BRIDGETHE

VOLUME 07, ISSUE 10 JULY/AUGUST 2019

THE OFFICE OF HOUSING COUNSELING NEWSLETTER

TURN KNOWLEDGE INTO POWER

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INSIDE THE ISSUE

Letter from the Deputy Assistant Secretary …………………………………………………… Housing Counseling Federal Advisory Committee Meets New Members ………. Combatting Foreclosures with HUD Resources………………………………………………. Striving Towards Improved Data Quality……………………………………………………….. Elder Financial Exploitation …………………………………………………………………………… Client Counseling and Group Education Files…………………………………………………. FAQs: Client Files and Recordkeeping………………………………………………………….... From the Depths of Debt to Financial Freedom…………..………………………………… Mythbusters Q&A: Housing Counseling Certification ……………………………………. Supporting a Family, Saving a Home ………..…………………………………………………… Counseling Agencies Expand Reach at HUD’s Innovative Housing Showcase …. Building Tomorrow Together: The Future of Housing Counseling …………………. Searching for Resources Is Easy on HUD Exchange! …………..………………………….. Training Digest………………………………………………………………………………………………..

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FROM THE DEPUTY ASSISTANT SECRETARY

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Knowledge is power. That very simple phrase has stood the test of time. In life, the knowledge you carry and the way you use it can improve your quality of life. I find that people who consume knowledge through books, internet, conversations, or life experience—those people have a powerful impact on me and make me hunger to learn more. Knowledge doesn’t just refer to the “book smarts” you pick up in educational or training settings. It’s also about the lessons you learn from personal and professional life experiences, both your own and those of others. When you’re able to use your native or second language to provide counseling to members of diverse language communities, your cultural knowledge becomes power. When you expertly organize and manage your client files using an approach you picked up from your previous career, your applied experiences become power. And when you become a HUD-certified housing counselor, your expanded job expertise becomes power, too.

While knowledge is certainly not the only factor that enables housing counselors to deliver the most effective counseling possible, it is an important one. As such, this issue of The Bridge delivers a collection of articles that will empower you by bolstering your housing counseling knowledge. In particular, the articles highlight:

• The Housing Counseling Federal Advisory Committee’s aim to improve the housing counseling program through the engagement and participation of diverse, knowledgeable, and multi-sector stakeholders;

• Guidelines and best practices for managing your portfolio of client and group education files;

• Frequently asked questions about the housing counseling certification exam;

• Case studies of counselors who’ve successfully helped clients improve their housing situation;

• Key steps that housing counselors should take to help clients avoid foreclosure; and

• Tips for searching HUD Exchange for the tools and resources you need. Not all sources of knowledge are relevant or reliable. We have to watch out for those rabbit holes you find on the web that suck up hours before you know it. (My last Wikipedia search was for “Scandinavian musical instruments” – don’t ask.) We also have to watch out for the scams you find in real life. Families rely on the knowledge they gain from housing counselors; it’s a big responsibility and we hope the information captured in this newsletter will serve to bolster and strengthen your ability to provide comprehensive, high-quality counseling to community members. Cheers,

Sarah Gerecke Deputy Assistant Secretary Office of Housing Counseling

Sarah

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On May 22, the Housing Counseling Federal Advisory Committee met with seven new members and four returning members. The Housing Counseling Federal Advisory Committee is mandated by statute P.L. 111-203 to provide advice to HUD’s Office of Housing Counseling. Secretary Carson selected new members from an impressive list of over 200 applicants. As specified by law, the members represent the mortgage industry, the real estate industry, consumers, and HUD-approved housing counseling agencies.

From left to right: Glen Holmes (Housing Counseling Agency); Paul Yorkis (Real Estate Industry); Sarah Gerecke (HUD Office of Housing Counseling); E.J. Thomas (Real Estate Industry, former member); Pamela Marron (Mortgage Industry, former member); Marcia Lewis (Real Estate Industry). Not pictured: Afreen Alam (Consumer); Edselle (Keith) Cunningham (Consumer); Patricia Arviello (Mortgage Industry); Martin Sundquist (Mortgage Industry); Judy Hunter (Housing Counseling Agency); Song Hutchins (Housing Counseling Agency); Virginia Holman (HUD Designated Federal Officer).

HOUSING COUNSELING FEDERAL

ADVISORY COMMITTEE MEETS

WITH TALENTED NEW MEMBERS

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During the meeting held at HUD Headquarters, the last four founding advisory committee members – E.J. Thomas (chair), Pamela Marron, Judy Hunter, and Afreen Alam – were thanked for their important contributions and dedicated service to HUD’s housing counseling program. They were joined by the following new members:

• Martin Sundquist

• Patricia Arvielo

• Paul Yorkis

• Marcia E. Lewis

• Song Hutchins

• Glen Holmes

• Edselle (Keith) Cunningham, Jr. The new Advisory Committee members listened closely to the founding members’ insights into the opportunities to improve the HUD housing counseling program. The committee then voted to explore breaking into subcommittees to continue the important work begun by their predecessors in the areas of embedding housing counseling into the mortgage process; clarifying ways to generate private funds for housing counseling through public/private partnerships; and expanding awareness and visibility of housing counseling, especially among members of the mortgage and real estate professions. The first meeting of the advisory committee occurred in 2016, and the group has delivered great value to the HUD housing counseling program by making recommendations that are actionable, relevant, and significant for HUD to meet its mission of providing individuals and families with the knowledge they need to obtain, sustain, and improve their housing. The Housing Counseling Federal Advisory Committee (HCFAC) was established to advise HUD’s Office of Housing Counseling (OHC) to meet its mission to provide individuals and families with the knowledge they need to obtain, sustain, and improve their housing through a strong national network of HUD-approved housing counseling agencies and HUD certified counselors. The HCFAC consists of 12 individuals. The memberships represent the mortgage and real estate industry, consumers and HUD-approved housing counseling agencies. More information about the Housing Counseling Federal Advisory Committee, including materials reviewed at the meetings, minutes, and biographies of the members, can be found on HUD Exchange.

