Housing Matters

homes and set of keys

Spring 2017, Volume 29

CalHFA Makes Its Presence Felt at Housing CA Conference

With enthusiasm already high around our Multifamily Division, CalHFA made a big splash at Housing California's annual conference March 9-10.

The conference itself had its most attendees ever — more than 1,450 people — and many of them were on hand for CalHFA's Breakfast and Answers event on March 10.

While conference attendees enjoyed breakfast burritos and sipped cups of coffee, CalHFA Executive Director Tia Boatman Patterson and Director of Multifamily Programs Tony Sertich took the stage to answer a wide range of questions, some of which were collected during the conference at the CalHFA booth and the rest came directly in the Breakfast and Answers audience.

Housing California Event
Executive Director Tia Boatman Patterson and Multifamily Programs Director Tony Sertich answer questions at Housing California.

Following a video that highlighted CalHFA's Multifamily vision, moderator Eric Johnson guided the session, asking Tia about Agency goals and plans and getting some more detailed technical answers from Tony.

"It was great to see such a big turnout for our breakfast event," Tia said later. "And Tony and I were thrilled to share some of the exciting new things happening at CalHFA."

CalHFA's booth, a unique building block table, striking orange backdrop and Lego-inspired mugs — which were raffled off — drew hundreds of visitors. Sertich and the Multifamily staff, including a contingent from the Culver City office, spent time with each visitor, providing information about CalHFA programs and forming relationships for future affordable housing collaborations.

Though they each had shifts at the booth, the Multifamily folks also found time to attend workshops where they took part in valuable discussions on a wide range of topics that are linked to housing in the state.

CalHFA Housing Finance Officer Matt Mielewski said that his favorite session was a Healthcare, Housing and Healthy Communities panel: "How Three Counties are Leveraging Whole Person Care (WPC) to Bolster Local Jail Diversion and Reentry Efforts."

Moderator Danielle Wildkress, from CSH, led the discussion, which centered on how Los Angeles, Napa and Santa Clara counties plan to use WPC to bolster diversion and reentry, with emphasis on supportive housing.

"There are a significant amount of innovations occurring due to the five-year Medi-Cal waiver program, which result in better outcomes and cost savings," Mielewski reported.

Between the information gained at the workshops, the relationships built at the booth and the great conversation over breakfast, the event was a huge success for CalHFA and its partners.

Single Family Lending Update

Accessory Dwelling Unit under construction
CalHFA will now allow income from
ADUs for loan qualification.
Single Family Lending continues to improve its programs and processes to keep up with the ever-changing market. Here's a preview of the coming weeks and months!

The opening pages of the Mortgage Access System are being revamped to make login and menu access simpler and more intuitive. We're aiming for fewer clicks and easier access to the files used most often. Look for the rollout soon.

We are enhancing our online homebuyer education by adding one-on-one homebuyer counseling that can be done via Skype or other video conferencing app. Studies have shown that the combination of counseling and education gives the first-time homebuyer the biggest head start in the homebuying process, and leads to better outcomes when it comes to delinquencies and foreclosures.

Accessory Dwelling Units have been a hot topic of conversation recently, and we are expanding our guidelines to be more accommodating of these key pieces of the California housing puzzle. CalHFA will now allow rental income from ADUs to be used for qualifying for Conventional loans. The rental income will also count toward compliance income with respect to income limits.

We've also updated information on Mortgage Credit Certificates, made back-end improvements to MAS, and further streamlined our operations. We hope these changes make the CalHFA experience even better for loan officers, brokers and first-time homebuyers.

2016 Top Originators

Guild MortgageAmerican Pacific MortgageNew American FundingManuel CorralKatherine YorkPablo Estrada
CalHFA's 2016 Top Producers & Originators: (left to right): Guild Mortgage, American Pacific Mortgage,
New American Funding, Manuel Corral, Katherine York and Pablo Estrada

Each year, CalHFA honors the lenders who originate the most loans using our programs. Congratulations to our 2016 Top Originators!

MANUEL CORRAL, Golden Empire Mortgage, Pomona, CA

Manuel Corral is a 29-year veteran of the mortgage industry, and leader of the Golden Empire branch in Pomona.

