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Freddie Mac, Lenders, and Policymakers Team Up for Dream
In two initiatives announced recently – a faith-based effort and a new CreditSmart® Español launch – Freddie Mac, a lender customer, non-profit partners and members of Congress are working together to put the American dream of homeownership within reach of more of America's families. In late May, U.S. Sen. Lincoln Chafee, R-R.I., joined officials from the Faith Community Coalition for Homeownership, Cathedral of Life Community Development Corporation (CDC), Wells Fargo Home Mortgage and Freddie Mac to announce a comprehensive faith-based effort to help more Rhode Island families become first-time homeowners. Also in late May, U.S. Rep. Rubén Hinojosa, D-Texas, joined Freddie, South Texas Community College and the Hispanic Association of Colleges & Universities (HACU) to launch CreditSmart Español in Hidalgo and Starr Counties. Providence "Expanding homeownership strengthens neighborhoods and helps grow our local economy," said Sen. Chafee. "I applaud Freddie Mac and each of its partners for their commitment to Rhode Island and helping more families achieve their dream of homeownership."
By working with the Consumer Credit Counseling Services of Southern New England (CCCS) and other community-based organizations, the Faith Community Coalition for Homeownership will ensure participating families receive in-depth pre- and post-purchase homeownership counseling. Wells Fargo Home Mortgage, one of Freddie Mac's national lending partners, will provide flexible, low-down payment mortgages that Freddie Mac expects to purchase. "By working through Rhode Island's faith community, the initiative can reach out to families who have been unduly wary of the traditional mortgage lending process and show them how to safely and responsibly bridge the gap between the dream and the reality of owning a home," said Craig Nickerson, vice president of Expanding Markets.
The coalition – which includes more than 15 Providence-area churches and was initiated by the Cathedral of Life Christian Assembly's Finance Ministry and the Cathedral of Life CDC – will launch an aggressive outreach program to identify potential homeowners and work with the CCCS and other organizations to help them prepare for the homebuying process. In addition, the Faith Community Coalition for Homeownership will enable local residents to take advantage of CounselorMAXSM, a powerful Web-based technology for nonprofit counseling agencies. Individuals who complete the pre-purchase homeownership counseling can then apply for flexible, low-down payment mortgages from Wells Fargo Home Mortgage, one of the nation's top mortgage lenders in volume to low-to-moderate income and minority consumers. Because Wells Fargo offers a variety of innovative mortgage products, qualified borrowers have access to low-cost conventional mortgages with low down payments. Flexibility is also provided with respect to borrower credit and other loan underwriting criteria so families facing a wider range of financial circumstances can achieve homeownership. The Providence launch builds on Freddie Mac efforts to expand affordable homeownership opportunities in Rhode Island. Over the past five years, we have invested more than $7.2 billion in mortgages, making homeownership possible for more than 60,000 Rhode Island residents. Texas
CreditSmart Español is Freddie Mac's trademarked bilingual financial literacy curriculum developed with HACU and six other national Hispanic organizations to help narrow the homeownership gap for Latino families. It is a free program designed to help Hispanic students, faculty and the residents of Hidalgo and Starr Counties build strong credit and make wise financial decisions. "Freddie Mac's CreditSmart Español will help more of our families manage their finances and better understand the homebuying process," said Congressman Hinojosa. "I would like to thank each of the partners for their commitment to South Texas and for helping more families achieve the American Dream." "Today's announcement lays the foundation for a new generation of Hispanic homeowners at South Texas Community College," said Jim Park, vice president of Industry Relations and Corporate Outreach. "I want to thank Rep. Hinojosa, our colleagues at STCC and HACU for working with us to expand the opportunity for homeownership and financial well-being in the Hispanic community."
Freddie Mac is providing STCC with workshop materials and funding to teach credit and money management skills that can prepare participants for future homeownership, a college education for their children and other life-long financial goals. CreditSmart Español consists of eleven modules that help consumers obtain the knowledge and skills necessary to effectively manage their money and to positively impact their credit. The CreditSmart modules are being incorporated into an ongoing academic and personal growth workshop series provided by STCC counselors. Trainers are bilingual and will provide instruction in English and Spanish. South Texas Community College will join a roster of HACU member colleges and universities that already have introduced the popular, Freddie Mac-funded credit education program to campuses and the predominantly Hispanic communities they serve in Texas, New York, California, Arizona, Florida and Puerto Rico. HACU represents 360 colleges and universities that serve the largest concentrations of Hispanic higher education students in the United States. Freddie Mac has invested more than $600 million in mortgages for Hidalgo and Starr county residents over the past five years, helping nearly 7,500 local households become homeowners. Nationally, 68 percent of America's families own homes, but only 48 percent of Latino families are homeowners, according to the U.S. Census Bureau.
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