENT HOUSING FINANCING
MECHANISMS SO. HAVE WE LEARNED
AND NOT FROM THE LAST- YOU KNOW-
TWELVE TO TWENTY FOUR MONTHS TO
BE ABLE TO SAY. THAT IT IS YOU
KNOW JUST A DIRECT SECOND
MORTGAGE OR THE HE LOCK FOR
REFINING YOU KNOW THAT THE
MARKET OR THESE POTENTIAL
HOMEOWNERS ARE GRAVITATING
TOWARDS ONE PRODUCT OVER
ANOTHER. AND MAYBE THAT'S WHERE
WE NEED TO TRAIN OUR LEGISLATIVE
AND BUDGET DECISIONS AS WELL. TO
HELP- HELP WITH SOME OF THOSE
OUT. THANK YOU FOR THE QUESTION-
SO. UNFORTUNATELY THE LAST TWO
OR THREE OF US HAVE ACTUALLY
BEEN THE ONE LATER DESCRIBED TO
BE OUR MORTGAGE MARKET THE LAST
WHAT'S YOURS IS VITAL. BECAUSE
OF THE YOU KNOW THE INTEREST
RATE THE SUBSTANTIAL MOVEMENT IN
INTEREST RATES THE STOCK ON THE
PENDING STARTED TWENTY TWENTY.
WHEN YOU HAVE A GREAT SPOT ALL
TIME LOW OF. WHAT THAT BEFORE IF
YOU LOOK AT BEFORE THE PANDEMIC
YOU KNOW WE HAD A HOME EQUITY
LINE OF VIOLENCE ACT. WERE
GROWING BECAUSE PEOPLE ARE NOT
THE PLUS UNECONOMICAL FOR PEOPLE
TO GO CASH OUT REFINANCE BECAUSE
RATES HAVE BEEN HAVE BEEN GOING
UP. AND THEN RATES FELL IN
SUDDENLY. ARE YOU SAW THE
REVERSE HAPPENING THAT IS PEOPLE
WHO- YOU KNOW PREVIOUSLY WOULD
HAVE GOTTEN HE LOCKS. WERE NOW
GRAVITATING TOWARDS CASH OUT
REFINANCES TO REFINANCE. THEIR
PRIMARY MORTGAGE. I OUT AND IN
THE PROCESS HAS OPPOSED TO A FOR
US. WEEK AND NOW. SO THAT AND
THEN ORDER OF ONE TWENTY AND THE
LAST COUPLE OF MONTHS IT'S
PRETTY CLEAR THE FED IS GOING TO
BE INCREASING RATES. THIS YEAR
AND THAT'S GOING TO PUSH UP
BORROWING COSTS SO CASH OUT
REFINANCE AGAIN WE EXPECT ARE
GOING TO ACTUALLY PULL BACK AND
THEY ARE ACTUALLY HAVE. ALREADY
IMPLEMENTED A LOT FROM THE FEET.
AND SO I THINK I THINK THE LONG
AND SHORT OF IT IS THAT I THINK
FOR AS FAR AS POLICY MAKING IS
CONCERNED- YOU KNOW. WE CAN'T
CONTROL INTEREST RATES OBVIOUSLY
AND SO I WOULD ACTUALLY SUGGEST
LOOKING AT A SOLUTION THAT
ALLOWS. THAT CAN REDUCES
FRICTION IN ALL OF THESE
DIFFERENT PROJECTS IN DIFFERENT
PROGRAMS SO THAT IF THE INTEREST
RATE ENVIRONMENT IS MORE
CONDUCIVE FAR SAY HOME EQUITY
LENDING A HOMEOWNER THAT WANTS
TO GO THAT ROUTE SHOULD BE ABLE
TO DO THAT. BECAUSE AN
INTERNSHIP IN MY MIND THAT
YOU'RE AFTER MIGHT BE MORE
CONDUCIVE FOR CASH OPS OR YOU
KNOW SOMETHING ELSE I THINK. WE
HAVE TO THINK BROADLY AND REDUCE
THESE FRICTIONS ACROSS THESE
PRODUCTS AND MAKE THEMSELVES SO
THAT THEY CAN BECOME YOU KNOW
WHY APPLE INTRACTABLE MOTORS
REGARDLESS OF WHAT'S HAPPENING-
TO INTEREST RATES. OKAY THAT'S
HELPFUL I'M HEARING IS THAT YOU
KNOW CHANGING MARKET DYNAMICS
ARE PROBABLY ALSO GOING TO
INFLUENCE YOU KNOW SORT OF THE-
RELATIVE ATTRACTIVENESS OF ONE-
PRODUCT TYPE OVER ANOTHER
HOPEFULLY WE CONTINUE THAT PUT
THE WORD OUT THERE AND GET THIS
IS A MODEL- FROM HOMO HOMEOWNERS
TO CONSIDER AND ACTUALLY
UTILIZE- INTO THAT AND I'M
WONDERING FOR MR MARTINI- AND
HOW HAS IT BEEN GOING FOR THE-
OUTREACH FOR YOUR PROGRAM TO.
