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Contact:
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Robert Schmermund
(202) 857-3104
Jim Eberle
(202) 857-3145
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Jim Eberle
(202) 857-3145 (work)
(703) 893-2593 (home)
[email protected]
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For Immediate Release
March 18, 2004
#04-12 |
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E-mail:
[email protected] |
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ACB ENDORSES CONSUMER COUNSELING AS
CRITICAL FIRST STEP TO HOMEOWNERSHIP
WASHINGTON,D.C. — William G. Smith, testifying in behalf of America’s Community Bankers, said that, “Educating consumers on the importance of financial literacy is a critical first step toward homeownership.” Speaking before the House Financial Services Subcommittee of Housing and Community Opportunity, Smith said ACB endorses H.R. 3938, Expanding Housing Opportunities through Education and Counseling, which will establish an office of Housing Counseling at HUD.
Smith is president and CEO of Mutual Community Savings Bank in Durham, one of three African-American financial institutions in North Carolina. He is also a member of ACB’s MBank Council, which specifically addresses the concerns of minority and multi-cultural institutions. During testimony Smith stated his concerns in this area, “Minorities clearly have been left out of the homeownership dream. While minority homeownership is also at an historic high, less than half of all members of minorities own their own home, while more than 75 percent of whites are homeowners. We must close this racial divide by increasing the scope of counseling across the entire homeownership process.”
Smith noted that his own bank’s vision was to educate customers before they are ready to buy a home. He said that Mutual had implemented the FDIC’s Money Smart program through its branches and in cooperation with local churches, attracting adults and entire families. He added, “I want all my customers to understand the importance of sound financial management, and promote those values to their families. It is critical my customers understand the two most important steps needed before one actually is granted a mortgage: the importance of understanding your credit, and the value of good credit when one qualifies for an interest rate.”
Smith suggested that there is a direct linkage between housing counseling education and reducing foreclosures. He noted that 2003 foreclosure rates for so-called subprime loans, which are disproportionately sold in low-income and African-American neighborhoods, were 6.6% while conventional prime loans had a rate of .53%.
He concluded, “Owning a home is one of the greatest accomplishments a person can achieve, and educating consumers is one of the greatest accomplishments we in the private sector can undertake to decrease foreclosure rates and boost homeownership throughout our nation.”
Click here to read the Testimony.
America’s Community Bankers is the national trade association committed to shaping the future of
banking by being the innovative industry leader strengthening the competitive position of
community banks. To learn more about ACB, visit
www.AmericasCommunityBankers.com.
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