Outgoing chair E.J. Thomas (right) receives a certificate of appreciation from Sarah Gerecke.

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COMBATTING

FORECLOSURES WITH

HUD RESOURCES Communities across the United States may still be experiencing steady and even increasing rates of foreclosure, as well as an increase in the number of homeowners at risk of foreclosure. Each foreclosure event represents a potentially devastating impact on the homeowners who lose their homes, on the neighborhoods that experience a growing accumulation of vacant and abandoned housing, and on the nation's economic recovery, which is largely dependent upon the stability of the housing market. The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD), works to halt and reverse the losses represented by foreclosure for the forward mortgages FHA insures. Homeowners who have an FHA-insured forward mortgage facing financial hardship that are in default or at risk of default have a variety of programs options and informational resources available through HUD’s National Servicing Center (NSC). The program options have prescribed steps (a waterfall) that must be followed to determine the appropriate action based on the borrower’s overall economic situation. Several of the home retention options are listed below and are listed in the order prescribed.

• Informal Forbearance – A verbal agreement on a repayment arrangement between the FHA-insured mortgage borrower and the lender that is servicing the mortgage

• Formal Forbearance – A written agreement on a repayment arrangement between the FHA-insured mortgage borrower and the lender that is servicing the mortgage

• Special Forbearance Unemployment – A written agreement between the FHA-insured mortgage borrower and the lender servicing the mortgage to reduce and/or suspend mortgage payments or necessitates moving on to the next step in the order of home retention options

• FHA’s Home Affordable Modification Program (FHA HAMP) – This option may involve a Stand-Alone Partial Claim, a Stand-Alone Loan Modification, or a combination of a Partial Claim and Loan Modification

A more extensive explanation of FHA’s loss mitigation program options for home retention is available in HUD Handbook 4000.1; Section III.A.2.k. You can also subscribe to receive notifications for FHA Servicing and Loss Mitigation classroom and webinar trainings. Contacting FHA and NSC FHA and NSC are available to help answer your questions and assist you to better understand FHA-insured mortgage options. There are several ways you can contact either FHA or NSC including:

• Call FHA at 1-800-CALL-FHA (1-800–225–5342)

• Call NSC at (877) 622-8525

• Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339

• Email the FHA Resource Center

• The Online FHA Resource Center

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STRIVING TOWARDS

IMPROVED DATA QUALITY

In its continuous effort to improve data quality, the Office of Housing Counseling recently implemented data quality alerts during its newest HCS improvement release in June 2019. The data quality alerts are intended to notify housing counseling agencies to possible data quality issues in their housing counseling activity reporting on the HUD-9902 form. The HCS Improvement Release V.14.18.0.0 explains how the data quality alerts appear in HCS and how an agency can either ignore, accept, or fix the issues. An alert would be generated in the following scenarios:

• If zero impacts entered in Section 10 “Impact and Scope of One-on-One Counseling Services”: This would indicate that the agency is not reporting any Section 10 impacts. HUD expects that at least one of the impact options listed in Section 10 will be applicable to the vast majority of one-on-one counseling clients. Agencies should be sure that counselors are tracking and reporting Section 10 impacts appropriately and that they understand what HUD is looking for in each category.

• If the total impacts entered in the Section 10 total is the same as the Section 9 total for one-on-one counseling: If they are the same, it would indicate that the agency is not reporting multiple Section 10 impacts. In many cases, multiple impact options will apply for a one-on-one counseling client. Therefore, the Section 10 total should be higher than the Section 9 in most cases.

• If the total impacts entered for 10c (developing a sustainable budget) is less than Section 9 total for one-on-one counseling: If it is less, it would indicate that the agency is not developing a budget with counseled clients. Verify that the agency is reporting all budgets that have been developed with each counseling client. HUD expects this impact will apply to nearly all one-on-one counseling clients because Section 3-5 of the HUD Housing Counseling Handbook requires establishment of a household budget that the client can afford.

• If zero impacts were reported for 10e - households gained access to resources to improve their housing situation: This indicates the agency is not properly reporting impacts.

• If an agency’s annual budget not being reported: This figure should reflect the total budget, including HUD grants and all other housing counseling funding sources for the fiscal year. This is the budget that corresponds to the activities recorded in the “All Counseling and Education Activities” column.

The agency user should review the information provided in the data quality alert pop-up. It has three options: ignore the data quality alert for the moment, update the 9902 reporting to remove the alert, or accept the alert to indicate that the reporting reflects valid reporting on the counseling activities. There is no negative impact to the agency user for accepting the alerts. Data quality alerts are meant to provide agencies with an opportunity to receive real-time feedback on their submitted 9902 and make adjustments in order to improve overall data collection. It is critical for housing counseling agencies to properly report their housing counseling data so that HUD can demonstrate to Congress and the Office of Management and Budget (OMB) the impact of the program. HUD uses this data to justify proposed appropriations, develop performance indicators, and report on the accomplishment of performance goals. The data collected from form 9902 also plays a role in Notice of Funding Availability (NOFA) scoring. For help with the alerts on your 9902 in HCS, read the Housing Counseling 9902 Online Toolkit.

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ELDER FINANCIAL EXPLOITATION

In recognition of World Elder Abuse Awareness Day (WEAAD) on June 15, CCCSMD/Guidewell Financial Solutions, a Maryland-based National HUD Intermediary, partnered with state agencies – including the Office of the Attorney General, the Comptroller of Maryland, the Commissioner of Financial Regulation, the Maryland Department of Aging, AARP Maryland, and many consumer advocacy groups – to lead PROTECT Week, a statewide awareness campaign focused on the financial exploitation of older Americans. Elder Financial Exploitation (EFE), defined as any action involving the misuse of an older person’s funds or property for one’s own person benefit, is a growing, global problem with devastating consequences for the victims and their loved ones. Financial exploitation does not only involve the actions taken by unknown parties through scams and identity theft, but also extends to parties known by their victims, including family members, caregivers, or trusted service providers. Often, the financial attempts are also combined with financial products, investments, or personal assets such as a house.

