Successful Partnership Models for Credit Unions

Successful Partnership Successful Partnership Models for Credit UnionsModels for Credit Unions

Presented ByPresented By

Larry GarciaLarry Garciato the to the

National Federation of National Federation of

Community Development Credit UnionsCommunity Development Credit Unions

El Paso Credit Union Affordable HousingCredit Union Service Organization

2017 Texas Ave. El Paso, TX 79901

Successful Partnership ModelsSuccessful Partnership Models

1. Define mission and goals

2. Develop business plan to achieve goals

3. Inventory possible partners that are working toward the same goals: Community, State, or National--private or public

4. Identify partners that will complement CUSO path to goal

5. Develop programs with partners

6. Institutionalize CUSO within partner program or partner within CUSO program

Successful Partnership ModelsSuccessful Partnership Models

7. Create multiple partner programs for resource maximization

8. Leverage community services with partnerships that complement each other

9. Avoid duplication of services within the community--do not re-invent the wheel--collaborate

10. This will avoid rivalries & competing for same grant or community funds.

11. These partnerships will lend credibility to your organization12. These types of Partnerships create synergy

EL PASO CREDIT UNION EL PASO CREDIT UNION AFFORDABLE HOUSINGAFFORDABLE HOUSING

Credit Union Service OrganizationCredit Union Service Organization

2017 TEXAS AVEEl Paso, Texas

(915)838-9608 Fax (915)[email protected]

CUSO MISSIONCUSO MISSION

• EL PASO CREDIT UNION AFFORDABLE HOUSING IS A CREDIT UNION MOVEMENT INITIATIVE TO IMPROVE THE ECONOMIC, SOCIAL WELL-BEING, AND QUALITY OF LIFE OF THE COMMUNITY BY PROMOTING FINANCIAL LITERACY, SAVINGS, CREDIT WORTHINESS, AND PROVIDING ACCESS TO CAPITAL.

• ITS MISSION IS TO PROVIDE FREE BILINGUAL FINANCIAL LITERACY, CREDIT MANAGEMENT ASSISTANCE, AND HOMEOWNERSHIP EDUCATION, TO EMPOWER COMMUNITY MEMBERS TO CREATE PERSONAL WEALTH THROUGH SAVINGS, OBTAINING MAINSTREAM CREDIT AND/OR BECOMING MORTGAGE READY FOR THE PURCHASE OF A HOME.

CUSO PARTNERSCUSO PARTNERS• EL PASO EMPOWERMENT ZONE

CORP• NATIONAL CREDIT UNION

FOUNDATION• TEXAS CREDIT UNION

FOUNDATION• EL PASO COLLABORATIVE• ALIANZA PARA EL DESARROLLO

COMUNITARIO• SPARKS HOUSING

DEVELOPMENT CORPORATION• RURAL DEVELOPMENT &

FINANCE CORPORATION• HOUSING AUTHORITY OF THE

CITY OF EL PASO• CONSUMER FEDERATION OF

AMERICA• NATIONAL ENDOWMENT FOR

FINANCIAL EDUCATION

• US TREASURY• FANNIE MAE• EL PASO COMMUNITY COLLEGE• HOUSING FINANCE CORPORATION• CITY OF EL PASO• THE CREDIT UNIONS OF EL PASO• TEXAS DEPT OF HOUSING &

COMMUNITY AFFAIRS• PROJECT HEAD START• VARIOUS SCHOOL DISTRICTS• VARIOUS EMPLOYERS• THE AMERICA SAVES CAMPAIGN• IRS• EL PASO COUNTY COALITION• HABITAT FOR HUMANITY• UNITED CEREBRAL PALSY OF

