2023 Financial Literacy Supplement

Building Confidence in Your Money Management 2023 FINANCIAL LITERACY SUPPLEMENT

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Owning a home is an exciting journey. One filled with a sense of pride and accomplishment. It’s a place for families to gather, celebrations to be had, hard times to be weathered, where memories abound. At Wells Fargo we are proud of the exciting work we are leading to create greater opportunities for a more equitable housing system. When our industry comes together, we have the power to create and deploy products and programs to create legacies and build wealth that will span generations.

In my role as the Head of the African American Segment with Wells Fargo’s Home Lending Diverse Segments team, I am responsible for creating and implementing strategy in support of addressing the disparity in wealth and homeownership that we face as a nation, with a specific focus on advancing Black homeownership. We are deeply committed to working hard to close the gap and create a more inclusive housing system.

That work requires partnerships across the industry, boots on the ground, housing advocacy, policy changes, product development, and so on.

For me it also resonates on a personal level. With 20 years in the business, the power and beauty of homeownership took on new meaning when I became a mother. Did you know that Black Americans will possess $2 trillion dollars in spending power by the end of next year, with Black women accounting for 52% of the black population in America? Black, head of household women have incredible impacts across all industries, not just mortgage.

It’s extremely important to me that my amazing seven-year-old daughter will encounter a housing system designed to envelop her with wealth-building opportunities. While I work to build equity now so that I can pass on generational wealth, I look forward to seeing her adorable #BlackGirlMagic aspire without pause as she grows, hones her passions, and becomes a homeowner and an investor in her community.

Together, the work we do plants seeds – seeds of access, of education, accountability, stability, and more. In today’s market, doubt and concern are palpable. In the face of that, there is hope that you can still start to build equity today. Owning a home is possible. You can build a plan to make that vision a reality. Talk with our Home Mortgage Consultants and begin the incredible journey to homeownership. g

Did you know that Black Americans will possess $2 trillion dollars in spending power by the end of next year, with Black women accounting for 52% of the black population in America?

WWW.WASHINGTONINFORMER.COM / THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023

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How the 100 Black Men of America Empowers Youth by Investing in Their Future

By Melissa Murray, Jennifer Block Martin, and Eric Best of Wells Fargo For 14 weeks, students across the country took part in the Wells Fargo Junior Investment program, a simulation game that teaches young people how to invest.

Student teams are given a virtual $100,000 to invest in stocks, bonds, and mutual funds using the SIFMA Foundation’s Stock Market Game.

They learn the value of capital markets as they work together to maximize the return of their portfolios with the help of mentors from their local 100 Black Men of America chapter.

The competition recently culminated in Las Vegas where five finalist teams competed at the 100 Black Men of America’s annual conference.

Making Generational Change Now in its fourth year, the Wells

Fargo Junior Investment program is delivered to students by mentors like Moses Harris, a senior Black and African American Segment leader for Wells Fargo who’s been a member of the Los Angeles chapter of 100 Black Men for eight years. Harris covers stock market fundamentals and its risks with young people each Saturday morning as part of the program.

“Early on, our students are a little timid on what they should do and how many shares they should buy,” Harris said. “We like to give our students the education, and with education comes confidence. When you’re confident, you’re able to perform and participate.”

The 100 Black Men of America and programs like the Junior Investment program aim to not only help kids learn to create long-term wealth,

but also foster mentor relationships between generations.

“We see the parents are very engaged and interested,” said Bonnie Wallace, head of Financial Health Philanthropy for Wells Fargo. “So, it’s really extending the learning not only with the youth, but with the older generation as well.”

Participant Jada Rabun shares, “Just being in [the competition] after four years, and going on to my fifth year, I really see the benefits of it,” Jada said. “I would have never imagined in eighth grade for me to be at a national conference.”

Jada is the third generation in her family to be involved with the 100 Black Men, which has mentored young Black people to prepare them to be future leaders since 1963. Her father, John Rabun, was brought to the group’s Los Angeles chapter by his own father as a high school student.

“Generation to generation, it means a lot,” John said. “[The organization] has had a profound impact on me and my family, and so I wanted to introduce [it to] my daughters.”

Carrying Financial Lessons Through Life The 100 Black Men of America

and Wells Fargo have worked together for 34 years, from sponsorships to supporting programs like Pathways for Success, which provides workforce readiness to mentees across the nation.

This collaboration is part of Wells Fargo’s broader commitment to increase pathways to economic opportunity for historically marginalized communities.

“Generational wealth gives you the opportunity to have a better life. Not only for you, but for your kids,” said Lester Owens, Operating Committee Member for Wells Fargo. “The more

that we can give somebody the opportunity to be successful, the more they can carry that with them for generations for others to be successful as well.” Owens is also a member of the 100 Black Men of America.

Jada is beginning to see doors that the Junior Investment Competition and the 100 Black Men could open. She’s already looking at colleges, including some historically Black colleges and universi-

ties (HBCUs). “[The 100 Black Men] has really helped spark my interest in the business field,” she said. “I’m going to continue the program probably for life.” g

ARE YOU FINANCIALLY FIT DC? Get Started on Building Your Pathway to Financial Freedom Financially Fit DC is a comprehensive financial literacy program designed to empower all District residents to take control of their financial health.

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5Wells Fargo Junior Investment program group photo

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

Paying Down Debt Doesn’'t Have to Overwhelm You

By WordInBlack.com staff in collaboration with Wells Fargo

Strength in Working Together As the leading large bank lender to African Americans Wells Fargo understands that our strength comes from working together across the country to achieve racial equity in homeownership.

