hlp annual report

Unifying the Housing Industry

Hope LoanPort is a national, neutral and nonprofit

utility that unifies the efforts to help families achieve

and sustain homeownership. Our role is to be the

digital transit way for all stakeholders in the home-

ownership process by facilitating collaboration and

giving stakeholders the tools they need to manage

their respective interests in the transaction.

It has been remarkable to witness the evolution of Hope LoanPort® (HLP)

since its creation in 2009. With homeowners struggling to save their

homes from foreclosure during the Great Recession, this organization

became the intersection where mortgage companies, investors and non-

profit counseling agencies put the housing market back on its feet and

helped more than 400,000 homeowners during their time of need.

By developing a technology platform that is transparent, secure and easy to use, we have

created a unique service that is now the model for collaboration in our industry. Hope

LoanPort is the only place where consumers, their advocates and the mortgage industry

can exchange and manage information in real time, enabling people nationwide to achieve

and sustain homeownership. Our new technology also positions us to be the conduit for

all future transactions between various sectors of the housing industry.

With broad support from the private sector, nonprofit credit counseling agencies and the

federal government, Hope LoanPort is positioned to help unify the industry. We look

forward to making our technology available to all of our stakeholders, allowing them to

collaborate to achieve their goals and moving the housing market ahead.

Bill Longbrake

Chairman, Board of Directors

Building a Lasting System

2008

Emergency EconomicStabilization Act signed

HOPE NOW AllianceCreated by government and

private industry to find solutionsfor distressed homeowners

Subprime Mortgage Industry CollapsesMultiply lenders declarebankruptcy

Creating $700 billion TroubledAssets Relief Program (TARP)

Fire Sales and TakeoversGovernment takes over Fannie Mae and

Freddie Mac–Merrill Lynch sold to Bank of America

NAR announces 2007saw largest drop in existinghome sales in 25 years

2 Hope LoanPort

2014 marked a clear shift in how our stakeholders use Hope LoanPort.

No longer just reacting to the exigencies of the financial crisis, our

partners are now strategically engaging us to support their work with

families across a broader range of services. This post-crisis market is

profoundly different, driven by the need to improve customer service,

operational efficiency and regulatory compliance. Counselors, servicers,

investors and attorneys are leveraging the uniqueness of our platform to support their

transition into the new marketplace.

We simplify operations by collapsing fragmented business activities and replacing multiple

end-user applications with an integrated platform. These activities fit the core strengths

of HLP, particularly managing documents, data and communication exchanges among

multiple stakeholders. This dramatically improves oversight and allows companies to

reallocate resources, streamline processes and strengthen their bottom line.

As a result, we started new partnerships in 2014 which increased the volume and diver-

sity of the transactions we handle. We expanded our technology platform to support the

full range of mortgage products, from origination through servicing. Our user base con-

tinues to grow and Hope LoanPort now has more than 1,100 nonprofit credit counseling

organizations, 20 of the largest mortgage servicers, the top five banks and GSEs using our

technology on a regular basis. Thank you for making 2014 a very special year for HLP!

Cam Melchiorre

President and CEO

Engaging the New Marketplace

timeline of events continued on page 4

Servicer Enrollment U.S. Mortgages2010-2011, HLP enlisted

19 of top 20 mortgage servicers

Counselors and Agencies

Nonprofit counseling agencies connect to HLP

Counselors use our services19 mortgage servicers represent83% of all residential mortgages

Hope LoanPort began in 2009 as a solution to help homeowners and the mortgage industry facing the foreclosure crisis. In the past five years, our organization has expanded its reach to serve an even wider range of stakeholders and has become the “go to” technology

platform for all players involved in the mortgage industry.

