Children of owners are more likely to buy homes (Boehm an

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BUILDING SUCCESSCHANGING LIVES
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Mission

• Building Success . . . Changing Lives
• COCAAN is dedicated to empowering individuals and
  families to succeed and become engaged citizens
  in the community.

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NeighborWorksCampaign forHome
OwnershipHomeOwnership Centers
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Benefits of Homeownership

• Owners have greater self-esteem Rossi and Weber
  - 1996)
• Owners are more involved in community
  organizations, voting and other activities
  (DiPasquale and Glaser 1997)
• Children of owners are more likely to buy homes
  (Boehm and Schlottmann 1999)
• Low-income homeowners under 65 have a median
  wealth 12 times greater than comparable renters
  (Survey of Consumer Finances)

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Campaign for Home Ownership

• Campaign started in 1993
• 150 NeighborWorks organizations
• Largest national initiative of its kind
• Goal of improving access to home ownership for
  underserved markets

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What We Know About Lending and Homeownership

• Solid gains in homeownership highest
  homeownership rates in U.S. history
• Historically-low interest rates
• Boom in low-income and minority lending though
  still persistent gaps
• Homeownership is key to asset-building
• Home prices still solid despite weak economy
• Minorities will contribute heavily to household
  growth in next decade

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Looking Ahead

• Importance of Minority Market
• Persistent Gaps in Ownership Attainment
• Immigrant Boom Significant
• Emerging Dual Financing System

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Large Racial Disparities in Homeownership
Attainment
U.S. Homeownership Rate by Race
Source U.S. Census Bureau 2001
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Opportunities are Uneven
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1 in 5 Renters Are Immigrants
Source Current Population Surveys
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Low Income Buyers and Neighborhoods Rely on
Higher-Cost Lenders
Source Joint Center for Housing Studies, The
25th Anniversary of the CRA, 2002.
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2003-2007 Plans

• Changing Credit Markets
• Current problem is not access to credit but
  pricing
• Reaching more customers earlier in process
• Offering alternatives to subprime lending
• Providing consumers with information, education
  and counseling services

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Themes 2003-2007

• Production Expanding Markets
• Preservation Sustain the Gains
• Outreach Tapping New Consumer Market Channels
• Building the Industry Testing Sustainable
  Business Models

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Goals 2003-2007

• Create 50,000 new homeowners (30,000 minorities)
• Assist 50,000 existing homeowners via rehab,
  renovations, refis, delinquency foreclosure
  prevention
• Provide counseling to 500,000 families, expand
  Financial Fitness add 45 more HOCs
• Work with HFAs, Board member agencies (FDIC, OTS,
  HUD, NCUA) to promote HBE industry growth test
  new business models

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Campaign Results 1993-June 2005
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Homebuyer Comparisons
1998-2004 Chicago Title Campaign Data HMDA 2003
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Loan Performance Comparison
Sources 9/30/04 NHSA and MBAA Surveys
NR-Fannie Mae data
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Advantages ofFull-Cycle Lending

• Empowers low-income borrowers
• Targets hard-to-reach customers
• Provides credit enhancement
• Develops stronger buyers - more
  default-resistant buyers

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Campaign Innovations

• A comprehensive approach - Full Cycle Lending
• HomeOwnership Centers Standards
• Tools for analyzing mortgage markets and program
  impacts - N-BEST and Surveys
• Technical Solutions - NStep
• Targeting Hot Topics - Predatory Lending
• Publications, Information, and Training

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NeighborWorks COCAAN HomeOwnershipCenter The
One-Stop Shop

• The COCAAN NeighborWorks HomeOwnership Center is
  a one-stop shop where customers have access to
  the services and training needed
• To shop for, purchase, rehabilitate, and
  maintain a home.
• Customers include renters, first-time
  homebuyers, and existing homeowners

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NeighborWorks COCAAN HomeOwnershipCenter The
One-Stop Shop
COCAAN provides customers with the following
services

• Pre Post Purchase Education
• Home Buyer Education/Counseling
• Financial Literacy/IDAs
• Affordable Second Mortgages
• Rehab Services
• Predatory Lending Intervention
• Delinquency Prevention
• Weatherization Resident Leadership

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NeighborWorks COCAAN HomeOwnershipCenter
Standards

• Leadership Structure
• Staffing Levels
• Homeownership production thresholds-40
• Full Cycle Lending implementation
• Service Delivery System usage
• Customer Tracking Systems usage
• Partnership Development programs
• Design standards and marketing materials
• Evaluation mechanisms

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• NeighborWorks HomeOwnership Centers are
  positively impacting the communities they serve.
  By combining
• branding strategies
• innovative systems and processes
• efficient methods of operation
• These Centers are providing measurable benefits
  to customers, NeighborWorks HomeOwnership Center
  staff organizations, and community and industry
  stakeholders.

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Everyone Wins!HomeOwnership Center Benefits

• Increased number of customers educated
• Increased number of program graduates
• Increased number of successful buyers
• Meaningful connection to customers
• Clearly defined results reporting format
• Improved loan performance
• Aggressive outreach methods
• Strong internal systems
• Strong partner relationships

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Everyone Wins! Community Benefits

• Increased property tax base
• Increased home ownership rates
• Greater leveraging of mortgage funds
• Transaction-related economic activity
• Increased family assets

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Everyone Wins! Customer Benefits

• Comfortable and supportive surroundings
• Especially for those who are unsure about
• or afraid of the home buying process
• Or for those who are uneasy in a bank environment
• Impartial and unbiased information
• Convenient one-stop shopping for high-quality
  services
• Broad range of services with flexible hours

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Making a Difference in What We Call Home
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Everyone Wins! Lender Partner Benefits

• New market development
• Reduced Adverse Action rates
• Reduced origination costs
• More productive CRA initiatives
• Reduced loan delinquency
• Greater return on community investment
• Unlimited access to Procurement Services via
  Lender Partner referrals

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Everyone Wins! Real Estate Agent Partner
Benefits

• New customers
• Increased exposure
• Access to down payment assistance funds
• for making borderline deals work
• Partner referrals
• Public relations benefits
• Less time spent developing homebuyers more time
  spent listing, selling and showing homes

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NeighborWorks COCAAN HomeOwnershipCenter The
One-Stop Shop

• Business Partners within the community are
• Local Lenders
• Real Estate Agents
• Home Inspectors
• Government Entities
• Insurers
• General Contractors
• Home Improvement Centers
• Community-based Organizations

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Partners Helping

• Marketing
• Hosting Classes
• Teaching Classes
• Referrals
• Hometart
• Specialized Loan Products
• Contributing Funds for Operations

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BUILDING SUCCESSCHANGING LIVES