Building a Better Financial Future CreditSmart Training for New Instructors

Transcription

1 Building a Better Financial Future CreditSmart Training for New Instructors SESSION #3 Thinking like a lender and Avoiding credit traps Freddie Mac June 21, 2015 Get to Know Your Producer Michelle Courtney Michelle M. Courtney is a Corporate Community Engagement professional who has worked in the field for 19 years. As the Manager of Corporate Community Engagement (Volunteerism) at Freddie Mac in McLean, VA, she is responsible for the strategic framework for the Company s community outreach efforts. Michelle served as the Lead in helping to rebrand and relaunch the program in 2015; which is focused on Housing, Neighborhood Revitilation and Financial Literacy/Capability. The new and fully revised volunteer program is now known as the Community Crew, GIVE. SERVE. IMPACT (#FreddieMacCrew). Ms. Courtney s experience in the Community Engagement field comes from the knowledge and skill received as part of the Freddie Mac Foundation from 1997 until Through this journey she had the opportunity to work alongside many industry professionals, where she was exposed to grantmaking, corporate giving and nonprofit development and management. Michelle was also provided the opportunity to strategize, develop and implement many programs, events and activities focused on supporting the local community. She received a Certificate of Completion in 2014, from Johns Hopkins University and the Washington Regional Association of Grantmakers Institute for Corporate Social Responsibility. Currently, she is registered in the NeighborWorks America, Nonprofit Management and Leadership Professional Certificate Program and sits on the Tysons Partnership Community Engagement Committee. Michelle proactively works toward increasing her knowledge and capability in an effort to continue to successfully support community needs. Freddie Mac 2 1

2 Get to Know Your Presenter Cora R. Fulmore Manager/Owner of the Mortgage & Credit Center and The Counselor s Corner, Inc. More than 35 years of experience in mortgage & credit counseling Organizer of the first Florida Housing Counselors Network National Consultant for NeighborWorks since 1994; provide training in the area of: Certification for ED s and Program Managers Housing Counseling Certification Foreclosure Prevention Credit Counseling Certified CreditSmart trainer since 2001 Freddie Mac 3 Call In Information Toll Number: 1 (914) Access Code: Webinar ID: CreditSmart New Instructor Training Freddie Mac 4 2

3 GoToWebinar Platform To avoid feedback noise: If you are using a landline or cell phone, please make sure that your phone is on mute If you are using the speakers on your computer, click that option here. Freddie Mac 5 How to Participate Use the question box to ask questions Always, select ALL PARTICIPANTS Freddie Mac 6 3

4 How to Participate Handouts Freddie Mac 7 4-Part Series + Bonus Class SESSION #1 CS Introduction and Money Management Basics Tue, June 7, :00 PM - 3:30 PM EDT SESSION #2 Building, Maintaining and Restoring Your Credit Tue, June 14, :00 PM - 3:30 PM EDT SESSION #3 Thinking like a lender and Avoiding credit traps Tue, June 21, :00 PM - 3:30 PM EDT SESSION #4 Preparing for Homeownership and Avoiding Foreclosure Tue, June 28, :00 PM - 3:30 PM EDT BONUS CLASS - Super Charging your Credit Counseling Program Tue, July 5, :00 PM 3:30 PM EDT Freddie Mac CERTIFICATE ISSUED ONCE YOU HAVE TAKEN AND PASSED 10 QUESTION EXAM AFTER THE FINAL SESSION *YOU MUST ATTEND ALL 4 SESSION* 8 4

5 A Quick Review Freddie Mac 9 Crossword Puzzle Challenge Freddie Mac 10 5

6 Crossword Puzzle Challenge DOWN 1. 4-letter acronym for the law that gives you the right to know what information is being distributed about you by credit reporting agencies Freddie Mac 11 Crossword Puzzle Challenge DOWN 1. 4-letter acronym for the law that gives you the right to know what information is being distributed about you by credit reporting agencies 1 f c 4 2 r a Freddie Mac 12 6

7 Crossword Puzzle Challenge ACROSS 4. Do not make promises you cannot keep. Be. 1 f c 4 2 r a Freddie Mac 13 Crossword Puzzle Challenge ACROSS 4. Do not make promises you cannot keep. Be. 1 f c 4 2 r a e a l i s t i c Freddie Mac 14 7

8 Crossword Puzzle Challenge DOWN 2. It could be a warning sign of credit problems if you are spending more than percent of your monthly net income to pay back credit cards and other loans (excluding a mortgage). 1 f c 4 2 r a e a l i s t i c Freddie Mac 15 Crossword Puzzle Challenge DOWN 2. It could be a warning sign of credit problems if you are spending more than percent of your monthly net income to pay back credit cards and other loans (excluding a mortgage). 1 f c 4 2 r e a l i s t i c a w e n t y Freddie Mac 16 8

