Helping Mortgage Borrowers Keep Their Homes by Improving Their

Helping Mortgage Borrowers Keep Their Homes By Improving Their Earning Potential Tom Long Program Manager The WorkPlace, Inc. Email: tlong@workplace.org Phone: 203-610-8528. In June 2008, Connecticut legislators set aside $2.5 million in bond funds to create a workforce system response to the mortgage crisis. The Situation    Sub-prime mortgage Top 10 Sub-prime resets created initial Bridgeport crisis New Haven Now, slowing economy Waterbury Stamford + unemployment are Hartford West Haven adding to the need Norwalk Poorest people in Danbury Meriden urban districts are New Britain impacted most Sources: Governor’s Sub-prime Mortgage Task Force, 2007; CT DOL December 2008; RealtyTrac.com Unemploy- Referrals # Loans ment Rate as of 7/09 5,213 3,998 3,333 2,599 2,573 11.6% 10.5% 13.0% 6.9% 13.5% 8.7% 7.1% 7.0% 10.0% 252 75 117 59 97 1,946 1,923 1,854 1,757 1,717 62 50 54 72 11.3% 59 897 32% of total 3 Education pays… in higher earnings & lower unemployment rates Annual Earnings $80,860 $79,144 $63,856 $50,856 $38,272 $33,540 $30,732 $22,152 MCJTP helps borrowers gain the skills they need to be able to earn more money to become financially stable. Services:  Eligibility:  The program offers:       Customized Employment Services Job Training Scholarships Job Placement Assistance Financial Literacy Credit Counseling Referrals to other needed services 60 days or more past due on mortgage Mortgage is for primary residence in CT Household income less than $120,000 Referred by the Connecticut Housing Finance Authority (CHFA), or can demonstrate an imminent need for services     8 Program Specialists; assigned to customers geographically 5 As of 6/30/09: (9 full months in operation)     Referrals to the program Assessed for Program Eligibility Training Scholarships Provide Career Coaching (includes info on in-demand careers 2,780 965 513 722 1,147 (one-on-one discussion with Program Specialist) and required skills; leads to training scholarships)  Employment Support Services (Resume Prep, Interview Prep, Assistance with Employment Applications, Referral to One Stop Programs)   Referral to Financial Literacy Credit Counseling 541 295 6 Customer Profile: A Connecticut Example     College Educated – many have Associates or Bachelors Degree Mix of employed (48.7%) + unemployed (51.3%) Occupations – Retail Sales, Bookkeeping, Drivers, Construction workers, Clerical & many others Seeking Career Transition into: Health Care, Project Management, IT 7 Education & Training through MCJTP    513 training scholarships have been written Average duration of training is 11 weeks Types of training include: Certified Payroll Professional Pharmacy Technician Certification Project Management Lean – Six Sigma Black Belt Administrative Assistant Certificate Program CDL Class A Tractor-Trailer 8 Certified Nurses Aide Dental Assistant Veterinary Technician Medical Billing & Coding A+ Network & Microsoft Certified Professional Tip of the Iceberg? 9 AHA! (core concept reinforced)  Insight: Loan modifications alone don’t eliminate delinquencies Nationally, more than ½ of loans modified in 1Q + 2Q ‘08 fell delinquent within 6 months  Opportunity: MCJTP uses extended workforce system to help borrowers increase their earning capacity  ability to pay mortgage Key Partnerships  Connecticut Housing Finance Authority (CHFA)  Sources for Financial Literacy Training and Credit Counseling Helping reach lenders and communicate program benefits Distributing information on the program to consumers who call their customer service center Providing support programs for clients and space to meet people near their own communities  Connecticut Department of Banking    One-Stop Centers      HUD Housing Counseling Agencies State of CT Judicial Branch, Foreclosure Mediation Program United Way of Connecticut 211 Infoline Lenders e.g. People’s United Bank, New Alliance Bank 11 Opportunities to Partner     Dissemination of information on Connecticut Energy Efficiency Fund programs to MCJTP clients. Partner or Co-host events such as United Illuminating did last fall by participating in a forum at the New Haven OneStop. Create awareness of career paths in areas such as;  Solar energy programs  Energy audits  Installation of conservation improvements Programs which reduce the cost of home ownership EXTREME RELEVANCE: Want to learn more?  Contact (203) 610-8528 tlong@workplace.org www.workplace.org/mortgage.asp  THANK YOU!