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Train the Trainer Massachusetts Homeownership Collaborative

Tuesday September 27, 2016 10 am – 2 pm MassHousing

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Presenters Jacqueline Cooper, Financial Education Associates Hilda Fernandez, Massachusetts Affordable Housing Alliance Antonia Finley, City of Cambridge Maritza Crossen, CHAPA

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Agenda •  Collaborative Guidelines •  Facilitator Role and Course Flow •  Guest Speakers •  Outreach and Communication •  Reporting and Data Collection •  Activities •  Open Discussion Time •  Table Discussion Time •  Training Evaluation

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Collaborative Guidelines

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Standards

•  Courses should be at least 8 hours of curriculum time, excluding breaks

•  Courses should be conducted over at least two sessions •  Must cover the curriculum •  Must honor the Code of Ethics •  The Code of Ethics was established to maintain the

credibility of the Collaborative •  Must distribute Disclosure to participants

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Code of Ethics

All agencies and their staff that receive a Collaborative Seal of Approval must adhere to the following Code of Ethics:

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Code of Ethics

•  It shall be the primary intent of the agency, its staff and its guest speakers to educate and counsel prospective homebuyers to make informed, voluntary decisions regarding the homebuying process

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Code of Ethics

•  The counseling agency shall disclose to prospective homebuyers how its counseling program is funded, including any financial support it receives from lenders or other relevant institutions

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Code of Ethics

•  Agency staff must not limit the choices of any prospective homebuyer by directing the homebuyer to any one product or service, to the exclusion of other products or services for which the homebuyer may be eligible

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Code of Ethics

•  Agency staff and all consultants must not have any personal or financial stake in directing prospective homebuyers to any particular product or service

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Code of Ethics

•  Agency staff and guest speakers must not deny services to any prospective homebuyer because of race, color, national origin, religion, age, gender, family status, disability, sexual orientation, military history, or source of income

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Code of Ethics

•  Agency staff and any guest speakers or other representatives must treat all prospective homebuyers with professional respect and courtesy

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Conflict of Interest

•  Must disclose any conflicts •  If a realtor or mortgage broker license is held by the

agency or its staff, it must be disclosed to the class •  Business cannot be derived from the class •  Staff and board members are covered by this policy

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Suggested Course Structure

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Setting the Stage •  We “Set the Stage” and maintain control over the entire

course •  Start on time and end on time •  The tone of the class starts with how participants are

greeted •  Have a welcome table with an attendance sheet •  Distribute course materials •  The order in which the topics are covered is important for

participants to get the most from the class •  Before people can think about types of mortgages,

qualifying criteria, etc., they should know the process and the players

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Session I •  Speakers: Agency Staff •  Welcome & Introductions •  Review of Homeownership Collaborative, Seal of

Approval and Code of Ethics •  Purpose, goals and outline of each class

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Session 1 continued Identification of Real Estate Professionals

(This should include an explanation of who each

professional works for and how they are compensated.) •  Real Estate Buyer Broker •  Lender •  Buyer's Attorney •  Lender's Attorney •  Home Inspector •  Appraiser •  Insurance Agent

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Session 1 continued Steps to Purchasing a Home •  Take a Class •  Get Pre-Qualified by at least 3 lenders •  Select a Lender and get Pre- Approved •  Determine Price Range •  Decide on type of house (condo, single, double) •  Choose a Broker and Start Looking •  Make an Offer •  Have a Home Inspection •  Purchase & Sale Agreement •  Obtain Homeowner's Insurance •  Closing •  Move in

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Session 1 continued •  Explain Importance of Putting Together the Best Team of

Professionals •  Explain Current Market Conditions (traditional sales,

short sales, foreclosures) •  Explain Credit Scoring (Provide instructions on obtaining

credit reports to be distributed at next class.) •  Review Ownership Options (condos, single family,

multifamily) •  Explain Purposes of the Registry of Deeds and Town

Assessor’s Office •  Explain Process of Making an Offer and Signing a

Purchase & Sale Agreement

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Session 1 continued •  Stress Importance of Having Offers and Purchase & Sale

Agreements reviewed by an attorney before signing and submitting them

•  Explain Different Types of Lenders (credit unions,

commercial banks, savings banks, mortgage companies, mortgage brokers)

•  Explain Different Types of Mortgages (MASSHOUSING,

MHP ONE Mortgage, FHA, Conventional, Fannie Mae, Freddie Mac, other affordable products, etc.)

