|
|
 |
NDF: Bringing the Dream of Home Ownership to Fruition in 12
Empowering Hours
By: Kathy Taylor Ancar
Simply stated, New Orleans Neighborhood Development Foundation (NDF),
via four three-hour sessions, empowers anyone wishing to own his/her own
home with all the tools necessary to achieve his/her dream. According to
Fred Johnson, CEO of NDF, “Knowledge is power. So, when you are
equipped with first-hand knowledge, you are placed in a position of
power. It’s that simple.”
At the completion of the twelve-hour course, you will:
- Be informed and confident enough to
take on any real estate agent, home seller, banker, broker and
inspector out there, or
- You will realize that you are not
quite ready for the demands of home ownership. And that’s okay.
Either way, you come out a winner.
Upon my return to New Orleans following a five-year stay in
Tallahassee, Florida, my husband, Alvin Ancar, Jr., and I began looking for a home to
purchase. We contacted real estate agent Roslyn Perkins Duplessie who
immediately encouraged us to take Fred’s class. “Whether you’ve owned a
home before, qualify for grant money or not,” said Ms. Duplessie “the
course is filled with a wealth of information that will guide you every
step of the way to home ownership.”
My husband and I enrolled right away. Although we did not qualify for
federal assistance, the information was priceless. Our reward for paying
attention in class was the purchase of a home that is tailor-made for
us, within our budget, and with a phenomenal interest rate.
Of course, it is imperative that you have a dedicated agent who has
your best interest, and not just her commission, at heart. There were
properties that we found online and sent to Ms. Duplessie to schedule a
showing, only to have her check them out and call us to say, “No. You
don’t want this one. Don’t be discouraged. I’m going to find you the
perfect house. ” And she did!
The Dynamo Behind NDF
Though he appears to be quiet and unassuming at first glance, don’t
let the boyish charm fool you…when Fred Johnson breezes into a room, all
eyes remain riveted on him, and in return, his eyes seek out and quickly
latch on to the student most in need of his message. His no-nonsense,
in-your-face approach to teaching the ABCs of home ownership is what
makes this 24-year-old program so successful.
 There is no fluff and no sugar-coating. Just the hard facts delivered
at a pace and in a tone that demand that you sit up and pay attention.
As Fred glides back and forth across the room, his voice growing louder
for emphasis as he hits on an important point, hands fly into the air
with questions. He never dismisses a question as trivial, but
attentively listens to each one before spewing out a litany of
scenarios. With Fred, there is no simple singular response. He ensures
that the students understand that in many instances, there is more than
one option, thus, more than one correct answer. Presenting scenarios to
the class allows students to recognize the answer that best suits
his/her personal situation.
I recently returned to NDF’s headquarters on South Rampart to thank
Fred Johnson for the classes, and to fulfill a promise I made to myself
to do a story that will, hopefully, encourage others to go after their
dreams of home ownership. I guess this story is my way of giving back a
little of what I gained from the class. Here are the highlights of our
conversation. Enjoy!
Kathy Taylor Ancar: As someone who has been through the program, let me
start by saying, thank you. It was informative, enlightening, and
actually, fun.
Fred Johnson: Thank you. I’m glad we were able to help.
KTA: I understand that September marks the 24th anniversary of NDF, so
congratulations! In order for any company to last 24 years, it has to be
doing something right…to what do you attribute NDFs longevity?
FJ: We offer a service that is needed. Plain and simple. We also
understand that not everybody is homeownership material, but for those
who are, we teach three important tools for homeownership: their rights,
their responsibilities, and their privileges. You can’t segregate the
three. All are needed in order to make an informed decision.
I believe that every customer should be treated fairly. The day I
don’t treat my customers with respect is the day I should get out of the
business. We work for the customer. He/she pays the salary, he/she
ensures our longevity. Too often people don’t realize that it’s not
about them. The fact is, when the customer does not come to you, no
longer crosses the threshold of your door, you have a problem. Because
we treat each client with respect and integrity, they in turn sell us to
their friends and family.
KTA: What is the most important lesson you want the clients to take from
the class?
