May 2015 Buying or Refinancing FROM PAGE 1


typically means you will pay higher monthly mortgage payments and have greater borrowing costs over the long run.


Also, in January 2015, the U.S.


Department of Housing and Urban Development (HUD) announced a cut in Federal


Housing Administration


insurance premiums on mortgages with low down payments. This change will make the FHA’s low down payment loans more affordable.


Don’t be shy about shopping around for a home loan. The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency recently released the results of a survey showing that nearly half of the consumers who took out a mortgage to buy a home in 2013 did not shop around before applying. “Failing to shop means money lost for consumers,”


the CFPB said.


“Consumers who consider the product offerings of multiple lenders or brokers may save substantial sums.”


As part of the announcement, the CFPB launched an online toolkit called “Owning a Home” (www.con- sumerfinance.gov/owning-a-home) to help consumers as they shop for a mortgage and make smarter decisions on home loans.


It’s best to compare offers from


several different lenders before making a final decision. And keep in mind that you do not have to use a lender suggested by your real estate agent or anyone else involved in your home purchase.


Understand of adjustable-rate


the pros and cons mortgages.


Also


known as ARMs, these mortgage loans generally start out with low introductory rates for a certain time period. A low rate may be appealing, but be sure you know how much that rate could rise, when, and under what circumstances. By law, the lender must disclose this information to you. When the lender considers your ability to repay the loan, it must take into account possible rate hikes during the first five years of the loan.


“You also shouldn’t assume that


you will have the option to refinance an ARM or sell your home to escape higher payments Elizabeth Analyst


later at on,” said


Khalil, a Senior Policy the


FDIC. “Mortgage


interest rates have been low over the past few years, but they may be higher in the future, meaning that refinancing your ARM may not significantly lower your payments. This is also a reason to think seriously about a fixed-rate loan, which may be somewhat more expensive but has predictable payments.”


Whether it’s a fixed or adjustable


rate, be sure you understand all the terms of any loan you are considering before you decide whether to take it. If you have questions, consulting


consider with Watch a HUD-approved


housing counseling agency (see contact information at the end of this article) or an attorney.


for new mortgage


disclosures. The CFPB has developed new disclosures that, by law, lenders will be required to use beginning on August 1, 2015. For most new mortgages and refinancings, four previously


required two


www.hamptonroadsmessenger.com


for a mortgage and the “HUD-1 Settlement Statement” of actual costs at closing) will be replaced by


new forms intended


to provide clearer and more useful information to consumers. The CFPB has detailed information about the new disclosures at www.consumerfinance. gov/knowbeforeyouowe.


Consider how a mortgage could


affect you in retirement. Carrying significant mortgage debt can create payment problems for retirees living on a fixed income. Some consumers may even delay retirement due to mortgage debt. “Even if you’re many years from retirement, consider now how long you intend to carry a mortgage, have a plan for paying it off, and be sure that timeframe lines up with your goals for career and retirement,” said Kathleen Keest, also an FDIC Senior Policy Analyst.


For Current Homeowners Keep an eye on the servicing of


your loan. The entity that collects your payments and performs other duties for your mortgage lender, perhaps including responding to inquiries and initiating foreclosure actions against delinquent borrowers, is referred to as the loan servicer. It may or may not be the same company from which you got your loan, and it may be replaced by another servicer over the life of the loan, perhaps multiple times. By law, you must receive advance notice when the servicing of your loan is transferred to a different company. And under new rules, you cannot be charged a late fee if an overdue payment to the new servicer is received within 60 days after the transfer of duties.


carefully


“If your loan servicer changes, review your account


confirm that your payments are being accurately credited,” suggested Senior Policy Analyst Glenn Gimble. “Also by law, prior


to closing on your


loan you must receive a disclosure about how often the lender transfers servicing. The answer may influence your decision to accept a loan from this lender or to choose a different lender, maybe one that


services its


own loans.” Research the potential risks and


benefits of home equity products. A loan secured by a homeowner’s “equity”


in a home can be an


economical way to borrow money because the interest rate is typically low and, for many people, the interest paid will be tax deductible. Generally, the


equity is the current appraised


value of a home minus what is owed on the mortgage. “As home values rise in a number of areas, home equity products are again becoming more popular, but it’s important to keep in mind that, just like with a mortgage, your home is at risk of loss if you fail to pay the loan,” cautioned Gimble.