TEXAS

PROGRAMS DEVELOPEDPROGRAMS DEVELOPED• BI-LINGUAL FINANCIAL LITERACY WORKSHOPS• EL PASO SAVES—BILINGUAL SAVINGS PROMOTION• EXPERIMENTAL MORTGAGE PRODUCTS• HACEP HUD HOPE VI MORTGAGE LOANS• EZ-AHCUSO MORTGAGE LOANS• LEASE PURCHASE LOANS• Sec 8 MORTGAGE LOANS• HOME CHOICE TEXAS HOME OF YOUR OWN LOANS• HOUSING FOR TORNILLO COLONIAS• HOUSING FOR SPARKS COLONIAS• HOME CONSTRUCTION IN COLONIAS USING• EL PASO COMMUNITY COLLEGE • HABITAT FOR HUMANITY LOAN PURCHASE

FINANCIAL LITERACYFINANCIAL LITERACY

BILINGUAL WORKSHOP CURRICULAOVERVIEW OF ROAD TO FINANCIAL SUCCESS

• CREDIT MANAGEMENT

• FINANCIAL LITERACY

• HOMEOWNERSHIP PROCESS

• HOME SELECTION

• FINANCING A HOME

• MAINTAINING A HOME & FINANCES

SAVINGS ACCOUNTSSAVINGS ACCOUNTS

PARTNERED WITH DIFFERENT ORGANIZATIONS TO FORM EL PASO SAVES.

LOCAL INITIATIVE FOR THE AMERICA SAVES CAMPAIGN SPONSORED BY THE CONSUMER FEDERATION OF AMERICA

• SOCIAL MARKETING CAMPAIGN TO PROMOTE SAVINGS

• SAVER AGREES TO WORK TOWARD CERTAIN WEALTH BUILDING GOALS: SAVING TO ACHIEVE A DEFINED GOAL--- PAYING OFF DEBT, BUILDING AN EMERGENCY FUND, OR SAVING FOR THE PURCHASE OF A HOME

• SAVER RECEIVES A FREE SAVINGS TIPS NEWSLETTER SUBSCRIPTION, FREE WEALTH BUILDING CLASSES, ACCESS TO LOW-BALANCE NO-FEE INTEREST BEARING SAVINGS ACCOUNTS, AND AT THE NATIONAL LEVEL ACCESS TO VOLUNTEER CERTIFIED FINANCIAL PLANNERS BY 800 NUMBER OR THE INTERNET

FINANCIAL LITERACY & HOMEOWNERSHIP FINANCIAL LITERACY & HOMEOWNERSHIP WORKSHOPSWORKSHOPS

• FINANCIAL LITERACY & HOMEOWNERSHIP WORKSHOPS HELD

• WORKSHOPS HELD IN SPANISH

• TOTAL ENROLLEES TO WORKSHOPS

147

87 (59%)

2245

SAVINGS ACCOUNTS•TOTAL FIRST ACCOUNTS OPENED 2920

63

$2,697,079

$4,334,109

•NUMBER OF MORTGAGES

•$ FOR CUSO MORTGAGES MADE

•LEVERAGED AMOUNT

HOME MORTGAGES

Successful Mortgage Successful Mortgage Collaboration ModelCollaboration Model





El Paso Credit Union Affordable Housing

Credit Union Service Organization

Mortgage CollaborationMortgage Collaboration

Credit Union Service Organization (CUSO)

Credit Unions

Foundations

Community Housing DevelopmentOrganizations (CHDOs)

Type of Partner Partner Role Partnership Outcome

Financial Literacy andHomeownership (FLHO) EducationAffordable Home Mortgage Loans Promote Savings & First Accounts

Initial Capital Technical AssistanceManagementWarehouse LoanConduit to Secondary MarketConsumer Financial Products

Grants, Technical Assistance,Networking

Outreach, Lend CredibilityHost site for FLHO workshopsPartner for CHDO grant programs

Develop & Deliver FLHO WorkshopsDeliver Housing CounselingExperimental Mortgage LoansCUSO Mgmt & Staff training & Support

Formed & Manage CUSO, Market CUSO Services to members, Access to Financial Consumer Products to underservedCUSO access to Secondary MarketsEstablish Servicing Portfolio from CUSO loans, Promote Savings to First Accounts & Youth Accounts

Startup seed grant for CUSO or CUSO programs, CUSO Mgmt & Staff training & support, In-kind assistance—legal, acctg,etc.