Identity theft is the main form of financial exploitation and relies on a criminal’s ability to get a victim’s personally identifiable information (PII). Stalkers of PII are relentless in their pursuit and are often using one or more of the following methods:

• Stealing personal items such as phones, laptops, purses, or wallets;

• Removing correspondence from mailboxes;

• Going through the victim’s trash to obtain discarded financial records such as credit card or utility bills, medical insurance, or bank statements;

• Contacting victims in person, by phone, or by internet using social engineering/phishing and requesting sensitive information;

• Shoulder surfing by looking “over the shoulder” of victims to acquire passwords or other important credentials while they are at an ATM or making purchases;

• Taking the victim’s credit or debit card, or the numbers and information on the card/account, and/or the signature;

• Using a device to read credit card information from the magnetic strip on the back of a credit or debit card and transferring that information to another electronic storage device;

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• Intercepting communication between two parties and recording the information without either party knowing – this can be done by standing in line at the bank behind a victim or by using fake bank websites.

Scams targeting the elderly are particularly creative and aggressive and, in many cases, are tied to a person’s emotions. A common scam is the “grandparent” scam, where an elderly person receives a call from a scammer who impersonates a family member and says something like, “Hi Grandpa, guess who?” Once the grandparent responds with the name of who they think it could be, the scammer proceeds to lure the grandparent into wiring money for an emergency by saying something like, “Grandpa, I am in trouble. I am two months past due on my rent. Please don’t tell mom and dad; they would never speak to me again. Please wire me money so I don’t get evicted.” Recent studies estimate that between 11 and 15 percent of the population are self-reported victims of financial fraud, but the actual number of cases is

estimated to be much higher. Victims are often reluctant to report these crimes because they experience complex feelings and strong emotions, including shame or guilt; lack of clarity as to whom they should be reporting to; fear that reporting will lead to a loss of control or independence; duress and intimidation from the perpetrators; loss of respect in a victim’s social group; and concern that reporting may culminate in a family member or friend being arrested or sent to prison. All of these are particularly concerning if the individual is dependent on the exploiter and lacks confidence in the ability of authorities to respond and assist. How does financial exploitation relate to housing counseling? Financial exploitation can take many forms beyond identity theft, including investment fraud (e.g., pyramid scheme or Ponzi scheme) as well as mortgage and lending fraud. Mortgage lending fraud can take many forms, such as overinflated appraisals, promises of low interest rates, upfront fees for a service that is not rendered, mortgage rescue/loan modification scams, and so forth. Most frauds appear to be legitimate, often suggesting an affiliation with the Federal or state government or an endorsement by a respected institution. Consequences of fraud, including the loss of assets and retirement income, usually impact the victim’s ability to maintain housing because of the loss of assets. Housing and financial counseling play a critical role in identifying potential scams and fraudulent financial documents early. As housing counselors and financial advocates, we have a responsibility to educate and assist our clients in identifying any abnormal or abusive practices. For more information about elder financial exploitation and to find out about the most recent statistics, as well as how to report financial fraud, we recommend that you download a copy of “Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud,” prepared by the FINRA Investor Education Foundation, the U.S. Securities and Exchange Commission, and the National Center for Victims of Crime. You can also review HUD’s campaign against mortgage modification scams, browse this suite of resources from the Consumer Financial Protection Bureau (CFPB), and view the Office of Housing Counseling’s Information on Loan Fraud at HUDExchange.

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CLIENT COUNSELING AND

GROUP EDUCATION FILES

The client counseling file is the individual file for each client counseled and maintained by the housing counseling agency. The group education file is a separate confidential file for each course provided. The client counseling file and the group education file can be electronic or paper.

The Individual Client File

The housing counseling agency must maintain a separate confidential file documenting each distinct provision of counseling services provided to a client, as described in federal and handbook regulations.

The client file should include:

• A file number for the counseling interaction with client.

• Evidence of budget and financial analysis and credit circumstances, relative to the client’s housing needs.

• A log of activities that records date, time, duration, and description of each interaction performed on behalf of, and by, the client.

• An action plan, except in the case of reverse mortgage counseling. The plan must clearly identify the client need or problem and outline what the agency and the client will do in order to meet the client’s housing goals. A copy of the action plan must also be given to the client.

• Follow-up communication with the client, along with an account of all written and verbal attempts to contact client(s) to conduct follow-up sessions.

• Pertinent documents of record and/or correspondence received from the client or created on behalf of the client.

• A copy of the disclosure statement provided to each client in a face-to-face setting, or an annotation of the date the disclosure statement was verbally communicated to the client during telephone counseling.

• The date, cause and explanation for termination of counseling, if applicable.

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• Documentation of the outcomes of counseling provided.

• Documentation of any fees paid by the client for housing counseling services and a copy of the receipt provided to the client, if applicable. Additionally, include documentation about the amount and source of fees paid by other parties, for example, lenders.

• Indication that the activity was partially or fully funded by a HUD housing counseling grant or sub-grant, if applicable.

• Annotation of discussion of alternatives, service providers, product vendors, products, features, services, or properties discussed with the client.

• Documentation that the agency received the client’s authorization to order a credit report and/or to share information. For example, with HUD or third parties, if applicable.

• Other pertinent documents obtained during the intake and subsequent housing counseling sessions.

The Group Education File

The housing counseling agency must maintain a separate confidential file for each course provided. An individual file does not need to be established for each education attendee. However, if a client has an existing individual file and attends a group workshop, the client’s participation in the workshop session must be documented in his or her individual file.

The group file should include:

• A file number for the education and workshop session.

• Indication that the activity was partially or fully funded by a HUD housing counseling grant or sub-grant, if applicable.

• Course title, course outline, or established curriculum and instructional goals.

• Name of each housing counselor, instructor, or presenter participating in the session.