Manuel is a perennial Golden Empire Chairman’s Circle Award winner for the company’s top producers, and has been nationally recognized as a top producer by numerous mortgage origination publications. Since joining Golden Empire Mortgage in 1996, Manuel has funded over 3,700 loans for nearly $1 billion.

Manuel credits his success to his belief in God, his family and his many mentors (including Todd Duncan) and business associates. He believes in “people before profits and reputation before revenue.” Manuel and his team are dedicated to making a difference in the lives of their customers by delivering unparalleled service coupled with unmatched borrower fiscal education to reach their financial goals.

PABLO ESTRADA, HomeBridge Financial, Fresno, CA

Pablo has been in the mortgage business for 12 years and as a notoriously hard worker, he has earned Five Star Mortgage Professional designations.

Since 2005, Pablo has worked for two banks and spent four years at another mortgage company, before starting with HomeBridge this year as a Sales Manager.

He believes in the Golden Rule of customer service, treating people as you would want to be treated, while satisfied clients and confidence from realtors are the rewards Pablo seeks from his daily workday.

In addition to helping his wife raise their two daughters, he is an active member of his church as Church Treasurer.

KATHY YORK, Provident Bank Mortgage, Riverside, CA

Kathy's career in the mortgage industry spans more than 32 years. She underwrote loans for 22 years, during which she held positions of regional and national credit manager. Her extensive knowledge of credit and program guidelines has enabled Kathy to achieve overwhelming success in originating loans as well.

She enjoys helping first time homebuyers throughout their first experience of purchasing a home. Kathy takes pride in the level of service she provides and enjoys overcoming challenges to ensure that more people can own their own home. If it can be done, Kathy will make it happen!

Active in her community, both professionally and personally, Kathy’s heart is with those who have not experienced home ownership. Her career goal is to see every American family own their own home. The thank you Kathy loves to receive most is a referral from that brand new home owner.

A Successful Collaboration With RCD

Resources for Community Development logo
Watch the conversation with
Baker Lyon of RCD (2:15)
Affordable housing developer Resources for Community Development (RCD) shopped around and then chose to collaborate with CalHFA. RCD project manager Baker Lyon explains that our long-term, low-interest financing, our creativity and our perseverance to get the deal done made it an easy decision.

Working with the Federal Financing Bank

FFB seal, established 1973
With the goal of preserving California's dwindling stock of affordable housing, and resources that are becoming harder and harder to come by, CalHFA Executive Director Tia Boatman Patterson knows collaboration is the key to making the most of those precious resources. This includes partnerships between public and private entities, between different government agencies and sometimes all of them working together.

A recent collaboration with the Federal Financing Bank (FFB) — pursuant to an exclusive partnership between the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of the Treasury and state housing finance agencies across the country — has given CalHFA the ability to expand its Multifamily loan programs to help keep more California families in homes that are affordable.

This partnership — in which the FFB purchases a 100% participation interest in a loan that is 50% insured by CalHFA and 50% insured by HUD — allows CalHFA to provide considerably lower interest rates on loans to owners of affordable rental housing. This CalHFA offering, which is not available through any other California bank or lending institution, gives owners new incentive to refinance, make capital improvements and lock in long-term affordability for lower income residents.

Since starting this collaboration through FFB in early 2016, CalHFA loans have helped close seven affordable housing preservation projects.

"This is a major milestone in our efforts to preserve and increase the availability of affordable housing in our state, and a true example of how collaboration can make a big impact," Patterson said. "While there are other financing options available through banks and lending institutions, this low-cost, long-term financing option is exclusive, in California, to CalHFA."

The first project to benefit from CalHFA's FFB partnership is Park Place Apartments, a 142-unit family apartment complex in Los Angeles, which received a $10,450,000 loan. With a 40-year term, the fully amortizing loan is pre-payable at par in 15 years. The exclusive FFB participation allowed CalHFA to reduce the rate by 0.65% prior to closing the permanent loan.

Built in 1966, Park Place Apartments underwent renovations and upgrades. The new permanent loan replaced the previous financing, thereby extending CalHFA's affordability requirements on its regulated rental units for another 25 years.

"Park Place Apartments is an important affordable housing resource in L.A. and our financing will improve the units, enhance the lives of the current residents, and extend the affordability for low-income families for many more years," Patterson said.

