17 - Indiana Association for Community Economic Development

o Include post-purchase counseling as a requirement in policies forsubordinating loanso Increased lender/counselor relationships may present legal complexitieso Lender involvement in post-purchase can play a useful role (partneringwith housing counselors, implementing consumer-friendly policies, etc).o Lenders, realtors, and other community members can all play a role insupporting homebuyers to maintain homeownership.o Need to consider HUD’s policies on payback of HOME dollars in the eventof sale/foreclosureo Require post-purchase counseling for all clientso Require post-purchase counseling if any delinquency occurso Require post-purchase counseling in the lien agreement; clients notattending post-purchase must repay any downpayment assistanceo Require post-purchase counseling under all circumstances• Recommendation 4: Develop mechanisms to support and sustain interaction,communication, and cooperation among homeownership education andcounseling providers and other stakeholders; incentivize networks, rather thanmandating them.o A neutral agency should administer any network that is set up—shouldthis be a new agency or an existing one?o Areas that have existing networks already in place may have anadvantage with regard to the availability of additional points on fundingapplicationso Consider “Work One” model—a centralized, “Homeownership One” setupo Consider basing networks on a functional structure instead of ageographic oneo Consider Continuum of Care modelo Consider the lender requirements of the Federal Home Loan Banko Create a set of guidelines to define the concept of a “region”: Is a regionone county? Multiple counties? A city?o Define regions so that all counties are included, none excludedo Demonstrate the potential for measurable benefit to client beforeimplementing network systemo Don’t make too many ruleso Don’t mandate the location of regional network boundarieso Encourage growth and it will develop naturallyo Funders may find regional system appealing for reasons of simplicity infundingo Funders may find regional system appealing for reasons of simplicity infundingo How should we define and document the concept of a “bona fide”network?o How would we document “bona fide” collaboration in an efficient andunburdensome way?14Indiana’s Homeownership Education & Counseling System (HomeEc) Report — XLVI