• Course logistics, date, place, and duration of each session.

• List of participating households, race, ethnicity, and income data for each household.

• A disclosure statement provided to each household that is relevant to the subject of the session.

• The amount paid by clients for services and a copy of the receipt provided to the clients, if applicable.

The client counseling and group education files must be maintained in accordance with the following references:

• 24 CFR Parts, 214.300 and 214.315 Housing Counseling Program Final Rule.

• HUD Handbook 7610.1, Rev. 5, Chapters 3 and 5, Paragraphs 3-5, 5-7 and 5-8.

Note: For reverse mortgage counseling client file content, see Handbook 7610.1 and reference Chapter 4-12.

Learn More

Do you have questions about files? We have answers!

Visit the “FAQs: Client Files and Recordkeeping” article for more information.

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FAQs: CLIENT FILES AND RECORDKEEPING

Over the past several months we have received inquiries and questions that fall into the “grey” area regarding client files and are not specifically addressed in the Handbook 7610.1, Rev 5. We thought you would appreciate seeing the answers. Questions like these can be found at Housing Counseling FAQs on HUD Exchange. Client files often contain sensitive personal information. What guidance does HUD offer housing counseling agencies regarding client confidentiality and credit reports? HUD expects housing counseling agencies to take confidentiality very seriously (24 CFR 214.316). The agency must hold all client information in strict confidence in a secure location. The agency may be subject to the penalties provided in the Fair Credit Reporting Act (14 U.S.C. 1681). Disclosure of information contained in credit reports can be made to clients depending on the terms of the contract between the agency and reporting credit bureau. Please note that confidentiality also applies to HUD staff. Any information obtained by HUD

staff, as part of a performance review, will be held in the strictest confidence. HUD staff will not include client Personally Identifiable Information (PII) on the HUD-9910, review working papers, or in performance review reports. Additionally, if HUD staff has asked for client files related to a performance review, the housing counseling agency must redact all PII from any files that are being sent either by mail or electronically, unless a secure, encrypted method can be used for electronic transmission. May interns, externs, or other student trainees access client files for administrative purposes such as making copies or filing documents? Yes. Interns, externs, and student trainees may access client files so long as they comply with applicable privacy laws and regulations, recordkeeping and confidentiality requirements set forth in HUD Handbook 7610.1, the housing counseling agency’s safeguards of Personally Identifiable Information, and the Fair Credit Reporting Act (14 U.S.C. 1681 et seq.).

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What are some of the most common file and recordkeeping problems HUD reviewers identify during performance reviews? Here is a list of some common problems identified:

• Counseling type (client problem or need) not identified or documented;

• Client name and/or address is not complete;

• Housing counseling action plan is missing (not applicable to reverse mortgage counseling files);

• The funding source for the counseling is not identified;

• Documents that demonstrate the counselor discussed financial status and evaluated income, debt, financial obligations, etc. to determine appropriate course of action for the client are missing;

• No evidence that follow-up activities were performed by the counselor;

• Termination of counseling date and reason not documented; • No evidence that the agency’s disclosure statement was

provided to the client; and • In reverse mortgage client files, no evidence that alternatives

were discussed. When are Supervisory Reviews required, and how often should they be conducted?

• According to the Housing Counseling Handbook, under Staff and Supervision: “Supervisors of housing counselors must monitor the work of the housing counselors by reviewing client files with the housing counselor to determine the adequacy and effectiveness of the housing counseling. The agency must document these monitoring activities and make the documentation available to HUD upon request.”

HUD Monitors will request a copy of Supervisory Reviews at the time of a Performance Review. This is reflected on question 73 of the HUD-9910 form, which guides HUD Housing Counseling Performance Reviews.

It is the agency’s responsibility to ensure that counseling services are provided in accordance with HUD requirements, and supervisory reviews are an important part of meeting this responsibility. While agencies have some flexibility in determining their supervisory review policies, in HUD’s experience many agencies have incorporated a quarterly supervisory review policy.

For further guidance on what should be included in a client file, please see FAQ 2523 and FAQ 2519. Additionally, Chapter 5 of the Housing Counseling Handbook provides information on what should be included in a client file.

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FROM THE DEPTHS OF

DEBT TO FINANCIAL

FREEDOM When Angela (Angie) Huss decided to seek housing counseling in February 2016, the odds were stacked against her. She had $100,000 in student loans, was in deep credit card debt, and had some medical debts sent to collections. With a low annual income, a household size of two, and credit scores in the mid-500s, she wasn’t sure homeownership would ever be possible. “I had huge obstacles when I started,” Angie recalled.

But where Angie saw obstacles, her counseling agency, Portland Housing Center (PHC), saw opportunity. Located in Portland, Oregon, PHC works with clients of all income levels to make homeownership possible by providing quality home buyer education, one-on-one guidance, financial services, and a variety of other resources to make homeownership a reality for Portland-area residents. Unlike other organizations, they also provide culturally-specific financial education

courses, specifically targeted toward the African American and Latino communities. After meeting with Angie, PHC enrolled her in their five-part “Financial Fitness” course. Each two-hour session provided a general overview of key money management skills, including budgeting, building savings, and improving credit. She also took the “Homebuying 101” course, which explored what to expect in the home-buying process, including shopping for a loan, special programs for first-time homebuyers, the house search, inspecting and insuring your home, and maintaining and protecting your investment. When Bernice Platz joined PHC and began handling Angie’s one-on-one counseling in 2017, her client had already been working with the agency for about a year. Platz, a homebuying specialist and now-certified HUD housing counselor, immediately saw something special in Angie. “I believe that she would have achieved homeownership with just the tools and education she gained from our financial education and homebuying courses because she was clearly dedicated to the process,” revealed Platz, adding

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Angie Huss smiles as she unpacks boxes in her home.

