MORTGAGE PORTFOLIO GROWS TO NEAR 15,000 LOANS
AHFC’s Mortgage Department purchased a total of 1,752 loans growing the total mortgage portfolio from 14,867 in FY15 to 14,939 loans in FY16. The value of AHFC’s loan portfolio increased from $2.6 billion in FY15 to $2.8 billion in FY16. Nearly half of the portfolio consists of First-Time Homebuyer loans.
- LOAN PURCHASE ACTIVITY
- TOTAL MORTGAGE PORTFOLIO
First-time Homebuyer: MaryLisa Huntington
A LESSON FOR FIRST-TIME HOMEBUYERS
“I have been blessed through this process of buying a home. It went so much more smoothly than I could have ever imagined. My son and I now have a place of our own.”
(MaryLisa Huntington – first-time homebuyer, HomeChoice™ student)
When 36-year-old MaryLisa Huntington decided it was time to purchase a home in Fairbanks, she was intimidated by the process. As a first-time homebuyer, she didn’t know what to expect. But she did know she wanted to invest in something that would better her life and that of her 15-year-old son.
MaryLisa first heard about AHFC’s First-Time Homebuyer Programs from her parents, who had taken the HomeChoice™ class before and strongly encouraged her to do the same. The free course is designed to educate prospective homebuyers about the steps and decision-making processes involved in purchasing a home.
“My main goal going into the eight-hour class was to get comfortable with the homebuying steps. I wanted to be sure I had the knowledge to make a smart investment.”
Through the class, MaryLisa learned about the different types of home loans, the importance of a good credit score and the basics of financing a home. She became familiar with much of the technical language that is often daunting for first-time homebuyers.
“The HomeChoice™ instructor opened up to us and was honest about certain aspects of the process. She made sure we were comfortable with the information being given before moving on to the next topic.”
In summer 2016, MaryLisa purchased her very first home in a wonderful, family-friendly neighborhood in Fairbanks. Today, she is thankful for a safe place to call home.
DELINQUENCY RATE CONTINUES TO DROP
AHFC’s delinquency rate for its home mortgage loans continued its downward trend in FY16. At the end of the fiscal year 3.7 percent were 30-days or more past due compared to 3.9 percent in FY 15, a 4.6 percent decrease. These numbers put AHFC well below the national average of 4.55 percent for the same time period. The foreclosure rate fell from 0.55 percent in FY15 to 0.29 percent in FY16, a 42.6 percent decrease. At fiscal year-end AHFC foreclosure rate was only a quarter of the national average of one percent.
- The explanation for the low delinquency and foreclosure rates may be found in a combination of three things; careful underwriting, the free home buyer education class HomeChoice™ preparing more than 40,000 Alaskans since 1994 for homeownership and a dedicated servicing department with a stated goal of doing its outmost to keep customers with AHFC mortgages in their homes.
RENOVATION LOANS SPIKE
Across the State of Alaska, approximately 75 percent of all homes were built between 1960 and 1999, and many of these are now in need of an upgrade. AHFC experienced great success in FY15 after we started actively promoting our three renovation options: Purchase Renovation, Refinance Renovation and Second Mortgage Renovation. In FY16, AHFC continued to build on this success with loan volume growing to $20.6 million, up from $12.8 million in FY15. Our marketing campaign to promote renovations, “The 70s called. They want their house back,” is ongoing, and includes outreach to industry partners and potential customers at community home shows.
Mortgage & YouTube
YOUTUBE SUPPORT FOR MORTGAGE OUTREACH
AHFC produced three YouTube videos in FY16 in support of the Mortgage Department’s outreach to potential customers in the millennial generation. Two videos, Improving Your Credit Score and Fixing Credit Problems, tackle a critical issue for first time home buyers according to the Mortgage Department and AHFC’s HomeChoice™ homebuyer education instructors. The third video addresses another vital question, To Buy or Rent?, and identifies pros and cons of each.
The videos have been distributed on YouTube and among AHFC’s other social media channels, including Facebook and Twitter, and they were a focus during the FY16 spring home shows.
HOMECHOICE™ IN A CLASS OF ITS OWN
HomeChoice™, AHFC’s free homebuyer education class, continued to be popular among Alaskans in FY16 with 1,503 participants. Since 1994, more than 40,000 Alaskans have benefitted from taking the eight hour class, becoming better-performing homebuyers and owners. The class covers all aspects of getting ready for homeownership (credit, shopping for a home and budgeting) and costs involved with owning and maintaining a home.
HERE ARE THE NUMBERS FOR FY16:
Classes taught: 81
Number of participants: 1,503
Communities served: 13
Anchorage, Barrow, Bethel, Fairbanks, Homer, Juneau, Kenai, Ketchikan, Mat-Su, Nome, Palmer, Sitka and Soldotna.
Participant feedback is overwhelmingly positive for both the classes and Instructors Maude Morse and Maria Celli. Some comments shared with AHFC:
- "I can't believe this is free! Thank you!"
- “It is extremely helpful to have reps from different areas of the buying process available to answer targeted questions. It gave us a great idea of if we’re going in the right direction and if we should change anything we’re currently doing. Thank you!”
- “Great class, I feel I know the right questions to ask throughout the whole process.”
- “Single mom looking for a forever home for my daughter and me. I work in a real estate brokerage and I had no idea about how the lending process works. Learned so much and grateful for it!”
- "Very, very glad we came. Wish I would have come even sooner in the process."
- "Instructor was very interactive and information was explained thoroughly. Didn't feel overwhelmed."
OPEN HOUSE AT CASWELL COURT
The grand opening of Caswell Court on July 24 in FY16 added 34 new affordable units to Eklutna Estates. This brings the total unit count in the property up to 93. Caswell Court, nearby Centennial Park along the Glenn Highway in Anchorage, offers one- and two bedroom apartments for persons 55 and older with modest incomes. The Cook Inlet Housing Authority (CIHA) project was supported with $6.5 million in AHFC funding through awards and mortgage funds. The Rasmuson Foundation also played a significant role by adding $300,000 in grants.