Posted on June 15, 2021
The week of June 7 was a busy one for homeownership, from the noting the departure of a long-time partner to recognizing educators to training lenders. Here's a roundup:
On Monday, June 7, longtime Massachusetts Affordable Housing Alliance (MAHA) Executive Director Tom Callahan announced he is stepping down. His departure is slated for the end of the year, kicking off a six-month leadership transition process.
During his tenure, Callahan guided MAHA through numerous successful community campaigns, including working with MHP, the state, the City of Boston and banks to create the SoftSecond Loan Program. Now known as ONE Mortgage, it is the nation’s longest running Community Reinvestment Act mortgage program. Since 1991, it has helped over 23,000 low- and moderate-income homebuyers purchase their first home, over half households of color.
“MAHA, the entire affordable housing community, and thousands of first-time homebuyers have all benefitted from Tom’s impeccable vision and talents through the years. We are enormously grateful to him for his many contributions,” said Esther Dupie, MAHA Board President.
Callahan also helped create a groundbreaking education-based property insurance discount plan for homeowners; a first-in-the-nation matched savings program for first-generation homebuyers (STASH); and expanded state-level CRA coverage to independent mortgage companies.
“It’s been a privilege to learn from Tom about what it takes to stay true to the mission and pursue positive change for underserved communities,” said Elliot Schmiedl, MHP's homeownership director.
In an email to partners, Callahan wrote, "I'm not retiring. I decided a few years ago that I wanted one more professional opportunity before I retire." Given what he's achieved at MAHA, we can't wait to see what that is.
Homebuyer counselors get seal of approval
During the spring meeting of the Massachusetts Homeownership Collaborative on June 8, 10 agencies received a renewed “Collaborative Seal of Approval” recognizing that they meet or exceed a minimum standard in providing effective pre-purchase, group homebuyer counseling and education to low- and moderate-income, first-time homebuyers. The agencies receiving renewal were:
- Allston Brighton Community Development Corporation
- City of Cambridge
- Community Service Network
- Housing Nantucket
- Fall River CDA
- Lawrence Community Works
- Massachusetts Affordable Housing Alliance
- NeighborWorks Housing Solutions
- Quincy Community Action Programs
- Valley Community Development Corporation
The collaborative provides professional training, curriculum standards, and best practices criteria for homebuyer counseling agencies across Massachusetts.
Trends in homebuying classes
During the collaborative meeting, members were presented data on participation in pre-purchase homeownership classes. Observations included:
- 93 percent say keep classes virtual: Agencies were praised for adjusting their formats to online during the COVID-19 pandemic. By April 2020, classes were moved to a virtual platform. Class attendees cited fewer barriers to getting to class, such as not having to pay a babysitter, drive through traffic, or find parking. They found the Zoom chat box function very helpful for asking questions. When asked recently whether future classes should be in-person or virtual, 93 percent of respondents said classes should be kept virtual.
- Demographic breakdown: 25 percent of 2020 class participants are Black/African American, while only 4 percent of homeowners in Massachusetts are Black/African American. 33 percent of class participants are white, while 85 percent of homeowners in the state are white. Hispanic/Latinx prospective homebuyers represented 28 percent of the class and 5 percent of homeowners in Massachusetts.
- Tracking success: Given the popularity of classes during the pandemic, the collaborative plans to begin tracking the number of attendees who actually purchase their first home.
Racial bias in appraising discussed
The collaborative event also featured an informational session on racial bias in home appraisal, with presentations by Leigh Lester, a member of the Appraisal Foundation Board of Trustees and real estate appraiser Byron Miller. Major points:
- Racial valuation bias is rooted in history. It can be explicit, implicit, and structural.
- Deed restrictions put in place 100 years ago impact neighborhoods today.
- If you perceive bias, have your documentation to back it up. Get another appraiser or realtor who can give you an unbiased opinion.
- Most appraisers are older, and white. In the U.S. 91 percent of all appraisers are white. 4.9 percent are black and 3.8 percent are Latinx.
- The Appraisal Institute, in collaboration with Fannie Mae and the National Urban League, is seeking applicants for their Appraiser Diversity Initiative Sponsorship Program.
The presentation was timely, given the Biden Administration's recent announcement to address significant racial disparities in mortgage appraisals.
ONE Mortgage lender trainings
Over 50 loan officers and underwriters attended a ONE Mortgage training on June 8. Led by Relationship Manager and Legal Analyst Moriah Cummings and Program Associate Wuilliam Swartz-Flores, the training covered program features and qualifications, and how to offer clients Massachusetts' most affordable mortgage program and save them thousands of dollars!
Partner lenders in attendance included BayState Savings Bank, Boston Private, Cambridge Savings, East Cambridge Savings, Eastern Bank; Enterprise Bank, First Citizens Federal Credit Union, Freedom Credit Union, Mechanics Cooperative; Millbury Federal Credit Union, People’s United Bank, Rockland Trust, Salem Five, St. Mary’s Credit Union, Tremont Credit Union, Winchester Co-operative Bank and Winter Hill Bank.
ONE is offered by more than 40 lenders across Massachusetts. If your institution is interested in becoming a ONE Mortgage lender, please contact Moriah Cummings.
ONE+Boston info session for gateways
On June 9, the MHP homeownership team hosted an informational session on replicating the ONE+Boston mortgage program for gateway cities. Representatives of Chelsea, Fall River, Lowell, Medford, New Bedford, and Salem learned of the impact of the ONE+ program, what MHP needs from the communities and what it can offer to support the expansion of the ONE+ into gateway cities.
ONE+Boston combines the low-cost features of ONE Mortgage with City of Boston Community Preservation Act funds to offer discounted interest rates and more down-payment assistance. As of May 31, 2021, 76 percent of the buyers were people of color and 42 of 64 ONE+Boston buyers purchased market-rate properties, reversing a trend of the past several years when approximately two-thirds of ONE's volume in Boston was for the purchase of deed-restricted properties built with public subsidy to lower the purchase price.
(This roundup was compiled by MHP Communications Coordinator Lisa Braxton. If you have questions, contact her at lbraxton@mhp.net).