Neighborhood Assistance Corporation of America

By way of background, Neighborhood Assistance Corporation of America ("NACA") is a non-profit community advocacy and homeownership organization the primary goal of which is to build strong, healthy neighborhoods nationwide through affordable homeownership. NACA pursues this goal by, among other...

things, providing its primarily low- and moderate-income clients with free housing counseling and related services designed to assist clients with obtaining or maintaining an affordable mortgage. One such initiative is NACA's Purchase Program, the focus of which is to provide primarily low- and moderate-income individuals and families, who are generally shut out from traditional sources of credit with access to affordable residential mortgage loans. NACA's Purchase Program is unique because it offers NACA clients the opportunity to obtain a mortgage with extremely favorable terms - that is, low interest rate, fifteen- or thirty-year fixed term, no down payment, no closing costs, no predatory features, no PMI, and qualification based on a client's financial circumstances rather than a credit score. To participate in the Purchase Program and obtain a NACA mortgage, NACA members are required to undergo NACA's compehensive Purchase Program counseling process, through which each client participates in numerous counseling sessions with NACA employees and establishes a track-record of financial responsibility - such as budgeting expenses, reducing debt and saving income. Much of what this client has alleged in her complaint is accurate, but is only a portion of the story. The client began the Purchase Program in August of 2015 and iparticipated in individual counseling sessions with a NACA counselor. The NACA program helps clients create a houshold budget to determine what monthly mortgage payment they can afford and clients tell their housing counselors how much they want to pay per month towards a mortgage. Housing counselors help clients determine what their desired monthly payment translates to in terms of a total mortgage amount. This client informed her NACA counselor that she wanted a monthly mortgage payment of approximately $100 per month. Her counselor reviewed that information and informed her that this would mean she could obtain a mortgage of about thirty thousand dollard. Indeed, the housing counselor also told her that if she was willing to pay about $300 per month she could be qualified for that amount and could obtain a larger loan. The client responded that she did not want a higher monthly payment but she also wanted a loan larger than thirty thousand dollars. Unfortunately, even NACA cannot provide mortgages of any size at whatever monthly payment a client wishes to make. The client was understandably disappointed with this news and stated that she no longer wished to continue with the program. Her file was accordingly deactivated. The client then contacted a local NACA office to inquire why she had not heard from anyone at NACA. The office assured her that they could activate her file and she could continue with the program if she wished. The offer remains true, and NACA would be happy to continue working with her if she so chooses.The client has inquired as to why NACA requires a credit check before a client can obtain a mortgage. While it is true that NACA does not rely on credit scores, a client's credit history is a very importan factor in qualifying for a loan. NACA has strict underwriting criteria a client must meet in order to be qualified for a mortgage. These criteria include making on-time payments on credit accounts and falling within certain debt-to-income rations. The credit report shows whether a client is making payments on relevant credit lines and how much  other debt the client is carrying. Clients are informed that they must undergo a credit check before they begin the NACA process and all clients sign an authorization form allowing NACA to obtain their credit report before such report is pulled. The client paid the actual cost of the credit report that NACA obtained. NACA would never obtain a client's credit report or attempt to charge a client a fee the client had not authorized. NACA is not seeking to charge this client any fees.NACA is happy to comply with this client's request to inactivate her account. Should she wish to continue the NACA program in the future, NACA would welcome the opportunity to assist her in reaching her goal of homeownership.

Revdex.com:I gave them all the same information each time and dis not miss any payments. I received the preapproval letter on March 23rd and the contract was submitted on March 24th.  No payments were missed. The underwriter also spoke with the company and they explained that the case was transferred and that my payments were current and on time. The underwriter informed me that he missed the information on the credit report but I had the 12 monthly payments and it states that Naca does not hold credit reports against you. Also, I would not have gave them permission to contact my landlord without them instructing me that it is required for a preapproval. They also informed my wife to take money out of her savings to gift to me or they were not going to pre qualify us. It took them a month to submit the contract to the underwriter.  Also they had this information and the payment history before they pre-qualified me for the loan. So that statement is false. Again Naca made a mistake in 2010 and the Naca director called and apologized and told us to go through Naca for the home loan program. We started this process January 2016 and did everything Naca asked us to do. Then April 28th we got a rude call from the underwriter stating untrue facts and stating that because he missed something on my credit report he would only submit my loan if I paid my debit in full. Which is not required. I see that Naca will not be held accountable for their false statements,  and mistakes, and mistreatment. However,  I will pray for all involved and that nobody else get affected by Naca like my family have for the second time.  
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted].  
 
