Faculty Sponsor
Michelle Thompson
College(s)
College of Business Administration
Submission Type
Oral Presentation
Description
The significance of Homebuyer training as a tool of economic developments is often underestimated. The assistance and education provided by these programs function as a platform to promote and achieve economic development goals. Homebuyer training programs prepare individuals for the home buying process including budgeting and credit, predatory lending, and foreclosure prevention methods. In 2002 Hirad and Zorn conducted a quasi-experimental evaluation analyzing pre-purchase counseling’s impact on 90-day delinquency rates. Analyzing nearly 40,000 loans their research revealed a statistically significant decline in 90-day delinquency rates from homebuyers who attended classroom counseling. Current literature recognizes the significance of Homebuyer Training Programs, yet there is a need to understand the economic benefits. / Previous studies have focused on success of Home Buyer Training Programs based on delinquency rates. This study will focus on developing a tool kit for assessing a link between Homebuyer Training Programs and economic development. As part of this study a sample of Neighborhood Development Foundation Homebuyer Training Program participants will be examined. Home buying procedural expenses concerning Real Estate, Title Company, Lender, and Government services were extracted from Neighborhood Development Foundation internal documents. Preliminary results indicate that there is a short-term net economic impact of this Homebuyer Training Program. The economic impact for business government and the public will be evaluated in order to support expanding Homebuyer Training Programs Nation Wide.
Economic Impact of Homebuyer Training Programs: A Case Study
The significance of Homebuyer training as a tool of economic developments is often underestimated. The assistance and education provided by these programs function as a platform to promote and achieve economic development goals. Homebuyer training programs prepare individuals for the home buying process including budgeting and credit, predatory lending, and foreclosure prevention methods. In 2002 Hirad and Zorn conducted a quasi-experimental evaluation analyzing pre-purchase counseling’s impact on 90-day delinquency rates. Analyzing nearly 40,000 loans their research revealed a statistically significant decline in 90-day delinquency rates from homebuyers who attended classroom counseling. Current literature recognizes the significance of Homebuyer Training Programs, yet there is a need to understand the economic benefits. / Previous studies have focused on success of Home Buyer Training Programs based on delinquency rates. This study will focus on developing a tool kit for assessing a link between Homebuyer Training Programs and economic development. As part of this study a sample of Neighborhood Development Foundation Homebuyer Training Program participants will be examined. Home buying procedural expenses concerning Real Estate, Title Company, Lender, and Government services were extracted from Neighborhood Development Foundation internal documents. Preliminary results indicate that there is a short-term net economic impact of this Homebuyer Training Program. The economic impact for business government and the public will be evaluated in order to support expanding Homebuyer Training Programs Nation Wide.