•  Review Local Down Payment Assistance Programs

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Session 2 •  Speakers: Lender & Home Inspector •  Mortgage Application Process - Lender

(Refer to Mortgage Chapter) •  Home Inspections – Home Inspector

(Refer to Home Inspection Chapter. Include lead paint, radon, asbestos, etc.)

•  Additional Topics (if time is available) •  Lotteries, 40B projects, availability of individual

homebuyer counseling, review down payment assistance programs

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Session 3 •  Speakers: Representative from MassHousing or MHP

ONE Mortgage Program & Attorney

•  Affordable Mortgage Products (Alternate between MASSHOUSING and MHP. Agency Staff can provide a brief explanation for the agency not presenting.)

•  Legal Aspects of Home Buying (Refer to Legal Chapter)

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Session 3 continued Include discussion of these topics:

–  Offer to Purchase –  Purchase & Sale Agreements –  Closing Disclosure –  Title Insurance –  Homestead Act –  The Closing & Recording –  Importance of Having a Will and Health Care Proxy –  Power of Attorney

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Session 4 •  Speakers: Agency Staff

Real Estate Broker Insurance Agent

•  Welcome – Agency Staff

•  Review of Affordable Mortgage Products – Agency Staff

•  Purchasing Affordable Units (lotteries, re-sales, etc.) – Agency Staff

•  The Role of the Real Estate Buyer Broker – Buyer Broker (Refer to Real Estate Broker Chapter)

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Session 4 continued •  Budgeting – Agency Staff •  Cash Flow Analysis •  Tracking Expenses & “Coffee Exercise” •  How to Prepare a Realistic Budget •  Responsible Home Ownership – Agency Staff •  Protecting Equity (Avoid “cashout” refinancing) •  Federal Income Taxes (mortgage and property tax

deductions) •  Timely Mortgage Payments/Extra Principal Payments •  Financial Planning •  Foreclosure Prevention •  Home Improvements

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Session 4 continued •  Homeowner’s Insurance – Insurance Agent or Agency

Staff •  Types of Coverage (dwelling, personal property, loss of

use, etc.) •  Deductible Options •  Condominium Insurance (master policies, personal

policies) •  Review of Down Payment Assistance Programs –

Agency Staff •  Fair Housing Laws •  Review of Subject Review Worksheets

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Session 4 continued •  Review of Closing (final pre-closing check lists, walk-

through of property)

•  Encourage Participants to Register for Individual Counseling

•  Encourage Participants to Register for Landlord Training

•  Distribute Course Evaluations

•  Distribute Certificates of Completion

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Suggested Order of Presenters Four Sessions 2 and 1/2 hours each Session I: Agency Staff Session II: Lender and Home Inspector Session III: MASSHOUSING/MHP and Attorney Session IV: Agency Staff, Real Estate Agent, Insurance

Agent

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Suggested Order of Presenters Two Sessions 5 hours each Session I: Agency Staff, Lender and Home Inspector Session II: Attorney, Real Estate Broker, Insurance

Agent, Agency Staff

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Required handouts •  Disclosure

•  Code of Ethics

•  Core Handouts from Curriculum CD

•  Subject Review Worksheets

•  Registration form

•  Evaluation (encouraged)

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Table Activity

First Time Homebuyer Curriculum Flow

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The Role of the Facilitator and Managing Course Flow

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Role of the Facilitator

• The facilitator is key • An active participant • A resource • Coordinator

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Role of the Facilitator

• Sets the Stage • Keeps records • Instructor of Curriculum • Manages the Course Flow and Material • Encourages Discussion • Assesses Learning • Protects Participants • Provides Tips to Achieve Successful Homeownership

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Typical Sections Instructed by Facilitator

• Introduction • Advantages/Disadvantages of Homeownership • Roadmap to Homeownership • Role of Professionals • Budgeting and Credit • Affordable Housing Programs • Fair Housing • Successful Homeownership

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Introduction/Setting the Stage • Describe the Program and Resources

• Disclose Program Fees and Funding • Review Collaborative Code of Ethics

• Set Meeting Ground Rules

• Review current housing market

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Advantages and Disadvantages of Homeownership

• Great opportunity for Group Discussion • Dispel any myths of homeownership (i.e. “you can live payment free with rental income”) • Provide tips to mitigate disadvantages (i.e. Save, Save, Save!)