19/20

Estimated Value of Residential Real Estate Impacted through Hope LoanPort

Families and Individuals Helped

83%

2014 Annual Report 3

impact

2010 20112009

Camillo MelchiorreNamed CEO

HOPE NOW Allianceforms a Technology Task Forceto solve problems of homeownerscommunicating with servicers

Direct Consumer PortalHLP allows homeowners tosubmit workout packagesdirectly to servicer

Foreclosures PeakMore than 1 million homes lost to foreclosure in 2010Hope LoanPort Milestone

First ForeclosurePrevention Case Hope LoanPort Milestone

Designation as501(c)(3) Nonprofit

Hope LoanPort Milestone

Emergency HomeownerLoan Program

Takes helm at Hope LoanPortHope LoanPort Founded

allows housing counseling agencies tosubmit loan modification packages that

can be reviewed by servicers

HLP Enlists ServicersHLP signs 19 of top 20 mortgageservicers, accepting documentsfiled by homeowners for loanmodification

Dow Jones Industrial Average falls to 6,440

Selected by HUD and NeighborWorksas the required technology platform

4 Hope LoanPort

Hope LoanPort’s unique ability to connect

multiple stakeholders has helped more than

400,000 homeowners to date. As the digital

transit way, we unify these efforts and give

each stakeholder the tools to manage their

part of the transaction. Here’s a look at how

these groups are using HLP to collaborate

and help homeowners:

Counseling

Intermediaries

Counseling intermediaries

have gained new tools for oversight and

management of their affiliate agencies. They

can now analyze performance by agency,

program, and case type, ensuring consistent

treatment for clients and providing a frame-

work for continuous improvement. Work

distribution tools allow homeowners to be

assigned to an agency based on specific

criteria, capacity and certifications. Finally,

HLP dramatically improves financial

oversight and reporting for grants, such as

HUD and the NFMC programs.

Nonprofit Counselors

More than 1,100 nonprofit

counseling agencies have found HLP to

be a simple, secure method to get their

client’s information to the right decision

maker at mortgage companies. HLP

incorporates a HUD-certified case

management and direct connectivity with

servicers, which enables a counselor to

securely send a package of information,

exchange messages, update individual

documents, track progress on the

decision and have a permanent audit

trail for each case. As one counselor

noted, “Hope LoanPort has really eased

the process of tracking loan modification

packages for us.”

Unifying Efforts for Homeowner Success

2010 20112009

Camillo MelchiorreNamed CEO

HOPE NOW Allianceforms a Technology Task Forceto solve problems of homeownerscommunicating with servicers

Direct Consumer PortalHLP allows homeowners tosubmit workout packagesdirectly to servicer

Foreclosures PeakMore than 1 million homes lost to foreclosure in 2010Hope LoanPort Milestone

First ForeclosurePrevention Case Hope LoanPort Milestone

Designation as501(c)(3) Nonprofit


Emergency HomeownerLoan Program

Takes helm at Hope LoanPortHope LoanPort Founded

allows housing counseling agencies tosubmit loan modification packages that

can be reviewed by servicers

HLP Enlists ServicersHLP signs 19 of top 20 mortgageservicers, accepting documentsfiled by homeowners for loanmodification

Dow Jones Industrial Average falls to 6,440

Selected by HUD and NeighborWorksas the required technology platform


Mortgage Servicers

Servicers use HLP to make

timely decisions on home-

owner requests for assistance. The platform

reinforces operating consistency and helps

compliance with regulatory guidelines. It

standardizes documents, data and business

rules and eliminates lost paperwork and

miscommunications, ensuring transparency

for all parties throughout the process. HLP

ensures that the homeowner’s requests for

assistance reaches the right person, facil-

itates the communication and document

exchanges needed and provides a secure

channel for transmitting sensitive consumer

data. HLP helps ensure servicer compliance

with the National Mortgage Settlement and

the CFPB’s Bulletin 2013-01.

Attorneys

Attorneys use HLP to replace faxes

and overnight delivery services, speeding up

the communication process, reducing mail

costs and creating a permanent audit trail of

communications with the servicer.

Investors

Investors use HLP to reduce

losses and ensure workouts produce better

performing loans. Through real-time access

to the data and documents uploaded by

counselors and servicers, an investor can see

the progress of a transaction and intervene if

needed. This view also provides insights into

how the parties work together, allowing for

identification of best practices, standardized

proof of work completed and the ability to

route work to high-performing organizations.

