Successful Partnership Models for Credit Unions
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Successful Partnership Models for Credit Unions

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Successful Partnership Models for Credit Unions Presentation Transcript

  • 1. Successful Partnership Models for Credit Unions Presented By Larry Garcia to the National Federation of Community Development Credit Unions El Paso Credit Union Affordable Housing Credit Union Service Organization 2017 Texas Ave. El Paso, TX 79901
  • 2. Successful Partnership Models
    • Define mission and goals
    • Develop business plan to achieve goals
    • Inventory possible partners that are working toward the same goals: Community, State, or National--private or public
    • Identify partners that will complement CUSO path to goal
    • Develop programs with partners
    • Institutionalize CUSO within partner program or partner within CUSO program
  • 3. Successful Partnership Models
    • Create multiple partner programs for resource maximization
    • Leverage community services with partnerships that complement each other
    • Avoid duplication of services within the community--do not re-invent the wheel--collaborate
    • This will avoid rivalries & competing for same grant or community funds.
    • These partnerships will lend credibility to your organization
    • These types of Partnerships create synergy
  • 4. EL PASO CREDIT UNION AFFORDABLE HOUSING Credit Union Service Organization
    • 2017 TEXAS AVE
    • El Paso, Texas
    • (915)838-9608 Fax (915)838-8085
    • [email_address]
  • 5. CUSO MISSION
    • EL PASO CREDIT UNION AFFORDABLE HOUSING IS A CREDIT UNION MOVEMENT INITIATIVE TO IMPROVE THE ECONOMIC, SOCIAL WELL-BEING, AND QUALITY OF LIFE OF THE COMMUNITY BY PROMOTING FINANCIAL LITERACY, SAVINGS, CREDIT WORTHINESS, AND PROVIDING ACCESS TO CAPITAL.
    • ITS MISSION IS TO PROVIDE FREE BILINGUAL FINANCIAL LITERACY, CREDIT MANAGEMENT ASSISTANCE, AND HOMEOWNERSHIP EDUCATION, TO EMPOWER COMMUNITY MEMBERS TO CREATE PERSONAL WEALTH THROUGH SAVINGS, OBTAINING MAINSTREAM CREDIT AND/OR BECOMING MORTGAGE READY FOR THE PURCHASE OF A HOME.
  • 6. CUSO PARTNERS
    • EL PASO EMPOWERMENT ZONE CORP
    • NATIONAL CREDIT UNION FOUNDATION
    • TEXAS CREDIT UNION FOUNDATION
    • EL PASO COLLABORATIVE
    • ALIANZA PARA EL DESARROLLO COMUNITARIO
    • SPARKS HOUSING DEVELOPMENT CORPORATION
    • RURAL DEVELOPMENT & FINANCE CORPORATION
    • HOUSING AUTHORITY OF THE CITY OF EL PASO
    • CONSUMER FEDERATION OF AMERICA
    • NATIONAL ENDOWMENT FOR FINANCIAL EDUCATION
    • US TREASURY
    • FANNIE MAE
    • EL PASO COMMUNITY COLLEGE
    • HOUSING FINANCE CORPORATION
    • CITY OF EL PASO
    • THE CREDIT UNIONS OF EL PASO
    • TEXAS DEPT OF HOUSING & COMMUNITY AFFAIRS
    • PROJECT HEAD START
    • VARIOUS SCHOOL DISTRICTS
    • VARIOUS EMPLOYERS
    • THE AMERICA SAVES CAMPAIGN
    • IRS
    • EL PASO COUNTY COALITION
    • HABITAT FOR HUMANITY
    • UNITED CEREBRAL PALSY OF TEXAS
  • 7. PROGRAMS DEVELOPED
    • BI-LINGUAL FINANCIAL LITERACY WORKSHOPS
    • EL PASO SAVES—BILINGUAL SAVINGS PROMOTION
    • EXPERIMENTAL MORTGAGE PRODUCTS
    • HACEP HUD HOPE VI MORTGAGE LOANS
    • EZ-AHCUSO MORTGAGE LOANS
    • LEASE PURCHASE LOANS
    • Sec 8 MORTGAGE LOANS
    • HOME CHOICE TEXAS HOME OF YOUR OWN LOANS
    • HOUSING FOR TORNILLO COLONIAS
    • HOUSING FOR SPARKS COLONIAS
    • HOME CONSTRUCTION IN COLONIAS USING
    • EL PASO COMMUNITY COLLEGE
    • HABITAT FOR HUMANITY LOAN PURCHASE
  • 8. FINANCIAL LITERACY
    • BILINGUAL WORKSHOP CURRICULA
    • OVERVIEW OF ROAD TO FINANCIAL SUCCESS
    • CREDIT MANAGEMENT
    • FINANCIAL LITERACY
    • HOMEOWNERSHIP PROCESS
    • HOME SELECTION
    • FINANCING A HOME
    • MAINTAINING A HOME & FINANCES
  • 9. SAVINGS ACCOUNTS
    • PARTNERED WITH DIFFERENT ORGANIZATIONS TO FORM EL PASO SAVES .
