Cedar Band of Paiutes Applauds New Resolution Passed by National Congress of American Indians

NCAI Calls Upon HUD to Engage in ‘Meaningful’ Government-to-Government Consultations

 

The Cedar Band of Paiutes today applauded the National Congress of American Indians’ (NCAI) resolution responding to the Department of Housing and Urban Development’s (HUD) issuance of Mortgagee Letter 19-06 on April 18, 2019. The HUD Mortgagee Letter attempted to assert that “tribes are acting in their governmental capacity only on their reservations or when working with enrolled members.” HUD’s Mortgagee Letter was eventually withdrawn in response to successful litigation brought by the Cedar Band of Paiutes.

 

The resolution, titled “HUD Consultation Before Proceeding with Rule Making Relating to Tribal Down Payment Assistance Programs,” was adopted by the NCAI General Assembly at its 2019 Annual Session in Albuquerque, New Mexico. In its resolution, NCAI called on HUD to engage in meaningful consultation with tribal nations before commencing rulemaking, and to refrain from discrimination against tribal nations or any actions that are deleterious to tribal sovereignty. NCAI’s official position further underscores how HUD’s actions had a substantial direct effect on all tribal nations—including the Cedar Band of Paiutes—and sought to limit the ability of a tribe to operate in a governmental capacity.

 

The Cedar Band of Paiutes wholly owns and operates Cedar Band Corporation and CBC Mortgage Agency (CBCMA), which provides secondary financing to homebuyers receiving loans from the Federal Housing Authority. The Band relies on the revenues derived from CBCMA and other Band enterprises to sustain the Band’s essential government functions.

 

“HUD’s actions were a direct violation of the agency’s own Government-to-Government Tribal Consultation Policy,” said Delice Tom, chairwoman of the Cedar Band of Paiutes. “HUD’s unilateral actions would have had a ruinous impact on our Band and negatively impacted the hundreds of other tribal nations around the country seeking innovative and sustainable ways to support their communities.”

 

The Cedar Band of Paiutes also highlighted that the recently passed U.S. House of Representatives T-HUD appropriations bill, included language strengthening the process for federal agencies to consult with tribal nations.

 

While HUD has indicated that it intends to proceed with rulemaking, Chairwoman Tom further highlighted the importance of appropriate consultation in the nascent stages of the process. “We fully expect HUD to engage in a meaningful and collaborative process with the Cedar Band, as well as other Indian Nations and National Tribal organizations before drafting a rule affecting tribal nations, consistent with HUD’s own Tribal Consultation policy.”

 

About CBC Mortgage Agency
CBCMA provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBCMA takes great care to ensure that the FHA loans perform well, including providing education as well as 12 months of counseling to borrowers after the purchase of their home. In addition, CBCMA regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.

 

CBCMA is a wholly owned subsidiary of Cedar Band Corporation, a federally chartered tribal corporation wholly owned by the Cedar Band of Paiutes, a federally recognized American Indian band. For more information about CBCMA and its programs, visit chenoafund.org.

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Chenoa Fund Correspondent Newsletter: October 29, 2019

Introduction to Newsletter

This is the first of what we are planning to be a weekly newsletter. In the newsletter we seek to provide you with important information about the Chenoa Fund in the form of:

  • Program changes and updates
  • Announcements
  • Training updates, webinars, and more
  • Marketing resources you can use with borrowers and realtors
  • Answers to questions
  • News About Chenoa Fund
  • And more….

Chenoa Fund Releases Revised Program Guidelines

Chenoa Fund released and posted to their website under Program Guidelines the following:

All previous guidelines can be found under Archive: Program Guidelines.

Five Tips on How to Engage Potential Hispanic Homeowners

The homeownership rate for Hispanics has jumped in recent years, a fact that could buoy the housing market for years, according to a recent Wall Street Journal 1 article.

 

The homeownership rate of Hispanics is on the rise according to a recent Wall Street Journal article. It was only three years ago that homeownership for this group was at a 50-year low. Today, Census data shows that it has risen 3.3% which surpasses the homeownership growth rate of 1.3%. Further, while Hispanics account for only 18% of the U.S. population, they accounted for 65% of the homeowner gains.  Continue reading….

 

As Seen in the Chrisman Report

Over the past month, Chenoa Fund has published a series of posts in the Chrisman Report. You can read the full series on the Chenoa Fund blog in the article: “As Seen in the Chrisman Report.” The most recent post is Monday, October 17.

 

Chenoa Fund: A Safe and Happy Home: Through the years, Chenoa Fund’s programs have helped more than 17,000 low- and moderate-income borrowers obtain loans and realize long-held dreams of owning a home. When asked what they value most about the experience, most buyers provide a common response: the chance to live in a safe and happy home. Darlene T. recalled the joy she felt at leaving behind her “overpriced, poorly maintained rental” in an “undesirable part of town” and moving into her own house: “The neighborhood is beautiful, safer and has many conveniences close by.” Brittnie S. also was grateful to have a “safe place to come home to” after long shifts as a nurse. For these and other former renters, homeownership provides a sense of security that has a decisive impact on their quality of life. That’s an outcome worth celebrating. Continue….

