Office of Housing Counseling - National Federation of Community

Report
HUD Housing Counseling
National Federation of
Community Development Credit Unions
Presented by
Sarah Gerecke
Deputy Assistant Secretary, Office of Housing Counseling
April 4, 2013
Agenda
 What is HUD Housing Counseling?
 Impact of Housing Counseling
 HUD’s Role
 How to find agencies in your area
What is Housing Counseling ?
About 2,500 nonprofit agencies nationwide are approved to
provide numerous counseling services, including:
•
•
•
•
Pre-purchase Education
Reverse Mortgage
Mortgage Delinquency
Financial Management
• Rental Assistance
• Homelessness
• Applying for Making Home
Affordable Modifications
Many agencies provide more services and programs, including
down payment assistance, emergency utility assistance,
job/interview training, daycare, food banks, homeless shelters,
or managing low income housing
Goals of Housing Counselors
• Provide unbiased assistance to help clients resolve their
housing problems or needs
• Provide education and one-on-one counseling
• Design an action plan to address barriers to housing
• Help clients to access community resources
• Monitor client’s progress in meeting their housing goals
• Assist client to work with lenders to resolve mortgage
delinquencies
HUD Office of Housing Counseling
“The mission of the Office of Housing Counseling is to help families to obtain,
sustain and retain their homes. We will accomplish this mission through a
strong network of HUD-approved housing counseling agencies and counselors.”
•
•
•
Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act
67 HUD staff from the HUD Single Family Program Support Division
National office with staff spread across the county from Alaska to Florida
Goals:
•
•
•
•
To help clients assess their financial situation and achieve their housing goals.
To increase public awareness of HUD’s housing counseling programs.
To increase the knowledge and capacity of HUD’s housing counseling network.
To improve the impact of housing counseling on consumers and neighborhoods
nationwide.
Impact of Housing Counseling
Mortgage Delinquency Counseling
Pre-Purchase Counseling
Rental Counseling
Home Maintenance and Financial Management Counseling
Reverse Mortgage Counseling
Homeless Counseling
Education Workshops (Group Counseling)
Total Clients Served
774,132
206,188
157,458
83,659
53,170
21,947
361,057
1,657,611
Meeting the Need
% of Total Individual Counseling Clients
90%
Proportion of Counseling Devoted to Delinquency & Non-Delinquency Counseling
HUD Approved Agencies, 2007 - 2012
80%
Mortgage Delinquency & Default
70%
60%
50%
40%
30%
Pre-Purchase, Rental and other
Non-Delinquency Counseling
20%
10%
0%
FY2007
FY2008
FY2009
FY2010
Federal Fiscal Year
FY2011
FY2012
Impact of Pre-purchase Counseling
• A recently released study of the two-year loan performance of over
18,000 pre-purchase counseling clients from the NeighborWorks America
network of counseling agencies finds that those counseling clients are
one-third less likely to become 90+ days delinquent in the two years
since obtaining their loan than those who did not receive pre-purchase
counseling (Mayer and Temkin, 2013). This study was controlled for
selection bias.
• A Turnham and Jefferson (2012) HUD study analyzed the outcomes of 573
pre-purchase counseling clients 18 months after completing counseling
and found that 35 percent of the participants became homeowners, with
only 1 person falling 30 days or more behind in their mortgage
payments.
• Study by Peter Zorn, Vice President in Freddie Mac’s Models, Mission and
Research Division suggest that the overall delinquency rates of borrowers
receiving counseling are 15 percent lower than otherwise identical
borrowers not receiving counseling.