Our close collaboration with prominent African American civil rights organizations, real estate trade groups, and housing counseling agencies helps bring home buying information and resources to more communities.

At Wells Fargo we also continue to optimize our teams to better serve you and help you create a home buying journey that is right for you and your family.

Scan to learn more about our Home Lending Priorities

Information is accurate as of the date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2023 Wells Fargo Bank, N.A. NMLSR ID 399801 AS5759580 Expires 04/2024

Why is it so easy to get into debt and so hard to find your way out? And why does trying to manage debt often feel so overwhelming?

A growing number of consumers are facing this challenge. American household debt increased by $34 billion last year, with 18.3 million borrowers falling behind on a credit card, according to the quarterly report on household debt and credit by the Federal Reserve Bank of New York.

Wells Fargo Bank is helping customers lessen stress and learn to manage their credit and debt effectively.

“We have many options and connect with customers using a personalized approach that’s tailored to their needs,” said Darlene Smith-Daniels, Wells Fargo branch manager in New York City. “We are very hands-on, letting them know we’re here to help them establish credit or manage their debt.”

Smith-Daniels, who joined Wells Fargo in 2003 as a teller and worked her way up to branch manager, relates to her customers and values the bank’s commitment to assisting customers in this area.

“Growing up, I wasn’t taught a lot about credit,” Smith-Daniels reflects.

“It gives me a good feeling to help them with our debt management tools.”

Helping customers gain financial literacy is a high priority for Wells Fargo. That includes helping them see the big picture to understand the relationship between credit and debt.

“Managing debt can become overwhelming,” Smith-Daniels said. “We work to find ways for them to tackle it, because that debt is not going to disappear. We help them to not pick up more credit and pay down debt, which gives them more options.”

“We explain that we cannot provide a quick solution, and we counsel them on the need to have patience,” she said.

“We show them two approaches: the snowball method — paying off the smallest debt first—and the avalanche method of paying off the highest interest account first. And we work together to find the best method for them.”

Another tool is the Debt-to-Income (DTI) Ratio Calculator to show how debt impacts borrowing power.

“It’s vital to understand this equation,”

Smith-Daniels said, “because many customers make the mistake of wanting to wipe out all their debt.”

“Many customers don’t know until they’re speaking to us that this ratio affects them if they want to borrow again. It’s best to have a mix of credit and some debt, as long as it’s in line with a healthy debt-to-income ratio.

It’s all about management. You must have some debt to show that you can repay it. If you have no repayment history, then lenders may have difficulty lending to you.”

Along with the tools, Wells Fargo offers staff with the skill sets to guide customers through the maze of credit and debt management.

She sometimes uses an analogy to help customers understand the need for regular financial check-ups and maintenance.

“I remind them that they see their doctor regularly to make sure everything is working,” she said. “I encourage them to look at their finances that way, to make sure that they sit down with their banker for a review at least once a year and go over their finances.

They say, ‘You’re right. I do need to have that financial check-up to make sure everything is all right, and I don’t get overwhelmed with my debt.’”

The results have been encouraging.

“We’ve had great outcomes,” Smith-Daniels said. “Some customers come back and say, ‘Now I want to apply for a loan or a mortgage because now I have everything under control, and I can manage my debt much more effectively and efficiently.’ It gives me a good feeling to know we’re helping customers.”

The bank’s approach is designed for the long term.

“If someone is starting off trying to establish credit, we give them the tools, ask if we can follow up with them in a month or two, see how it goes. Then once they get the credit, we work with them on how to maintain it without becoming overwhelmed. If they’re in trouble, we work with them by scheduling a follow-up meeting whenever it’s best for them.

“While getting into debt will always be easier than getting out, Wells Fargo is deeply committed to helping customers reach their goals and gain financial stability. “It does take time — you have to be patient,” Smith-Daniels said, “but we can definitely help you get on the right track.” g

WWW.WASHINGTONINFORMER.COM / THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023

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Make homeownership your path to personal and intergenerational wealth When Black homeownership rates increase, more Black households gain access to a proven way to build personal and intergenerational wealth.

Our mortgage affordability calculator1 on wellsfargo.com helps you determine which mortgage options best align with your financial goals.

Markets change but that does not mean buying a home is out of reach. At Wells Fargo we can help you navigate the home buying journey during all types of economic cycles.

When you are ready to talk, our Home Mortgage Consultants are here to help you create a plan to optimize the benefits of homeownership now and over time.

The Black homeownership rate rose throughout 2022 even in the face of rising mortgage rates, hitting 45.2% in the third quarter - up from 42.7% in 2019.

This is the largest point increase of any racial or ethnic group.

1. How Much House Can I Afford Calculator | Wells Fargo 2. Wells Fargo - Gaining Economic & Financial Ground in the Black Community Since COVID (bluematrix.com) Information is accurate as of the date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2023 Wells Fargo Bank, N.A. NMLSR ID 399801 AS5759580 Expires 04/2024

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

Exploring How Special Purchase Credit Programs Help Advance Homeownership for Minority Customers Chuck Bishop Head of Diverse Segments for Home Lending Wells Fargo Safe, affordable housing is a key pillar of the American Dream. It’s a pathway to financial success for our customers, and a source of stability in our communities. Owning a home is also one of the most important pathways to wealth creation, providing families with a foundation for improving their financial position across generations.

Wells Fargo continues to play a leading role in the crucial, industrywide effort to increase racial equity in homeownership through close partnership with stakeholders across the housing sector as well as special programs and targeted investments in communities of color.