A senior executive noted, “We are excited

about Hope LoanPort’s technology as an

efficient and transparent platform not only

for [our] partners, but as a step in the right

direction for broader industry efforts to

assist distressed homeowners.”

stakeholders

continued

2013 20142012

National Mortgage SettlementFive largest mortgage servicers agree toprovide $26 billion in relief to distressedhomeowners and governments—HLPnamed as a model to be emulated, if not used, as a required web portals

Investor PortalHLP begins development of investor portal with Fannie Mae

Home Sales Recover

National HomeownershipSolutions Platform Launched

Monthly sales of new single familyhomes reach highest level in six year

Bank of America ExpansionEstablishes HLP as preferredchannel for all third parties

to submit packagesWells Fargo IntegrationLaunches a large-scale, enterpriseintegration project with HLP, addingsupport for mediation and bankruptcy

Dow Jones IndustrialAverage hits 18,000


Mortgage ServicingRights TransferImplemented a utility to allowingtransfer of workouts-in-progressfor MSR cases between servicers


Added Non-RetentionOptions to Platform Hope LoanPort Milestone

Attorneys Join Portal

6 Hope LoanPort

Hope LoanPort expanded its technology

platform in 2014 to support a full range of

mortgage products. These investments

solidify Hope LoanPort’s position as the one

technology that connects all the stakehold-

ers for any type of housing transaction.

Our new National Housing Solutions

Platform (NHP) connects counselors,

mortgage servicers, originators and in-

vestors in real time through its case man-

agement system. The platform supports a

variety of products, both in the traditional

mortgage servicing arena and mortgage

originations. The ability to exchange in-

formation bi-directionally and for multiple

parties to collaborate radically alters the

landscape for HLP participants. It opens

a world of greater opportunities for the

mortgage industry, nonprofit counselors

and other stakeholders to work together at

scale to help consumers. This will allow

any party enrolled on the platform to both

create submissions and/or receive requests

for assistance directly from another party.

One such use is in the home buying pro-

cess, where the biggest challenge facing

the housing market is the lack of qualified

home buyers. The platform allows lenders

to qualify higher risk, declined

applicants and reverse mortgage

customers using HLP, routing

them through the platform to

be paired with a counselor. As

the counselor works with the

family on their plan to achieve

homeownership, all of their

data, documents and progress

are tracked and stored in HLP.

Once their individualized plan

is completed—demonstrating

the required improvement in their finances

and credit—the consumer is issued a pre-

purchase counseling certificate and can

reapply for a mortgage loan.

Expanding to New Products

Hope LoanPort Products Supported

Origination • prepurchase

• refinance

• reverse mortgages

Servicing• post-purchase

• early intervention

• foreclosure prevention

• post loan modification

• non-retention

• mediation

• MSR transfers

Robust, Secure and Fully-Managed Hosting Environment. Our platform applications and data are hosted in an enterprise-class environment with

the highest levels of availability, recovery, security, and responsiveness. This environment meets all key industry certifications and undergoes regular onsite

and remote audits, plus performance monitoring and penetration testing. It is a fully redundant, highly available configuration that is certified to ensure the

highest levels of uptime, with enhanced managed services to ensure our mission-critical applications are always up and running at optimum levels.

Regular External Audits. HLP meets the vendor requirements as

an approved technology-solution provider for our mortgage servicer

and financial institution customers. Since these companies are subject

to audits by CFPB, OCC and other regulators to ensure compliance with

FFIEC (Federal Financial Institutions Examination Council) information

technology standards, they regularly audit HLP for compliance. We

completed more than 20 such in-depth audits and reviews in 2014 and

are committed to maintaining a platform and environment that meets all

regulatory compliance expectations.

Industry-Leading Security. We understand the special responsibil-

ities that come with handling confidential consumer data. Our hosting

environment obtains an annual SOC 2, Type 2 Service Auditor’s Report

and undergoes quarterly Payment Card Industry compliance scanning,

the industry’s highest standards. There are seven levels of physical

access security and 24x7x365 monitoring by onsite data security

services to identify vulnerabilities and remediate issues. Annual code

application scans, regular third party audits and HLP’s own full-time

security staff offer additional layers of protection.