FJ: Following the classes, a client may decide that he/she doesn’t want
to be a homeowner at this time. And that’s okay. He/she may not be ready
for the responsibility, and that’s okay. But, I want him/her to walk
away with the understanding of the big picture. That is, if you remain a
tenant, you remain at the mercy of your landlord. If you opt to own, you
can build equity, and have something to pass along to your children.
That’s what we try to help people to understand. That they have choices.
We want them to make informed decisions based on their choices. We don’t
dictate what they should buy; we educate, inform, stimulate and provide
insight. The ultimate decision on whether or not to purchase a home lies
with the client.
KTA: What inspired you to develop a foundation to encourage home
ownership?
FJ: Rudy Lombard was running for mayor, and one of his major concerns
was New Orleans’ housing. Well, when we pulled the data, we learned that
70% of the city’s population rented, and only 30% were home owners. We
discovered that 17,000 individuals were paying rents equivalent to a
home mortgage! Rudy asked if I would work with him to address this
imbalance. Well, I couldn’t spell mortgage at the time and didn’t know
exactly what was needed. As we began investigating why the numbers were
so lopsided, we came up with a simple explanation: lack of knowledge.
When I discovered that the word mortgage wasn’t even included in the
spelling bee sponsored by the Times Picayune each year, I knew there was
a problem. This meant that there was nothing synonymous with home
ownership being taught on any level in schools and churches. And it
certainly wasn’t taught in the home, because most of the homes were
occupied by renters. The team looked at me, and all they could say was,
“wow!” We realized that we needed to find a way to offset these numbers,
and decided then and there to start a training program for those who
wanted to own their own homes, but did not know where to start.
KTA: How did you come up with the 12-hour concept?
FJ: We identified what information was needed, and from there we got the
curriculum together. It was always designed to be a 12-hour course, but
initially it was supposed to be 3-hours, one night per week over six
weeks. As things picked up, we increased the hours and held the classes
over two nights. One year, we found ourselves trying to hold classes
right up against Christmas. Being in the business of teaching people to
reduce their debt and save, we couldn’t compete with Christmas. You
can’t tell people to reduce their debt when everywhere they go there’s
someone ringing a bell, or advertisements of holiday sales. That was
when the 1-week, 4-night, 3 hours per night classes evolved. We also
realized that many people are coming right after work, and simply cannot
remain focused beyond 3 hours.
KTA: I thought that 3 hours would be tough, but the classes were so
fast-paced and interesting, that the time flew. Your guest speakers were
informative and thorough. I enjoyed it.
FJ: Thank you. That’s what we strive for. We try not to overload, and we
want the process to be simple and to make sense to the clients. We want
to make sure that they get something out of it. We understand that
anything past 3 hours is too hard, and their brains shut down because
they’re exhausted.
For the record, we were the first program of its kind in the city and
the state. This concept was ours. Others have duplicated the concept,
but NDF brought the 12-hour training program to town.
KTA: How hard was it to put staff into place?
FJ: You need to understand that this foundation was built by a staff of
people with little mortgage knowledge, but who understood what was
needed – an education tool. Therein lies their passion for the program.
The cliché says that “without an education you may as well be dead,” and
that’s true. Life in general is not about the money, it’s about
knowledge. Money will come and go, but knowledge will be with you until
the end because it’s embedded in you.
KTA: What is your ultimate goal with the program? How do you want it to
evolve?
FJ: We are working to reduce poverty in the next generation, and
subsequent generations, because we believe that everyone should always
strive to exceed that from which he came. Education enables that.
Establishing assets ensure that. Imagine if your parents had left you a
property that was paid for. Your assets would jump. You’re already way
ahead of the game. No house note, just maintenance, insurance and taxes
of the property. You build on that and continue growing.
KTA: What is your success rate with low-income clients?
FJ: Understand that sometimes low-income people are better stewards of
their money than those with larger incomes. Because they have less, they
tend to be more careful about budgeting and management. They make sure
they pay their monthly revolving credit card bills, rent, and utilities.
