BlueHub SUN is not your regular mortgage program. We refinance or buy homes in foreclosure and sell them back to their original homeowners with new mortgages they can afford. SUN offers clients a second chance to regain their financial footing and save their homes for good.
SUN paused new mortgage lending at the onset of the pandemic due to ongoing uncertainty in the job and housing markets, and extensions to the federal moratorium on foreclosure. But during the second half of the year, we initiated outreach in our existing and new markets and began taking new applications.
While lending was paused, we were not idle. We crafted seven new informational videos that help current and prospective clients better understand the SUN program by clearly explaining topics like the shared appreciation mortgage. We developed a new website full of useful information for SUN homeowners and launched a newsletter to deliver financial guidance directly to clients’ inboxes and mailboxes.
In July, we reopened our application process. With increased property values across the country, we emphasized our refinancing product, which is an option for homeowners with sufficient equity in their homes.
With low interest rates available in the conventional residential mortgage market, we saw a record number — 88 — of SUN homeowners exit the program this year — something we celebrate and encourage. By entering SUN, homeowners are able to repair their credit, reestablish their savings and then access a conventional mortgage at a lower interest rate, potentially saving them even more money. Those clients who repaid during 2021 left the program after an average of 5.3 years in SUN with an average of $184,000 in home equity — a combined total of $16 million across all homeowners. Clients who had a shared appreciation mortgage paid an average of $35,000 to satisfy that obligation.
Most of these homeowners had zero or negative equity in their homes when they entered the SUN program. We are so glad they chose to partner with us on their journey to financial health.
Average length of time in SUN program for homeowners who exited program in 2021
Foreclosure-related evictions prevented over life of the program
Average savings on mortgage principal for current SUN homeowners
Average savings on monthly payments for current SUN homeowners
Wealth put back into the community by our foreclosure relief lending over life of the program
States in which SUN now operates