Posted on August 28, 2012
FAIRHAVEN, Aug. 28, 2012 --- Joseph O'Brien grew up in Mattapoisett, went to college at UMass Dartmouth and then got a job as an accountant at a local nonprofit social service organization. Like many young professionals trying to make it in this tough economy, he first lived with his parents so he could save money to buy his own home.
Thanks to the Southern Mass Credit Union and the Massachusetts Housing Partnership's SoftSecon Loan Program, O'Brien was able realize his American Dream, buying a home in Fairhaven that is near his job and the place where he grew up. His story illustrates why MHP honored Southern Mass Credit Union on Tuesday, Aug. 28, with a HomeSafe Award for its success making SoftSecond loans to working class first-time homebuyers in southeastern Massachusetts.
At a time when many financial institutions were pulling back from making home loans, Southern Mass Credit Union increased its SoftSecond lending to low- and moderate-income first-time homebuyers. Southern Mass made loans in Fairhaven, Marion, New Bedford and Wareham to homebuyers with an average total household income of $40,000 per year. Since joining the program in 2005, Southern Mass has now provided over $1 million in private mortgage financing to low- and moderate-income first-time homebuyers in the South Coast region.
"While many mortgage lenders have been pulling back, Southern Mass Credit Union has stepped up its commitment to helping first-time homebuyers fulfill their dream of homeownership by making good loans that keep homebuyers in their home for the long run," said Clark Ziegler, executive director of the Massachusetts Housing Partnership. "The credit union's support of SoftSecond has not only helped first-time homebuyers, it has helped promote owner-occupied homeownership and neighborhood stability."
"The SoftSecond Loan Program is the most affordable mortgage program for working class first-time homebuyers," said Dan Waltz, President and CEO of Southern Mass Credit Union. "We're proud to be able to offer the SoftSecond program as it fits perfectly with our philosophy of people helping people."
O'Brien, now 29, said he was actively looking to buy a home for 18 months and said a SoftSecond mortgage was the best fit for him because of the low interest rate and because the program doesn't require the buyer to purchase costly private mortgage insurance. "If it wasn't for SoftSecond, owning a home would've been tough for me," said O'Brien. "A few of my friends are looking to buy homes now and I've been telling them they should look into SoftSecond."
MHP presented the HomeSafe award during a ceremony on Aug. 28 at SMCU's Fairhaven main office. O'Brien thanked SMCU and SoftSecond for helping him buy his home and Dr. Brian Bowcock, chairman of the board of selectmen, praised SMCU for giving back to the community. MHP Homeownership Director Gina Govoni presented the award to Waltz and also delivered citations from Senators John Kerry and Scott Brown.
Approximately 25 community and business leaders attended the event, including Rep. William Strauss, New Bedford City Councilor James Oliveira, Fairhaven Selectman Charles Murphy and Michael Hanson, former state banking commissioner and now president of MSIC, an organization that provides insurance to credit unions.
About Southern Mass Credit Union: Established in 1922, SMCU is celebrating over ninety years of service excellence and financially sound operations. Southern Mass Credit Union offers a variety of excellent services and products, and has a knowledgeable and well-trained staff. For more information, go to http://www.southernmass.com.
About SoftSecond: SoftSecond is the state's most affordable and effective mortgage for first-time homebuyers who make less than the area median income. Created in 1991 to address racial disparities in Boston mortgage lending, the program was soon taken statewide and has helped over 16,000 homebuyers purchase their first home and has provided over $2.6 billion in private mortgage financing. The average total household income of a SoftSecond homebuyer is $50,000 and the program has maintained a remarkably low record of delinquencies and foreclosures.
In addition to low, fixed-rate private financing and a state-backed reserve fund that relieves homebuyers from the cost of paying private mortgage insurance, SoftSecond's success is due to the pre-purchase education and post-purchase services it provides through the HomeSafe program. SoftSecond requires that homebuyers take pre-purchase education and offers post-purchase counseling to help borrowers anticipate issues, stay current on their payments and avoid foreclosure. Customized pre-purchase counseling is mandatory for buyers of three-family properties and is also offered to buyers of two-families. Southern Mass Credit Union is one of 25 financial institutions in Massachusetts that offer the SoftSecond Loan Program.
In response to the recent economic crisis, SoftSecond expanded its HomeSafe services to include more pre- and post-purchase education and counseling in more locations. Part of that expansion included offering HomeSafe workshops in Taunton, New Bedford and Fall River. Pro-Home Inc. and Financial Education Associates have educated over 100 HomeSafe graduates since 2010.
For more information about the SoftSecond Loan Program, contact Southern Mass Credit Union's Lucy Machado at 866-484-2264 or MHP at 617-330-9955 or www.mhp.net/homeownership.