They don’t waste as much because they don’t have as much. They have the
desire, and we have the tools.
Your parents were stewards for you. Whatever we amass in this life,
no matter how cute or handsome we think we are, we are all going to pass
away one day. It’s inevitable. Everything you amassed in your lifetime
will pass to your children or other family members. Life is a relay.
It’s about passing. We want you to have something to pass along.
KTA: Because college students are inundated with credit card
applications and student loans, what advice do you have for them to get
them on the track to home ownership?
FJ: Good point. College students need to understand that they are in
school for one thing – to get a good education, which will insure a
decent quality of life. They need to slow down and resist the temptation
to run up all that credit card debt. Also, so many of them, as soon as
they get out of college and get their first job, the first thing they
buy is a fancy car – before they even think about buying a house. It is
important for students to learn early on that they should never accrue
more credit card debt than they can afford to pay off within 30 days.
Unfortunately, like you said, many of these students are
first-generation, and did not learn debt management in church, in
school, or from their parents. They’re enticed by the material world,
and too often they succumb to it.
KTA: What can parents do to ensure that their college students resist
running up debt?
FJ: Tell them to shift gears and focus. Tell them that you’re happy
they’re in college, but don’t get so caught up in the material world
that they neglect the basic facts of life. Students have to focus on
learning all that they need to do now to ensure their security later.
Stress that they will get out of life only what they put in.
KTA: Do you offer additional training, like long-term credit counseling
or budgeting?
FJ: We educate and train clients to be independent and to know that
we’re here to help them through financial issues and questions. But we
are not a welfare agency. We can’t hold their hands through life. But we
do our best to empower them with the tools to stand on their own.
KTA: How many clients who have completed the program return for post
training?
FJ: With all the foreclosures going through the system in recent years,
we encourage post training to ensure that they are aware of the current
state of affairs. We invite customers to come back, but can’t force. Our
goal is to make sure they’re up to speed when, and if, they decide to
purchase down the road. We have clients who did not purchase a home upon
their first completion of the course, but came back years later.
KTA: On average, how many clients have purchased homes after completing
the program?
FJ: Before Katrina, approximately 100 clients became homeowners per
year.
KTA: How has the mortgage crises of the past couple of years affected
you?
FJ: Last year was sluggish because of the new wave of regulations on
mortgages. The foreclosure crisis was made by unscrupulous lenders who
had no business financing some of these loans.
KTA: How do you prevent a client from entering into a mortgage that they
clearly cannot afford to pay?
FJ: The system is being revamped. Major lenders/brokers have made loans
and sold them to secondary lenders, Fannie Mae and Freddie Mac, who have
taken losses because they took on bad loans. As a result, Congress is
forcing lenders/brokers to tighten up and increase regulations. Interest
only loans, and maxing people out is not happening right now.
 Unfortunately, these new regulations are making it very difficult for
potential home owners to qualify for first mortgages. To blame are; the
first wave of foreclosures, which was caused by unscrupulous
lenders/brokers, and second, because of the current downturn in the
economy. These two issues caused a domino effect. Agents made loans to
people who could not make the mortgage. To make matters worse, some of
these same people, when the economy went south, lost their jobs.
Additionally, home values dropped.
Some homeowners, after learning that their $250 thousand home is now
worth only $120 thousand, decided to just walk away. One thing
contributed to the other. The good thing is that because of tighter
regulations, the days of walking into a lender and being maxed out are
over.
KTA: How have the regulations changed, and how does that hurt the
first-time home buyer?
FJ: For one thing, a potential buyer needs more money for down payment,
higher credit scores and larger cash reserves than they needed a few
years ago. Unfortunately, this will affect people who should not be
affected. You see, all the new regulations are burdening the lenders,
who then are unable to service as many loans or process as many
applications. In many instances, the steps of putting a loan together
have tripled. The system is now trying to check itself to stop from
further wrecking itself.
KTA: At the beginning of the classes I attended, you made three brief,
yet profound, statements that I carried with me during my home search.