Regards,
[redacted]

That is a bunch of BULL!!!!! Yea naca has contacted me, but then they dont get back to me once I reach back out to them. Look at the screen shot I have provided. I sent it on August 5th. [redacted]n the so called head of that department responded back 15 days later!! And this happens with everyone I try to get in contact with. The second screen shot was my response. That was a week ago and no one has contacted my contractor or I. It is ridiculous!! I closed on the house July 8th and I have not been able to do anything because of the lack of consideration for peoples time and money. I agreed to do a wishlist which was all cosmetic stuff. That was in the range of $32,000. I will not be doing anything cosmetic  and would like my money put back into the principal of the loan. You cant tell me I am obligated to remodel my house if I dont want to. Especially when I cant get NACA to call me back. The other $15,000 was for safety repairs. I really dont even want to do that, but I guess I have no choice in the matter. I dont have 1 year to be chasing naca around to do repairs. I need that $32,000 put back into the principal immediately and Somone needs to contact  Roberto who is the person who will be doing the garage roof and repairs. His number is [redacted] Someone needs to get designated to my file so I dont have to wait 2 weeks for a call back and take care of business. When your own staff has told me that NACA is under staffed, it is a proplem!!!!!!

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. I signed the credit authorization only because a manager from your company stated this was a soft pull. As a company your management should enforce the accurate information. Also as a company it's your responsibility to correct what [redacted] stated! She told  me it would be a soft pull and you all need to accommodate what she stated! I would never want to do business with this company due to the deception behind it!  [redacted] stated there is no way this would be a hard pull because your company is not a lender. Fix the mistake she made!
Regards,
[redacted]

The members' NACA counselor did not fail to review or process their file timely. Rather, she diligently reviewed the information supplied by the members and continued to work with them to fully document their unique financial circumstances and help them to demonstrate that they were ready for homeownership. As noted in NACA's previous response, these members had certain challenges in their file, including documenting employment history, that needed to be fully documented and explained. The members represented to their counselor that they could provide documentation to address these challenges, and the counselor assembled the documentation they were able to provide and presented the case to her supervisor. The supervisor ultimately decided that the members would not be eligible for NACA Qualification until later in 2015. It is important to understand that certain complex financial situations must be reviewed by a supervisor in order to determine the correct application of NACA's guidelines and procedures. The counselor handled the file correctly in documenting the members' financial circumstances and referring the matter to her supervisor for a decision. NACA understands that the members are frustrated that the decision was not one they would have preferred. NACA reiterates, however, that this result was not caused by any failure on the part of NACA or any of its employees.

NACA is not sure why this client has asserted that no one from NACA has contacted him. NACA's escalations manager reached out to him two weeks ago for an in-depth discussion and has subsequently followed up with him as promised. NACA has worked diligently to address this client's concerns and believes that a resolution has nearly been reached. NACA is always committed to working with its clients until they are entirely satisified with the services they receive.

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. although NACA may not employee the contractors they did recommend the contractor as it is on their list of contractors, although it was not mandatory to use the contractor from the list I went with one who NACA approved for their members, do to this alone NACA should take some responsibility for the inspection as I have not even been in the house 60 days.  These termites were here when the original owner sold the house, the 3 consultants that gave me estimates stated that these termites had been in the wall for quite some time.  I am frustrated and disappointed with NACA they pride themselves on helping low income people attain home ownership and not going into debt, well this has been a setback for me, I am now out of $500 which has put me behind in other payments.  There should be something that can do besides drop the ball.
Regards,
[redacted]

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. 
The last correspondence that I had with NACA was an email that I sent before filing a complaint with the Revdex.com.  The email is attached and confirms my original complaint.  No one ever returned my email or called me regarding my concerns.  This is indicative of the dealings that I have had with NACA since I began working with them.  However, NACA stated in their rebuttal they are willing to work with me.  In good faith I have logged into my NACA account and requested an appointment at the earliest possible date in hopes that I can complete the process.  I have also emailed my assigned counselor ([redacted]) and copied in the NACA email address.  I will now wait to see how long it takes before I receive a response or an appointment.     
Regards,
[redacted]

By way of background, Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community-advocacy and homeownership organization the primary goal of which is to build strong, healthy neighborhoods nationwide through affordable homeownership. NACA pursues this goal by, among other...