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that Angie’s journey to homeownership would have taken more time without the one-on-one counseling. “Still, we were happy to help her expedite the process.” Using her nearly seven years of financial literacy coaching, Platz reviewed Angie’s spending and assessed her expenses, asking her client to do the same and identify where she thought she could change her habits. Then, Platz developed a budget to help Angie tackle her debt and still build a nest egg. “I wanted to make sure that the progress Angie was making on debt reduction wasn’t affecting her ability to save, so we came up with a plan that allowed her to do both,” Platz said. Over time, Platz saw a shift. “Angie’s income increased, she established a habit of budgeting and saving, and she reduced her debts. She became a very financially conscientious consumer.” Each time Platz set a savings or debt reduction goal, Angie achieved it. “She impressed me every time I touched base with her,” Platz recalled. “Just how hard she worked and how dedicated she was to changing her financial situation.” To incentivize Angie to keep up the good work, Platz helped her qualify for the Individual Development Account Initiative, an income-based, matched savings program available to Oregon residents. Qualified participants who are accepted into the program save in a special account for a minimum of six months and have their saved dollars matched 3:1. In a couple years’ time, Angie saved $3,000 in the account and, in turn, received a $9,000 match from PHC, which went toward down payment assistance and closing costs. “I give her a lot of credit,” Platz noted, “this doesn’t happen without the client putting in the work.” Platz also referred Angie to PHC’s Mortgage Assistance Program (MAP). Through MAP, qualified borrowers can receive a low, fixed-interest rate loan of up to $60,000 for down payment and closing costs. As a participant in this program, Angie was able to put a 20% down payment on her home, resulting in a lower principal interest rate and the avoidance of out-of-pocket costs for private mortgage insurance.

In February 2019, exactly three years after she sought guidance, Angie Huss triumphed over her obstacles with the help of PHC. “From the free initial orientation to my follow-up conversation with Bernice after my home purchase, I was treated with respect and given hope. They turned my life around and made me a homeowner,” she said proudly, adding that she cried tears of “gratitude, amazement, and pride” the first night she slept in her home. As happy as Angie was, Platz felt a sense of pride, too. “What I love about what I do is that I have the opportunity to help people gain stability through homeownership,” shared Platz. “It’s fulfilling when clients are able to meet the goals that we set together. Angie overcame a lot and it was inspiring to see her take control of her finances to achieve a goal that seemed impossible.” To learn more about the Portland Housing Center, visit their website.

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MYTHBUSTERS Q&A: HOUSING

COUNSELING CERTIFICATION

HUD’s Office of Housing Counseling held a webinar, Housing Counseling Program Certification: HUD Exchange Resources, on May 23, 2019, to review the certification requirements in brief and demonstrate the HUD Exchange Certification Rule pages. A number of specific questions were asked, as well as some frequently asked questions on the certification rule and exam, including:

GENERAL QUESTIONS

• Can you tell us how many individuals are certified and as of what date?

o Periodically, as part of training or outreach, the Office of Housing Counseling may provide updates on the total number of HUD-certified housing counselors. During the webinar held on May 23, 2019, HUD relayed that 804 counselors were certified. To find the most updated information, check the Tracking Our Progress page, which shows the percentage of housing counseling agencies with certified counselors.

• What’s the role of a HUD Intermediary in the certification process?

o There are many options for HUD Intermediaries to be involved in the certification process, including providing incentives for counselors to become certified, training, etc. Some HUD Intermediaries also serve as FHA Connection (FHAC) Application Coordinators.

▪ For more information on the roles of HUD Intermediaries, please view the 2018 Housing Counseling Intermediary Conference: Certification Update and Lessons Learned presentation or view the video session recording.

▪ For more information on application coordinator duties, please view the HUD Certified Housing Counselor Application Process page.

• If a counselor is hired in the middle of 2020, how long do they have to become certified?

o As of August 1, 2020, the Final Compliance Date, a counselor must be HUD-certified before providing housing counseling for a HUD Participating Agency. A new counselor or other agency staff person who has not passed the certification examination may work for a Participating Agency, and assist HUD certified counselors, but may not provide housing counseling or oversee group education sessions. When can a new counselor begin providing housing counseling for an agency approved to participate in HUD’s Housing Counseling Program?

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• What percentage of counselors need to be certified per agency? o There is no percentage. Every housing counseling agency must have at least one certified counselor.

The number will depend on the number of counselors needed to deliver the HUD housing counseling services outlined in the agency’s most recently approved housing counseling work plan.

• If the staff member who serves as the housing counseling supervisor does not perform direct housing counseling, does he/she need to pass the certification exam?

o No. For more information, view the FAQ, Who must be certified in an agency approved to participate in HUD's Housing Counseling Program?

• Do I have to apply for certification again when I change employment by a HUD-approved agency? o Yes. Each housing counseling agency is required to verify employment for its certified housing

counselors. For more information view the FAQ: If an individual takes and passes the certification exam and is verified as a HUD Certified Counselor working for an agency, and then leaves that agency to work for another HUD approved agency, does the certification follow that individual?

PRACTICE EXAM & TRAINING

• Why don’t you receive the results from the practice exam? o The practice exam is designed to provide a feel for the course format, not specific answers or

results. Following completion of the practice exam, candidates receive a performance report with recommended areas for improvement. The recommendations are based on how well candidates perform in each content area of the examination:

▪ Areas in which candidates perform well receive feedback that some additional review is recommended for continued success;

▪ Areas in which performance was marginal receive feedback that additional study is needed for moderate improvement; and

▪ Areas in which performance was weak receive feedback that significant study is needed for considerable improvement.

• What are the fees associated with the practice exam? o There are no fees for the practice exam.

• Is it possible to get a different practice exam?

o HUD currently offers only one version of the practice exam. HUD is working on additional ways to help counselors study for the exam and will update counselors through the Housing Counseling mailing list when additional materials are available.

• Will there be any certification training in the state of NC? o Training is available across the country in many locations. Please view the weekly training digest

where a number of HUD Office of Housing Counseling training partners offer certification training.