Marketing Resource #1: Infographic and Blog Article

This week we are introducing a blog article and infographic that you can use in your communications with borrowers such as website, newsletter, email, blog, and social media. The PDF provides four versions to choose from. Each version provides you the ability to enter your personal information.

 

See posted article in Chenoa Blog

 

The title of the article and PDF are: Debunking Homebuyer Down-Payment Myths.

 

Go to Lenders webpage: Marketing Resources

Download from the following sections:

  1.  Infographic from: HOMEBUYER INFOGRAPHICS (LENDER)
  2. Article: ARTICLES FOR BLOGS AND NEWSLETTERS (LENDERS)

Marketing Resources Have Four Versions

Chenoa Fund has created a variety of high quality marketing materials you can use for creating interest in CBC Mortgage Agency (CBCMA) products/programs. The resources include:

  1. Program Flyers (Lenders)
  2. Program Flyers (Lenders/Realtors)
  3. DPA Postcards 11” X 6” (Lenders)
  4. DPA Postcards 11” X 6” (Lenders/Realtors)
  5. DPA Promotion Flyers (Lenders)
  6. DPA Promotion Flyers (Lenders/Realtors)
  7. DPA Door Hangers (Lenders)
  8. DPA Door Hangers (Lenders/Realtors)
  9. Homebuyer Infographics (Lenders)
  10. DPA Seminar and Lunch-n-Learn Flyers (Lenders)
  11. DPA Seminar and Lunch-N-Learn Doorhangers (Lenders)
  12. Chenoa Fund Homebuyer Videos (Lenders)
  13. Social Media Guidelines for Lenders
  14. Articles for Blogs and Newsletters (Lenders)

Each PDF for Lenders has four versions that provide you space for enter your contact information. Information includes:

  • Lending Partner
  • NMLS
  • Branch Location
  • Loan Officer
  • Phone
  • Email

 

Example 1

 

Example 2

Chenoa Fund Releases New Marketing Down Payment Assistance Report

Chenoa Fund Released a new marketing resource in the form of a report entitled: 2019 State of Down Payment Assistance Report. Click Here

 

The white paper includes five sections:

  •  Section One: The State of Down Payment Assistance Today
  • Section Two: National DPA Lender and Borrower Study
  • Section Three: Cost Benefit Analysis of DPA vs Renting
  • Section Four: Homeownership: Race and Risk
  • Section Five: Politics and Housing

 

Chenoa Fund News Release: October 22, 2019

CBC Mortgage Agency Releases National Down Payment Assistance Study

 

 

Links to Lender Resources

Who We Are
2019 State of Down Payment Assistance Report
Become Approved as a Correspondent Lender
Daily Rate Sheet and Pricing
Program Guidelines

Training Material
Marketing Resources
Homebuyer Programs

Income Guidelines
Lender FAQs

Documentation

What People Are Saying
Blog
Newsletter

 

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Debunking Homebuyer Down Payment Myths

Of all the barriers blocking people from becoming homeowners, one stands out above the rest: the down payment. For many young or low-to-median-income Americans, the prospect of accumulating a big chunk of cash to put down on a home seems virtually impossible – especially if they lack family members able to give or loan them some or all of the funds.

Surveys consistently show that most renters cite “affording the down payment” as a key obstacle to homeownership, with two out of three consumers saying it’s either somewhat difficult or very difficult to save the amount required.

Typically, these sentiments are the product of confusion over the down payment. One 2018 report by The Urban Institute found that nearly one in three people surveyed said they believe lenders expect borrowers to put down 20 percent. In fact, about six in ten homebuyers finance their purchase using a down payment of six percent or less.

Download PDF: CF1-DeBunkMyths-Infographic-homebuyer-efile_1019

On top of such misperceptions regarding down payment requirements, many would-be homebuyers are unaware that help is available. Down payment assistance, commonly called DPA, is accessible to a wide range of buyers, and it’s an increasingly popular tool allowing families to break into the homeowner ranks.

Recent data show that there are more than 2,100 active DPA programs in the U.S., at the local, state and national levels. Using DPA can dramatically reduce the amount a homebuyer must put down, and in some cases, borrowers can draw on multiple assistance programs to further reduce their up-front costs.