After the success at Park Place Apartments, CalHFA has used the FFB collaboration for projects up and down the state that can now continue to provide safe affordable housing. CalHFA financing allowed for preservation of 98- family units at Palos Verdes Villas in Palm Springs, 150-senior units at Renwick Square Apartments in Sacramento County, 100- senior units at Sutter Terrace Apartments in Placer County and 50-senior units at Vista Hidden Valley Apartments in San Diego County over the past year.

Even more recently, the FFB partnership and CalHFA involvement have helped close loans for the preservation of 57-family units at Villa Del Comanche Apartments in Kern County, and 44-senior units at Hacienda Del Norte Apartments in San Luis Obispo County.

We look forward to continuing our partnership with FFB to preserve even more affordable housing in 2017.

Duty to Serve

Fannie Mae and Freddie Mac logos
The Federal Housing Finance Agency released its final rule on the Freddie Mac and Fannie Mae's Duty to Serve three historically underserved markets:

• Manufactured housing
• Affordable housing preservation
• Rural markets

The Final Rule does not mandate any particular activities. Instead, it lays out guidelines for evaluating the Government Sponsored Entities (GSEs) on how they serve each of those markets.

There have already been several conference calls and listening sessions around the country, and the National Council of State Housing Agencies is keeping a close eye on progress. The GSEs must deliver draft plans by April. There will be public input, revisions and finalization prior to targeted implementation of the plans on January 1, 2018.

Further information and a full timeline are on FHFA's website.

Report Proves Keep Your Home California is Great for the State

KYHC imact
KYHC's impact on California has meant 8,906 jobs preserved, $441.4 million in employee income, $81.3 million in
tax revenue and $1.1 billion in property value preserved.

More than 8,000 jobs preserved, $441 million in employee income, $81 million in tax revenue and $1.1 billion in property value … the numbers are truly staggering.  

According to a report from the University of South Carolina's Darla Moore School of Business, it all adds up to an impressive $2.5 billion in economic activity preserved by the Keep Your Home California homeowner assistance program in its first six years, 2010-2015. That's two dollars gained for every dollar spent through the federally-funded program, which has been implemented by CalHFA since its inception.

KYHC was established in 2010 when the state received $2 billion from the U.S. Department of Treasury's Hardest Hit Fund, and has since kept just shy of 70,000 Californians from losing their homes.

view video
Watch the conversation with
CalHFA Executive Director
Tia Boatman Patterson and
Dr. Joseph C. Von Nessen (18:55)
The Economic Impact of Keep Your Home California: A Statewide and Regional Analysis report was authored by Dr. Joseph C. Von Nessen, a Research Economist at the Moore School of Business and an expert on similar government programs. 

The report gives a detailed look at the success of KYHC, which is made up of five programs that assist homeowners with their specific financial hardships. These programs include the Unemployment Mortgage Assistance Program, which had the largest impact at $1.16 billion preserved, and the Mortgage Reinstatement Assistance, which had $4.35 of economic benefit for every $1 issued.

Not surprisingly, the largest raw economic impacts from KYHC came in the state's biggest counties, places like Los Angeles, San Diego, Orange, Riverside, San Bernardino, Sacramento and Alameda, according to the report.

The counties with most dollars gained per dollar spent, however, were sprinkled throughout California, topped by San Francisco's whopping $4.90 to $1 ratio. In Modoc County, $3.90 was preserved for each dollar spent, and similarly strong numbers were noted in San Mateo ($3.10), Orange ($2.50), Alameda ($2.40), Los Angeles ($2.30) and Santa Clara ($2.30).

With such good news to share about so many different parts of the state, KYHC Marketing and External Affairs Director Steve Gallagher has taken to the airwaves to spread the word. Gallagher has made appearances on radio stations in Fresno (KBIF 900 AM), Auburn (KAHI-AM) and Porterville (1450-AM).

CalHFA Executive Director Tia Boatman Patterson also weighed in:

"Keep Your Home California is making a difference to homeowners, their neighbors and their communities as well as California businesses and the entire state. Through the economic ripple effect, Keep Your Home California has not only helped those directly assisted by the program, but also many others — including employees who kept their jobs and small-business owners who maintained their customers. Neighborhoods, communities and the state have all benefitted from the program."