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CERTIFICATION EXAM

• Do I have to retake the exam? o You do not have to retake the exam once you pass. For more information, view the FAQ, Will

counselors have to take continuing education courses to maintain HUD certified housing counselor certification?

• What is the cost of the exam? o The cost is $60 for the in-person exam; $100 for the proctored exam. For more information, view

the FAQ, How much does it cost to take the Certification Exam?

• Can you take the exam again if you don’t pass the first time? o Yes! For more information, view the FAQ, If a counselor fails to pass the certification examination,

how soon can he/she retake the exam?

• What is the minimum percentage a person needs to pass the exam? o There is no minimum percentage. There is a minimum score of 500. For more information, view the

FAQ, Please explain the “scaled” scoring process. What is one correct answer worth?

• How long can you pause the exam and come back to it? o If you take the exam online, you cannot pause it because it is live and proctored. If there is a

reasonable accommodation request, please view the FAQ, Will there be accommodations for those with disabilities?

FHA CONNECTION (FHAC)

• What is an FHAC Application Coordinator? o An FHAC Application Coordinator is an individual that a HUD-participating agency designates to

verify the employment status of individuals who work for their agency.

• Is the FHAC Coordinator for Home Equity Conversion Mortgage (HECM) allowed to be the FHA Coordinator for HUD Housing Counselor Certification?

o Yes. The only prohibition, due to the HUD system protocols, is that the coordinator cannot be the same person currently registered in in the Line of Credit Control System (LOCCS) or the Web Access Security Subsystem (WASS, Secure System), nor can the coordinator currently act as the FHA lender coordinator for the agency.

• Can an agency complete the FHAC coordinator process prior to the counselor taking the exam? o Yes, the agency can register their FHAC Coordinator before a counselor takes and passes the exam.

For more information on the steps associated for registration of an FHAC Coordinator, please view the HUD Certified Housing Counselor Application Process page.

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• Why does the process take so long after a counselor has passed the exam? o Some users are not familiar with FHA Connection and the steps required to complete the HUD

certified housing counselor application process. There are a number of tips for FHA Connection steps, including verification of employment by the FHAC Coordinator, on the HUD Certified Housing Counselor Application Process page.

• What if your agency manager is already registered in the FHA Connection? o If this person is registered as the FHAC Coordinator, the manager will need to verify the

employment for counselors that have passed the certification exam. Learn more about who can become an FHAC application coordinator.

• If you are already a HECM counselor, what do you need to do to become certified? o While you do need to take and pass the HUD Certified Housing Counseling exam, if you have an

FHAC user ID already, you don’t need to request another FHA Connection ID. Please see the HUD certified counselor’s Application Instructions.

To further assist counselors in preparing for the HUD Housing Counselor certification exam, the HUD Office of Housing Counseling launched a new, free HUD Certified Housing Counselor Knowledge Assessment Tool located on the HUD Housing Counselor training and testing page at HUDHousingCounselors.com. This Knowledge Assessment does not replace or replicate the existing practice exam in style, format, or length, but does provide candidates with more detailed feedback. The assessment also offers insight into the rationale behind correct and incorrect answers, as well as recommended topics for further study. With questions linked to training content, the feedback will offer teaching guidance to help candidates identify areas of strength and weakness for continued study. This new Knowledge Assessment tool is also available in Spanish.

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SUPPORTING A FAMILY,

SAVING A HOME As a long-haul truck driver who’d logged nearly three million miles in his 39 years on the road, Frank Welch III’s career always depended on his sight. So, when he lost a majority of his vision following a stroke in 2018, he lost his livelihood, too. “I’ve always been self-sufficient and independent,” Frank shared. “Outside of not being able to drive anymore, the hardest adjustment has been relying on other people.” Frank was the sole financial contributor in his rural Maryland household. He was self-employed, which meant he didn’t have the luxury of paid time off, and he wasn’t able to afford his health insurance payments, which were more than his mortgage. With Frank’s wife, Theresa, having to focus on helping her husband adjust to life with severely impaired vision, there was no time for her to secure paid work. With no income, a teenage daughter to care for, and medical bills piling up, Frank and his wife were in danger of losing the home they’d lived in for 16 years. He contacted his mortgage lender but, with no income, there wasn’t much the bank could do. In August 2018, with nowhere to turn, he sought help 45 miles away at Cecil County Housing and Community Development, a division of the county’s Department of Community Services. HUD-certified housing counselor Joyce Van Zile got to work right away. Van Zile began by letting Frank’s lender know she would be assisting with his case. She then helped the Welches go through all their financial paperwork. While looking through their files, she found that they were attempting to make money to cover expenses by selling a portion of their

property to a neighbor. Van Zile put the Welches in touch with a lawyer who could facilitate the process, but the neighbor backed out. “I could tell they were trying to be resourceful on their own,” Van Zile said. “It just didn’t end up working out.” Despite facing challenge after challenge, the Welches continued doing their part. “They were wonderful because they were diligent about locking down their finances,” Van Zile remarked. “Some people come to us for help and then keep spending as if nothing is happening, but they didn’t.” Van Zile was doing her part, too. She requested a mortgage modification but discovered that the Welches had modified within the last five years and were ineligible. At this point, the only option was to liquidate the home but that felt out of the question, and not just because they couldn’t afford to move. “You have to remember, it was hard enough for Frank to figure out how to live life as a person with blindness,” Van Zile noted, adding that his familiarity with his home made the transition a little easier. Frank agreed, confirming that having to adapt to a new living situation “would have just added to my frustration.”

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Frank Welch III sits at home with his family’s pet, Daisy the potbelly pig.