KNOW THAT YOU CAN GET A TWENTY
FIVE THOUSAND DOLLAR- AND BONUS
OR OR SORT OF YOU KNOW- RIGHT
OFF THE TOP- REIMBURSABLE GRANT
TO BE ABLE TO HELP. SOME OF
THOSE INITIAL COSTS- THAT THAT
SHOULD BE VERY ATTRACTIVE I HOPE
THAT THE- OUT REACHES THERE TO
YOU KNOW MEET THE POTENTIAL-
HOMEOWNERS THAT THAT MAY NOT BE
AWARE OF IT BUT THAT MIGHT BE
THE- THE DIFFERENCE IT ACTUALLY
MAKES HEM. DECIDE TO GO AHEAD
AND HIT THE GO BUTTON. THANK YOU
FOR THE CALL- LET'S HAVE A
NUMBER- YES WE BEEN IT MARK AND
HOW WE TO THE AWARENESS ACTUALLY
SO LAST SEPT. AND THIS HAS
INCLUDED BUILDING UP PRESS
RELEASE DEDICATED WEBSITE VIRUS
EMAIL BLASTS TO ARE OVER TEN
THOUSAND PERSONNEL MAINLY- LAST
WEEK ALSO DOING A SHOW ON WHICH
TO EIGHTY YOU GROUPS SUCH AS THE
INDIAN HAWTHORNE AGASSI AND
QUALITY CHECKS HAD ARRIVED- WE
MENTIONED PART OF ORLANDO
TRAININGS WHICH YOU KNOW WE'RE
LOOKING THIS COUPLE OF OUR
EXISTING DOWN PAYMENT ASSISTANCE
PLATFORM SO. WHEN WE DO TRAINING
SOME DATA. WE MAY NEED BE DONE
INCREASE AWARENESS. WITH A- THAT
WERE IN. THANK MAI SMARTEST. IN
AND PARTNERSHIP. INCREASING ALL
. WE WERE CALLED OUT IN WEEK'S
WHITE WEB OR ANY USE. AND NOW
THIS WOULD POINT IN TIME WHERE
WE ARE RIGHT NOW WHO ARE WE
BUILDABLE LAND NOVEL TUNABLE
BOSS- LEVEL WE ARE LOOKING. TO A
NEW KIND OF THE NEXT STEP THE
NEXT PHASE IN DATA COVERAGE AND
MARKETING CAMPAIGN WITCHING IT'S
GOING TO INCLUDE MORE TARGETED
EMAIL SOCIAL MEDIA GEO FENCING.
AND DIGITAL ADS TO HOMEOWNERS
ADAM DID IT PARTICULARLY LIKE IN
DISADVANTAGED COMMUNITIES SO
THEY KNOW THAT THIS PROGRAM IS.
NOT AVAILABLE SO WE'RE ALSO
BUILDING. ARE YOU TOOL KIT. WITH
MESSAGING ALSO SOCIAL. THAT WE-
AND ALSO BECAUSE THEM FLY SIX
AND AROUND THEM GONNA BE THIS.