9 Crossword Puzzle Challenge ACROSS 5. Obtaining a credit card may be one way to begin restoring your credit if it has been damaged. 1 f c 4 2 r e a l i s t i c a w e n t y Freddie Mac 17 Crossword Puzzle Challenge ACROSS 5. Obtaining a credit card may be one way to begin restoring your credit if it has been damaged. 1 f c 4 2 r e a l i s t i c a w s e n t y c u r e d Freddie Mac 18 9

10 Crossword Puzzle Challenge DOWN 3. Credit companies may promise you the world and may further damage your credit. 1 f c 4 2 r e a l i s t i c a w s e n t y c u r e d Freddie Mac 19 Crossword Puzzle Challenge DOWN 3. Credit companies may promise you the world and may further damage your credit. 1 f c 4 2 r e a l i s t i c a w s e c u r e n e t p y a i r d Freddie Mac 20 10

11 Crossword Puzzle Challenge ACROSS 6. Put yourself on the payroll. Pay yourself. 1 f c 4 2 r e a l i s t i c a w s e c u r e n e t p y a i r d Freddie Mac 21 Crossword Puzzle Challenge ACROSS 6. Put yourself on the payroll. Pay yourself. 1 f c 4 2 r e a l i s t i c a w 6 f 5 3 s e c u r e n e i r s t p y a i r d Freddie Mac 22 11

12 So Let s Get Started Homework Assignment Pull a copy of your credit report for review. Save all pre-approved offers between now and the final class. What is the median credit score in your state. How many Federal Consumer Protection laws are there? Prepare for our final session Review CreditSmart Modules 7, 10, 11 and 12. Freddie Mac 24 12

13 Homework Assignment Pull a copy of your credit report for review. Did you find any errors? Save all pre-approved offers between now and the final class. How many have you received? What is the median credit score in your state.? Freddie Mac 25 Homework Assignment How many Federal Consumer Protection laws are there? 57 Consumer Protection 25 Competition Act Freddie Mac 26 13

14 Learning Objectives As Learners: Who are the players at the bank. Understand how lenders and other financial institutions determine creditworthiness Identify ways you can prepare to buy and own your own home Utilize the skills you have acquired to remain a successful homeowner and maintain your good credit As Trainers: See how CreditSmart can be used in introducing participants to how banks operate. Gain an awareness of the CreditSmart modules that help prepare consumers for successful homeownership Demonstrate new teaching techniques Introduction to Get the Facts Freddie Mac 27 Two Hats Learner Trainer 40% 60% Freddie Mac 28 14

15 Freddie Mac 29 Module 1: Your Credit & Why It Is Important Module 2: Managing Your Money Module 3: Goal Setting Module 4: Banking Services, An Important Step Module 5: Establishing & Maintaining Credit Module 6: Understanding Credit Scoring Module 7: Thinking Like a Lender Module 8: Avoiding Credit Traps Module 9: Restoring Your Credit Module 10: Planning for Your Future Module 11: Becoming a Homeowner Module 12: Preserving Homeownership: Protecting Your Home Investment Freddie Mac 30 15

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21 h Freddie Mac 41 4 C s of Credit Capacity Is there sufficient income to repay the loan. Capital Refers to cash reserve, investments and/or assets that could be made liquid. Credit The credit history is reviewed to determine a potential borrower s willingness to repay a debt. Collateral Looks at the value of the property that will be pledged as security for the loan. Freddie Mac 42 21

22 Freddie Mac 43 Housing Ratio Lenders also looks at affordability Ratios are used to make this determination Housing Ratio = Front End Ratio Debt to Income Ratio = Back End Ratio Products determine the ratio Common product ratio: 28% for Housing Ratio 36% for Debt to Income Ratio Freddie Mac 44 22

23 Audience Chat What s the average pay scale of the clients that you are counseling? Freddie Mac 45 Audience Chat What s the average pay scale of the clients that you are counseling? This addresses CAPACITY Freddie Mac 46 23

24 Polling Question: With a Gross Monthly Income of: $2, Using a housing ratio of.28% What is the maximum (PITI) housing payment? a.$ b.$ c.$ d.$ Freddie Mac 47 Polling Question: With a Gross Monthly Income of: $2, Using a housing ratio of.28% What is the maximum (PITI) housing payment? a.$ b.$ c.$ d.$ Freddie Mac 48 24

25 n Freddie Mac 49 FINANCE $ 25

26 _A _A_ O N E W O R D SPIN Chat Clue This term refers to cash, investments and/or assets that could be made liquid. Freddie Mac 52 26