Who is eligible for DPA? That varies, but the Chenoa Fund and other programs typically provide help for a variety of loan types and to buyers with all levels of income and credit scores. Here are a few criteria used by many DPA programs:

  • Loan must be for primary residence
  • Home sale price limit, calculated as a percentage of the area’s median home price
  • Family income threshold, based on the area’s median income
  • Credit score minimum
  • Homeownership education course required

While many DPA programs serve first-time homebuyers, there are plenty that don’t have such a limit. Moreover, the industry definition of “first-time homebuyer” – someone who has not owned a home in three years – opens the door for many who might incorrectly assume that DPA programs were off limits to them.

One other persistent myth about down payment assistance deserves debunking: that a buyer can’t use gifts, grants or loans for the amount they put down. Not true. In fact, multiple lenders permit the use of gifted money to pay for some, if not all, of the down payment.

At the Chenoa Fund, we offer DPA on a national scale. We have a variety of options, both for FHA and conventional loans, that range from zero percent, no payment second mortgages to repayable second mortgages at between zero and five percent, depending on the term.

Homeownership remains the cornerstone of the American Dream. If you are hesitating to graduate from renter to homebuyer strictly because of the down payment, ask your loan officer or real estate agent whether the Chenoa Fund might be an option for you.

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Five Tips on How to Engage Potential Hispanic Homeowners

The homeownership rate for Hispanics has jumped in recent years, a fact that could buoy the housing market for years, according to a recent Wall Street Journal 1 article.

 

The homeownership rate of Hispanics is on the rise according to a recent Wall Street Journal article. It was only three years ago that homeownership for this group was at a 50-year low. Today, Census data shows that it has risen 3.3% which surpasses the homeownership growth rate of 1.3%. Further, while Hispanics account for only 18% of the U.S. population, they accounted for 65% of the homeowner gains.

 

Some key factors in the gain were attributed to the Hispanic gains in income, education, and understanding of the U.S. mortgage market and increasing population in Millennial homebuyers. Some challenges that face Hispanic and other minority groups have been the lack of starter-home inventory and affordability in concentrated areas where they live. Despite what the WSJ describes as “a growing population of young Latinos increasingly eager to buy homes,” homeownership rates for this group remains well below non-Hispanics – 47% compared with 73% in the first quarter of the year. The latest National Association of Hispanic Real Estate Professionals (NAHREP) State of Hispanic Homeownership Report, says this group accounts for 32.4 percent of overall U.S. household formation. 3

 

While 55 percent of the nation’s Hispanic people live in Texas, California, and Florida, the Hispanic population of 11 other states has grown 10 percent since 2000: Connecticut, Rhode Island, Utah, Oregon, Washington, Idaho, Kansas, Massachusetts, Nebraska, Hawaii, and Oklahoma. Hispanic people will comprise 56 percent of all new homebuyers by 2030, according to the Urban Institute.4

 

There appears to be an education and communication barrier between lenders and Hispanic borrowers. Hispanic consumers commonly believe that a minimum down payment to buy a home is 20 percent of the sales price. About 56 percent think it’s difficult to get a home loan in today’s environment, yet more than 80 percent think that owning a home is a good long-term investment. From this data, home ownership is a long-term goal for most Hispanic households, yet their perceptions about obtaining a loan keeps them from speaking with a loan officer; much less applying for a loan.

 

At Chenoa Fund, we are seeing many correspondents who are tailoring their offerings to accommodate Hispanic buyers with down-payment assistance in the form of second mortgages to increase affordable and sustainable homeownership, specifically for creditworthy, low- and moderate-income individuals.

 

Here are five tips on how you can reach the potential Hispanic homeowner and develop strong relationships:

 

1. Partner with Local Hispanic Organizations
In almost every city there are events and celebrations throughout the year for the Hispanic community and culture. You can support these local organizations by sponsoring events, attending luncheons, and participating in events such as providing supplies for back-to-school drives. The NAHREP (National Association of Hispanic Real Estate Professionals, https://nahrep.org/) which has over 30,000 members is a great match for lenders to connect with at a national or local chapter level. Reach out to these professionals and consider putting on a series of home buying seminars about first time home buying, FHA loans, and other housing assistance programs.

 

2. Understand the Hispanic Homebuyer
It is important to understand the needs and profile of the Hispanic homebuyer and what sets them apart from other homebuyers. Many are bicultural, bilingual and live in extended family situations that can include several generations. Hispanics are known to be brand loyal, tech-savvy and 58 million strong. According to Forbes, half of the Hispanic community is under the age of 29. The Hispanic Millennials make about 20% of Millennials according to a Brookings Report5. As a bicultural group they can easily speak and read Spanish at home but just as easily watch a movie in English.

 

Start by speaking about the aspiration of homeownership and available product offerings though communication vehicles that communicate to the Hispanic audience. A Spanish-language radio ad may help you reach baby boomer grandparents, while Snapchat filter can help you reach “il-linenials” or Hispanic Millennials.