TO PARTNER. AND THEN IN ADDITION
. WE'RE GONNA WORKING WITH MEN
EIGHTY YOU SPECIFIC BUILDERS
BOTH PRE FAB COSTUME WELL I'VE
ALREADY JUMPED INTO THIS SPACE-
AND- ALTHOUGH MANY DO HAVE PRE
EXISTING FINANCING PARTNERS AND
WE AND WE ARE AWARE THAT. SOME
COULD BE SOMETHING. ON THE
GROUND WITH THE FINANCING SO
THESE ARE ALL THE STEPS WE'RE
TAKING TO. INCREASE AWARENESS
AND WERE VERY CRITICAL POINT IN
TIME RIGHT NOW THANK YOU FOR THE
QUESTION. THANK YOU FOR THAT
JUST A QUICK FOLLOW UP ARE YOU
DOING ANYTHING SPECIFICALLY TO
TARGET HARD TO REACH COMMUNITIES
OR- YOU KNOW LOWER MIDDLE
INCOME- FAMILY COMMUNITIES THAT.
MAY NOT EVEN BE AWARE OF THIS
BUT YOU KNOW WE WANT TO MAKE
SURE THEY KNOW ABOUT THIS SO
THAT THEY CAN TAKE ADVANTAGE OF
IT- BEFORE THE FUNDING RUNS OUT
AND THEY'VE MISSED THAT
OPPORTUNITY AND TO THAT AND I'M
WONDERING. HOW MUCH OF YOUR
INITIAL ALLOCATION FOR THIS
PROGRAM HAS BEEN DRAWN DOWN-
SORT OF WHAT WHAT'S. THE STATUS
OF THE- THE POOL OF FUNDING. YES
YES AFTER OF YOUR- WIFE. OUR THE
NET FACE STARTS IN- RIGHT NOW
THAT WE HAVE A ROBUST LENDING
NETWORK THAT FACE US ARE
SOMEHOW. DOES INCLUDE A VERY
TARGETED. AND GEO FENCED I'LL BE
A SOCIAL MEDIA I'LL REACH. A
REACH COMMUNITY OUTREACH SO WE
ARE PARTNERING WITH LOCAL
COMMUNITY PARTNERS GIVING THEM
TOOL KITS. TO SPREAD THE WORD BY
NOW VERY KIND OF YOU KNOW WHAT I
THINK WE FOCUSED. OUR OWN WAY
TOWARDS- ALTHOUGH LOCAL
COMMUNITIES OF HOMEOWNERS THAT
MAY BENEFIT FROM THIS RIGHT- OUR
PROGRAM ELIGIBILITY IS DESIGNED.
WITH A SOCIAL EQUITY FOCUS IN
MIND RIGHT SO THAT AND THAT KIND
OF TIES INTO THAT- AND TO. YOUR
SECOND QUESTION ABOUT WHERE-
WHERE WE ARE RIGHT NW IN THE IN
THE- PROGRAM SO OUR OUR PROGRAM.
IS ACTUALLY LITERALLY NOW.
TRANSITIONING FROM THE STAND UP
FACE. WHILE WE WERE ON BOARD
LATER CALENDAR STRONG PHASE
WHERE WE QUITE INFRASTRUCTURE IN
PLACE. FOR A LONG AMOUNT OF
CALIFORNIA TO APPLY. SO AS I
SAID IN LAST FEW WEEKS REACHED A
CRITICAL MASS OF SIX LENDERS AND
SOME OF THEM IS ACTUALLY A
REALLY BIG PLAYERS LIKE LOAN
DEPOT HOME BRIDGE. AND GUILT SO
WE'RE ACTUALLY IN A VERY GOOD
POSITION TO STOP RIGHT NOW
BECAUSE- STARTLING HER PRODUCT-
SO I TREAT IS DISCOURAGED BY
WELL TIMED AND- WE EXPECT THE
APPLICATION. OF ALL
INSIGNIFICANT LATE. SCALE AND
THEN IN THE NEXT FEW MONTHS.