27 _A _A_ O N E W O R D SPIN CAPITAL O N E W O R D 27

28 Let s Meet Our Contestants. Freddie Mac R E_O T T W O W O R D S 28

29 Chat Clue A method money is electronically transferred into an account Freddie Mac 57 R E_O T T W O W O R D S 29

30 DIRECT DEPOSIT T W O W O R D S Freddie Mac 60 Freddie Mac

31 Traps & Scams Credit card fraud is an ever increasing evil we have to deal with. The Internet has made it easy for fraudsters to trick us with traps and scams, the best line of defense is knowledge. Freddie Mac 61 Freddie Mac 62 Freddie Mac

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35 Freddie Mac 69 Freddie Mac Complaint categories making up the top 10 list Freddie Mac 70 35

36 71 Freddie Mac TOP 10 INTERNET SCAMS Freddie Mac 72 36

37 Foreign Lottery Scam You receive what looks like an official from a foreign lottery corporation. The subject line offers a congratulatory announcement, and may include the supposed amount of money you ve won. Freddie Mac 73 Survey Scam This common scam looks innocent enough. You ve expressed interest in social issues, such as global warming or the war in the Middle East, and you ve been sent a survey that requests your input. When you click on the link to take the survey, malicious spyware or malware is installed on your computer. Freddie Mac 74 37

38 PayPal or Online Credit Card/Banking Scam You will receive an that appears to be from PayPal or your credit card company or bank with a warning message such as, Act now, or your account will be deactivated, or Security breach on your account. Freddie Mac 75 Mystery Shopper Scam This common work-from-home scam attempts to suck you in with an featuring a subject line promising you a large income, simply by working as a mystery shopper. You need no experience or education, and you can make up to $200 to $300 a day doing just what you love: shopping! Sounds too good to be true, right? Freddie Mac 76 38

39 Nigerian Check Scam You receive an from an a royal-sounding person with the name of Sir Arthur Von-Monsoon, or Barrister Frank N. Stein with a request to help recover large sums of money from an overseas bank. As a reward, you ll receive a handsome cut of the cash. Freddie Mac 77 Hijacked Profile Scam You re contacted by a Facebook friend that says, Hey if you have time, give me a call? When you message them back there s a response saying I ve got a wonderful business opportunity for you. Followed with a couple of links to click on. DON T CLICK! Freddie Mac 78 39

40 Quiz Scam You see the quiz on your friend s profile, click on it, and enter your cell phone number as instructed. The quiz pops up, you take it. When next month phone bill rolls around, you re shocked to learn that a $9.95 fee has been added to your bill for some dubious monthly service. Freddie Mac 79 Suspicious Photo Scam One of your friends, whose account has been hacked, posts a link on your page with a message such as, OMG! There s an incriminating picture of you on FB? Freddie Mac 80 40

41 Hidden URL Scam Beware of blindly clicking on shortened URLs. You ll see them everywhere on Twitter, Facebook and in s, but you never know where you re clicking through since the URL hides the full location. You could be clicking a link that installs malware on your computer. Make sure you have real-time protection against spyware and viruses. Freddie Mac 81 Chain Letter Scam You ve probably seen chain letters tweeted or ed to you about someone donating money to a particular charity if you forward this tweet or . Spammers use this to get s for further spams and possible malware attacks that can affect your computer if you click on a link within the . The best advice is to break the chain by not retweeting or forwarding and don t click through any links. Freddie Mac 82 41

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44 Education Techniques Maintain an informal atmosphere Act as a facilitator - not the expert Relate the material to real life situations Post the AGENDA and refer to it Incorporate a variety of training materials and techniques Freddie Mac 87 Education Techniques Build on earlier statements Encourage sharing & discovery Give participants time to evaluate their learning Maintain a setting of trust Be yourself and have FUN Freddie Mac 88 44

45 Bright Ideas Use show-and-tell items or props to make examples more real and relatable What show-and-tell props did I use? Provide tools to assist in applying new knowledge What tools did I use to reinforce points made? Test progress and check for understanding What did I use to test your understanding? Share a story of hope or inspiration What story did I share to give hope and/or inspiration? Freddie Mac 89 Homework Assignment What is the current rate for 6mth, 1 yr and 5yr CD being offer by a local bank in your area? What is the minimum unsecured loan amount offered by your local bank? Identify two alternative banking sources in your community. What is the down payment requirement for a first time homebuyer in your area? Identify two down payment assistance (DPA) sources in your community? Freddie Mac 90 45

46 Final Business Thank you for your contributions to today s presentation Direct all questions to: robin.stout.migala@gmail.com See you on Tuesday, June 28 th for Session 4 Freddie Mac 91 Freddie Mac 92 46