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To help stabilize their financial situation, Van Zile connected Frank to wraparound social services. Prior to becoming a housing counselor, Van Zile worked in Cecil County’s Department of Social Services for nearly 20 years. By leveraging her previous experience and relationships there, she was able to refer Frank and expedite his enrollment into Community First Choice, a Medicaid program that provides community services to enable older adults and people with disabilities to live in their own homes. “My background is a tremendous help because I know where to refer people,” Van Zile acknowledged. “It helps that we are in a small community, but it really speaks to the importance of having relationships.” With a caseworker now assigned to Frank, the Welches had an additional avenue of support. The caseworker helped Theresa become certified to be a paid caretaker for her husband, and she was able to find a job outside of the home to add to their earnings. Unfortunately, they were so far behind on payments that the house was still up for foreclosure. With the foreclosure sale scheduled for June 6, 2019, Van Zile counseled the Welches through a final mediation with the lender. “We did a lot of brainstorming,” Van Zile recalled. But once again, despite the lender being as flexible as possible, there just wasn’t a viable solution. Time was running out, Frank’s Social Security payments were delayed, and the Welches were feeling the pressure. They’d pulled together more than $13,000 to save their home, but, two days prior to the sale, they were still $1,600 short. Van Zile scrambled to find a solution but came up empty. The Welches knew it wasn’t from a lack of trying. “Joyce went beyond the call of duty and tried to pull every string humanly possible,” Frank recalled, mentioning that Joyce even kept his morale up on the hard days. “She did everything in her power to help me save my house, and so did our lender, for that matter.” Fortunately, a family friend and neighbor familiar with their struggles unexpectedly volunteered to loan the Welch’s the remainder of the money needed for reinstatement. “I didn’t even ask,” Frank said. “Our neighbor came over to see if I wanted to go for a walk and, while we were out, said she didn’t want me to lose my house over $1,600.”

After more than a year navigating very difficult obstacles, the Welches could breathe a sigh of relief. They had the money they needed to save their home, with just one day to spare. “I was so happy,” Frank recalled. “The weight of the world came off my shoulders. I was a different person.” Ironically, a day after the scheduled sale date, the family received Frank’s long-term disability and Social Security backpay. They were able to immediately repay the loan from the family friend and start putting their money toward other accumulated expenses. “Between the Social Security benefits and Theresa’s income, they now have a positive cash flow and are working to get other outstanding bills paid,” Van Zile shared. “It’s amazing how housing really does provide stability.” Although Van Zile will soon close out the Welches’ case, she won’t soon forget them. “This was heartfelt. In my own household, we’ve had hardships,” Van Zile disclosed. “If it wasn’t for people coming along to help me and my husband, I don’t know where we would be. It’s really rewarding to be able to pay that forward and help other people.”

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HOUSING COUNSELING AGENCIES

EXPAND REACH AT HUD’S

INNOVATIVE HOUSING SHOWCASE Did you know that June is when we celebrate homeownership? The US Department of Housing and Urban Development (HUD) launched a new event this year. From June 1st through June 5th, HUD kicked off Homeownership Month on the National Mall in Washington D.C. with the Innovative Housing Showcase, a first-of-its-kind event designed to highlight the latest in affordable housing design, materials, and techniques. Thousands of visitors saw for themselves the latest innovations in new building technologies from a variety of exhibitors based around the country. After months of planning, HUD and the National Association of Home Builders staged a successful event where home builders, utilizing cargo containers, steel, and prefabricated materials, demonstrated the latest in affordable home building. The weather throughout the Showcase was beautiful which surely contributed to the outpouring of attendees to the event. In addition to exhibitors, many speakers were featured during the five-day period including HUD Secretary Ben Carson, HUD Acting Deputy Secretary Brian Montgomery, and Federal Housing Finance Agency Director Mark Calabria. The Office of Housing Counseling hosted a booth at the Showcase featuring housing counseling agencies from the Washington, DC area. There was representation from several local housing counseling agencies, including Carecen Central American Resource Center, Prince William Co Virginia Coop Extension, St. Ambrose Housing Aid Center, Housing Counseling Service, Inc., Lydia’s House, United Planning Organization, Sowing Empowerment Economic Development, Arundel Community Development Services Inc. A HUD National Intermediary, National Community Reinvestment Corporation, also participated. Many homeowners, soon to be homeowners, and those searching for housing visited HUD’s booth to obtain general information and seek help with housing issues. Throughout the week, Secretary Carson noted the large number of people taking advantage of the services offered at the housing counseling booth and applauded the efforts of the Office of Housing Counseling and its agencies. Due to the extremely positive feedback on and overwhelming participation in the Showcase, plans are already afoot for next year.

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BUILDING TOMORROW TOGETHER:

A CONFERENCE ON THE FUTURE

OF HOUSING COUNSELING

In June 2019, the Office of Housing Counseling hosted Building Tomorrow Together, a comprehensive half-day conference in Washington, D.C., that commemorated the 50th anniversary of the Housing Counseling Program and looked to the future of the industry. This event featured remarks from HUD Secretary Ben Carson, Acting Deputy Secretary of HUD Brian Montgomery, and Deputy Assistant Secretary of the Office of Housing Counseling Sarah Gerecke.

Each of the three panel discussions was preceded by a short snippet of the 50th anniversary video that was

released at the event, in which industry leaders and stakeholders spoke about varying aspects of the Housing Counseling Program. The talk-show-style format encouraged candid discussions in which panelists could speak about the past successes of the Housing Counseling Program and what improvements should be made in the future. An overarching theme of all the panels was the program’s need to leverage digital technology in order to inform the public that it is for everyone, not just low-income families. The first video snippet was of Eric Selk, Executive Director of the HOPE NOW Alliance, describing the value of housing counseling during the 2008 housing crisis and in the years beyond. The subsequent panel, Maximizing the Value of Housing Counseling, focused on how the industry and its stakeholders can identify common objectives to find the best value in housing counseling. During the discussion, Jonathan Lawless, Vice President of Product Development & Affordable Housing at Fannie Mae, shared that a consumer who receives housing counseling is highly valued because it reduces the lender’s risk. Housing counseling also helps loan processors do their jobs more efficiently because they are working with knowledgeable, mortgage-ready applicants, according to Deborah Johnson, Community Reinvestment & Community Partnerships Manager at JPMorgan Chase. Sara Rodriguez, president-elect of the National Association of Hispanic Real Estate Professionals (NAHREP), explained that housing counseling teaches the Hispanic community financial literacy and how to utilize credit. This is exceedingly important as Hispanic homeownership is expected to steadily rise in the next 10 years, according to Rodriguez.

