Housing Counseling Process Evaluation and Design of ... - HUD User

Chapter Seven. Client Characteristics and
Outcomes
This chapter presents a profile of the clients receiving counseling from HUD-approved counseling
agencies and the outcomes of that counseling. The chapter begins by discussing information
collected through the counseling agency survey on how agencies recruit clients and the main sources
of client referrals. We then present aggregate data on the race, ethnicity, and income of clients from
the HUD 9902 report. Following a discussion of the challenges of obtaining information on
counseling outcomes, we present available data from the 9902 on outcomes for five types of
counseling clients: clients seeking pre-purchase homebuyer counseling; clients seeking help with
resolving or preventing mortgage delinquency; clients seeking help converting home equity into cash
or seeking better mortgage loan terms; clients seeking help in locating, securing, or maintaining
residence in rental housing; and clients seeking shelter or services for the homeless. The chapter
concludes with a discussion of the development of electronic client management systems (CMS), an
important innovation in the counseling industry that is expected to improve data reporting and
analysis as well as program management.
Client Outreach
An important issue for counseling agencies is the type and amount of outreach they conduct to reach
potential counseling clients. While many individuals and families could benefit from education and
counseling on a variety of housing issues, in order to take advantage of these services they first have
to know they exist. Perhaps the most salient example of the importance of client outreach is the
current foreclosure crisis. A key factor in helping homeowners to find a resolution to their financial
difficulties that will allow them to retain their homes—or at least minimize their losses—is to engage
with counselors and lenders as early as possible after their financial difficulties are evident. In
recognition of the importance of early action, the HOPE NOW alliance was formed involving
counselors, lenders, and other mortgage market participants with the goal of conducting intensive
outreach to offer counseling assistance to homeowners in trouble.
Notwithstanding the HOPE NOW alliance, the housing counseling industry is not, for the most part,
characterized by a great deal of client outreach. A common theme of comments offered by agencies
on the agency survey was that client outreach is hindered by a lack of funding both for outreach itself
as well as the staffing that would be needed to serve the additional individuals brought in through
outreach:
“Adding to our case load is pressure from state, local and Federal housing agencies to provide
outreach. Because these activities do not include resources to address the increase in the
workload, the quality of our counseling is suffering.” (Housing counseling agency in IL)
“Our major challenge is increasing and diversifying our funding to build and expand our
current housing counseling services offered and to cover additional marketing and outreach
expenses.” (Community Action Agency in IL)
Chapter 7. Client Characteristics and Outcomes 97