Would you elaborate on them here for our readers? They are:
- DO NOT fall in love with the house
until after the inspection. (Poor construction and other serious
issues can easily be covered with paint, landscaping and carpet.)
- Get a home inspection, a mold
inspection and a home warranty. (These trained professionals inspect
every system in the house including; plumbing, foundation, roof,
electricity, windows, appliances that are staying, etc.)
- DO NOT let anyone rush you. If you
are not comfortable, walk away.
FJ: Thank you. Those are important. What I want clients to understand
is that when they get outside the security of the training environment,
everyone they deal with is on commission. This is a money- driven
process. It’s all about money. Now, most important, and this is what I
try to convey, this is all about YOUR money. You are in charge! Everyone
involved in your home buying process is working for YOUR money. Doesn’t
matter what the lender, seller, or agents say. They are all being paid
out of your money.
Once you understand that they are on YOUR dime, you realize that you
are in control. Make sure you get the best bang for your buck.
We make sure that you go into the home buying process informed. An
informed consumer makes an informed decision. An ill informed consumer
makes an ill informed purchase – whether it’s a house or loaf of bread.
The more you know, the better decisions you will make in life in
general.
I want to elaborate on your 3rd statement: Don’t let anybody rush
you. That is the most important. You see, sometimes, we get so
sophisticated and educated that we forget simple stupid things…stupid
things are very imperative.
If someone rushes you to make a deal, follow your gut. Not your heart
(#1, don’t fall in love with the house), but your instinct. In most
cases your gut is a response to your intelligence. In all that you do,
your first mind is your right mind. How many times have you heard your
mama say, “I should have followed my first mind. I don’t know what I was
thinking.” She was right. When something is clear to you, that’s the
thought you stick with.
If someone pushes you, you have to back away and call timeout. You
can tell them, “Step out of my space so that I can think clearly.” You
don’t need anyone crowding your space or your thoughts while you make
this important decision.
 This is very important, do not let an agent tell you that you need to
hurry and make an offer because “someone else wants the house.” That’s
BS, and it’s also the oldest trick in the book. Its intent is to force
you to make an offer. Tell them, “So what,” and take your time.
Remember, when the smoke clears and the dust settles, you’re stuck with
your rushed decision. Don’t let anybody rush you for a car, hat, dress,
nothing. Take your time. When you can breathe, you can better assess
what you like and don’t like about the property.
KTA: What drives you to come in every day after 24 years?
FJ: The fact that there is still housing discrimination based on color,
lack of education, and poorly managed financing. As long as these exist,
there is a need for our program.
KTA: What do you say to the person who believes his friends who tell him
that home ownership is out of his reach?
FJ: Don’t believe him. I have always preached the concept of “never say
never.” Negativity forces you to preclude yourself. In lots of
instances, the people around us behave like crabs in the hamper. Are you
familiar with that saying? There are crabs all around you who, when you
try to get up and out, pull you back down. You see, I’m old school. I
know that misery loves company. I stay clear of negativity.
So, I say, never let somebody tell you what you can’t do. Don’t
listen. Recognize that what you are dealing with is a person who is
transferring his fears and insecurities to you. Don’t let him do it.
It’s on you to make that life-altering move to financial security and
home ownership. Give us a call.
KTA: Thank you so much for taking the time to talk with me today!
FJ: Thank you for sharing our story. I appreciate it.
NDF is a non-profit organization that helps people through the home
buying process. The Foundation has been providing straight talk and
sound advice to people who register in its homeownership programs. NDF
implements this through training, counseling, and facilitating financing
by lenders in the New Orleans banking industry.
For more information, visit them online at
http://www.ndf-neworleans.org/ or call or stop by to
schedule an appointment with a counselor.
1429 Rampart
New Orleans, LA 70113
504-488-0155.
Kathy Taylor Ancar has
served as online editor and contributing writer for IMDiversity, Inc.
for over thirteen years. She has written for The New Orleans Agenda,
Louisiana Cookin’ Magazine and The Louisiana Weekly. Kathy is married
and has two grown sons, one granddaughter and one very spoiled little
puppy named Rico.
|