    • LOCAL INITIATIVE FOR THE AMERICA SAVES CAMPAIGN SPONSORED BY THE CONSUMER FEDERATION OF AMERICA
    • SOCIAL MARKETING CAMPAIGN TO PROMOTE SAVINGS
    • SAVER AGREES TO WORK TOWARD CERTAIN WEALTH BUILDING GOALS: SAVING TO ACHIEVE A DEFINED GOAL--- PAYING OFF DEBT, BUILDING AN EMERGENCY FUND, OR SAVING FOR THE PURCHASE OF A HOME
    • SAVER RECEIVES A FREE SAVINGS TIPS NEWSLETTER SUBSCRIPTION, FREE WEALTH BUILDING CLASSES, ACCESS TO LOW-BALANCE NO-FEE INTEREST BEARING SAVINGS ACCOUNTS, AND AT THE NATIONAL LEVEL ACCESS TO VOLUNTEER CERTIFIED FINANCIAL PLANNERS BY 800 NUMBER OR THE INTERNET
  • 10. FINANCIAL LITERACY & HOMEOWNERSHIP WORKSHOPS
    • FINANCIAL LITERACY & HOMEOWNERSHIP WORKSHOPS HELD
    • WORKSHOPS HELD IN SPANISH
    • TOTAL ENROLLEES TO WORKSHOPS
    147 87 (59%) 2245 SAVINGS ACCOUNTS
    • TOTAL FIRST ACCOUNTS OPENED
    2920 63 $2,697,079 $4,334,109
    • NUMBER OF MORTGAGES
    • $ FOR CUSO MORTGAGES MADE
    • LEVERAGED AMOUNT
    HOME MORTGAGES
  • 11.  
  • 12. Successful Mortgage Collaboration Model Presented By Larry Garcia to the National Federation of Community Development Credit Unions El Paso Credit Union Affordable Housing Credit Union Service Organization
  • 13. Mortgage Collaboration Credit Union Service Organization (CUSO) Credit Unions Foundations Community Housing Development Organizations (CHDOs) Type of Partner Partner Role Partnership Outcome Financial Literacy and Homeownership (FLHO) Education Affordable Home Mortgage Loans Promote Savings & First Accounts Initial Capital Technical Assistance Management Warehouse Loan Conduit to Secondary Market Consumer Financial Products Grants, Technical Assistance, Networking Outreach, Lend Credibility Host site for FLHO workshops Partner for CHDO grant programs Develop & Deliver FLHO Workshops Deliver Housing Counseling Experimental Mortgage Loans CUSO Mgmt & Staff training & Support Formed & Manage CUSO, Market CUSO Services to members, Access to Financial Consumer Products to underserved CUSO access to Secondary Markets Establish Servicing Portfolio from CUSO loans, Promote Savings to First Accounts & Youth Accounts Startup seed grant for CUSO or CUSO programs, CUSO Mgmt & Staff training & support, In-kind assistance—legal, acctg,etc. Promote CUSO within CHDO target community Imbed CUSO programs within their services Lend Credibility to CUSO w/CHDO members
  • 14. Mortgage Collaboration Public Organizations Government School Systems Employers Type of Partner Partner Role Partnership Outcome Outreach Host Site Partner Public Housing Programs with CUSO programs CDBG funds/ Down Payment Asst. IDA Program match funding Certifications/Designations Partner Gov’t Housing Programs with CUSO programs EITC programs Outreach Host site Outreach, Host Sites Technical Assistance, In-kind assistance Outreach to employees Employer Assisted Program IDA Program match funding Deliver FLHO Workshops Deliver Housing Counseling Experimental Mortgage Loans Outreach to Very Low Income families Market CUSO Services through City Housing Programs Provide Down Payment Assistance & Principal reduction assistance Provide Sites for FLHO workshops Institutionalize CUSO within Housing Prog. Market Financial Literacy to Parents & HS Students Provide Sites for workshops Market FLHO to employees EAP to employees as “Golden Handcuff” Offer IDA match to Employee Savings