Below, Chuck Bishop, Head of Diverse Segments for Home Lending for Wells Fargo explains what a Special Purpose Credit Program (or SPCP) is, and how Wells Fargo’s program aims to advance homeownership for minority customers and align with their Home Lending strategy announced earlier this year.

What is a Special Purpose Credit Program?

In 1976, the Equal Credit Op-

portunity Act (ECOA) authorized the creation of an SPCP to allow lenders to create a loan program that considers protected bases, such as race or ethnicity, to meet

special social needs or help economically disadvantaged populations.

Although SPCPs have been around for decades they may not have been widely implemented, in part, because of a need for greater clarity in creating a compliant program. In February 2022, the Consumer Financial Protection Board (CFPB) acknowledged the need for further guidance on how to develop SPCPs to be consistent with the ECOA and joined seven other federal agencies in issuing a statement encouraging lenders to explore opportunities available to increase credit access through Special Purpose Credit Programs.

5Chuck Bishop, head of Diverse Segments for Home Lending

SPCPs can play an importIs it discriminatory needs. ant role in promoting equity and inclusion, building wealth, and to have a lending removing barriers that have conprogram that tributed to financial inequities, instability, and residential focuses on a specific housing segregation. racial or ethnic How Do Wells group?

Under Federal law, lenders are permitted to design and imple- Fargo'’s Special ment Special Purpose Credit Pro- Purpose Credit grams to increase access to credit to better serve historically disad- Programs Work?

Wells Fargo launched our first vantaged individuals and communities. An SPCP allows lenders to consider factors including race and ethnicity, national origin, and gender to meet special social

SPCP in 2022. Through the program, more than 4,100 existing

Black Wells Fargo customers who may not have taken advantage of low mortgage interest rates prior to when the market rate surged have been able to lower their rate and their monthly payments without extending their loan term.

This year, we announced an expansion of our SPCP efforts to include purchase loans. The new Homebuyer AccessSM grant, developed under a Special Purpose Credit Program, provides downpayment assistance and is available to eligible homebuyers who are purchasing homes in or who currently live in select areas in eight Metropolitan Statistical Areas (MSAs) to start: •Minneapolis–St. Paul– Bloomington, MN-WI • Philadelphia–Camden– Wilmington, PA-NJ-MD-DE • Dallas–Ft. Worth– Arlington, TX • Washington–Arlington– Alexandria, DC-VA-MD-WV • Baltimore–Columbia– Towson, MD • Atlanta–Sandy Springs– Alpharetta, GA • Charlotte–Concord– Gastonia, NC-SC • New York–Newark– Jersey City, NY-NJ- PA This program can be combined with many other programs for

which they may qualify including the Dream. Plan. Home.SM closing cost credit, the Employee Mortgage Program, Corporate Relocation, and more.

What advice do you have for homebuyers?

Potential homebuyers looking to

purchase a home in any of the eight metropolitan areas and those who currently live in those areas can find out more about the Special Purpose Credit Program by visiting wellsfargo.com/homegrant, calling 866327-6414, or contacting a Wells Fargo Home Lending office in their area.

Other programs are available in addition to the SPCP. Everyone’s financial situation is unique to them and it’s important to speak with a mortgage professional or HUD-approved housing counseling agency to begin the homeownership journey. Ask questions like what types of loans are available; if there are programs to assist with downpayment or even closing costs; what the requirements are for loan approval.

Aspiring homeowners should understand as much as they can about the homeownership journey before beginning. It could make a difference in the kind of experience you have.

Also, don’t assume that myths about purchasing a home are true.

You don’t necessarily need a high downpayment or perfect credit to make your homeownership dreams a reality. Many lenders have programs that are aimed at assisting low- and moderate-income buyers. Educate yourself and ask questions to explore your options. g

WWW.WASHINGTONINFORMER.COM / THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023

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CFPB awaits court approval for $2.7 billion settlement: Fake credit repair and debt relief scams date back to 2016

By Charlene Crowell As consumers complain about the real-life challenges of keeping pace with the rising costs of living, key financial reports reveal that the challenges are as high and widespread as this summer’s scorching heat.

In early August, the Federal Reserve Bank of New York released its quarterly report on household debt and credit. At mid-year, the nation’s total household debt rose to $17.06 trillion – a $2.9 trillion increase since the start of the pandemic recession in late 2019.

Little wonder then, that millions of consumers became susceptible to phone calls and advertising that promised financial relief. At the same time, businesses looking to make major profits from others’ financial woes have been busy. Chief among these financial predators are debt relief and credit repair firms that make promises, collect up-front fees and never deliver for consumers.

On August 28, the Consumer Financial Protection Bureau (CFPB) announced a $2.7 billion judgment against major members of this industry. An order now awaiting federal court approval would also ban these firms from telemarketing credit repair services for 10 years for illegal actions dating back as far as 2016.

“Americans across the country looking to improve their credit scores have turned to companies like CreditRepair.com and Lexington Law. These credit repair giants used fake real estate and rent-to-own opportunities to illegally bait people and pad their pockets with billions in fees,” said CFPB Director Rohit Chopra.

“This scam is another sign that we must do more to fix the credit reporting and scoring system in our country.”

CFPB’s lawsuit charged its defendants with failure to perform legitimate credit monitoring services. Its legal challenges cited the Telemarketing Sales Rule (TSR) that requires fees for tele-marketed credit repair services be paid after – not before - the promised credit repair has been completed. The rule also requires that credit repair firms provide documentation that substantiates the promised results were achieved within six months.