There are two basic types of home


equity products. One is a one-time loan for a lump sum, typically with a fixed monthly payment. The other is a home equity line of credit (HELOC), which allows homeowners to borrow money one or more times up to an approved credit


limit, usually at a variable interest rate.


Also, some HELOCs have low introductory interest rates that can reset at a higher rate. The federal banking agencies


have issued guidance disclosures of


settlement costs and key loan terms (including the “Good Faith Estimate” provided within three days of applying


to


financial institutions on the importance of early notice to borrowers about impending rate resets and making help available to those facing rate increases that could be difficult to pay.


to BY JENNY MANRIQUE How does one get the mainstream into environmental


organization’s “Green Insiders' Club,” where minorities are underrepresent- ed? If the communities most interested in environmental justice issues are people of color, why is getting into the mainstream environmental groups so difficult? These are the great challenges to increasing diversity in the Green movement’s workforce, according to an event held by Green 2.0 and New America Media at the Commonwealth Club of California, on March 4th.


Among the panelists were leaders


of influential organizations who fight for the environment and for diversity like the D5 Coalition, Sierra Club, Earthjustice and Guidestar.


"At the time of recruitment,


there is unconscious bias, which leads to discriminatory practices, and the selection of personnel within


their


social circles based on recommenda- tions," said Danielle Deane, director of Green 2.0, citing the Taylor Report, one of the most comprehensive diagnostics made about the issue in the United States.


“The State Environmental of Diversity in Organizations:


Mainstream NGOs, Foundations & Government


in July 2014 after surveying 223 organizations,


Agencies,” released found that


people


of color do not exceed 16% of the positions in the sector, despite the fact that they represent more than a third of the US population.


Even more worrying is that


minorities have failed to fill decision- making positions, although for decades the same mainstream environmental organizations have stressed the value of diversity. That is why the Green 2.0 initiative seeks to gather the key players in the sector, to commit them not only to diversify the leadership, but to collect data on their practices and make them public and transparent through the Guidestar platform.


"From a moral and political


perspective, it is logical to involve these groups to be more effective and authentic in what we are doing. They are the ones most affected by the environment," said investor and philanthropist Tom Steyer. Certainly, low-income communities are the most exposed to air and water pollution, so it is not surprising that nearly 70% of


at


Black, Latino and Asian voters believe that climate change is a problem, and 75% said they consume more news on the issue than in the past, as the latest “Green for All” survey published in August 2014 found


communities conservation


"The paradox is that the Latino are more involved


in and environmental


justice, but in the national discourse it seems they only worry about the immigration policy," said José González, Latino


founder and director Outdoors, a of network that


seeks to connect Latinos interested in environmental and conservation issues, offering them training, support in the job search, and outdoor activities. "It's dangerous to think


that large


organizations are the ones with the answers, without paying attention to the fact that there are communities that have done this work for decades in the fields of New Mexico and California, even since César Chávez [farm worker, civil right activist]," González added.


Still, far fewer resources go


directly to them, as "donors think it is easier to give $100,000 to large organizations, because the small ones wouldn't know what to do with so much money. Doing this, we reinforce the structure in which success is supporting


grassroots organizations,


but just with the crumbs", said the activist.


The supply-demand equation How do you expand diversity


the time of recruitment? "There


are many organizations that typically recruit students from top universities like Berkeley or Stanford, where the representation of Latinos is minor", said Tomás Torres, Director of the San Diego office of the US Environmental Protection Agency, in an interview with this reporter. Torres, a native of Ciudad Juarez, Mexico, who was always good at math, was one of the privileged few who studied Environmental Science at UC Berkeley.


After applying to the EPA 25


years ago, he has had a successful career and like African Americans, he had to prove himself much more than his White counterparts. At work, he also witnessed a common practice when Latinos were new in the field: "Latinos were doing translations of factsheets or newsletters, even though they were engineers."


"We (the EPA) have agreements with universities such as UC Riverside who have more Latino DIVERSITY PAGE 6


The Hampton Roads Messenger 3


Is Diversity at the Gates of the ‘Green Insiders Club’ Just a Dream?


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