  • 15. Mortgage Collaboration Faith Based Org. GSE—Fannie Mae Non-Profits Social Organizations Type of Partner Partner Role Partnership Outcome Outreach Lend CUSO Credibility Secondary Market Experimental Mortgage Products Grants Technical Assistance Outreach, Host Sites Down Payment Assistance IDA Programs, In-kind assistance Market FLHO to congregation Develop Experimental Mortgage Products Provide Purchase commitments for loans Provide FLHO Materials Provide Resources & Grants Provide Training to CUSO mgmt & Staff Market CUSO to members or target market Provide Down Payment Assistance & Provides Credibility to CUSO Partner with Non-Profit service programs
  • 16.  
  • 17. Building Successful Partnership Mortgage Lending Presented By Larry Garcia to the National Federation of Community Development Credit Unions El Paso Credit Union Affordable Housing Credit Union Service Organization
  • 18. Building Successful Partnerships for Mortgage Lending
    • Credit Unions partner to establish Affordable Housing CUSO.
    • CUSO delivers Bilingual Financial Literacy & Homeownership Workshops used to develop market profile and variances to conventional mortgage products needed to service the market.
    • CUSO identifies non-profit or housing community organizations with which to partner and jointly leverage their resources for home mortgage program that will service the community.
  • 19. Building Successful Partnerships for Mortgage Lending
    • CUSO partners with GSE (Fannie Mae) for experimental product based on CUSO and partner resources and variances developed from Homeownership workshops.
    • Fannie Mae provides technical assistance, materials, training, and software.
  • 20. Building Successful Partnerships for Mortgage Lending
    • CUSO holds Bi-lingual Financial Literacy & Homeownership Workshops and identifies potential homebuyers.
      • Homebuyers identified as mortgage ready for conventional mortgages are referred to Credit Union Mortgage Dept.
      • Others are enrolled in Mortgage readiness program and counseled in credit management and finance management.
      • Buyers are referred to all available homeownership assistance programs and assisted with their qualification.
      • Buyers are qualified for CUSO programs are provided with CUSO program loans.
  • 21. Building Successful Partnerships for Mortgage Lending
    • Credit Unions provide CUSO with Line of Credit to Fund Mortgage Loans
    • --And/Or--
    • Credit Unions provide guaranty to a Line of Credit to CUSO from Southwest Corporate Federal Credit Union
    • CUSO originates, closes, and funds mortgage loans. Then packages and sells loans to Credit Unions or Seller-Servicer Credit Union for sale to Fannie Mae.
  • 22. Building Successful Partnerships for Mortgage Lending
    • Member Seller-Servicer Credit Union acts a conduit for CUSO and sells loan to Fannie Mae.
    • CUSO collects payments from borrowers to monitor payment activity, and forwards payments to Seller-Servicer Credit Union.
    • CUSO counsels borrowers before delinquencies occur, implements personal financial action plan.
    • Credit Unions provide CUSO with management, in-kind resources, marketing, and warehouse line of credit.