Additional counts in the complaint

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charged that the defendants used deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA).

Two of the lawsuits’ defendants, Lexington Law and CreditRepair. com, are the largest credit repair brands in the country. The credit repair services are marketed and offered through a web of lesser known but related entities operated nationwide and had more than 4 million customers who were subjected to telemarketing. In 2022 alone according to CFPB, the defendants had combined annual revenues of approximately $388 million.

To generate credit repair sales for Lexington Law and CreditRepair. com, defendants used a network of marketing affiliates that advertised a variety of products and services, often related to consumer credit products.

Typically, according to CFPB, telephone agents pitched so-called credit repair services to the consumer, and later transferred calls to agents employed by a separate firm who would attempt to close the credit repair sale.

This second firm would be paid by defendants for each sale closed with the deceptive practices that led consumers to believe only a single entity was involved.

Court approval of the settlement will:

lawsuit, the court’s summary judgment holding, the settlement, the consumer’s right to cancel their credit repair services, and the process for canceling the service.

I• mpose a $2.7 billion judgment for redress: The order would impose a $2.7 bil-

lion judgment against the companies for redress. Due to the companies’ financial insolvency, the CFPB will determine whether the CFPB’s victims’ relief fund can be used to make payments to those harmed by the perpetrators.

I• mpose more than $64 million in civil penalties: The order would impose a $45.8

million civil money penalty against Progrexion Marketing and a $18.4 million civil money penalty against the Heath law firm.

“Credit repair companies that offer quick fixes are often scams that disappear with consumers’ hard-earned money,” noted Pamela Hernandez, a regional manager with the Better Business Bureau.

Charlene Crowell is a senior fellow with the Center for Responsible Lend-

ing. She can be reached at Charlene. crowell@responsiblelending.org.

Ban the perpetrators from telemarketing for 10heyears: companies will be banned from

telemarketing credit repair services or selling credit repair services that others marketed through telemarketing for 10 years. The companies will also be banned from doing business with certain marketing affiliates. These bans will attach to the companies even after the bankruptcy proceedings are complete.

R• equire notices to consumers: The companies will be required to send a notice of the CFPB settlement to any remaining enrolled customers who were previously signed up through telemarketing. The notice will inform consumers of the CFPB’s

THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

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Why You Should Consider Estate Planning

By The Washington Informer The Financial Journey is a unique series focused on financial education and opportunities. These stories have been created through a strategic partnership between Wells Fargo and WordInBlack.com.

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Billions of people strive daily to create a stable life for themselves and their families. Unfortunately, we cannot predict when a life-altering change will occur. Because of this, preparation for the unexpected is essential.

Nelrae Pasha Ali, a Senior Financial Advisor and Managing Director/ Investments with Wells Fargo Advisors with more than 20 years of expertise and a focus on customized planning, says that making estate plans can help people prepare for these changes if they become incapacitated or pass away unexpectedly.

Despite what some may believe, estate planning is not solely for the wealthy; in fact, estate planning is how people can ensure that all of their assets go to the correct individuals and that their wishes are respected.

“Not taking the time to make the right preparations can have severe effects on your loved ones. In fact, I consider estate planning as a love letter to the family,” Nelrae said. “If you want control after your passing, estate planning is the best place to start.”

A will, durable power of attorney, a healthcare power of attorney, a living will, and a revocable living trust are the five key documents for estate planning. Other forms may be necessary depending on your unique circumstances.

A will provides instructions for distributing assets to beneficiaries after death. In it, a personal representative (executor) is assigned to pay final expenses and taxes and distribute remaining assets.

A durable power of attorney for financial matters allows a trusted individual management power over individuals’ assets either now or at a later date, if they become incapacitated. This document is effective only while still alive.

A healthcare power of attorney allows someone to make medical decisions on behalf of another person if incapacitated and unable to make these decisions for himself/herself.

A living will express intentions regarding the use of life-sustaining measures for those who are terminally ill. It ensures that no one else has the authority to decide what happens if these individuals become incapacitated.

By transferring assets to a revocable living trust, individuals can provide continued management of their financial affairs during their lifetimes, after death, and even for generations to come.

Everybody has a unique scenario when it comes to estate planning.

“I start this discussion with clients by asking what is most important to them,” Nelrae said.”” It’s important to have this discussion while there isn’t a crisis in progress.”

Additionally, the person who someone wants to have manage their finances may not be the same person they want to have make decisions regarding their health in a crisis situation, so it is critical to have a plan in place. Again, if someone is incapacitated and their wishes are not recorded, their spouse may have one idea of what their wishes were while their adult children and/or parents may have another idea. This confusion could lead to havoc and leave families in financial or legal turmoil. Making decisions during this time can be very difficult, but having a written record of wishes will help loved ones navigate the family’s new normal, Finding a qualified estate attorney is the first step in estate planning, according to Nelrae. The bottom line is that if you don’t make the decisions, someone else will.

Wells Fargo Bank, N.A. is a member of the Federal Deposit Insurance Corporation. g

WWW.WASHINGTONINFORMER.COM / THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

The A-B-C’'s of HELOCs

By Maceo Clark, EagleBank Many homebuyers were able to buy and refinance homes with low rates between 2020 to 2022, which was great. Now, though, many seeking to tap into their equity find themselves stuck with a dilemma: Do I give up my low interest rate to get cash out of my home, or stay where I am?

Home Equity Lines of Credit (HELOCs) can play an important role in tapping into equity in one’s home. They do not require any changes to the first trust mortgage loan rate and are a secure source of accessing cash to fund emergencies,

3Maceo Clark, EagleBank

EagleBank SBA Loans

Some of our biggest tools are our small business loans.

