AFFORDABLE HOUSING & LENDING EXPERTS TO DISCUSS PREDATORY LENDING PROBLEMS & EFFECTS ON MOST VULNERABLE BORROWERS

Housing Development Fund & United Way of Western Connecticut
Co-Hosting Symposium to Explore Solutions to Growing Problems Resulting From Nontraditional Financing .


DANBURY, Conn., October 18, 2007- Housing Development Fund (HDF) and the United Way of Western Connecticut will convene a symposium, “Predatory Lending: Assessing the Problem and Highlighting Solutions,” for representatives of non-profit housing organizations, banks, churches and local governments. The panel discussion will be held on Wednesday, October 24, at Western Connecticut State University West Side Campus, in Room 218 of the West Side Classroom Building. The luncheon event is from noon to 2 p.m. with registration at 11:30 and is provided courtesy of its sponsors, Savings Bank of Danbury and Union Savings Bank. RSVP’s are required as space is limited. Call Tina Mazzella at 203-792-5330 ext. 235.

Attendees will hear national, regional and local experts discuss the troubling trend of non-traditional mortgage lending that is threatening homeownership – especially among the most financially vulnerable borrowers. The panel of affordable housing and banking experts will include: Joshua Silver, vice president for research and policy at the National Community Reinvestment Coalition in Washington, D.C.; Kenneth Willis, vice president and director for housing and community investment at the Federal Home Loan Bank of Boston; and Melvina Peters, homebuyer education coordinator for HDF. HDF President & CEO Joan Carty will moderate the discussion.

“Traditional community banking partnered with pre- and post-purchase educational programs for homebuyers, like the ones that HDF provides, offers the solution to the problems we are seeing with record mortgage foreclosures,” said Donna Ramey, chairman of the HDF board of directors and Executive Vice President & COO of the Savings Bank of Danbury. “Since HDF came to Danbury with the support of the United Way of Western Connecticut, they have assisted 81 area families to first time homeownership in partnership with the banking community. Every community should have a program like this that not only increases home ownership, but also helps buyers to retain this major investment.”

Ramey added that key functions of the symposium will be to outline the issues related to predatory lending practices and to explore possible solutions. Another goal will be to define clearly for participants the difference between sub-prime and predatory lending. She stated that sub-prime lending is necessary in the array of finance options today. It can be innovative and helpful when tied to traditional underwriting standards and made a positive contribution to the increase in homeownership over the past decade. When these safe and sound standards are abandoned, the result is harmful to consumers, especially when those who are most financially vulnerable are targeted.

HDF and the United Way of Western Connecticut work closely on housing issues in the Danbury region. HDF manages the Housing Resource Center in Danbury, with funding from the United Way. The Housing Resource Center provides information, education, and counseling to residents of Greater Danbury, and referrals to other housing resources for those residents who seek homelessness prevention, shelter and security deposit assistance. HDF also works closely with community banks to be sure that the financing packages it creates to help homebuyers bridge the affordability gap are tied to traditional fixed rate financing.

The Housing Development Fund was founded in 1989. It has expanded to serve all of southwestern Connecticut from its Stamford headquarters and a Danbury office opened in 2004. HDF’s homebuyer assistance programs include its First Time Homebuyers Program, SmartMove low interest second mortgage program, CHFA (Connecticut Housing Finance Authority) approved Homebuyer Education Classes Program and Below Market Rate Program (BMR). HDF is a HUD-certified lender and Housing Counseling agency.

HDF provides homebuyers with homebuyer finance, counseling and assistance programs. It also offers low-interest, flexible financing and technical assistance to developers and municipalities, and works with the private sector, other nonprofits, and government entities to facilitate the development of more affordable housing.
The organization manages public/private partnerships to lend funds for these affordable housing initiatives. It has the largest public/private pool of mortgage financing for affordable housing in Connecticut – both homeownership and multi-family development- $38 million.

The Housing Development Fund, Inc. has its headquarters at 100 Prospect Street, South Tower Plaza, Suite SP-101, Stamford, Connecticut 06901. It also maintains an office at 8 West Street, Suite 202-204, Danbury, Connecticut 06810. For additional information call Tami Strauss at 203-969-1830 x19 or visit www.hdf-ct.org.

The United Way of Western Connecticut was formed on July 1 of this year with the merger of United Way of Stamford, United Way of Housatonic/Shepaug, and United Way of Northern Fairfield County. It will distribute close to $4 million to benefit human service programs and community initiatives within the three regional areas of Northern Fairfield County, Southern Litchfield County, and Stamford. The towns covered within these regions are Bethel, Bridgewater, Brookfield, Danbury, Kent, New Fairfield, Newtown, New Milford, Redding, Ridgefield, Roxbury, Sherman, Stamford, Warren and Washington.

The United Way of Western Connecticut is a leader in mobilizing resources to improve lives and our communities. We bring together community leaders, nonprofit organizations, volunteers and businesses to focus on the most pressing needs in our community and provide the resources – human, technical and financial – to get to the heart of problems.

The United Way of Western Connecticut is headquartered at 85 West Street, Danbury, Connecticut 06810. For additional information call 203-792-5330 or visit www.uwnfc.org.