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Roadmap to Homeownership • Gives participants a sense of the entire process from beginning to end

• Great opportunity to build rapport

• Assess participants’ knowledge

• Provide tips as you review each step Note: Discuss how roadmap differs with short sales, foreclosures auctions and REO’s (Discourage participants from purchasing at auction)

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Role of Professionals

•  Introduces the student to high quality professionals •  The professionals are in the field and experience

changing trends in the field as they happen •  When you bring in high quality professionals students

benefit but it also improves the skills and knowledge of the facilitator

•  Professionals are there to share expertise in the field they are in

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Budgeting and Credit •  Prepares buyer with tools and strategies to financially get

into the home •  Must also discuss how these skills will keep them in their

home •  A first-time homebuyer must fully understand the cost to

get into a home as well as the costs associated with maintaining that home

•  The counselor should have the skills to teach these components of the class – enhances your ability to provide high level counseling

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Budgeting Students need to know:

–  Exactly what is a budget –  How to do their own budget –  How to receive the necessary tools Most Important – Use their budget as a part of their

Homeownership Strategy ***Saving money is very hard if you do not know exactly

what goes in and what goes out.***

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Credit Key considerations when teaching Credit: •  Credit Bureaus •  How to read their report •  What lenders look for •  Ways to repair/build credit •  Dispel myths •  The credit score

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Affordable Homeownership Programs

What is Affordable Homeownership? •  Affordable Homeownership Lotteries and resales •  “Buy-down” programs

–  Income & asset restrictions –  Preferences –  Resale restrictions

•  Considerations – is this the right option?

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Affordable Homeownership Programs

•  Considerations •  Finding Affordable homes to buy

–  www.chapa.org –  www.Massaccessaffordablehousingregistry.com –  BRA –  Local municipalities (i.e. City of Boston) –  Town consortiums –  Housing counselor as a resource

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Successful Homeownership •  Keep focus on both getting into the home and

maintaining the home –  This is possible in all aspects of the class

•  First-time homebuyers are focused on getting in. They need to be prepared for staying in their home

•  Homeownership will continue to require many of the same skills needed to get into the home

•  Post-purchase education

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Managing Course Flow •  Respect students time – Classes start and end on time. •  Discuss only topic at hand •  Expect speakers to stay within allotted time

–  Facilitator provides assistance to make this happen – time keeper, moves discussion forward when necessary

–  It is easier to manage the speakers when you have a good relationship

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Tips to be a Good Facilitator •  Welcome everyone each night to class •  Be present in every class, for the full class •  Be the first speaker •  Be prepared to teach each section if presenter is unable

to attend •  Have prepared questions for presenters to get things

going if the class is quiet or shy •  Dress professionally •  Control the room. Step in to keep personal stories from

dominating the class

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Innovative and Creative Activities to Engage

Participants

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Why use activities? •  Keeps participants engaged •  Gets them excited about the class •  Keeps your course fresh and new for you and the

participants •  Helps illustrate ideas that may be hard to explain or

grasp •  Different people learn in different ways

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Adult Learning Styles •  Visual: learn best through images and visual aides;

focus on instructor’s body-language •  Auditory: Learn best by listening to oral instruction and

reading out loud; interpret pitch, speed and emphasis of spoken words

•  Kinesthetic: Learn best through “hands-on” approach;

by practicing and doing; favor interaction

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Activity Idea

American Dream Crossword Puzzle

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Open Discussion

What are other activity ideas?