EagleBank offers a full range of Small Business Administration (SBA) lending solutions. Our SBA Relationship Managers guide you through the eligibility requirements* to determine whether an SBA loan is right for your business.

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*This is not a commitment to lend. A minimum borrower contribution, or down payment, is required; amounts vary by project but are usually 10 percent. Loan terms can vary according to the purpose of the loan.

projects, or personal needs as they arise. HELOCs are generally smaller loan amounts for specific needs, and generally are in “second” lien position behind a first trust mortgage loan.

While borrowing on the value of one’s own home would seem to make good financial sense, here are some ABC’s to remember about HELOCs.

A Inis for ADJUSTABLE general, HELOC interest

rates are adjustable and are based on an index such as the Wall Street Journal Prime rate (“Prime Rate”).

This means that as the Prime Rate goes up or down, the interest rate on a HELOC could go up or down and the payment amount on the HELOC could also go up or down.

The current Prime Rate is 8.50% as of July 27, 2023, up from 8.25% in March of 2023. It is the 10th time that Prime Rate has increased since March 17, 2022.

B Most is forHELOC BORROW lenders will let

you borrow up to a certain percentage (“Loan-to-Value”) of the current appraised value of the home, less the balance of the first trust mortgage. And just like a Deed of Trust for an existing first trust mortgage loan, there is a Deed of Trust for a HELOC that must be recorded in the county records and must be paid off when the home is sold.

Many banks may offer to pay some of the closing costs associated with a HELOC up to a certain amount; this amount paid by a bank will vary. Be aware that some

HELOCs when paid off within the first few years, may require the borrower to repay the closing costs paid by the bank.

C Like is for CREDIT a first trust mortgage loan,

credit and property requirements apply and may be different at each bank. Requirements may include: • A credit report ordered by the bank.

• An appraisal ordered by the bank to establish the property’s current value.

• Verification of income to review and evaluate the ability to repay.

• A flood certificate ordered by the bank to ensure the property is not in a flood zone known as Special Flood Hazard Area. If it is then flood insurance may be required.

Convert After the initial draw period,

which is generally 10 years, the loan could convert to a repayment period for the final remaining term.

During the repayment period, funds can no longer be borrowed from the HELOC and the principal and interest due must be repaid.

If you have further questions, please contact us at ConsumerLoan@EagleBankCorp.com or call 301-9861800.

This is not a commitment to lend. To be eligible, borrower must meet underwriting and program guidelines. All loan applications are subject to credit and property approval. EagleBankCorp.com NMLS #440513 Member FDIC g

EagleBank, a community-minded and solutionoriented bank, is excited to work with customers who also believe in their community and want to enhance and maintain their DC home. In conjunction with EagleBank’s sponsorship of the Washington Informer’s OUR HOUSE initiative, EagleBank shares information that may help area homeowners.

WWW.WASHINGTONINFORMER.COM / THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023

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Why Teaching Financial Literacy to Seminarians Makes Sense Theodore R. Daniels Founder and President Society for Financial Education and Professional Development, Inc. Financial literacy skills are a key to economic health, yet too few Americans have even a basic knowledge of how to manage their finances. This is especially true among African Americans, Hispanics, women, millennials, and individuals without a high-school education.

According to a financial capability study by FINRA Investor Education Foundation, only 46% of Americans have emergency funds. A TIAA survey indicates that only 54% of African Americans have retirement savings needs. The survey also reflects that African Americans are likelier to use non-bank borrowing, such as payday lenders and pawn shops, than other ethnic groups. The study states that nearly half of all respondents with a high school education or less could not come up with $2,000 in 30 days in the event of an emergency.

Americans want to live a comfortable life at each stage of their lives, regardless of race, gender, age, or education level. But whether we are young, middle-aged or seniors - we must learn financial knowledge and tools for economic success. A lack of financial understanding can be a serious roadblock to a healthy financial life and has a negative impact on our economy and our citizens, including those who are most vulnerable.

Americans often wait until it is too late or when a financial crisis occurs before they seek help for financial problems. This is especially true in underserved populations, who have limited access to financial education, training, and resources.

But there is good news. Higher education institutions committed to teaching financial literacy are making a tremendous difference by including such education at the undergraduate and post-graduate education levels.

I have taught financial literacy classes and held seminars for divinity students, pastors and ministers at the Howard University School of Divinity

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in Washington, D.C. The classes and seminars were structured to increase the financial and stewardship knowledge of the participants by teaching them practical money management concepts and skills. The program was designed to train religious leaders who will be able not only to use their own financial resources wisely, but also to teach financial literacy in their communities and places of worship. They became better informed to make leadership decisions regarding the facilities and finances of their congregations.

Enhancing the financial literacy of religious leaders and instructing them with the “Each One, Teach One” curriculum training model to implement in their own faith communities was a powerful tool to reach African Americans and others who would not otherwise have access to this knowledge.

This education model also has the strong potential to impact thousands of individuals in African American communities and elsewhere.

Imagine if financial literacy courses were a mandatory requirement at all divinity schools across the nation, and if churches and places of worship made a promise to host financial literacy training for their communities each year.

In nearly 25 years of running an education nonprofit organization dedicated to financial education, I have discovered that people want to learn personal money management concepts and their applications. Financial knowledge and skills of these kind help individuals make smart decisions so that are able to maximize financial resources and achieve their personal and financial goals.

