MassHousing Blog

In-House Servicing is Key to Borrower Success

MassHousing's Loan Servicing Staff

MassHousing’s in-house Loan Servicing Department plays a key role in the Agency’s commitment to sustainable homeownership.

MassHousing has serviced its homeownership mortgage loans since 1996, which includes processing monthly payments, managing escrow accounts, customer service and default management. In June, MassHousing serviced 24,633 mortgage accounts with a balance of $4.2 billion. That’s a significant increase from 2005, when the portfolio included 9,300 loans, and 2004, when the outstanding balance of the portfolio was $700 million.

"MassHousing began servicing our home mortgage loans in 1996 because we didn’t feel our borrowers were receiving an appropriate level of attention from third-party servicers," said Kevin Mello, MassHousing's Director of HomeOwnership Servicing and Operations. "We maintain close relationships with our customers, and we are committed to their long-term success."

Prior to 1996, MassHousing contracted with private companies to manage the servicing of its loans.

Loan Servicing’s hands-on, proactive approach to serving borrowers is a reason why MassHousing’s delinquency and foreclosure rates are on par with if not below the most aggressive benchmarks available.

In Fiscal Year 2019 (June 30, 2018-July 1, 2019), MassHousing fielded more than 62,000 calls from its mortgage borrowers and made nearly 82,000 calls. In addition, the Agency helped 120 borrowers avoid foreclosure through loan modifications, repayment and forbearance plans and graceful exits (e.g., pre-foreclosure sales or deed-in-lieu of foreclosure).

MassHousing has taken a number of steps in recent years to improve the borrower experience. This includes an upgraded telephone system and a new loan servicing website. Of the more than 255,000 monthly mortgage payments processed, 167,354 (66%) were made electronically or over the phone.

"We're creating a more efficient, more convenient way for borrowers to interact with MassHousing," said Mr. Mello.

Down Payment Assistance Drives Lending

MassHousing’ Down Payment Assistance (DPA) Program is putting homeownership within reach for more Massachusetts buyers, and is driving the Agency’s home mortgage lending to its highest level in years.

Thus far in Fiscal Year 2019 (July 1, 2018 to June 30, 2019), MassHousing has closed 3,042 first mortgage loans. Of those, 1,347 homebuyers received DPA totaling $9.6 million.

"Saving for a down payment remains one of the biggest obstacles to homeownership, especially for younger buyers saddled with student loan debt and high rents," said Lisa Fiandaca, MassHousing’s Director of HomeOwnership Production. "Our Down Payment Assistance program is putting homeownership within reach for more Massachusetts residents. It’s helped increase our lending overall, and it’s been particularly impactful among minority and low-income borrowers, and in Gateway Cities."

DPA from MassHousing, the only such program available statewide in Massachusetts, provides a 15-year fixed rate loan for 3% of a home’s purchase price or $12,000, whichever is less.

To be eligible for MassHousing DPA, borrowers may earn no more than 100% of the area median income and may purchase a single-family home or condominium. Search income limits here.

Learn more about DPA from MassHousing!

HomeOwnership Lending on Track for Second-Best Year Ever

With several days remaining in Fiscal Year 2019, MassHousing’s HomeOwnership first mortgage lending already ranks as the second highest total in Agency history.

In FY2019, which runs from July 1, 2018 to June 30, 2019, MassHousing has closed 3,042 first mortgage loans for $769.4 million. Lending is being driven largely by MassHousing’s Down Payment Assistance program, which has benefited 1,347 homebuyers. The lending totals mark a 41% increase over FY2018 in terms of number of loans, and a 44% increase in terms of financing amount.

"Massachusetts homebuyers continue to seek out MassHousing’s simple, straightforward and affordable mortgage loans," said Mounzer Aylouche, MassHousing's Vice President of HomeOwnership Programs. "New programs like Down Payment Assistance—along with such longstanding features as affordable fixed rates, MI Plus mortgage payment protection and in-house loan servicing—make MassHousing loans some of the most attractive options available."

