#4 A Collections Report 4th Quarter 2009
NEIGHBORHOOD SERVICES MEMORANDUM
March 15, 2010
TO: Community Development Authority
FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist
SUBJECT: Agenda Item #4a - 2009 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 2009 loan activity.
Background
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The 2009 – 4 quarter indicates we have approximately $4.38 million in outstanding loans,
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compared to $4.22 million in the 3 quarter of 2009. Of that figure, $1.18 million, or 136 loans,
are structured as installment loans, where clients are required to make a monthly payment. The
balance, or approximately $3.19 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
7 3 4 22
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. We are working with outside
counsel on a number of foreclosure matters related to a number of Rental Rehabilitation
Program loans in default.
The following table describes the status of the fourth quarter of 2009 compared to 2008.
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. 1 st Qtr. 2 nd Qtr. 3 rd Qtr. 4 th Qtr.
2008 2009 2009 2009 2009
$Value 1,084,707.39 1,058,554.71 1,076,752.76 1,112,986.33 1,184,001.53
Installment
Loans
$Value 2,997,194.41 3,049,625.54 3,234,857.23 3,113,744.78 3,191,160.02
Deferred
Loans
Total $ $4,081,901.80 $4,108,180.25 $4,311,609.99 $4,226,731.11 4,375,161.55
#Installment 117 118 125 128 136
Loans
#Delinquent 30 30 29 23 36
Installment
Loans
$Value $78,370.63 $89,003.81 $87,394.81 $89,659.24 $95,334.48
Delinquent
Loans
#Loans 4+ 16 21 18 20 22
pymts
delinquent
$Value loans $67,197.39 $76,899.31 $79,550.40 $82,262.21 $87,411.13
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 (5), the
City of Janesville has initiated foreclosure (3), and the client has filed for bankruptcy protection
(1).
cc: Jennifer Petruzzello, Neighborhood Services Director
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