Credit Counselor: Lenders Play Big Role in Providing Borrower Counseling.(Brief Article)

While consumer credit counseling agencies have long offered homeownership counseling as part of their consumer education, historically there has been little data on how much financial institutions actually contribute to these programs, both through funding and participation.

Similarly, there has been little known about the extent of homeownership counseling offered through financial institutions themselves. To find answers, for the last two years, the Consumer Bankers Association, Arlington, Va., has sent out a survey to its members asking these questions.

Kathleen Moore, communications manager for the CBA and author of the survey and its accompanying report, said, "Our goal was to document this so we could get a full idea of what they are doing, how they are doing it, and who they are reaching."

In the 2002 survey, out of 300 members solicited, 68 banks responded, and of those, 97% said that they either offer or contribute to a mortgage/homeownership counseling program. These are typically in connection with an affordable housing mortgage program.

Wells Fargo Home Mortgage, San Francisco, which participated in the survey, has its own education program that its operates itself called the Homebuyers Club, as well as partners with other outside nonprofit partners, which include counseling agencies.

Jackson Cosey, senior vice president of emerging markets at Wells Fargo, regarding the Homebuyers Club, said, "Our customers that are credit-challenged can go through pre-qualification or homebuying seminars.

"The idea is to help them understand their credit history, what is needed to repair their credit ... and educate them on the homebuying process if they should decided to obtain a loan."