Education Held as Core of Low-Mod Lending

Home-buyer education will play a pivotal role in reversing the notion that the only way to make mortgages to low and moderate-income families is to put them into dangerous, perhaps even irresponsible, loans, speakers agreed at the Mortgage Lending Industry Strategic Markets and Diversity Conference. "We've got to focus on getting buyers home-ready, instead of just opting to go down the credit curve," said Mark Goldhaber of Genworth Mortgage Insurance, Raleigh, N.C., which is expanding its "Counseling Saver" product that offers a discount for borrowers who complete a pre-purchase counseling program with a non-profit, non-lending institution. Representatives of Wells Fargo Home Mortgage and CitiMortgage also cited their companies' strong commitment to financial education. "We're very big on home buyer education," said Citi's Terry Fowlkes. "Part of the reason (the mortgage market is) in trouble today is because too many borrowers weren't ready and didn't understand" what they were getting into. Ms. Fowlkes said Citi is especially interested in offering educational programs through faith-based community groups. "The faith community is a very big trusted advisor for people of color," she said.