Of those loans, 883 were made to minority homebuyers (up 80% from FY2018), 1,315 to lower-income borrowers (up 45%), and 1,943 to buyers in the Commonwealth’s 26 Gateway Cities (up 114%). Thirty-six loans were made to members of the National Guard and Reserves, active-duty military, Veterans and Gold Star Families through MassHousing’s Operation Welcome Home loan program.

In addition, MassHousing provided $3.2 million in second mortgage financing to help 127 homeowners remove hazardous lead paint, replace a failing septic system or make general improvements to their properties.

Trainings Focus on Intersection of Social Issues and Housing

La Verne Saunders at a Substance Abuse training

It’s been more than 30 years since MassHousing offered its first Tenant Assistance Program (TAP) training to property management staff, focused on addressing the effects (and related lease violations) of alcohol and drugs on housing communities. Today, the trainings offered by the Community Services Department have expanded in topic, number and audience.

Nearly 50 trainings are held for housing and social service providers each year focusing on a multitude of social issues and their intersection with affordable housing, including hoarding, mental health, dementia and Alzheimer's, domestic violence, aging, trauma, human trafficking, dispute resolution and community engagement among others.

However, the roots of that very first training are still very much embedded in one of Community Services’ signature trainings, Alcohol and Drugs in Housing: What to Know and What to Do. The training—which is conducted by La Verne Saunders, Dorrington & Saunders, LLC, Lisa Morishanti, Trinity Management, and Helena Padellaro, MassHousing—introduces participants to intervention techniques in the context of housing rules and regulations including fair housing, how they can recognize alcohol and drug abuse and how their own experiences might influence their interactions with residents around alcohol and drug use.

MassHousing's Helena Padellaro leads a recent Community Services training

"This was the best training I have ever been to," said one recent participant. "I think every person should take this regardless of their background or job position. It was so relevant and touching. I learned skills I will be able to use daily…I gained a whole new perspective on life and how to help someone struggling and why they struggle. I am back to work today and will be encouraging every person to take this training. From the bottom of my heart, THANK YOU!"

Trainings offered by the Community Services Department are held throughout the year at locations across Massachusetts and are tailored to property management and social service staff. View the schedule of upcoming trainings at www.masshousing.com/taptraining. Additional trainings for September through December will be announced later this summer.

MassHousing and Roxbury-based nonprofit collaborate on youth safety task force to assist Somali immigrants

From left: Keyla Jackson, MassHousing; Naima Agalabm, RIAC; and Isaac Yablo, MassHousing

A recent study conducted by UMass Boston reveals that Massachusetts is home to 10,000 Somalis, 8,000 of whom live in Boston (primarily in Roxbury and Charlestown with smaller concentrations in Dorchester, East Boston and Jamaica Plain). Ninety percent of the Somali population resides in low-income or subsidized housing, much of which is provided by MassHousing.

Over the past three years, MassHousing's Community Services Department has been working with the Refugee & Immigrant Assistance Center (RIAC), a Roxbury-based, non-profit, grassroots human service agency that provides comprehensive services to refugees, asylees, and immigrants.

Keyla Jackson, Public Safety Program Assistant for MassHousing, and Isaac Yablo, a MassHousing intern from UMass Boston have been working with Naima Agalabm, Director of Community Services for RIAC to develop a youth safety task force to address socio-cultural risks, safety, and quality of life issues that affect Somali youth and families in Roxbury, Jamaica Plain and surrounding communities.  The task force will also assist youth with employment opportunities, mentorship, education, mental health and other issues.

During a recent meeting, Naima explained that among the many struggles that Somalis face in assimilating and integrating into American culture, religion is often at the forefront, and 100% of Somalis are Muslim. The UMass Boston study notes that "the relationship of religion to the individual is much more of a community tie that does not quite translate into the progressive urban American environment."

"We hope that the Somali Youth Task Force can serve as a bridge to Boston-based community partners, service providers and government agencies including MassHousing," said Ms. Jackson.  "We’re hopeful that this collaborative effort can help to mitigate the sociocultural risks that are unique and prevalent within Boston’s Somali community."

