Housing Development Fund, Inc.&

Fairfield University’s Center for Faith and Public Life

Present

Predatory Lending:Assessing the Problem &

Highlighting Solutions

A Step-by-Step Look at HDF’s First-Time Homebuyers’ Program

Step1: Applicant calls HDF to schedule orientation

Step 2: Applicant attends orientation session and brings with him/her documents necessary to determine income eligibility and mortgage readiness

Step 3: HDF counselors assess client documentation for income eligibility and mortgage readiness

Step 4: Income eligible and mortgage ready/near ready clients attend one-on-one homeownership counseling with HDF counselor

Step 5: Clients are matched with appropriate sources of assistance funding and submitted for pre-qualification by HDF’s loan department

Step 6: Pre-qualified clients obtain first mortgage commitment by an HDF banking partner

Step 7: Selected buyers are presented to HDF’s loan committee for approval

Step 8: HDF prepares loan closing for approved buyers, buyers take possession of home

Expanding our Impact Household by Household, Town by Town

FY97- FY02: 149 loans, 5 towns

Expanding our Impact Household by Household, Town by Town

FY03: 210 loans, 8 towns

Expanding our Impact Household by Household, Town by Town

FY04: 280 loans, 8 towns

Expanding our Impact Household by Household, Town by Town

FY05: 360 loans, 12 towns

Expanding our Impact Household by Household, Town by Town

FY06: 457 loans, 18 towns

Expanding our Impact Household by Household, Town by Town

FY07 estimated: 600 closings, 23 towns

Problems and Solutions

Problems•Consumer rights are being ignored•Consumers make wrong choices because they are unaware of alternatives•Consumers have misplaced loyalties in the home buying process

Solutions – Education, Education, Education•An educated consumer is the best protection •Education and counseling are the best anxiety busters •Post-purchase counseling is critical for protecting assets•HDF’s programs and services strive to protect homebuyers