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23 » VISIT US ONLINE @ DSNEWS.COM FANNIE MAE'S "ACTION PLAN" TO HELP HOMEOWNERS Fannie Mae announced the launch of a comprehensive "action plan" to help homeowners who are impacted by natural disasters. e Fannie Mae Disaster Response Network is a comprehensive case-management service for disaster-affected homeowners whose mortgage loans are backed by the company and is a supplement to the company's current post- disaster mortgage relief options. e program provides homeowners broader personalized support to address safety and basic needs, property repairs, employment, and financial recovery—all of which affect a borrower's ability to meet their mortgage obligations. "Communities face extraordinary challenges dealing with the impacts of a natural disaster," said Michael T. Hernandez, VP Disaster Recovery & Rebuild, Fannie Mae. "For homeowners, the process can be complex, stressful, and time-consuming. We want to help families regain their personal and financial footing beginning with mortgage relief, but also by helping more broadly to ensure a successful recovery." As part of Fannie Mae's commitment to disaster response, Hernandez addressed mortgage banking executives, servicers, government representatives, and more at Five Star's PR18. PR18 attendees discussed the current state of housing in Puerto Rico and possible solutions and infrastructure the industry can put in place to aid recovery. Hernandez presented on affordable housing and key components for stabilizing communities and the local economy. He also addressed the effectiveness of current programs in place. "Today's announcement demonstrates and further solidifies Fannie Mae's commitment to ensuring that homeowners are protected," said Five Star Institute President and CEO Ed Delgado. "e weather and fire events of the previous two years serve as a solemn reminder of the inevitability of the occurrence of natural disasters. I applaud Fannie Mae's proactivity in taking steps to empower and educate borrowers so that they may quickly begin picking up the pieces when disaster strikes." Fannie Mae's Disaster Response Network is operated by Clearpoint Credit Counseling Solutions through their Project Porchlight program. Utilizing a call-center model, staffed exclusively by HUD-certified counselors within the United States, the Disaster Response network will help homeowners navigate the challenging and unfamiliar post- disaster recovery process and will include: 1) a comprehensive case assessment and action plan designed to meet the homeowner's needs; 2) assistance in filing FEMA, insurance, and Small Business Administration (SBA) claims, as well as providing additional referrals and resources for disaster recovery and resiliency; 3) tri-party calls with assistance providers and homeowners, plus ongoing counselor- homeowner check-ins to help ensure a successful recovery; and 4) a web-based platform designed to educate borrowers, provide resources and updates and create a supportive online community of neighbors facing similar challenges. Fannie Mae has said that homeowners with a Fannie Mae-owned loan whose property is in a FEMA-declared zone are eligible for free assistance from the Disaster Response Network. If the home was not damaged, but the borrower's employment/income was negatively affected, they are still eligible for the program. UNEVEN ROAD TO RECOVERY ough the median U.S. home is worth 9.8 percent more today than its pre-recession peak, the path to regaining home value has been uneven for the less-financially sound households even today. Median home values have recovered at a much faster pace in the country's national market as opposed to nearby areas of the same markets, that faced a higher rate of foreclosures, according to an analysis by Zillow. In the aftermath of the housing crisis, numerous homes in several ZIP codes are still burdened. Zillow's analysis, entitled Uneven Recovery: Many High-Foreclosure ZIP Codes Haven't Bounced Back, points to ZIP codes with homes that suffered the highest foreclosure rates during the pre-recession period recovered at a much lower rate than homes in nearby ZIP codes with fewer foreclosures. Across the nation's largest 35 metros, 54.3 percent of homes in areas with the fewest foreclosures have fully recovered, compared to on 39.1 percent of homes in areas with the most foreclosures. Commenting on the crisis, Aaron Terrazas, Senior Economist at Zillow, said, "e Great Recession is far in the rear-view mirror, but economists are beginning to ask how long the current economic expansion can run on. Communities that experienced the sharpest downturns a decade ago could find themselves confronting the next economic downturn– when it does eventually arrive–having not yet fully recovered from the last one." Recovery overall has been slow in places like Riverside, California, compared to divergent metros in neighboring metros such as San Francisco, San Jose, Los Angeles, and San Diego, leading to wealth disparities. e analysis found that nearly half of the homes foreclosed across the country were in the bottom third in terms of value. In sharp contrast, high-foreclosure areas in Chicago and Miami recovered at a slightly higher rate. Twelve out of 19 cities with a disparity in recovery rates are perceived to have recovered from recession losses. In Atlanta, the median home value has increased by 13.6 percent compared to its largest pre-recession value. However, only 39.4 percent of homes in Atlanta's high-foreclosure ZIP codes have recovered their pre-recession peak values, compared to 77.6 percent of homes in low foreclosure ZIPs.