 

3. Include Hispanics in General Marketing Efforts
According to the Harvard Center for Housing Studies2, it is estimated that by 2025 three-quarters of all new US household formations will be minorities. When you think about creating marketing campaigns, you might be tempted to create a niche marketing campaign to reach Hispanics. Rather, it is recommended that you be inclusive in your general campaigns to reach the greater community you serve. Stay away from stereotyping. For example, use images that reflect different ethnic cultures and races.

 

According to the Forbes article, more than half of the respondents said that they use English online, even if they generally spoke Spanish at home. While they consume content in English doesn’t mean you shouldn’t be making the effort to incorporate Spanish into your marketing campaigns. It was noted that 56% of Spanish-speaking Hispanics said that they were more loyal to companies that advertise in Spanish, which underscores the need for campaigns to connect with Hispanics in their own language. They continued by stating, it’s also important in marketing to transmit elements of Hispanic culture, even if it’s in English, because it makes individuals feel that you understand them and their cultural backgrounds. Social media represents an important touchpoint for Hispanic consumers, especially for much-sought-after millennials since almost 50% of Hispanic millennials said they had talked about a brand online with others or used a brand’s hashtag, compared to 17% of non-Hispanics. Brands should take care to use social media to cultivate brand loyalty among Hispanics.

 

4. Give Choices
It’s important to have loan officers in the office that can speak both Spanish and English. Many Hispanics prefer to speak Spanish instead of English and there are many who buy homes who don’t speak English. On a website and mobile app, consider giving people a chance to review the webpage in English or Spanish. If they click on Spanish, it will take them to the Spanish version of the website. Your blogs and articles can also be printed in both languages. Always prominently include the phrase, “Se habla Espanol” on all media.

 

5. Consistently Invest in the Community
Create a plan and stick to it. If you are going to include the Hispanic community in your business development strategy, do not take the “one and done” approach. You need to be consistent and sincere in your outreach to develop long-lasting relationships throughout the year. Like any potential homebuyer, they interact with those who are sincere and authentic in their communications. Enter new prospect information in your database and add them to your marketing campaign. Sent them regular emails, newsletters and tweets that cater to the Hispanic market.

 

Conclusion
The Hispanic community want to be homeowners, yet many feel they just won’t be able to qualify. By using these strategies, you begin to connect with the Hispanic audience to build a loyal relationship with long lasting dividends.

 

1Wave of Hispanic Buyers Shores Up U.S. Housing Market, July 15, 2019

2State of the Nation’s Housing report-2018

3. 2018 State of Hispanic Homeownership Report

4. Urban Institute

5. Booking Report

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CBC Mortgage Agency Applauds Unanimous Senate Committee Passage of T-HUD Appropriations Bill

Bill includes critical language encouraging HUD to collect data from governmental entities providing down payment assistance

 

WASHINGTON – CBC Mortgage Agency (CBCMA) today applauds the unanimous passage (31-0) of legislation that includes language encouraging the Department of Housing and Urban Development (HUD) to collect data on which governmental entities provide down payment assistance to FHA borrowers.

 

The appropriations bill, the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2020, provides funding for HUD for FY2020. The bill includes report language that addresses the longstanding uncertainty around the performance of down payment assistance (DPA) programs provided by government entities across the country. The language encourages HUD to require loan originators to collect and report to HUD the tax identification numbers for governmental entities providing DPA, a requirement already in place for non-profits that provide DPA. This new data would allow HUD to accurately track and manage DPA programs.

 

“Adequate data collection is necessary to the proper management by HUD of government DPA,” said Michael Whipple, vice president of CBC Mortgage Agency. “Collecting this data will allow HUD to provide better oversight of these programs and better manage risk to the FHA fund and protect taxpayers. Collecting this data for a sufficient period is a critical first step for HUD to take before it begins any rulemaking on government DPA. We thank Senator Collins (R-ME), the Chair of the T-HUD subcommittee and Senator Reed (D-RI) for their willingness to address this critical issue.”

 

CBCMA, which operates an industry-leading DPA program, the Chenoa Fund, has been urging data collection to increase transparency among governmental entities for many months. According to CBCMA, collecting more granular data on down payment assistance programs, like the Chenoa Fund and over 1300 other programs across the country, would help HUD determine what of any action needs to be taken to protect the FHA Mutual Mortgage Insurance Fund.

 

“Ultimately, more data leads to increased transparency – and that’s good for the government, borrowers, and taxpayers,” Whipple added.

 

About CBC Mortgage Agency
CBCMA provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBCMA takes great care to ensure that the FHA loans perform well, including providing education as well as 12 months of counseling to borrowers after the purchase of their home. In addition, CBCMA regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.

 

CBCMA is a wholly owned subsidiary of Cedar Band Corporation, a federally chartered corporation wholly owned by the Cedar Band of Paiutes, a federally recognized American Indian band. For more information about CBCMA and its programs, visit chenoafund.org.

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