By Cassie M. Chew
Photos: Cassie M. Chew
Geoffrey “Coach” Tate dispensed some tough love for those seeking their piece of the American Dream.
“If you are honest enough with yourself, it may be best to wait than try to force yourself into something,” said Tate to a recent gathering of future and current homeowners in the District and Prince George’s.
A housing counseling project manager for the Greater Washington Urban League, Tate was one of more than a dozen presenters at GWUL’s third annual housing fair held in the District’s eighth ward, just along the Washington/Prince George’s border. This year, the fair focused on those who may be coping with home ownership under the terms of a subprime loan.
Tate also serves as president of the D.C. Metropolitan Association of Housing Counselors and encouraged residents to make an appointment with a housing counselor early in the home buying process. “We’ll sit down with you to look at your situation to see if you are ready,” Tate said.
For those who may have gotten in over their heads, he also welcomed their calls--sooner, rather than later. “Don’t wait until the 11th hour,” Tate said. “We have a whole network of people to work with you.”
A seminar presented by the Greater Washington Urban League.
Representatives from the District and Maryland gave presentations on efforts to help distressed homeowners. The D.C. Department of Insurance, Securities and Banking described its success at negotiating with banks it regulates on behalf of homeowners at risk of default due to subprime lending practices.
“Subprime lending has taken on a life of its own,” Evelyn Carmen, a policy analyst for DISB said. “Please contact a housing counselor or call us. Please think about using a D.C. licensed entity.”
Other seminars taught residents about foreclosure law and appealed to troubled homeowners to stay away from rescue scams that could cause them to lose their home, their equity or both. The fair also offered onsite credit reports and individual credit counseling.
The dollar value of subprime mortgage lending--loans offered at higher rates than prime to borrowers that lenders believe involve risk--has increased from $10 billion to $700 billion in the past 10 years, said Charles R. Lowery, policy counsel at the Center for Responsible Lending, as he addressed attendees at a financial literacy forum on subprime lending and mortgage default prevention at the fair.
"Follow the Paper Trail" discussion of the anatomy of a securitization.
Subprime loans typically involve a couple of years of low interest rates followed by steep increases. Some subprime mortgages delay interest payments while others feature interest-only loans.
Such contracts have resulted in unaffordable monthly mortgage payments for thousands of homeowners who purchased homes in recent years. More than two million homeowners are projected to lose their home to foreclosure representing $164 billion in lost equity. Lowery said.
In addition to the cautionary advice, the housing fair also showcased new housing developments. District and Prince George’s county residents had the option of going on a bus tour of Ward 8 properties, speaking to realtors and developers who set up tables to discuss their projects, and attending workshops designed to teach how to save for a home and the steps involved in purchasing.
“We are in this crisis, but people still want to buy homes,” said Amanda Sevier Miller, housing consultant for GWUL.
Geoffrey “Coach” Tate of the D.C. Metropolitan Association of Housing Counselors can be reached by phone at 301-985-3519.
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