Affordable Housing Lending MIRADA JENKINS AVP Community Development

Affordable Housing Lending MIRADA JENKINS, AVP Community Development Banking Mortgage Originator & Community Outreach Officer NMLS: 1549795 mirada. jenkins@oldnational. com t: 734. 887. 2624| f: 734. 887. 7724 2723 S. State Street | Suite 210| Ann Arbor, MI 48104 Apply online: oldnational. com/Jenkins

Community Reinvestment Act (CRA) What is CRA ? The Community Reinvestment Act (CRA) of 1977 is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. It was enacted by the Congress in 1977 (12 U. S. C. 2901) and is implemented by Regulations 12 CFR parts 25, 228, 345, and 195. (Revisions: 1989, 1995, and 2005).

ONB Community Development Banking Community Development Mission Statement: "To ensure Old National Bank meets the financial, service and credit needs of the entire communities in which we serve, including low- and moderateincome people and areas, small businesses and small farms. As the Mortgage Originator & Community Outreach Officer for Old National Bank, my mission is help low to moderate income people & places prosper. I also plan to become a financial services resource for African –Americans and Latinos in our community. I want to help people realize their homeownership dreams by making smart, secure financial decisions.

Income Limits For Individuals and Families: Washtenaw County Low Income = 80 % Area Median Income (AMI*) or less 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person $46, 000 $52, 600 $59, 150 $65, 700 $71, 000 $76, 250 $81, 500 $86, 750 *Gross Income

3 Keys to Qualifying for a Mortgage • Credit • Capacity (Ability To Repay) • Collateral

CREDIT Critically important and where we start. If the credit score is below a certain threshold we are not able to lend regardless of how strong the Capacity to Repay and Collateral may be. CREDIT Impacts the following: • interest rate • private mortgage insurance premium • which borrowers are on the mortgage; and • the mortgage program itself. It’s crucial that clients do not apply for new credit or utilizing existing credit during the mortgage process.

CAPACITY (Ability to Repay) Often referred to as a Debt to Income (DTI) ratio. Things that impact the capacity to repay: • Income level • Debt Level • Foreclosures (3 Year Rule) • Bankruptcies

COLLATERAL Buyers Contribution: üMinimum Down Payment üEarnest Money Deposit üHomeowners Inspection üHome Appraisal üHazard Insurance üPrivate Mortgage Insurance üTaxes üSpecial Assessments

Potential Barriers to Homeownership • Access • Job Security • Credit Scores: Lack of credit or poor credit/payment history. • Debt to Income Ratios • Education • Understanding information about the homebuyer process • Misinformation • Resources • Down Payment • Lack of capital for down payment and closing costs • Opportunities • Lack of knowledge of qualifying criteria and available programs • Continued housing discrimination

Getting Started Get Educated q. Attend HUD Certified Homebuyers Education Course q. Attend Financial Literacy/Coaching Course(s) v. Know Credit Score, Payment History, How Much You Can Afford & Establish a Household Budget Begin Homebuying Process q. Select a Lender q. Select a Real Estate Agent q. Find a Home q. Make Offer (Earnest Money Deposit) q. Home Inspection/Appraisal q. Finalize Loan Approval Requirements q. Obtain 1 –Year Homeowners Insurance Premium q. Review Closing Documents q. Closing Day v. Move In!

Community Outreach • Goal: Working together to encourage and support Housing Affordability and Financial Stability in Washtenaw County. • Outreach: Meeting with Realtors/Realtists Faith Based, Minority & Professional Organizations Financial Literacy Providers Affordable & Public Housing • Potential Partners: • Financial Literacy Educators/Coaches • Affordable & Public Housing Providers • Down Payment Assistance Programs • Local Non-Profits and Government • •

Questions?