NeighborWorks® Research
on Pre-Purchase Counseling
Estimated share of loans that are 90+ days delinquent within 24 months of
origination with and without NeighborWorks pre-purchase counseling
Year Loan Originated
First-time Homebuyers
2007
2008
2009
With NeighborWorks counseling*
4.70%
3.10%
2.00%
Without NeighborWorks counseling
6.90%
4.60%
2.90%
Difference -2.20%
-1.50%
-1.00%
% Decline -32.20%
-32.70% 33.10%
Repeat Borrowers
With NeighborWorks counseling*
Without NeighborWorks counseling
Difference
% Decline
2007
6.10%
9.00%
-2.80%
-31.70%
2008
4.10%
6.00%
-1.90%
-32.40%
2009
2.60%
3.90%
-1.30%
32.90%
Data provided in “Pre-Purchase Counseling Impacts on Mortgage Performance: Empirical Analysis of
NeighborWorks® America’s Experience “
*All “with NeighborWorks Counseling data” is from NeighborWorks Affiliates, not agencies that received NeighborWorks training
HUD Office of Housing Counseling
“The mission of the Office of Housing Counseling is to help families to obtain,
sustain and retain their homes. We will accomplish this mission through a
strong network of HUD-approved housing counseling agencies and counselors.”
•
•
•
Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act
67 HUD staff from the HUD Single Family Program Support Division
National office with staff spread across the county from Alaska to Florida
Goals:
•
•
•
•
To help clients assess their financial situation and achieve their housing goals.
To increase public awareness of HUD’s housing counseling programs.
To increase the knowledge and capacity of HUD’s housing counseling network.
To improve the impact of housing counseling on consumers and neighborhoods
nationwide.
Monitoring HUD Agencies
Housing Counseling Agencies seeking HUD approval submit their applications
to the Office of Housing Counseling for review.
Applications are reviewed using a checklist on the following major areas:
• Tax exempt nonprofit status
• Audited Financials
• Experience in counseling
• Facilities
• Compliance capacity
• Agency Work Plan
Performance Reviews are performed every two to three years and re-evaluate
the information provided in their initial application for approval, plus:
•
•
•
Client Files Reviewed
•
Updates to work plan or staff •
Reported Client numbers
Survey Letters sent to clients
Grant administration review
OHC Program Initiatives
• Strengthen relations and communication between HUD
and housing counseling network, in order to achieve
broader community impact.
• Encourage Housing Finance Agencies, regional and local
coalitions to consider options of bonding as intermediary
networks
• Increase the visibility of housing counseling to help
consumers and strengthen the industry.
• Explore incorporating housing counseling into more public
and private rental and mortgage programs, including FHA.
• Solicit comments and best practices from industry
partners.
Why Partner With Housing
Counseling Agencies?
• Prepare your clients to make sound financial decisions from
an unbiased professional counselor experienced in the local
housing market
• Receive notifications on new initiatives, scam alerts and other
valuable information that comes from nonprofit impartial
sources
• Exchange referrals and resources with agencies serving clients
typically served by the NFCDCU
Partnership Models
Ways To Partner With Housing
Counseling Agencies
Every area has unique needs and existing collaborations to serve the public.
HUD Agencies have countless initiatives to meet local needs.
 Use HUD’s website to find agencies within your area to make contact
 Discuss formal and informal ways you can work with each other
• Refer clients!
• Join task forces, community development roundtables, and meetings,
outreach events
• Join agency mailing lists for news
• Ask for agency counselors to present home buyer education as part of
financial education courses
How to Find a HUD approved Agencies
Contact counseling agencies by HUD’s
interactive voice system by calling
(800) 569-4287
to search by zip code
Receives over 2,000 calls daily
Online referrals to approved housing
counseling agencies are available on
www.hud.gov
directly on the main page
How to Find a HUD approved Agencies
The next screen takes you to a
drop down of states to select your
area from, or you can click on
states directly on the map
How to Find a HUD approved Agencies
The search
results show
agency’s address,
contact numbers,
email, languages,
provided, and
certified services
For More Information
Contact counseling agencies through hud.gov at
www.hud.gov/findacounselor
Or call (800) 569-4287to search by zip code
Check out our new iPhone app in the app store
(search housing counseling)
For grant information, training and events, counselor
resources and to sign up for our listserv.
www.hud.gov/housingcounseling
Questions or comments: [email protected]

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