Michele Watson Virginia Housing Development Authority Homes Within Reach Conference Harrisburg, Pennsylvania November 16, 2015 Strategies for Mainstreaming Housing Education and Counseling

Changing Demographics The October 2014 issue of National Mortgage Professional interview with Mortgage Bankers Association (MBA) President and CEO David H. Stevens noted that: “the fast-rising number of non-whites is going to require a new consideration of housing finance solutions for new homeowners”. Mr. Stevens went on to stress…. “dramatic changes in U.S. demographics will create a significant shift in how the housing finance world operates.”

Millennials Lack Knowledge About Credit: Experian* While 71% of millennials surveyed were confident about their credit knowledge:  32% did not know their credit score  67% had questions about how scores were created  Millennials’ perception of their credit scores and debt did not match with reality  Of individuals surveyed they estimated their score of 654 versus the actual of 625 Article in National Mortgage News on November 4, 2015 by Jacob Passy

Demographic Breakdown of Virginia White Households70.9% African American19.7% Asian 6.3% Hispanic or Latino 8.9% Two or more races 2.9% Foreign born11.3%

Demographics and the State of Virginia Hispanics are the fastest-growing minority group in Virginia. Representing almost 9 percent of the Commonwealth’s population, their numbers have almost doubled since (Clapp, 2011) Many are recent immigrants with misconceptions about the process of buying a home.

VHDA Historical Perspective Creation of a Homeownership Education Department at VHDA in 1994 Develop a Homeownership Education Manual and tutorial Homeownership Education Program launched in 1994 with VHDA Staff teaching classes “Encouraged” all prospective Homebuyers to take the Homeownership Education Class prior to signing a Real Estate Contract

Historical Perspective cont’d VHDA and HUD (VA office) enter into a partnership agreement: VHDA is responsible for statewide curriculum Partnership with Military Installations: Fleet and Family Services VHDA releases first ever “Train the Trainer” Initiative VHDA releases an online homebuyer education course Homebuyer Education is mandatory for all VHDA Loans - VHDA Online course is updated into a new platform VHDA REACH Housing Counseling Grants Update In-person Manual and create an interactive online course: New sections on Post-purchase

VHDA Train the Trainer Sessions 800 Qualified VHDA Trainers –Lenders, Real Estate Agents, Non-profits, Home Inspectors, Closing Agent VHDA provides training for and average of 400 partners annually VHDA provides up to 15 Train the Trainer sessions throughout the state

VHDA Homebuyer Handbook

Homebuyer Education Class Audits Quality Control –Audit / “Secret Shopper” –Ensures consistency throughout the state On-line classes create new challenges for ensuring Quality Control

Homebuyer Education 493 Homebuyer Education Classes 4,250 Class Participants 8,018 Online Participants FY14 12,268 Individuals received VHDA Homebuyer Education 484 Homebuyer Education Classes 4,206 Class Participants 9,116 Online Participants FY15 13,322 Individuals received VHDA Homebuyer Education

Challenges and Impediments to Successful Housing Counseling Getting the word out – an “informed borrower is a successful borrower” - borrowers should drive the demand Flexibility in reaching customers – weekend hours critical Credit Counseling vs. Mortgage Ready Counseling Funding – a constant source of concern for service providers Maintaining pool of providers

Questions? Michele G. Watson Director Homeownership Strategic Partnerships VHDA (804)