THANK YOU DOT MEMBERS PAMELA
PLEASE KEEP YOUR QUESTIONS AND
ANSWERS PRECISE WE'RE COMING
CLOSE TO THE END OF OUR JOINT
HEARING- SOME REMEMBER C. R. TO
YOU ARE RECOGNIZED. THANK YOU SO
MUCH I APPRECIATE THAT. THIS
QUESTION IS FOR OUR- MISS ELLING
SEND IF SHE'S STILL ON. STILL ON
MA'AM YES I'M HERE OKAY YOU
KNOW. YOU'RE TALKING ABOUT
THERE'S 90% RATIO WHEN YOU GET
290% MOST TIMES THERE'S A PMI
ATTACHED TO THAT TRIGGER A PMI
WHEN THEY FORMALLY DID NOT HAVE
ANY PMI. GREAT QUESTION NO YOU
KNOW WHAT SO BECAUSE WE HOLD THE
FIRST MORTGAGE AT EIGHTY
PERCENT- IF YOU HAVE YOUR FIRST
MORTGAGES ABOVE 80% THAT'S WHEN
YOU GET A MORTGAGE INSURANCE
ADDED ON BUT WE ARE HOLDING THE
FIRST AT 80% AND THEN WE'RE
DOING THE SECOND UP 210% SO.
THERE WOULD NOT BE ANY MORTGAGE
INSURANCE ON THAT SIR WOULD
TRIGGER THE FIRST TO GO DO IT
PMI SITUATION. NOW HAVE NOT AT
ALL SO I JUST HAVE A COUPLE OF
QUICK COMMENTS I WANT TO MAKE
ABOUT WHATEVER WE DO. I'M TRYING
TO HELP PEOPLE- BUT AT THE END
OF THE DAY THE OWNER OF THE
PROPERTY HAS TO BE ABLE TO
HANDLE THE BURDENS OF. NOT ONLY
THE LOANS ON THE PROPERTY AS
WELL AS ALL OF THE OTHER COSTS
AND THAT'S LONG TERM. AND- YOU
KNOW RESTRICTIONS ON LANE
LANDING THAT WE SEE THAT ARE
CAUSING OUR OUR PROBLEMS. ARE
BASED ON MASSIVE COLLAPSES THAT
HAVE HAPPENED IN THE PAST. IN
OTHER WORDS WE NEED TO LEARN A
LESSON WHAT HAPPENED IN TWO
THOUSAND EIGHT- I KNEW PEOPLE
THAT WERE BUYING HOMES FOR.
EIGHT HUNDRED THOUSAND DOLLARS
IN AN EIGHTY THOUSAND DOLLAR-
SALARIES THERE'S JUST NO WAY YOU
CAN A YOU CAN MAKE THAT WORK.
AND YET SOMEHOW WE PUSH THEM
OVER THAT LINE. SO THERE'S THREE
THINGS WE NEED TO KEEP IN MIND
WHEN WE'RE DEALING WITH THIS.
ONE OF THEM IS IT'S KIND OF THE
HIPPOCRATIC OATH FIRST DO NO
HARM. WE NEED TO HELP WHERE WE
CAN BUT WE CAN'T FORCE A SQUARE
PEG IN A ROUND HOLE. SECOND
FOCUS ON LONG TERM SUCCESS
BECAUSE- THE SHORT TERM
NAVIGATION OF GETTING APPROVED.
WE CAN TURN AND THIS IS A BIG
FEAR OF MINE IS WE CAN TURN
THESE HOMEOWNERS THAT ARE
STRAPPED. INTO RENTER'S AGAIN.