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Fair Housing: Protected Classes

•  Race •  Color •  National origin •  Religion •  Gender •  Familial status (families

with children) •  Disability (handicap)

•  Source of income (public assistance and/or housing subsidy recipients)

•  Marital status •  Age (excludes minors) •  Sexual orientation •  Military history

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Fair Housing: Prohibited Activities

•  Refuse to rent or sell dwelling units •  Refuse to negotiate for a dwelling •  Represent that a dwelling is not available when such

dwelling is, in fact, available •  Set different terms, conditions or privileges for rent or

sale of a dwelling •  Advertise or make any statement that indicates a

limitation or preference based on race, color, national origin, religion, gender, familial status, handicap, source of income, marital status, age (excluding minors), sexual orientation and military history

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Fair Housing: Filing a Complaint

•  Give examples of what might be discrimination •  Explain what may be triggers •  Provide them with resources •  Help them understand why they should file a complaint •  Fair Housing Centers and Commissions •  Collaborative has a Fair Housing PowerPoint

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Guest Speakers

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Selection Process

•  Best resources are your participants •  Request resumes and references •  Verify references •  Verify licenses- MA Dept. of licensure

(realtors, home inspectors, mortgage brokers, etc.) •  Check better business bureau for complaints •  Other trustworthy industry partners •  Other Collaborative education providers

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Preparation of Guest Speakers •  Meet and interview each prospective guest speaker

–  Discuss program mission –  Discuss consumer protection guidelines –  Discuss agency procedures and requirements –  Discuss and review curriculum- Provide the CHAPA

curriculum and the manner in which you want the material delivered.

•  Discuss do’s and don’ts •  Guest Speaker Agreement •  Evaluate Guest Speakers after each presentation Tip: More experience does not necessarily mean a better speaker. Facilitators

should get a feel for the Guest Speaker’s ability and willingness to “educate” without “selling.”

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Avoiding Potential Conflict of Interests

•  Have a minimum of three guest speakers if possible for each segment

•  Use a rotation list (Collaborative requirement) •  Disclose guest speaker guidelines to participants •  Do NOT allow guest speakers to collect individual

participant information (i.e. collect a list of names with contact information)

•  Do NOT allow speakers to actively solicit business •  Do NOT steer: always provide at least 3 options when

asked for referrals

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Open Discussion Session

What are the other challenges of selecting and managing guest speakers?

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Outreach and Communication

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Advertising and Program Promotion

•  Relationship, Relationship, Relationship •  Flyer throughout the neighborhood •  CHAPA Calendar •  Press releases •  Radio •  Tables at local events, supermarket, etc. •  Be accessible to new students •  Email and Social Networking •  Word of mouth •  Other community partners and non-profits, city and town

government, city website

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Follow-up Communication

•  Relationship, Relationship, Relationship

•  Hold back certificates – give out graduation letters

•  New homeowner forms

•  Registry of deeds online

•  Banker and Tradesman

•  Be accessible to your graduates

•  One-on-one counseling

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Reporting and Data Collection

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Requirements on Renewal Application

•  Number of graduates

•  Number of courses

•  Languages covered

•  List of handouts

•  List of guest speakers

•  Resumes of staff

•  List of trainings completed by staff members

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Database Management Systems

•  Name •  Address •  City, State, Zip •  Class number •  Email address •  Date •  Attendance •  Ethnicity •  Race

•  Income •  Parcel Number •  Homebuyer: yes or no •  Recipient of down

payment assistance? yes or no

•  Which program? •  How much assistance? •  Lender •  Mortgage Type •  Mortgage Amount

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The data base system allows us to:

•  Produce class rosters •  Produce certificates of completion •  Mailing labels •  Bulk email connection to data base using SwiftPage

(similar to Constant Contact) •  Extract data into a GIS mapping system to produce

visual displays of our activities. (ie. Where people buy homes by ethnicity, income, etc.)

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Database Systems • Home Counselor On-Line (HCO – Fannie Mae) • Counselor Max (NeighborWorks)

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Questions Time

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Additional Resources •  Visit another class for idea sharing

•  Sit in and evaluate your agency colleagues for new ideas

•  HUD Office of Housing Counseling website –  https://www.hudexchange.info/programs/housing-counseling/

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Homebuyer Education Matters! •  There is evidence that homebuyer education makes a

difference.

•  What you do IS important!

•  By informing and preparing them, YOU help families achieve the American Dream the Right Way!

•  Be proud and let the world know you are a Homebuyer Educator!

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Thanks!

Maritza Crossen Senior Program Manager

CHAPA 617-742-0820

mcrossen@chapa.org