Transcript Educating Future Borrowers

Educating Future Borrowers
An orientation about NeighborWorks America
Presented by Joe Myer
NeighborWorks America
• A national intermediary specializing in Affordable Housing and
Community Development
• A national network of 250 NeighborWorks’ organizations (NWO’s)
• Delaware:
NCALL Research, Inc.
Interfaith Community Housing of Delaware
• Resources to Delaware through NWO’s include training slots,
capital grants, technical assistance, and expendable grants
• Funded in the THUD budget for FY’14 at $136 million and $67.5
million for National Foreclosure Mediation Counseling
Network Program Reviews & Annual
Ratings
• NWO’s receive rigorous reviews annually and
on-site every 3 years, looking at financials,
production, impact, governance, and more
• Annually each NWO is rated through a
comprehensive assessment process – for
instance NCALL is rated “Exemplary”
Why NeighborWorks
• We empower individuals through financial
education
• We create affordable, healthy places to call
home
• We stabilize and nurture communities
Why NeighborWorks
• We train professionals to be at the forefront of
the field
• We collaborate effectively to “Make It Happen”
• We deliver quantifiable results
Empowering by Building
Financial Capability
• Research with Experian proved pre-purchase
counseling resulted in a third less likely to fall
seriously behind in their mortgage in the first
24 months
• With Citi Foundation, demonstrated how
financial coaching can level the economic
playing field by helping people to establish
first accounts and increase credit scores
significantly
Creating Affordable, Healthy
Places to Call HOME
• In 2013, Helped 21,000 families become homeowners
through education, down payment help, access to
mortgages, construction, and rehabilitation
• NeighborWorks America was named by Builder
Magazine one the nation’s top three developers of
affordable homes
• Prevented 203,000 people from losing their homes or
provided helpful strategies through NFMC.
1.7 million people since 2008
Building Strong, Resilient
Communities
• Invested $1.54 million to stabilize
communities struggling with the negative
effects of foreclosure and neglect
• 800 residents from 107 organizations
attended the Community Leadership Institute
training, then receiving $228,000 for local
projects.
• Wilmington and Dover benefitted from this
Training Professionals
to be at the Forefront
• Awarded 20,000 certificates to professionals
attending National Training Institutes from
3,400 organizations building skills in
education/counseling, asset management,
economic development, and nonprofit
leadership
Collaborating “Making It Happen” &
Delivering Quantifiable Impact
• Collaboration through NeighborWorks with
funders, through regions and districts, and
through NWO’s locally
• Launched Community Impact Measurement
and more fully utilized Success Measures
which allows us in the field to collect and
interpret outcomes data
Educated Borrowers Make Sound
Financial Decisions
• Intuitively it makes sense that families
receiving pre-purchase education and
counseling do better financially as
homeowners
• Budgeting, reducing debt, clearing up credit,
learning the homeownership and mortgage
process, shopping for best rates and terms,
knowing what payment is comfortable can
only help everyone involved in the process –
especially the new homebuyer
Educated Borrowers Make Sound
Financial Decisions
• The studies and evidence have mounted up,
whether it be Experian, HUD, Federal Reserve
Bank of Philadelphia, and the list goes on and
on
• Gone are the days of questioning the
importance of pre-purchase homeownership
counseling
• Financial Fitness and Financial Coaching such
as $tand by ME are important too
Make Counseling a Requirement
• All homeownership initiatives, financing, and
programs should require homeownership
education and counseling.
• Delaware has the capacity to address the
demand for pre-purchase homeownership
counseling through HUD approved counseling
agencies, with certified counselors who are
members of and subscribe to the standards of
the Delaware Federation of Housing
Counselors.
Awaiting HUD Final Rule
on Dodd-Frank
• Housing counseling agencies are anxiously
awaiting HUD’s final rule related to housing
counseling, counselor certification, testing,
etc.
Housing Counseling in Delaware
• Funded mainly by fees for performance or grants
based on customer volume through DSHA and
HUD.
• Those involved in foreclosure prevention may
receive NeighborWorks’ NFMC funding through
DSHA or other intermediaries, along with
Mediation fees.
• The service needs to be fireproofed so that all
homeownership initiatives, programs, or
financing requires it now and going forward.
Working Together With NCALL and Interfaith
Community Housing of Delaware
for Stronger Communities®
www.NeighborWorks.org