things, providing its primarily low- and moderate-income clients (whom NACA calls "members") with free housing counseling and related services designed to assist members with obtaining or maintaining an affordable mortgage. One such initiative is NACA's Purchase Program, the focus of which is to provide primarily low- and moderate-income individuals and families, who are generally shut out from traditional sources of credit, with access to affordable residential mortgage loans. NACA's Purchase Program is unique because it offers NACA members the opportunity to obtain a mortgage with extremely favorable terms - that is, low interest rate, thirty-year fixed term, no down payment, no closing costs and no predatory features - regardless of each member's past credit or other financial problems. To participate in the Purchase Program and obtain a NACA mortgage, NACA members are required to undergo NACA's comprehensive Purchase Program counseling process, through which each member participates in numerous counseling sessions with NACA employees and establishes a track-record of financial responsibility - such as budgeting expenses, reducing debt and saving income. Only those members who demonstrate the prospective ability to make payments on their desired mortgage for a sustained period of time graduate from NACA's Purchase Program counseling process and become ready to apply for a mortgage - that is, they become NACA Qualified. As part of NACA's mission to stabilize neighborhoods, NACA offers clients the opportunity to finance the cost of necessary repairs for homes they wish to purchase. The purpose of this program is to ensure that clients buy homes that will be free from major defects for many years after closing. NACA does not require clients to purchase homes that require renovation, and clients are free to choose not to buy homes in need of repair. NACA will not, however, allow clients to purchase homes with health and safety issues unless there is a plan in place to address these issues. In this case, the client elected to purchase a home with necessary repairs and finalized a rehabilitation budget with the NACA Home and Neighborhood Development Department (HAND). The client's complaint seems to stem from misunderstandings about the rehabilitation process. For NACA transactions involving a rehab, NACA's participating lenders provide up to $600 for inspections after closing. The remaining funds in the rehab escrow are agreed to by clients prior to closing. The NACA HAND Department does not change the amount of a rehab escrow without a client's agreement. Indeed, clients must sign an application form requesting the full amount of the loan. NACA allows clients to select any contractor of their choosing provided the contractor is properly licensed and insured and is willing to provide documentation of such to NACA and to agree to NACA's process. NACA does not allow, let alone require, clients to complete repairs on properties prior to closing. Only if the seller is willing to complete repairs will repairs be completed prior to closing. The work to be completed in a rehab project is determined based on an independent inspection report, provided by a home inspector of the client's choosing, in consultation with HAND Department staff and the client. The client agrees to all repairs before the rehab is finalized. In the current case, the client appropriately agreed to all repairs. The client was free to choose any contractor or home inspector, and was not required to purchase a home with repair issues. The client also has concerns about NACA's post-purchase assistance program. The client is incorrect in asserting that the program was terminated. NACA continues to provide the program to its clients and the program has not been changed in any way. Additionally, the client signed a contract with NACA agreeing to all terms of the program as it currently operates. NACA will reach out to the client to provide further clarification on these issues and any other concerns the client may have.

We regret that the consumer is not satisfied with this response. His file has been thoroughly reviewed by executive management and we have confirmed that the application did not meet underwriting guidelines for the reasons stated in our previous response. The consumer is correct that a verification of rent was required as part of the loan application process. He provided NACA permission to contact his landlord so that he could proceed with the loan. The client's statement that NACA claims not to use credit reports is inaccurate: NACA does not use credit scores in its underwriting, but it does use information in a consumer's credit report.

The role of a housing counseling organization is to provide housing counseling and education to individuals. NACA provided that. The role of a mortgage broker is to help individuals get loans. NACA provided that. As a courtesy, NACA also provided a list of home inspectors available in the area. All the documentation NACA provided with this courtesy list explained very clearly that the inspectors on the list are not NACA employees and that NACA cannot guarantee their work. If the pest inspector did indeed make a mistake, this complaint would be properly addressed with him and his insurer.

NACA is a nonprofit community advocacy and homeownership organization that provides housing counseling and housing-related services to its clients. NACA's two primary programs are its Purchase Program, which offers clients the ability to purchase a home, and its HomeSave Program, which assists...

clients with unaffordable mortgage obtain loan modifications from their servicers or lenders. This client's complaint first addresses NACA's HomeSave Program. While NACA offers its clients housing counseling, budget counseling, and assistance applying for a modification, the servicer or lender ultimately makes the decision regarding the consumer's modification. NACA does not own or service loans and cannot unilaterally change the terms of a consumer's mortgage. The client's second complaint pertains to NACA's Purchase Program. The client is correct that he was initially qualified to apply for a loan and that the loan was denied when he submitted a complete application. The denial was not, however, based on inaccurate information present in the credit report. The client misrepresented information about the debt obligation he referenced in his complaint, and failed to maintain his payment obligation between pre-qualification and application. NACA's underwriting criteria looks at whether an applicant has missed any payments in the past 12 months. This client had missed payments on his debt obligation between being qualified and applying for a loan. For these reasons, his loan was not approved. Additionally, NACA does not contact an applicant's landlord without a signed authorization from the client. This client provided his landlord's contact information to NACA and signed an authorization specifically allowing NACA to contact the landlord to obtain a verification of rent.

Revdex.com:
As of today, I have not been contacted from them, I don't know what more information they need.
Regards,
[redacted]