The financial topics that I teach at Howard University, School of Divinity which focused on practical issues relevant to faith-based groups, include:

Pastors” course was tremendous and participants were eager to share what they have learned with their congregations.

Innovative and comprehensive programs to teach divinity students financial literacy, so they can in turn instruct their church members about useful financial concepts that can be applied in everyday life, can be a real lifeline for African American communities and other groups.

I urge other divinity and theology schools to expand their offerings to include financial literacy instructions in their curriculum and offer subject specific seminars and workshops to enable ministers and pastors to empower their congregations to become fiscally healthy. This can also play a key role in the financial sustainability of the churches they serve. We don’t have a moment to lose if our goal is growing healthy and robust communities and providing tools for all our citizens to have a chance to improve their financial well-being.

Theodore R. Daniels Founder and President Theodore “Ted” R. Daniels is the founder and president of SFEPD, an award-winning nonprofit teaching financial literacy to people of all ages and backgrounds, with an emphasis on communities of color. In 1998, Daniels founded SFEPD to teach individuals, especially first-generation college students, critical financial skills they might not otherwise receive or learn too late. He is a global financial educator, author, and lecturer. A leader in the financial literacy movement, Ted Daniels has 40 years of experience as a financial and investment advisor. g

'"" 'In nearly 25 years of running aneducation nonprofit organization dedicated to financial education, I have discovered that people wantto learn personal money management concepts and their applications.''

• Personal Financial Planning for Ministers and Pastors • Credit and Debt Management • Maximizing Financial Blessings through Investing The feedback from divinity students who have taken the “Personal Financial Planning for Ministers and

THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

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Chase Community Manager Shares Five Key Financial Literacy Tips how much money is coming in and going out each month. Use online tools to help you track your savings and spending, and then break spending down into wants versus needs. Once you have an idea of where your money is going, it’s easier to make adjustments to your spending habits.

Sponsored content by JPMorgan Chase & Co. Financial health is an important foundation that helps build strong and resilient households, communities and economies. Being financially healthy better prepares you for life’s unexpected expenses.

The reality is, more than 50% of Americans across all income levels consider themselves financially unhealthy. That group includes many Black, Hispanic and Latino families in the U.S., who have less than 50 cents in assets for every dollar held by white families.

Studies show that Black, Hispanic and Latino families also face the biggest gaps in access to banking and resources to help them manage their financial needs.

To help close the racial wealth gap, improve financial health and boost financial inclusion, Chase has hired 150 Community Managers to foster engagement in diverse communities. Community Managers host financial

Know your credit score! Talk to your children!

Your credit score is a number The gift of financial literacy is

that represents a snapshot of your priceless. Encouraging confidence Start saving! credit history, and lenders use it to and financial independence starts Even the smallest amount mat-

5Brian Atkins, D.C. Community Manager from Chase

health workshops and community events, while developing close relationships with customers to help them achieve their financial goals.

Brian Atkins is a Community Manager in Washington, D.C. Atkins offered tips to develop healthy financial habits and take control of your financial future.

Build a budget!

It’s important to understand

ters because there’s never too little to start saving! To help initiate a savings habit or stick with it, make it automatic. For example, Chase offers Autosave, which allows customers to create repeating transfers from their checking to their savings, set specific goals and even track progress. It’s a good idea to put aside several months’ worth of living expenses because no one is immune from facing unexpected expenses. Having some savings can help prevent you from facing a significant financial strain when those situations happen.

help determine how likely you are to repay a loan in the future. The higher your credit score, the more competitive you’ll also be for lower interest rates on major purchases like a home or vehicle, helping you save over the life of your loan.

You can find your credit score for free at annualcreditreport.com, which is an official U.S. government website. You can also get your score through your financial institutions or at www.chase.com/ creditjourney.

PayIf youdown debt! have a low credit score,

pay down credit cards, loan balances and make bill payments on time to improve your score.

with having the conversation at home. By including your children in basic financial discussions, they’ll learn early about budgeting and saving. You can extend these lessons by opening a bank account like Chase First Banking, a great teaching tool for kids ages 6 and older that comes with their own debit card and parental control.

As you think about your long-term financial goals – such as buying a new home or starting a business – you can see how financial literacy can help you achieve them. Visit one of our branches, including our Chase Skyland Community Center at 2728 Good Hope Rd SE, to learn about the tools available to help you. g

The Newsletter Sign up to receive the JPMorgan Chase & Co. Money Talk Newsletter and stay up to speed with the latest financial wellness information.

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Terri, Resident of Todd A. Lee Senior Residence Marquida, Senior Director of Community Management

Make Homes Happen Bringing affordable homes within reach for DC residents with Dantes Partners With the help of JPMorgan Chase, Dantes Partners is developing affordable homes closer to places of work. From Columbia Heights to Washington Highlands, JPMorgan Chase is helping Dantes Partners fight the housing crisis and strengthen communities.

See how we help make it happen at jpmorganchase.com/impact Participants compensated. © 2023 JPMorgan Chase & Co. All rights reserved.

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NAREB’S Building Black Wealth Tour will Encourage Black families and Individuals to Make Financial Decisions that Gain Wealth The National Association of Real Estate Brokers (NAREB) launched a Building Black Wealth Tour to give Black families and individuals the information they need to purchase homes, make wise investments, and engage in other activities to increase their wealth.

Working with the African American Mayors Association and the National Bar Association, the Building

5Dr. Courtney Johnson Rose, NAREB’s president

Black Wealth Tour will visit more than 60 cities over the next two years as the collaboration organizes classes, workshops, and one-on-one counseling to advise families on homebuying, investing, and careers in real estate.

