CBC Mortgage Agency (CBCMA), a housing finance agency and a down payment assistance source for first-time homebuyers, has extended its post-purchase counseling for borrowers from one year to 18 months. The extension is being made due to the lengthy financial hardships being experienced by borrowers as a result of the COVID-19 pandemic.
Through CBCMA's Borrower Success Program, borrowers have been receiving counseling for one year after utilizing down payment assistance for a home purchase from CBCMA. The counseling is provided through Money Management International (MMI), a HUD-approved non-profit counseling service. MMI checks in with borrowers each month to offer encouragement, assistance, and support to sustain their path to homeownership.
In recent weeks, it has become clear that the impact of COVID-19 on the U.S. economy will be deeper and lengthier than previously projected. Because of the negative impact on its borrowers, CBCMA has made the decision to extend MMI's counseling services to 18 months at no cost to borrowers. The extended counseling takes effect on July 17, 2020.
"This is a permanent extension we are putting in place to assist those who have experienced financial hardships associated with COVID-19," CBCMA EVP Miki Adams said. "Sustainable homeownership for our borrowers has always been a top priority for CBCMA, and we will continue doing everything we can to support them during these unprecedented times."
Since a majority of CBCMA borrowers are minorities, many of whom are the first in their families to own a home, people of color will be the primary beneficiaries of lengthier counseling terms. Amid growing attention on racial inequities and heightened racial tension throughout the country, CBCMA's unique programs are helping to reduce racial wealth disparity by opening up equitable access to homeownership - one of the greatest wealth builders for American families.