In this Advisory Council Member Spotlight we introduce Cheryll Boswell, executive director of METEC Housing Counseling Resource Center (Peoria, IL). METEC’s mission is to empower individuals to improve their financial well-being through housing counseling, credit counseling, employment preparation, and tax preparation.

Many indicators suggest the housing market is rebounding. Is this your experience in the Peoria area? How are you able to instill confidence in your clients that homeownership is still a sound social and financial investment?

In Peoria we’re seeing a slow but steady upswing in the housing market. One of the indicators we watch is the number of clients utilizing our home-buying education services compared to the number of clients who seek help from our agency to keep their homes out of foreclosure. Last year was the first time in six years our agency assisted more clients with purchasing a home than those needing help resolving or preventing mortgage delinquency. We are happy to see a momentum shift in the housing market. This past year, 1,200 clients used our housing counseling programs which consist of pre-purchase education, credit and budget counseling, money management, foreclosure prevention, and rental counseling. Of the 1,200 clients counseled, 15% received help with keeping their homes out of foreclosure and 20% sought help with purchasing a home. Compare that to 2010, for example, when 75% of the services provided were for foreclosure prevention. 

As the economy emerges from the housing crisis it can be debated if homeownership is a good decision for families with low incomes. Statistically, these households were the hardest hit by the housing disaster. METEC believes that homeownership is still a good financial investment. We use homeownership as a tool to help families with low incomes build assets and increase their personal wealth; assets can make a difference in a household’s ability to survive a financial crisis when something like a job loss or illness occurs. Socially, homeownership provides borrowers with control over their environment along with a sense of security. Clients who participate in our homeownership program receive validation on the decisions they’ve made throughout the entire home-buying process, which bolsters confidence in their financial investment both socially and economically.  

METEC is a HUD-approved housing counseling agency and financial literacy is a cornerstone of your curriculum. It’s much more than teaching someone how to balance a checkbook. Please speak to the various components of comprehensive financial education.

A comprehensive financial education program provides tools to help individuals make informed decisions regarding money while focusing on increasing assets and providing access to affordable financial products. Budgeting, credit (types of credit, credit scores, and interest rates), taxes, investing, the importance of having a banking relationship, and homeownership are basic components that must be covered. Segments on how to manage debt and how to avoid scams will help prevent predatory lending. More than anything, a comprehensive financial education program will have a clear mission; METEC’s mission is empowering individuals to improve their financial well being. 

We integrated financial education with other programs such as the free tax preparation program and the Fresh Start program to increase economic and asset-building opportunities for clients and their families. Participants who have their taxes prepared at METEC’s tax center have the opportunity to meet with a representative from a financial institution and open a bank account to set up direct deposit for their tax return. Our Fresh Start program gives individuals who are in Chexsystems a second chance to open an account if they take our money management class which teaches how to manage a checking account and create a budget. We’ve learned that financial education helps to shape a person’s behavior, and when education precedes a financial decision, that decision is more likely to have a positive impact and outcome. 

Another offering at METEC is ‘The Homebuyers Club.’ How successful has it been? Why is it important to continue engaging a household even after they’ve purchased a home?

The Homebuyers Club is a guided support group for prospective homebuyers and it has been very successful. It was created to offer more hands-on learning for those not ready to purchase by providing educational seminars as well as mutual peer and group support. Each group has its own chapter that meets once a month for five months. We are now working with the third chapter. Thirty-two participants from the first two chapters have completed the entire course, 11 have purchased homes, and another 10 have improved their overall credit scores and reduced their loan debt. 

Helping borrowers get through the first year of homeownership is critical to having a successful homeowner and homeownership program. Besides being involved in the initial purchase, METEC stays engaged with clients after the home is purchased. Through post-purchase follow up, clients are encouraged to contact our agency if they run into any financial problems or need help with maintenance, repairs, or other information. Our post-purchase education offers training necessary for homeowners to realize the value of their investment over the long term, and we place emphasis on budgeting so they can continue to meet their mortgage obligations. Sustaining homeownership makes it a win-win for the borrower, the lender, and the community.