HUD Secretary Ben Carson

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The next panel, The Changing Face of Housing Counseling Consumers, examined America’s evolving demographics and emerging generations, and their impact on the housing industry. In an introductory video, consumers Maya Sathyan and Ricardo Torres provided insights into their personal experiences with housing counseling. Sylvia Alvarez, Founder and Executive Director of the Housing & Education Alliance, expressed the need to cater to consumers who face legitimate obstacles to attending homebuyer education classes, like lack of transportation, conflicting work schedules, and the need for childcare. Her company created HomeTRACK, an online homebuyer education course that entertains while it teaches. The program is available in English and Spanish, which makes it accessible to more American families. It also resonates with multigenerational households. Dr. Chris Herbert, Managing Director of the Joint Center for Housing Studies at Harvard University, discovered in his research that current homebuyers are more diverse in ethnicity, income, and education than those seeking housing counseling. Fellow panelist Dr. Anna Jefferson, Associate and Scientist at Abt Associates, believes that finding innovative

ways to include housing counseling into more real estate transactions would expand and diversify its consumer base. The final panel, What’s on the Horizon, began with a video snippet of Marietta Rodriguez, President and CEO of NeighborWorks® America, describing how she hopes technology and data could impact the housing industry in the future. Panelist Ed DeMarco, President of the Housing Policy Council, noted that the future of housing counseling will accommodate consumers with unpredictable incomes like those who contribute to the “gig economy”—or make their living through a series of freelance jobs instead of permanent employment. Dr. Laurie Goodman, Co-Director of Housing Financial Policy Center at Urban Institute, also believes that technology could help tailor the housing counseling experience to the specific needs of the consumer. Beyond the discussions and spirited Q&A sessions that followed each panel, Building Tomorrow Together was the beginning of a larger conversation about what tools the housing counseling industry will need to continue to empower Americans in all stages of their housing journeys. To learn more about the Building Tomorrow Together event, please visit HUD Exchange. The event and the 50th Anniversary Video can also be watched in their entirety visiting the links below:

• Building Tomorrow Together – Part 1

• Building Tomorrow Together – Part 2

From left to right: Pamela Marron, Sr. Loan Officer, Innovative Mortgage Solutions, Inc.; Jonathan Lawless, Vice President of Product Development & Affordable Housing, Fannie Mae; Deborah Johnson, Community Reinvestment & Community Partnerships Manager, JPMorgan Chase & Co.; Sara Rodriguez, President-Elect, National Association of Hispanic Real Estate Professionals

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ASEARCHING FOR RESOURCES IS EASY ON

THE HUD EXCHANGE! Looking for housing counseling resources, announcements, and training? Searching on the HUD Exchange provides Housing Counseling program pages and resources in a matter of seconds!

Resource Library Search To find HUD Exchange resources, select the Resources from the menu bar. Searching the Resources Library will specifically give you resource, FAQ, report and training material results.

Site-Wide Search You can access the site-wide search from anywhere on the website by selecting the magnifying glass icon on the far-right hand side of the page. Enter a set of keywords, and you will be taken to the Search page.

Tips and Tricks of Housing Counseling Searches

Use Specific Key Words: Using more specific key words narrows results and improves the “HUD Exchange recommends” feature on the site-wide search. For example, searching “Housing Counseling Certification” instead of “Certification” will produce around 3,000 fewer results and recommend you view the Housing Counseling program page. Use Filters: There are filters on both the site-wide and resource library searches to help narrow your results.

• Program & Topics Filters: Use the “Housing Counseling Program” topic filter to narrow your search. For example, using the topic filter for “Housing Counseling Action Plan” returns resources and FAQs for the Client Action Plan.

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• Content Type Filter: Use the content type filter to narrow your search. For example, using the Resource filter for “9902” reduces the results from 1,003 to 54 and returns HUD Form 9902 and the Housing Counseling 9902 Online Toolkit as the top results.

If you can’t find what you’re looking for, selecting the green “Contact Us for Help Finding Information” will allow you to contact the HUD Exchange team for assistance.

Looking for Trainings?

• Housing Counseling Weekly Training Digest: Find upcoming and past Housing Counseling trainings on the

Training Digest, updated every Monday trainings from HUD OHC and its partners. To locate past webinars, select the Webinar Archive.

• Trainings Search Page: Search through all the trainings or do more specific searches for Self-Paced Online, Upcoming, and Past trainings. Filter by topic, location, and date to help narrow your results.

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Housing Counseling Weekly Training DigestThis page is updated weekly to reflect trainings hosted by:

• HUD Office of Housing Counseling (OHC)• OHC-funded training partners• Other partners that host trainings of interest to housing counselors

Please email housing.counseling@hud.gov to notify HUD about upcoming training and events for housing counselors.

Subscribe to the Housing Counseling Mailing List to receive training updates in your inbox.

Upcoming Training Calendar Webinar Archive Online Training

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The Office of Housing Counseling Training Digest is your "one-stop shop" for all available training activities. This digest will be updated on a weekly basis. Housing counselors and other interested parties are encouraged to bookmark and share the training digest, as well as link to it in their websites and in email communications.

EDITORIAL BOARD

Editor-in-Chief Suzanne Isaacs

Assistant Editor Jane Charida

Featured Writers Beth Eilers, Phyllis Elam, Lorraine Griscavage-Frisbee,

Kevin Meirose, Nathaniel Mitchell, Melissa Noe, Adrenace “Shae” Williams

For additional information about an article, or to submit features of interest, general information, testimonials, or announcements, contact thebridge@hud.gov.

VISIT THE OFFICE OF HOUSING

COUNSELING TRAINING DIGEST