April is Financial Literacy Month, an attempt to teach consumers how to take care of their finances.
That can include teaching people what it takes to buy, and keep, their own home.
“Financial Literacy is the key to sustainable homeownership,” Kim Nichols, Senior Managing Director of Pennymac TPO said. “As a lending community, we have a duty to educate and inform the consumer.”
According to a survey by Bankrate, only 44 percent of Americans have enough money saved to cover an unexpected expense of $1,000.
Another 20 percent of respondents said they would cover such an expense by using a credit card or seek to pay it over time, and another 10 percent said they would borrow from family or friends.
Homeowners need to know how to protect themselves and their homes when unexpected expenses inevitably come up.
Nichols said that for Pennymac, part of the lending process includes teaching TPO partners how to talk with consumers about financial literacy.
This comes in the form of education, tools and products.
“A well-educated borrower is much more likely to succeed with a mortgage loan, which is exactly what we want for our TPO partners and their borrowers,” Nichols said.
Some of those products include Fannie Mae's HomeReady Freddie Mac's HomePossible.
Nichols said Pennymac also puts on webinars with experts to talk about available tools and how to use them in ways that best help customers.
Pennymac is also a sponsor of the National Association of Minority Mortgage Bankers of America.
Nichols said NAMMBA does important work educating TPOs about cultural outreach and how to help underrepresented customers achieve their dream of homeownership.
She also said that anyone who wants further advice should seek out lawyers or certified financial planners.