Promote CUSO within CHDO target communityImbed CUSO programs within their servicesLend Credibility to CUSO w/CHDO members


Public Organizations

Government

School Systems

Employers


OutreachHost SitePartner Public Housing Programs with CUSO programs CDBG funds/ Down Payment Asst.IDA Program match fundingCertifications/Designations Partner Gov’t Housing Programs with CUSO programsEITC programsOutreach Host site

Outreach, Host SitesTechnical Assistance, In-kind assistance

Outreach to employeesEmployer Assisted ProgramIDA Program match funding

Deliver FLHO WorkshopsDeliver Housing CounselingExperimental Mortgage LoansOutreach to Very Low Income families

Market CUSO Services through City Housing ProgramsProvide Down Payment Assistance & Principal reduction assistanceProvide Sites for FLHO workshopsInstitutionalize CUSO within Housing Prog.

Market Financial Literacy to Parents & HS StudentsProvide Sites for workshops

Market FLHO to employeesEAP to employees as “Golden Handcuff”Offer IDA match to Employee Savings


Faith Based Org.

GSE—Fannie Mae

Non-Profits Social Organizations


OutreachLend CUSO Credibility

Secondary MarketExperimental Mortgage ProductsGrantsTechnical Assistance

Outreach, Host SitesDown Payment AssistanceIDA Programs, In-kind assistance

Market FLHO to congregation

Develop Experimental Mortgage Products Provide Purchase commitments for loansProvide FLHO MaterialsProvide Resources & GrantsProvide Training to CUSO mgmt & Staff

Market CUSO to members or target marketProvide Down Payment Assistance & Provides Credibility to CUSOPartner with Non-Profit service programs

Building Successful Partnership Building Successful Partnership Mortgage LendingMortgage Lending





El Paso Credit Union Affordable Housing

Credit Union Service Organization

Building Successful Partnerships for Building Successful Partnerships for Mortgage LendingMortgage Lending

• Credit Unions partner to establish Affordable Housing CUSO.

• CUSO delivers Bilingual Financial Literacy & Homeownership Workshops used to develop market profile and variances to conventional mortgage products needed to service the market.

• CUSO identifies non-profit or housing community organizations with which to partner and jointly leverage their resources for home mortgage program that will service the community.


• CUSO partners with GSE (Fannie Mae) for experimental product based on CUSO and partner resources and variances developed from Homeownership workshops.

• Fannie Mae provides technical assistance, materials, training, and software.


• CUSO holds Bi-lingual Financial Literacy & Homeownership Workshops and identifies potential homebuyers.

– Homebuyers identified as mortgage ready for conventional mortgages are referred to Credit Union Mortgage Dept.

– Others are enrolled in Mortgage readiness program and counseled in credit management and finance management.

– Buyers are referred to all available homeownership assistance programs and assisted with their qualification.

– Buyers are qualified for CUSO programs are provided with CUSO program loans.


• Credit Unions provide CUSO with Line of Credit to Fund Mortgage Loans

--And/Or-- Credit Unions provide guaranty to a Line of

Credit to CUSO from Southwest Corporate Federal Credit Union

• CUSO originates, closes, and funds mortgage

loans. Then packages and sells loans to Credit Unions or Seller-Servicer Credit Union for sale to Fannie Mae.


• Member Seller-Servicer Credit Union acts a conduit for CUSO and sells loan to Fannie Mae.

• CUSO collects payments from borrowers to monitor payment activity, and forwards payments to Seller-Servicer Credit Union.

• CUSO counsels borrowers before delinquencies occur, implements personal financial action plan.

• Credit Unions provide CUSO with management, in-kind resources, marketing, and warehouse line of credit.

Successful Partnership Models for Credit Unions

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