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HUD Stress Education and Prevention as Key Components

by Heindrick So
October 20th, 2008

In light of the recent moves by FHA and their key H4H program, HUD is continuing to stress the importance of education and prevention as core solutions to our housing economy. Many of the problems that we are now facing are due to the lack of financial literacy and education of homeowners; a weakness unfortunately opening them up to predatory tactics and unfair lending. While recent programs implemented by HUD and FHA address our current problems, they also understand that preemptive actions are the best method to avoid these problems again in the future. 

HUD Awards $21.8 Million to Fight Housing Discrimination
Specifically, HUD has recently provided $21.8 million in grants to fight the problems against housing discrimination. These funds were awarded to Fair Housing and various non-profit agencies nationwide to help victims of such housing discrimination. While $20 million was allocated for investigations and enforcement of Fair Housing Act laws, the remaining portion was dedicated to education and knowledge.  About $1.3 million was provided to groups to help educate the public and housing providers about specific rights and obligations under these fair housing laws. In addition, about half a million was used to organize Fair Housing clinic programs for individuals seeking housing education. 

HUD and FHA National Housing Summit – Financial Literacy
HUD Secretary Steve Preston also addressed the issue of financial literacy at the recent National Housing Summit in Washington DC earlier this month. In his statements, Preston mentioned that he released $50 million in housing counseling grants while President Bush requested $65 million in housing counseling for the 2009 budget.  By educating and counseling individuals, homebuyers can make smarter, fully informed decisions when it comes time to finance their homes. 

While FHA mortgages are certainly quite traditional, there is still a need to establish a level of understanding and comprehension when it comes to such significant financial matters. In addition to increasing knowledge, reform will be made to make sure mortgage lenders are explaining the fine print and details clearly. Such changes are likely to include the issue of closing costs and monthly mortgage obligations.  Preston went on to say that such advancements in financial literacy is “just common sense, a good business practice, and it is the right thing to do.” 

While the recent economy has put most of us on a pretty wild ride recently, some of the changes and reform are quite positive results. Education has always been a top priority in ensuring the best mortgage option, and increasing this level of knowledge will only help to avoid many of the problems we are now facing. 

For the full list of groups and agencies receiving the HUD Fair Housing Grants, it can be found on the HUD News Release 08-164

For the full speech given by Secretary Steve Preston at the HUD National Housing Summit, you can find the full text here.

Housing Counseling Grants are also mentioned in a White House Fact Sheet released on October 17th, 2008

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2 Responses to “HUD Stress Education and Prevention as Key Components”

  1. Angela Says:

    I have allot to say as I am a mortgage broker for 17 years and I have a very good reputation in my town (65,000) & (150,000 in the county) I have approx. 3-4 repeat clients and/or referral’s come in my door every week. People have faith in me and if you would like to take a look at how I price my loans. . . please . . most my files are at par!! I pay for my lock extensions for my client’s if I run over time. . I have never done an option pay arm !!!! The loans I did were good people with full time jobs w-2 full doc!!! and currently have demonstrated paying their bills on time. . maybe “may” have had a medical collection account that is now paid and their family is healthy now and they are on the right track!! Do you think it’s wrong to allow someone into a house that a few dings in the past?? (oh, , yeah that’s the new FHA)and now they are on the right track and pay excellent now?? Sorry to say that mortgage broker will always beat the banks interest rate and fees on a constant basis!!
    Now FHA says I’m insolvent because I don’t have a net worth of $63,000.00 !!! I have $225,000.00 equity in my home I also have a rental property for sale finally after the title company did a deed overlay and consequently had to wait for that to clear before putting it back on the market and almost loosing 8 months on market time. So, again, , let me ask you??? Does $63,000.00 make you ethical?? I suppose if you have that kind of money in the bank and your the broker/owner and have only 2 full time employees and one originator (again, you shouldn’t have to rip your client to show FHA the money in the bank you need to write another sub-prime loan. . LOL. . you know the new FHA!! Did you know that the net worth does nothing to cover the borrower?? and a Bond would !!! I know that all of you up there in Washington have a real good handle on the mortgage business. . but maybe you should read up on just what that net worth does or does not do!!! If you want us to get out of this mortgage mess maybe you guys should start asking the mortgage professional and not the people that invented the pick your pay loan. . . as this is the “sub-prime mess were in” guess what ? These pick you pay loans that these net branches with un-supervised loan officers (not brokers) OH BY THE WAY THEY ARE NOW THE NEW FHA SUB-PRIME!!! These Loan Officers were offered BIG MONEY!!! To put their client into one of these loans instead of a good 30 year loan that they were really better qualified for. . It’s all about greed. . you can’t teach ethics!!!. I suppose I could have ripped my clients and I would now have the net worth to help my clients into a good 30 year loan. . but I don’t because I am a small shop with myself, my husband and my processor. . . When is this going to change??? Don’t you guys see what your doing. . . ?? you are prohibiting local mortgage companies from helping their local community and consequently the housing market. . Again, , , what does $63,000.00 have to do with ethics??? The Big Banks Want The Broker’s Gone. . . This is evidence of why FHA is making us go net branch (so, now your not a broker anymore but a Loan Officer) and the manager of branch is in another state. . there is no requirement anymore within the branch to write these loans and more people are unsupervised and little or no experience writing any loan at all more than ever!!! Don’t you guys get it???? Now net branching is requiring the (was mortgage broker) now LO to give up 10% of all the loans you write and also (get this one) now charge the borrower another 450.00 per file. . . please research this as we are not helping the consumer. . . you need to understand this. . . Regards, Angela
    Please email me at: Angela@themortgagehouseinc.net

  2. eve Says:

    just came across. Nice blog

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