Workshops are free to attend

• Apr 28th 
• May 19th 
• Jun 30th 

Aiea - Old Republic Title & Escrow 

8:30a - 5p

• May 26th  
• June 9th 

HCA Report Identifies Barriers to Sustaining Homeownership in Hawaii  

HAWAII - In a Foreclosure Program Report released in April, HCA cites reduced household income, high housing costs, and subprime loan products as barriers to sustaining homeownership in Hawaii.

The Report, which includes client data on 90 Hawaii homeowners HCA served with National Foreclosure Mitigation Counseling Program funding between May 1, 2010 and December 31, 2011, found that said homeowners had an average monthly household income of $5,486 with an average monthly mortgage payment of $2,679, representing, on average, 49% of borrowers' monthly income.

The Report goes on to highlight that 56% of HCA clients who received foreclosure prevention counseling services held subprime loan products, such as option ARMs (Adjustable Rate Mortgages), interest-only, and interest-only option ARM hybrid mortgages.  The data reflects a sustained 4-year trend first reported by the United States Department of Housing and Urban Development in 2008 , in which, subprime loans spiked to represent 55% of all foreclosure starts in the nation.  Showing the true impacts of such risky loan products on our Hawaii homeowners, one HCA client saw her option ARM loan reset her interest rate from 5.25% APR (Annual Percentage Rate) to 15.95% APR in one month.

"Our Hawaii homeowners already find themselves in a highly competitive housing market," says HCA Executive Director, Jeff Gilbreath pointing out the large gap between Hawaii's median home price ($521,500, US Census Bureau) and annual average pay rate of the State's residents, which ranks last in the nation ($24,203, Corporation for Enterprise Development).  "While the Report identifies key trends our families face when struggling to sustain homeownership, it also provides us with the data necessary to establish effective, community-specific solutions to prevent foreclosure and keep the dream of homeownership alive."

Reinforcing the connection between the State's high housing costs, low pay rates, and barriers to sustaining homeownership, the Report confirms that 68% of Hawaii homeowners who received HCA foreclosure prevention assistance cited loss of a job or reduction of income as the primary reason for mortgage delinquency.  Another 12% of clients identified increases in expenses, including mortgage payments, as the second most common reason for delinquency followed by decline in health and marital issues (10%).

With a goal of addressing barriers to sustaining homeownership, a series of recommendations are contained in the Report, including, principal reduction for families with reduced income, subprime mortgage loans, or increases in the amount of their mortgage payments; greater refinance options for both current and delinquent homeowners; a concerted public education campaign on consumer protection to combat predatory loan scams; and targeted HUD approved housing counseling combined with asset building and micro-lending programs.

Click here to view the full-length Foreclosure Prevention Program Report. 

Financial Literacy Month Sparks Garden Isle Effort to Educate Future Generations  

LIHUE - On April 2nd Kauai County Mayor, Bernard Carvalho, signed a proclamation recognizing April as National Financial Literacy Month as designated by the United States Congress. 

"As the County, we recognize that financial literacy provides a new framework for strategic coordination and an overarching strategy to serve our people," stated Mayor Carvalho presenting HCA Community Services Specialist, Desiree Vea with the signed proclamation.

The signing ceremony built on the momentum of a Kahua Waiwai Trainer Session HCA conducted on March 20th equipping 13 staff from community-based organizations, education institutions, and government agencies on Kauai to develop and implement free youth financial education workshops using the organization's place-based Kahua Waiwai: Building a Foundation of Wealth(c) curriculum.   

Attendees included staff from Queen Liliuokalani Children's Center, Child and Family Services, Kawaikini Charter School, Hale Opio, National Tropical Botanical Gardens, Kekaha Hawaiian Homes Association, and WorkWise.

"Youth financial literacy is important because it not only teaches the next generation about money management, but gives them the skills to make good life decisions," said Ms. Vea.  "The Kahua Waiwai Financial Edicaton Program is about more than building wealth; it is about building community."