“We believe the time for action on Black Wealth is now,” said Dr. Courtney Johnson Rose, NAREB’s president. “NAREB is urging our Black communities to take the journey towards wealth. Come to our events in your city and learn what you need to purchase a home. We are helping Black families overcome the biased public policies and private practices that created the vast wealth gap in America today.”

Asserting that the situation is “intolerable,” Dr. Rose said that, on average, Black families own about 24 cents for every $1 of White family wealth, according to the Federal Reserve. Homeownership, a critical component of Black wealth, has declined for Blacks nearly every quarter since the pandemic, leaving Blacks with the lowest homeownership percentage of any de-

mographic in America.

Despite the contributions of the 1968 Fair Housing Act, 55 years later, the racial homeownership gap has widened. In 1960, 38% of Blacks owned homes, while White homeownership was 65%, a 27-point gap.

In 2022, the rate of homeownership among Whites was 74.4% compared to 45% for Blacks, a spread of 29.4% and the most extensive gap since 1890!

Homeownership is the driver of wealth, especially for Blacks. The equity from owning a home can be used to start a business, pay for a college education, and comfortably retire. It is the centerpiece of

family economic security.

The first Building Black Wealth Tour event was in Houston on Saturday, October 7. It was a rousing success, with hundreds of participants. Each event includes festive youth activities and aims to empower Black communities with steps towards homeownership, property investment, starting a business, and other wealth-building opportunities.

Further, a workshop addressed family-owned land jointly owned by descendants of a deceased person whose estate did not clear probate. The descendants, or heirs, have the right to use the property, but they do not have a clear or marketable title since the estate issues are unresolved. This has become a critical issue nationwide. Thus, the Black Wealth Tour educates Black consumers on properly passing along real estate and protecting themselves and the community from gentrification.

The NAREB State of Housing in Black America (SHIBA) report found more than two million mortgage-ready Black Americans across the country. These families and individuals have the credit and income to qualify for a home mortgage. NAREB plans to find them. Over the next two years, NAREB will sponsor events nationwide, including Birmingham on 11/11/23, Charlotte on 3/2/24, Mt. Vernon on 4/13/24, Little Rock on 6/8/24, New Orleans on 8/3/24, Atlanta on 11/9/24, Miramar, Florida on 3/25, Beverly Hills, MO on 6/25 and Los Angeles on 8/25.

“We will go into these communities, locate these families and individuals, educate them, and inspire them to build wealth,” said Dr. Rose.

“Systematic racism has plagued our communities and impeded our ability to gain wealth, but we can overcome these challenges. In addition to Black lawyers and mayors, we are working with Black fraternities and sororities to help locate people who can be put on a path toward intergenerational wealth.”

The disparity in wealth emanates from centuries of racist public policies and private practices, including from the middle of the 20th century.

After World War II, government policies led to the most significant expansion of the American middle class in history. The GI Bill provided veterans with free college education and inexpensive home loans. However, Black veterans were rarely able to take advantage of these policies because of the discriminatory way they were administered. The Federal Housing Administration (FHA) wouldn’t insure home purchases in Black neighborhoods, and Blacks faced hostility if they tried to move into a White suburb.

The impact lingers today. Unlike many White families, Blacks didn’t usually have intergenerational wealth flowing from generation to generation.

But Dr. Rose said: “Our goal is to end wealth disparities and help Black families and communities thrive.” g

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T H E N A R E B B U I L D I N G B L A C K W E A LT H T O U R

ACHIEVING INTERGENERATIONAL WEALTH:

HOMEOWNERSHIP, INVESTMENTS, EQUITY We are encouraging Black families and individuals in more than 60 cities to engage in wealth-building opportunities.

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

Making Dollars and Sense of Credit off the installment loan, your account is closed.

Submitted by United Bank Your credit is a vital part of your financial health. Understanding why credit is so important, and what steps you can take to maintain good credit, helps you make better choices about your personal finances. Good credit also gives you more options for making the most of your money.

And just like with your physical health, credit decisions you make now can have consequences you won’t feel until much later. Here’s a look at how credit impacts your life:

What is credit?

Most simply, credit is an agree-

ment between a lender and a borrower. It is the trust that allows money to be provided without immediate reimbursement, and it can be packaged as either a credit card or a loan.

Both credit cards and loans come with specific repayment terms, and perhaps the most important of these is the interest rate. The APR (Annual Percentage Rate) translates to the additional amount you’ll be charged depending on how long it takes you to pay back your balance. A lower APR is better, but always check the terms to make sure a low rate isn’t just a promotional offer that increases after a temporary period.

Credit is typically issued on a revolving basis or in installments.

A revolving credit line, like a credit card, comes with a credit limit for the maximum amount you can owe at any time. You are required to make the minimum payment by the due date each month.

Credit installment loans, like a car loan, refer to one-time loans for a set amount. Your payments are for a specific amount each month, which includes interest, fees, and other charges. Once you’ve paid

What is credit history?

Credit history is the record of

how you manage and repay debts.

It includes your total debt load, the number of credit lines that have been opened, and timeliness of payments. Lenders look at credit history when deciding whether or not to offer a new line of credit, and to help set the terms of a loan.

What is a credit score?

Your credit score is a reflection of your credit history expressed as a number — one that indicates to lenders your creditworthiness. Essentially like a grade, your credit score is used to assess the likelihood that you will repay the money you borrow.

