This chapter provides an overview of financial counseling practices including required skills, co... more This chapter provides an overview of financial counseling practices including required skills, content, and processes. It briefly describes the type of counseling and its developmental stages. Although financial counseling has remained relatively stable over the years, new changes are coming to the housing counseling industry, including new certifications and requirements. To this end, the chapter presents a succinct history of housing counseling and specific changes from the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to new standards and competencies for housing counselors, the chapter explains the new General Ability to Pay Rules (ATP), the Qualified Mortgage Standards (QM), amendments to High-Cost Mortgages, Truth in Lending Act, and to the Real Estate Settlement Procedures Act. The chapter concludes with the idea that financial counseling and housing counseling are components of financial health.
Scholars have achieved a great deal in their quest to understand that homeownership and stable ho... more Scholars have achieved a great deal in their quest to understand that homeownership and stable housing bring substantial benefits to individuals and communities. A house is usually the most expensive purchase consumers will make in their lives, and is often the most significant investment. The economic well-being of financial institutions, local tax revenues, low crime rates, and household wealth are also linked to homeownership. In the same way homeownership provides positive externalities, losing the home to foreclosure brings with it negative externalities, which significantly affect the welfare of individuals, families, and communities. Mortgage default and foreclosure negatively impact an individual’s credit score, access to consumer loans, access to rental units, and even jobs. Foreclosed homes result in the disruption of families and have financial, social, and emotional consequences. The negative impact of mortgage foreclosures and the resulting vacant homes is felt by cities in many ways. Homes and landscaping are not maintained, adversely affecting a neighbourhood’s appearance. Vacant homes attract criminal activity, necessitating increased police surveillance and reducing the sense of security for neighbouring residents. Foreclosed and vacant homes are potential fire hazards. Foreclosed homes drive down property values in a neighbourhood, thus decreasing the tax base in the community, while at the same time, causing an increase in a city’s expenditures.
This chapter provides an overview of financial counseling practices including required skills, co... more This chapter provides an overview of financial counseling practices including required skills, content, and processes. It briefly describes the type of counseling and its developmental stages. Although financial counseling has remained relatively stable over the years, new changes are coming to the housing counseling industry, including new certifications and requirements. To this end, the chapter presents a succinct history of housing counseling and specific changes from the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to new standards and competencies for housing counselors, the chapter explains the new General Ability to Pay Rules (ATP), the Qualified Mortgage Standards (QM), amendments to High-Cost Mortgages, Truth in Lending Act, and to the Real Estate Settlement Procedures Act. The chapter concludes with the idea that financial counseling and housing counseling are components of financial health.
Scholars have achieved a great deal in their quest to understand that homeownership and stable ho... more Scholars have achieved a great deal in their quest to understand that homeownership and stable housing bring substantial benefits to individuals and communities. A house is usually the most expensive purchase consumers will make in their lives, and is often the most significant investment. The economic well-being of financial institutions, local tax revenues, low crime rates, and household wealth are also linked to homeownership. In the same way homeownership provides positive externalities, losing the home to foreclosure brings with it negative externalities, which significantly affect the welfare of individuals, families, and communities. Mortgage default and foreclosure negatively impact an individual’s credit score, access to consumer loans, access to rental units, and even jobs. Foreclosed homes result in the disruption of families and have financial, social, and emotional consequences. The negative impact of mortgage foreclosures and the resulting vacant homes is felt by cities in many ways. Homes and landscaping are not maintained, adversely affecting a neighbourhood’s appearance. Vacant homes attract criminal activity, necessitating increased police surveillance and reducing the sense of security for neighbouring residents. Foreclosed and vacant homes are potential fire hazards. Foreclosed homes drive down property values in a neighbourhood, thus decreasing the tax base in the community, while at the same time, causing an increase in a city’s expenditures.
Uploads