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SENATOR MILLER ADVOCATES FORECLOSURE PREVENTION FOR AFRICAN AMERICANS (Front Page) Senator Ray Miller demonstrated his leadership in ensuring that home foreclosure funding assistance is distributed in the most effective and equitable manner by making a recommendation that Ohio Housing Finance Agency (OHFA) contract with the Ohio Council of Urban Leagues to ensure that African Americans are served at a level that commensurates with their need. OHFA, the organization that will be administering the $172 million Hardest Hit Fund (HHF) allocation to help families facing home foreclosure went before a state panel in July requesting over one million dollars to hire 25 employees that will work on the states foreclosure initiative for the next three years. Controlling Board, a panel that provides legislative oversight concerning certain budget expenditures by state agencies, approved OHFAs request. Senator Miller, who is one of seven members on the board voted in favor of increasing the funds for OHFA. African Americans are disproportionately impacted by foreclosure it makes since to contract with an agency whose primary interest is to serve African Americans, said Senator Miller. In addition, He expressed that there will be a major void in foreclosure prevention service delivery to this sector of Ohios population if organizations which the state contracts with are not representative of those which serve African Americans, especially since African Americans are 70 percent more likely to lose there homes to foreclosure when compared to whites. Urban Leagues have the capability to serve in this area many have existing housing services programs, Senator Miller added. The state met its June 1st application deadline for submitting its proposal on how the Hardest Hit Funds will be allocated. State officials now hope to receive application approval from the U.S. Treasury by August 15. The foreclosure prevention programs should be ready to begin working with homeowners at the beginning of October. OHFA fully anticipates that the application will be approved; $149.3 million of the $172 million will be divided among four programs over three years. The programs will operate as follows: 1. Partial Mortgage Payment Assistance, $69.5 million will be used for this program which will provide partial mortgage payments on behalf of unemployed homeowners who are actively seeking employment or are participating in job training. 2. Rescue Payment Assistance, $18.8 million will go to mortgage servicers on behalf of homeowners who face financial hardships and have missed at least one mortgage payment. 3. Modification Assistance with Possible Principal Reduction, $51.8 million will be used for this program which encourages servicers to modify loans by reducing homeowners principal balances. The emphasis is on homeowners with mortgages worth more than a homes value. 4. Transitional Assistance, $9.2 million will be allocated to this program which encourages servicers to pursue alternatives to foreclosure (e.g., short sales and deed-in-lieu agreements) for homeowners who likely cannot otherwise avoid foreclosure. The remainder of the funds $22.7 million will go to housing counseling agencies, administrative expenses, program staff and outreach to homeowners about Ohios HHF programs.

Understanding Credit Scores (back page)

Credit is an individuals reputation among creditors. It determines the likelihood that creditors are willing to loan funds for purchases. Creditors use credit scores to assist them with making loan and credit decisions. These scores also determine the finance rate, terms, and conditions of loans. Credit scores are extremely important to any individuals financial future and if handled incorrectly, can be a detriment to financial security. Credit matters because if one has what is considered bad credit, one may pay two or three times as much as someone with good credit for the same exact purchases. This is especially true when it comes to major purchases such as cars and homes. In addition, individuals may suffer in more areas than the marketplace. Not without argument of course, companies have begun considering applicants credit scores when choosing employees. This situation can leave someone with bad credit in a worse situation if they cannot find employment. Bad credit can also adversely impact entrepreneurs who are trying to start their own businesses; as most new business owners require loans to assist with start-up costs. Credit can be established by adhering to the financial agreements set by creditors. Adhering to these agreements ensures that the credit score will not decrease. When individuals default on credit agreements, it results in a decline in credit. FICO credit range: 700 & up: Excellent or Very Good Credit- This range of scores ensures that one may get the best rates possible and will have very little trouble getting approved for loans or credit cards. 680-699: Good Score- This range of scores ensures that one will get better than average rates, but may see lower credit lines and less flexibility than excellent ranges. 620-679: Average Score- This range of scores may still be workable with creditors, but will have the least amount of flexibility. 580-619: Less than Average- This range of scores is not very bad, however, creditors are able to penalize this range of scores with high interest rates and fees due to the amount of risk that they take loaning money to a score this low. 500-580: Bad Credit- This range of scores represents those with less than favorable credit. This range will be penalized the most and face the highest interest rates. 500 and below: Very Bad Credit- This range of scores represent the worst credit attainable. More than likely no loans or credit will be given. At this state, the individual must make a valiant effort to repair their credit