The Tenancy Preservation and Healthcare Connection

In 1998, MassHousing's Community Services Department recognized that when residents lacked adequate access to health-related services they struggled to succeed in the community. The Tenancy Preservation Program (TPP) was created to prevent homelessness through intensive, highly skilled intervention with residents at risk of eviction due to lease violations resulting from disabilities, behavioral health disorders, and/or age-related impairments. TPP staff developed service plans, intervened with service agencies to provide necessary services, and coordinated court-supervised agreements between residents, housing providers and those service agencies.

Today, healthcare providers have recognized that inadequate access to affordable housing impacts patient health. In response, one organization—The Boston Children’s Hospital Collaboration for Community Health—recently awarded MassHousing a three-year grant totaling $225,000 for TPP to serve additional families with minor children in the City of Boston, before they are involved in the court system. 

"For more than 25 years, Boston Children’s has dedicated resources and used its expertise to improve child health outcomes beyond the walls of our hospital," said Sandra L. Fenwick, President and Chief Executive Officer of Boston Children’s Hospital. "This means we’re also looking at the social determinants that affect a child’s health such as the environment that surrounds them, their housing conditions and any consequences from experiencing violence or growing up in poverty."

Researchers from Children’s HealthWatch and UMass Medical School, among others, have found that unstable housing negatively affects the health of families, both caregivers and children, leading to an increased utilization of services that was potentially preventable with earlier intervention.

"We now recognize that housing stability is more than just preventing homelessness, but also preventing moving frequently or falling behind on rent. Tenancy preservation programs can be key services that both improve health and avoid unnecessary healthcare costs in the future, providing a win-win for the Commonwealth," says Dr. Megan Sandel, Associate Director of the GROW clinic at Boston Medical Center.

MassHealth, the state’s Medicaid agency, will be launching a demonstration beginning on January 1, 2020 that will provide funding for tenancy preservation supportive services. The Flexible Service Program will provide $149 million to MassHealth Accountable Care Organizations (ACOs) to improve member health while also reducing costs.

TPP provider agencies are discussing potential partnership opportunities with ACOs across the state to provide housing stabilization services to individuals and families with complex health needs, including behavioral health and other disorders.

Where guns were once seized, a playground emerges in Boston

Two years ago, three guns were seized by police in Unity Park next to the Sonoma, Maple, Schuyler housing development in Boston. The property had been rehabilitated by MassHousing in the mid-2000s, and after the weapons seizure, MassHousing’s Community Services team–and its Public Safety staff in particular—immediately began to work with the Boston Police Department and local nonprofit Project RIGHT to develop a safety plan.

Fast forward to April 25, 2019, where the site was a scene of community teamwork and celebration, as a new playground was built by more than 300 volunteers. The park was built with help from Kaboom, which specializes in transforming city sites into playgrounds. MassHousing staff were among the many volunteers from the neighborhood, the City of Boston, Wells Fargo, the Suffolk County Sheriff’s Department and District Attorney’s Office and the Jeremiah Burke High School.

Mayor Marty Walsh, along with students from the Mother Caroline School, cut the ribbon that opened this playground. Several city departments, including the Mayor’s Office of Neighborhood Services, the Department of Neighborhood Development, the Department of Public Works, the Inspectional Services Department and others, worked with Kaboom, Wells Fargo and Sonoma Maple Schuyler Tenants Association in planning this build day.

MassHousing works on multiple fronts to support survivors of domestic violence and sexual assault

While MassHousing is best known for financing affordable housing, the Agency has worked for many years and in many ways to support survivors of domestic violence and sexual assault.

One example is MassHousing’s Tenant Selection Plan, which includes a preference for those displaced by domestic violence or sexual assault. Another is the trainings that our Community Services team offers to property managers to assist them in working with survivors.

MassHousing’s David Eng and Kara Pillsbury Johnson were recently named as co-chairs of the Housing Stability and Self-Sufficiency Subcommittee of the Governor’s Council to Address Sexual Assault and Domestic Violence.  The Subcommittee is made up of advocates and state government representatives who make recommendations for training, collaboration and policy changes needed to expand housing options for survivors.

Through these collaborations, Community Services and Debbie Piltch of Piltch Associates have developed a two-part training to help housing professionals better serve survivors of domestic violence and sexual assault.