Hope LoanPortNational Housing Platform

Homeowners

Advocates(counselors, attorneys)

CounselingIntermediaries

Investors andGuarantors

MortgageOriginators

MortgageServicers

2013 20142012

National Mortgage SettlementFive largest mortgage servicers agree toprovide $26 billion in relief to distressedhomeowners and governments—HLPnamed as a model to be emulated, if not used, as a required web portals

Investor PortalHLP begins development of investor portal with Fannie Mae

Home Sales Recover

National HomeownershipSolutions Platform Launched

Monthly sales of new single familyhomes reach highest level in six year

Bank of America ExpansionEstablishes HLP as preferredchannel for all third parties

to submit packagesWells Fargo IntegrationLaunches a large-scale, enterpriseintegration project with HLP, addingsupport for mediation and bankruptcy

Dow Jones IndustrialAverage hits 18,000


Mortgage ServicingRights TransferImplemented a utility to allowingtransfer of workouts-in-progressfor MSR cases between servicers


Added Non-RetentionOptions to Platform Hope LoanPort Milestone

Attorneys Join Portal


our platform

Practicing Fiscal Stewardship. Our leadership team and board of directors work together to ensure we

provide the highest quality services to as many stakeholders as possible, while maintaining long-term fiscal

stability. We ended this past year fiscally strong, with no debt and with more than $207,000 in net income. As

a 501(c)(3) nonprofit, we take very seriously our responsibility for using our contributed and earned revenues

efficiently. In 2014, more than 82 percent of expenses were dedicated to program services.

Financial Supporters

During our first five years,

we have been fortunate to have

the support of a broad range

of financial supporters,

which include:

Bank of America

Bayview Loan Servicing

Carrington Mortgage Services

Chase Home Finance

Citi Mortgage

Fannie Mae

Financial Services Roundtable

First American

Hope Now

HSBC Finance

IndyMac/One West Bank

LoanCare Servicing

M&T Bank

NationStar Mortgage

NeighborWorks America

Ocwen Loan Servicing

PennyMac

PNC Mortgage

Radian

Residential Credit Solutions

Select Portfolio Servicing

Shellpoint Mortgage Servicing

SunTrust Mortgage

Wells Fargo Home Mortgage

2014 expenses

Expenses

Revenue

Management

Program Services

Fundraising

82%

15%

3%

2014 Revenue – $6,173,942

$6M

$5M

$4M

$7M

$3M

$2M

$1M

2010

$1,081,899

$2,630,301

$5,836,432$6,173,942$6,166,887

$3,160,855

$5,187,087

$5,707,262

$5,966,121

2011 2012 2013 2014

(Unaudited)

8 Hope LoanPort

stewardship

leadership

HLP Board of Directors

Bill Longbrake, Board Chair Executive-in-Residence,

Robert H. Smith School of Business, University of Maryland

John Dalton President,

Housing Policy Council, Financial Services Roundtable

Jonathan Fiechter Senior Advisor,

Systemic Policy Partnership

Ira Goldstein President, Policy Solutions, The Reinvestment Fund

Rick Levy Executive Director,

Lift Up Africa

Steve O’Connor Senior Vice President,

Public Policy & Industry Relations, Mortgage Bankers Association

Faith Schwartz Senior Vice President,

Government Solutions, CoreLogic

David Stevens President and CEO,

Mortgage Bankers Association (Director Emeritus)

Stuart Tryon Special Agent in Charge,

Criminal Investigative Division, United States Secret Service

HLP Management

Camillo Melchiorre President, Chief Executive Officer, Member of Board of Directors

Mark Cole Executive Vice President, Chief Strategy Officer

Nick Figlo Senior Vice President, Solutions Design and Analytics

Samantha Friedman Senior Vice President, Product Development and Client Services

Louann Bernstone Director,

Vendor Management, Risk, and Compliance

Scott Lake General Counsel

hlp annual report

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