Providing Access to Affordable Credit to the Poor - Evaluating the Effectiveness of Credit Counseling for Building Assets

Asset building has become an increasingly important component of socialwelfare policy in recent years. For families seeking to build assets throughhome ownership raising credit scores is often a key element of their prepurchaseefforts. Low income and minority families in particular can strugglewith poor credit scores and seek Homeownership Education and Counseling(HEC) services to assist them to raise their credit score and access affordablemortgage credit. This book examines the effectiveness of credit counselingwithin HEC services on credit scores. Quantitative data were gathered via preandone year post-counseling credit scores from 203 clients who obtainedpre-purchase credit counseling. Qualitative findings from a focus group ofHEC credit counselors shed light on the role of credit counselors in HEC servicesand difficulties encountered in interfacing with the sub-prime mortgagemarket. This book is addressed to community development mortgage financeand public policy professionals and researchers.