AND WE DON'T WANT TO DO THAT. SO
I APPRECIATE ALL THESE- THE
INFORMATION WE RECEIVED TODAY
AND THAT'LL BE THE END OF MY
COMMENTS THANK THANK YOU FOR
YOUR COMMENTS ASSEMBLYMEMBER
QUIRK SILVA. YOUR RECORD. THANK
YOU TO ALL THE PRESENTERS- VERY
GOOD INFORMATION I'VE BEEN KIND
OF. REALLY HYPER FOCUSED ON
EIGHTY USE AN INDIVIDUALLY HAVE
ACTUALLY GONE DOWN A FEW
PATHWAYS OF LOOKING INTO IT FOR
OUR OWN HOME. I WILL SAY. THERE
IS INDIFFERENT COMMUNITIES VERY
DIFFERENT RESPONSES TO EIGHTY
USE- ASSEMBLY MEMBER CHRIS WARD
WHERE THEY ALREADY HAVE PRE
APPROVED PLANS- IT VARIOUS-
OPPORTUNITIES FOR PEOPLE TO
CHOOSE FROM A MENU. THAT'S
REALLY THE RIGHT DIRECTION BUT
THERE'S ALSO OTHER PLACES ARE
TRYING TO DO EVERYTHING THEY CAN
TO HOLD BACK- AD USE- BUT- I
THINK THAT ONE OF THE THINGS
THAT WE DON'T CONTROL HERE AT
ALL. HIS PEOPLE AND THEIR OWN
PARTICULAR INTEREST SO FOR
EXAMPLE IN MY OWN AREA- MY
DAUGHTER WHO'S THIRTY TWO JUST
TOLD ME ABOUT IT A. D. U.
FACEBOOK GROUP. IN OUR OWN AREA
OF THE CITY THAT I LIVE IN. AND
THEY'VE ACTUALLY STARTED THIS
FACEBOOK GROUP OF THAT KIND OF
ORGANICALLY AND THEY'RE PUTTING
CONTRACTORS THERE AND PRICES AND
IN ESSENCE STEP ONE TWO THREE
FOUR FIVE. I AND IT THAT'S
REALLY COME OUT OF THE CITY.
ITSELF DOING EVERYTHING IT CAN
TO BLOCKADE TO USE SO IT IS
INTERESTING IN THAT FACT BUT MY
QUESTION IS AFTER ALL OF THAT-
TO- MRS ELLINGTON IS ON YOUR- HE
LOCK LOANS IT'S- SAN MATTEO- AT
THIS POINT. DO YOU INTERFACE
WITH OTHER CREDIT UNIONS ACROSS
THE STATE IN A COALITION THAT
MIGHT BE ABLE TO. AN ESSENCE- AT
THAT KIND OF SHOW THEM WHAT YOU
WERE DOING AND BRING. THAT MODEL
TO OTHER LOCATIONS- GREAT
QUESTION THANK YOU FOR THAT YOU
KNOW WE WERE ALWAYS
COLLABORATIVE IN THE CREDIT
UNION SPACE- WITH EACH OTHER- WE
JUST HAVE NOT ACTUALLY. GONE OUT
AND PROMOTED THIS WITH OTHER
CREDIT UNIONS NOT FOR ANY. AT
THAT POINT IN TIME BUT WE'RE NOT
OPPOSED TO IT BY ANY MEANS YEAH
THE WHOLE POINT IS LIKE. THE
CREDIT UNION WORLD IS AND IN
BANKS IN GENERAL TOO BUT THE
CREDIT UNION WORLD MORE SO. IS
THERE FOR THEIR COMMUNITIES AND
TO HELP YOU KNOW WITH EVERY
ASPECT OF TRYING TO HELP
SOMEBODY WITH THEIR FINANCES AND
YOU KNOW THE EDUCATION PIECE FOR
US IS HUGE. AS I MENTIONED
EARLIER AND YOU KNOW WE'RE OUT
IN THE COMMUNITY TALKING ABOUT
FINANCES WITH OUR MEMBERS ALL
THE TIME FROM FROM ALL DIFFERENT
ARENAS. AND PART OF THAT TOO CAN
BE TO SHARE WITH OTHERS- YOU
KNOW WHAT THIS PRODUCT I A MUST