The first part of the training, Introduction to Domestic Violence, Dating Violence, Sexual Assault and Stalking, provides housing professionals with a foundation for understanding and working with applicants and residents who are survivors of domestic violence, dating violence, sexual assault and/or stalking. Participants learn from local domestic violence service providers about the cycle of violence, the pattern of power and control, the impact of traumatic experiences, and the resources and partners in their communities.

Part two of the training, Housing Protections for Victims of Domestic Violence, Rape, Sexual Assault and Stalking, outlines the protections against housing discrimination or eviction due to domestic violence, dating violence, sexual assault or stalking to tenants in federally assisted housing under the Violence Against Women Act (VAWA) Reauthorization Act of 2013. It also covers the responsibilities of housing providers, and addresses documentation requirements and other practical issues, including required notices, emergency transfers and plans, lease bifurcations, reporting and record-keeping.

Community Services is compiling the information from both trainings into a comprehensive handbook for housing and service providers, similar to its nationally recognized Reasonable Accommodations Handbook. The VAWA handbook will follow the structure of the two-part training and provide foundational information, establish housing responsibilities and integrate housing and direct service perspectives through case studies. Led by Debbie Piltch, the handbook is being developed in partnership with housing and direct service providers to ensure that the information is realistic, substantive and impactful. The VAWA handbook will be published later in 2019 and will be made available to all those who attend the training.

Through its annual conference, Community Services also brings together experts from housing, social services, academia and other areas to explore topics facing affordable housing communities. On June 4, our Community Services Conference on Supporting those Affected by Domestic Violence and Sexual Assault in Housing will examine the housing challenges and legal protections for survivors for domestic violence and sexual assault. The Conference will inform attendees and equip them with strategies to better serve their communities. Attendees will engage with statewide resource agencies for survivors, gain awareness of cultural barriers to services for specific populations, learn how to assist children who have witnessed domestic violence and gain a greater understanding of VAWA.

NERSC Conference Returns to Massachusetts

MassHousing Community Services team members at the 2019 NERSC Conference. Front row, from left: Denise Green, Sylvette Betancourt, Keyla Jackson, Helena Padellaro, Carol St. Cyr and Kelly Hetrick. Back row from left: Thaddeus Miles and Nichole Mikshenas.

 

For the fourth time in 21 years, MassHousing and the Commonwealth of Massachusetts hosted the New England Resident Service Coordinators (NERSC) annual conference, May 1-3 in North Falmouth. More than 550 housing management company staff from the New England states as well as Hawaii, Ohio, New York, Georgia, California and Florida participated in plenary sessions and chose from more than 60 workshops focused on a variety of topics.

NERSC President Jennifer Kadilak from Maloney Properties honored MassHousing for its sustained support of NERSC, the Tenant Assistance Program and the work of resident service coordinators over the years. The Excellence in Service Award was presented to Lucelia DeJesus from Plumley Village in Worcester, which is managed by The Community Builders.

 

Spring is a Busy Time for Hoarding Events, Trainings and Local Support Groups

MassHousing’s Community Service Department has worked with state and local housing and service partners for more than 20 years, leading the effort to understand and address the many facets of hoarding. The statewide effort to address hoarding includes support for local teams engaged in a variety of activities.

The Cape Cod Hoarding Task Force is running two weekly Buried in Treasures (BIT) groups in Mashpee and Barnstable, as are the Fairhaven Health Department and New Bedford Fresh Start.

The Town of Scituate and the South Shore Clutter Reduction Collaborative launched an online BIT skills group this spring. The Greater Brockton Area Hoarding Task Force and Old Colony Elder Services are running a weekly BIT group in Carver and sponsoring an event for Families Affected by Hoarding. 

The North Shore Center for Hoarding and Clutter (NSCCH) has formed a specialized group for those facing eviction due to Hoarding. The NSCCH also teamed up with Greater Lynn Senior Services to offer a new Family and Friends of Clutterers group. The Newton Hoarding Task Force sponsored two Conquer the Clutter public events and trained new group leaders.

Finally, Metro Boston Housing’s Hoarding Intervention Training Institute is holding its three-day certification training June 3-5 in Boston.

MassHousing maintains a robust collection of resources, information and events to help communities address hoarding. Visit www.masshousing.com/hoarding to learn more.