Nevada Home Retention Program purchases mortgages to launch homeownership preservation efforts


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Teri Williams
Public Information Officer
(702) 486-0407
Carson City, NV - May 02, 2014

Governor Brian Sandoval, in conjunction with the Department of Business and Industry, today announced the State has kicked-off the Nevada Home Retention Program.  The state-affiliated nonprofit organization, Home Means Nevada, has finalized an agreement with the U.S. Department of Housing and Urban Development (HUD) to purchase a pool of mortgages to launch the State of Nevada’s homeowner assistance program.

 

Funds for the program come from the National Mortgage Settlement Agreement brokered by the Nevada Attorney General’s Office and approved for use by the 77th Nevada Legislature. 

 

Nevada was one of the hardest hit states during the recession, and as we start to see significant signs of recovery, many hard working Nevadans still face the possibility of losing their homes,” said Governor Brian Sandoval.  “The Nevada Home Retention Program will serve to help distressed homeowners remain in their homes, thus providing stability to our neighborhoods and communities across the state.  I would like to thank Senator Harry Reid, Attorney General Catherine Cortez Masto and the Legislature for their role in making this program possible.” 

 

The program aims to stabilize property values and preserve neighborhoods by acquiring pools of delinquent notes and refinancing the loans to current market value.  If the borrower owes more on the home than the current market value, the principal balance would be reduced, providing the homeowner an opportunity to begin building equity.  For those borrowers that are unable to qualify, transition assistance and support will be offered.

 

This Administration is committed to helping families remain in their homes as it contributes to more stable neighborhoods and stronger communities,” said Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing, Carol Galante.  “We support the Nevada Home Retention Program’s proactive approach to assisting homeowners across the state.”

 

U.S. Senator Harry Reid, who helped facilitate the interaction between HUD and the State added, “I am pleased that the State of Nevada and the Department of Housing and Urban Development have been able to resolve some of the issues with the program to date and find an innovative way to help Nevada homeowners. I’ve helped Nevada receive $194 million from the federal government through the Hardest Hit Fund and a portion of this money combined with the settlement money will be used to help underwater homeowners. I am committed to doing everything I can to help Nevadans stay in their homes.”

 

Homeowners whose loans are part of the mortgage pool purchased by the program can expect to receive communication from their current loan servicer informing them of the transfer to a new servicer as soon as mid-May.  Wingspan Portfolio Advisors will act as the new servicer for all loans acquired by the Nevada Home Retention Program. Once the notes have been officially transferred, homeowners will receive official correspondence in a golden envelope from the program, informing them of their potential eligibility for a loan modification and outlining the next steps. Borrowers will also be contacted by the Financial Guidance Center, a HUD certified housing counseling agency, to begin the loan modification qualification process.  

 

For more information about the Home Means Nevada Home Retention Program, visit www.homemeansnevada.nv.gov.

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