#4b Collections Report 4 qtr 08
NEIGHBORHOOD SERVICES MEMORANDUM
January 29, 2009
TO: Community Development Authority
FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist
SUBJECT: Agenda Item #4b- 2008- 4th Quarter Collections Report
Summary
Neighborhood Services Staff has traditionally provided the CDA with a collections report
detailing the status of our various loans and collection activities. This report will provide a
summary of 2008 loan activity.
Background
The 2008 – 4th Quarter indicates we have approximately $4.08 million in outstanding loans,
compared to $3.98 million in the third quarter of 2008. Of that figure, just over $1.08 million, or
117 loans, are structured as installment loans, where clients are required to make a monthly
payment. The balance, or approximately $2.99 million is structured as deferred payment and/or
forgivable loans, where no monthly payment is required.
Seventy-five percent (75%) of those clients required to make a monthly payment are making
those payments on-time, as agreed. The remaining twenty-five percent (25%) are in various
stages of delinquency described in the following table:
# Loans 30 days 60 days 90 days 120+ days
4 4 6 16
Collection activities are performed monthly by staff. Activities include sending a letter, of
varying degree, and billing statement to each delinquent client. Clients are invited to appear
before the CDA at the point they become 6 months delinquent. Four (4) clients have been
invited to appear at the January meeting in closed session. We are working with outside
counsel on a number of foreclosure matters related to a number or Rental Rehabilitation
Program loans in default.
The following table describes the status of the first, second, third and fourth quarters of 2008 as
th
well as the fourth (4) quarter of 2007.
There is no action required on this matter as it is put forth for informational purposes only.
Questions and/or comments from the CDA are welcome.
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Report Data 4 th Qtr – 2007 1 st Qtr – 2008 2 nd Qtr. – 2008 3 rd Qtr. – 2008 4 th Qtr. -
2008
$Value $1,007,265.51 $999,040.82 $1,071,981.10 $1,077,636.36 1,084,707.39
Installment
Loans
$Value 2,638,658.32 2,700,163.43 2,832,978.42 2,904,250.51 2,997,194.41
Deferred
Loans
Total $ $3,645,923.83 $3,699,204.25 $3,904,959.52 $3,981,886.87 $4,081,901.80
#Installment 107 108 117 120 117
Loans
#Delinquent 22 28 32 26 30
Installment
Loans
$Value $65,770.57 $77,545.26 $78,454.91 $78,370.63
Delinquent
Loans 6% 7% 7% 7%
(%
installment
loans)
#Loans 4+ 14 16 16 12 16
pymts
delinquent
$Value loans $64,781.27 $75,042.24 $70,467.29 $67,197.39
4+ pymts
delinquent
Of the total $ delinquency, the majority can be attributed to the Rental Rehabilitation Program
where multiple loans have been made to the same client. Included in the number of clients 4+
payments delinquent are those where the first mortgage holder has initiated foreclosure (4), the
City of Janesville has initiated foreclosure (4), and the client has filed for bankruptcy protection
(1).
cc: Jennifer Petruzzello, Neighborhood Services Director
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