WHAT IT OFFERS AND- YOU KNOW IN
OUR INDUSTRY- THAT'S THE BEAUTY
OF BEING INTO CREDIT UNIONS WE
DO SHARE SO- YEAH WE'RE OPEN TO
HAVING CONVERSATIONS WITH OTHERS
FOR SURE ABOUT IT. THE THANK YOU
FOR THAT AND ASSEMBLYMEMBER
CAREER YOU ARE RECOGNIZED. THANK
YOU THANK YOU MISTER CHAIR. I
WAS REALLY EXCITED ABOUT THIS
INFORMATIONAL HEARING TO ALIGN
THE WORK THAT'S BEING DONE AND
BUDGET WITH REGARDS TO A
POTENTIAL OPPORTUNITIES FOR
FIRST TIME HOME BUYERS- CREATING
A PATHWAY FOR THE AMERICAN DREAM
AS WELL AS HOUSING AND
HOMELESSNESS- MADAM CHAIR YOU
KNOW SOMETHING THAT I'VE BEEN
THINKING ABOUT AND SPEAKING TO
YOUR POINT ASSEMBLYWOMAN WITH
REGARDS TO THESE FACEBOOK GROUPS
IN MY COMMUNITY. THERE'S A TWO
BEDROOM LITTLE BUNGALOW HOME
RIGHT NEXT DOOR TO ME THAT AT
SOME POINT MAYBE FIVE YEARS AGO
MAY HAVE COST THREE HUNDRED AND
FIFTY THOUSAND DOLLARS TO
PURCHASE IT SOLD FOR ONE POINT
TWO MILLION DOLLARS. AND THAT
KIND NO ONE CAN AFFORD IN MY
COMMUNITY AND IT'S CAUSING ALL
KINDS OF A HOUSING SHORTAGES BUT
ONE OF THE LARGEST CONVERSATIONS
THAT I HAVE HEARD. IS FOREIGN
INVESTMENT. AND I DON'T KNOW HOW
TO DIRECT THIS QUESTION OR WHO
CAN ANSWER WHO CAN PROVIDE SOME
KIND OF REPORT IN TERMS OF. HOW
MUCH FOREIGN INVESTMENT IS
BEING- IS BEING CREATED IN
CALIFORNIA THAT DOESN'T ALLOW
CALIFORNIANS TO ACTUALLY BUY
HOMES HERE. BECAUSE SO MUCH OF
IT IS COMING FROM. THE OUTSIDE.
AND THE FLIPPING AND THEN WE
JUST HAVE LIKE A POPULATION OF
RENTERS. AND SO I THINK ABOUT
THAT IN A POLICY PERSPECTIVE
WHAT CAN WE POSSIBLY DO TO
UNDERSTAND THAT TREND. TO ENSURE
THAT IT IS ACTUALLY CALIFORNIANS
WHO LIVE THERE ARE ABLE TO
ACTUALLY BUY THESE HOMES. AT
AFFORDABLE PRICES SO THAT
FAMILIES CAN BE SAFE IN THEIR
CALL ON IN THEIR OWN COMMUNITIES
. AND ARE THERE ANY PANELISTS
THAT WOULD LIKE TO RESPOND TO
THAT COMMENT. ON ON AT ALL IS
THERE DATA OR INFORMATION ON ANY
TYPE OF- EIGHTY YOU APPLICANT-
BECAUSE OBVIOUSLY WOULD HAVE TO
BE A HOMEOWNER. THERE WOULD BE
APPLYING FOR THE DEAL. IF THERE
ARE NO COMMENTS ON THAT AS OF
RIGHT NOW THAT'S SOMETHING WE
CAN GO AND LOOK INTO AND SEE IF
WE CAN FIND DATA ON THAT-
THROUGH- BOTH COMMITTEES. AND SO
WITH THAT WE WILL NOW OPEN IT UP
FOR PUBLIC COMMENT AS A REMINDER
PLEASE STATE YOUR NAME YOUR
ORGANIZATION AND PLEASE KEEP
YOUR COMMENTS BRIEF MEETING-
AROUND A HALF A MINUTE FIRST THE
IS THERE ANYONE PRESENT HERE IN
THE HEARING ROOM THAT WAS JUST
TO MAKE A PUBLIC COMMENT. SEEING
