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VI. Conclusions and Recommendations: <br />a. Current Lending Products and Packages. Prosperity Unlimited, the CHDO in <br />Cabarrus County, identified new lending products as an impediment to home <br />ownership. New mortgage products require higher credit scores and larger <br />amounts of down payment. This combination is having the effect of disqualifying <br />families from home loans. Additionally, recent changes in HUD programs that <br />decrease up front mortgage insurance costs and increase the monthly costs for <br />mortgage insurance are also eliminating clients from eligibility for home loans. <br />Finally, mortgage modifications are not being processed quickly enough to save <br />homes. Lenders are taking so long to move through the required steps that the <br />mortgage becomes unsalvageable. Cabarrus County staff will continue to <br />support the efforts of Prosperity Unlimited, Habitat for Humanity and other <br />housing nonprofit agencies in their quest to provide affordable housing through <br />housing production, loan modification, homebuyer education, and down payment <br />assistance. Staff will make referrals from the housing rehabilitation programs to <br />any client who appears to have mortgage problems or interest in purchasing a <br />home. <br />b. Fair Housing Awareness. Cabarrus County has had no fair housing complaints <br />in ten years. This is indicative of one of two possible scenarios. Either there are <br />no violations of housing opportunity in this county or people are unaware of their <br />rights. It is more likely that fair housing violations go unreported due to a lack of <br />understanding or knowledge of the rights of protected persons and families. <br />Awareness in the private sector and by the average individual is a crucial step in <br />addressing this particular barrier. Cabarrus County advertises Fair Housing <br />through newspapers, radio stations, cable television and on information on its <br />website. The staff also posts Fair Housing posters and pamphlets in libraries, <br />government offices, schools, the department of social services and financial <br />institutions. Staff is promoting fair housing more actively due to joint outreach <br />projects with the Department of Social Services and Cabarrus County 101 classes. <br />c. Education for Homebuyers. Many families or individuals wishing to move into <br />homeownership are not informed regarding the process of purchasing a home. <br />Additionally, people new to homeownership may not have an understanding of <br />home maintenance and budgeting for maintenance and associated costs. <br />CHDO's, such as Prosperity Unlimited and Habitat for Humanity, have begun to <br />address this problem; however, there is much to do in the education of the public <br />regarding homebuying and Fair Housing. Cabarrus County provides technical <br />and financial support to Prosperity Unlimited, which provides homebuyer <br />education programs that include fair housing information. Cabarrus County will <br />continue to make referrals to these educational programs in order to expand the <br />public's knowledge about homeownership. <br />d. Transportation Changes in housing growth patterns in recent years have lead <br />toward more suburban housing options, however, transportation from these areas <br />to employment and services may be a limiting factor for some families in <br />accessing this housing. Cabarrus County provides a van service for transportation <br />to elderly and disabled residents to required appointments and services. A TDD <br />331Page <br />Analysis of Impediments March 2011 <br />Attachment number 1 <br />F -1 Page 83 <br />