This consortium significantly adds value and performance in the following ways:
A) Establishing standards for loan packaging, resulting in over 10 certified loan packagers. TCC has utilized the training curriculum developed by the Housing Assistance Council (HAC), the Rural Community Assistance Corporation (RCAC) and NeighborWorks® America (NWA).
B) Ensuring quality control of the loan packages using an external review process through the construction of a 502 loan package delivery system that is external to RD until the "credit-ready" loan applications are delivered.
"Credit ready" is defined as having no issues with credit / employment that currently inhibit the applicant from being approved for an RD loan. Quality control is addressed not only by national standards and certification at the front end, but also with a critical second level of loan application and package review by TCC, the state intermediary for Texas. TCC has set aside $45,000 in the Cooperative Agreement budget to cover a portion of the additional staff costs related to this proposal.
Texas 502 Consortium
In a cooperative agreement between the United States Department of Agriculture Rural Development and Texas Community Capital, TCC is heading the Texas 502 Direct Loan Packaging Consortium in direct response to the American Recovery and Reinvestment Act of 2009. TCC, a non-profit organization, is leveraging the service delivery network, approved by USDA-RD, to package 200 Section 502 Direct loan applications for 50 % very low and 50 % for low income rural residents by September 30, 2010. TCC will target their loan packaging production activities to attain a goal of 70% of the loans to be originated in counties that are identified as Persistent Poverty within the State of Texas.
C) Aggressively marketing to and reaching the very low-income market. The organizations supporting the individuals who will become TCC certified and package loans under this program are experienced in helping very low-income residents become homeowners and knowledgeable about these markets. TCC 502 packagers focus a majority of their marketing and outreach efforts for this Cooperative Agreement to reaching the Persistent Poverty Counties. 50% of the loan applications submitted under this program will be for very low-income homebuyers.
Participating non-profit organizations include:
Affordable Homes of South Texas
BCL Homeownership Center
Brazos Valley Affordable Housing Corporation CDC of Brownsville
Community Resource Group
East Texas Council of Governments
El Paso Collaborative for CED
Motivation Education and Training
Neighborhood Housing Services of Dimmit County, Inc
South Plains Community Action Association Southwest Keys