NONE WE WILL NOW TURN TO THE
PHONE LINES MODERATOR IS THERE
ANYONE ON THE LINE WISHING TO
MAKE PUBLIC COMMENT. THANK YOU
IF YOU WISH TO EXPRESS PUBLIC
COMMENT OVER THE PHONES PLEASE
PRESS ONE BUTTON ZERO USING YOUR
TELEPHONE KEYPAD. AGAIN THAT'S
ONE FOLLOWED BY ZERO PLEASE. WE
HAVE TWO LINES IN Q. WOULD YOU
LIKE TO PROCEED TO THE FIRST YES
PLEASE. THANK YOU LINE EIGHTEEN
YOUR LINE IS OPEN. GOOD MORNING
COMMITTEE MEMBERS I'M THE DOCTOR
RAMAN VICE PRESIDENT OF SINGLE
FAMILY HOUSING FINANCE FOR THE
SAN DIEGO HOUSING COMMISSION WE
HAVE INFORMATION PUBLISHED A
REPORT IN TWO THOUSAND SEVENTEEN
THAT IDENTIFIED EIGHTY LOOK AS
ONE OF THE FIVE MAIN SOURCES. OF
POTENTIAL NEW HOUSING IN THE
CITY OF SAN DIEGO FOR TEN YEARS
LAST YEAR CONSTRUCTION WAS
COMPLETED ON FIVE EIGHTY- THAT
PROPERTIES THE HOUSING
COMMISSION OWNS AND BE PUBLISHED
ABOUT THEM THAT ARE. IN THE
SPRING WE PLAN TO LAUNCH A NEW
PILOT PROGRAM TO PROVIDE
CONSTRUCTION DOLLARS TO HELP
HOMEOWNERS WITH LOW INCOME.
EIGHTY WAS ON THAT PROPERTY THEY
ALSO PLAN TO OFFER TECHNICAL
ASSISTANCE SUCH AS HELP WITH
DESIGN AND PERMITTING AT NO COST
TO THE HOME ONE PACK OF BENDIGO
HOUSING COMMISSION LOOKS FORWARD
TO WORKING WITH STATE LAWMAKERS
GOING FORWARD TO SUPPORT EIGHTY
YEARS OF AN IMPORTANT. HOUSING
OPTIONS THANK YOU. THANK YOU AND
MODERATOR WOULD TO THE NEXT
SPEAKER. Q. ONE NINE NINE. GOOD
MORNING CHARACTER NUMBER THAT
THE COMMITTEE AT THE BELL ARE
QUITE I WOULD PLAY OUT. CALLING
ON BEHALF OF THE BLACK
LEADERSHIP COUNCIL. WINNERS
CONTINUE TO FACE FINANCING
BARRIERS SUCH AS PAYING HIGHER
INTEREST RATES ARE BEING TWO
NINETY FIVE INCOME STATUS THE
LACK OF CAPITAL. THUNDERCAT ALSO
FOUND. 80% MORE LIKELY TO REJECT
BLACK ARAB LOOKING. INTO MY
WHITE APPLICANTS. HELPING BLACK
AND LOW INCOME HOMEOWNERS.
FINANCE AT U. CONSTRUCTION WILL
HELP BUILD AFFORDABLE HOUSING.
AND ENCOURAGE LONG TERM WEALTH
BUILDING TO COMMUNITY BANK CHECK
OUT FOR MANY HOMEOWNERSHIP. AND
WEALTH BUILDING OPPORTUNITIES
DUE TO THE LACK OF STRUCTURAL
RACISM AND. HELPING THEM THANK
YOU. THANK YOU MODERATOR OTHER
ANY OTHER CALLS. NO FURTHER
LINES IN QUEUE AT THIS TIME
THANK YOU VERY MUCH I DO WANT TO
THANK EVERYONE FOR PARTICIPATING
IN TODAY'S HEARING YOU CAN FIND
DETAILS RELATED TO THESE- TOPIC
ON THE WEBSITES OF THE ASSEMBLY
BANKING COMMITTEE AND ASSEMBLY
HOUSING COMMITTEE I DO LOOK
FORWARD TO CONTINUING OUR WORK
ON THIS ISSUE AND THIS. HEARING
IS CLOSED. YOU ARE YEAH.