Credit scores can range from 300 to 850. The higher the score, the “more trustworthy” a borrower is considered. Credit scoring generally falls into the following ranges, according to FICO®, the leading credit scoring company: • Exceptional: 800+ • Very Good: 740-799 • Good: 670-739 • Fair: 580-669 • Poor: lower than 580 As you build your credit history, your credit score increases or decreases based on your activity in applying for credit, using your credit, and making payments.

Lenders use slightly different credit scores for different types of loans. You can find out your credit score from multiple sources, including from a credit card or other loan statements, from a non-profit credit counselor, or for a fee from a credit reporting agency. AnnualCreditReport.com is a government-authorized site for free credit reports where you can get started with your credit score research.

AnnualCreditReport.com is a government-authorized site for free credit reports where you can get started with your credit score research How is my credit measured?

Among the considerations that determine your credit score are: • Your bill-paying history, including how many credit accounts you’ve consistently paid on time.

(An easy way to make sure your bills are always paid on time is to set up automatic payments through your online banking service.)

• How many loans or credit accounts you have.

• How long your credit accounts have been open.

• How much credit you are using vs. how much you have available.

• Whether any of the credit accounts you hold are currently 30 or more days behind on payment, and how many days past due you are.

• Whether or not you have ever declared bankruptcy or been sent to collections.

• Your outstanding debt.

What is a credit report?

A credit report is a summary of

your credit history. Lenders, including banks and nonbanking financial institutions, provide information to credit bureaus. This information is then compiled into a single report that gives a detailed breakdown of how and when you pay your bills, how much debt you have, and how long you have been managing credit accounts.

Credit reports are used to verify your identity as well as to calculate your credit scores.

Why is credit important?

Credit scores are the primary

consideration used by banks and lenders when issuing credit cards and loans. Having a higher score gives the lender confidence that you will pay off your debt, and also influences the interest rate or down payment required on some loans.

If you have a high credit score and are deemed trustworthy, the interest rate or down payment is more likely to be more favorable for you.

Other benefits follow, like increases in your credit limit or in your ne-

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CONTINUED from PAGE FS16 gotiating power for other lending situations.

How do I establish and maintain credit?

There are several simple ways to start

building your credit history, including: • Opening a credit account with a local store (although first make sure that your payment history will actually be reported to a credit bureau).

• Applying for a secured credit card, which typically requires you to provide funds for a balance first, before letting you borrow a percentage of that balance.

• Asking someone with more established credit history to co-sign on an account with you, to give the lender assurance that your debt will be paid. Understand that this means your co-signer is ultimately responsible for making payments on the account if you cannot.

Once you have established a strong credit profile, you can stay in good standing by: • Making payments on time, every time.

• Avoiding making charges too close to the credit limit of your revolving accounts.

• Being mindful about formally closing accounts, which can impact your credit score depending on the specifics of your relationship with these credit accounts.

• Avoiding frequent credit application. Know that every time you apply for credit, it is reported on your credit report as an inquiry, and that multiple inquiries over a short span of time can negatively affect your credit score.

How do I protect myself while using credit?

While good credit is an import-

ant tool and resource, it’s important to stay aware of potential risks and fraud. Some tips for managing

credit carefully include: • Don’t lend out your credit cards.

• Be careful when and where you identify your account numbers, whether it’s digital, in person, or written down.

• Carry only the credit cards you need to prevent loss or identity theft.

• Always report lost or stolen cards as quickly as possible.

Remember that, as part of the United Bank community, you’re not alone in trying to understand and plan your best budgeting choices. We’re here to help you with making credit decisions that will create growing financial opportunities now and in the future.

This article is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, other advice or to imply that a particular United Bank product or service is available or appropriate for you. For specific advice you should contact a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available. Member FDIC. g

INDIVIDUAL ACCOUNTS. PERSONAL SERVICE. Personal checking and savings account options from United Bank are crafted to perform for you today and throughout your financial future. Our flexible options give you the features and benefits you need and expect, supported by outstanding customer service that meets you wherever you are.

Personal Banking Checking | Savings | Credit Cards | Lending

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

Have It When You Need It

Financial Literacy Will Lead the Way By: Theodore R. Daniels Founder and President Society for Financial Education and Professional Development, Inc. Many of us look forward to having the financial resources to live a comfortable life at each stage of our lives. We want to have resources to purchase the items and services needed and accumulate savings for unexpected expenses, retirement, and leisure. Whether you are young or old you need to have the financial knowledge to maximize your financial resources and understand the financial transactions that may arise throughout your life.

Increasing one’s financial literacy can lead the way to sustained financial well-being at each stage of your life. The earlier you learn how: 1) credit works; 2) how to develop and use a budget to control your expenses; 3) establish financial short-term, intermediate, and long-term goals that you are committed to accom-

plishing; 4) make investments for retirement and child’s college education; and protect your risk through the purchase of the appropriate insurance products the better off you will be at each stage of your life.

This will avoid living a life in a panic state, but life that is stress free.

Here are some key actions you should take at each life stage:

Increase investments and retirement savings to from pay increases to continue building your financial base. Stay on track to achieve your goals. Maintain emergency funds.

Review your spending and make adjustments, if necessary. Invest in college savings plans such as 529 College Savings Plans. Don’t make plans to sacrifice your retirement savings to pay for your child’s college education.

MillennialsAgeDetermine 18 to 34your financial values Baby-boomersand establish financial goals such as Age 51 to 69 a reduction debt. Learn how to use Identify your planned life style savings and investment vehicles to accumulate savings for purchase of a home and retirement. Limit the purchase of personal use assets and credit card use.

Generation XAge 35 to 50

upon retirement, including estimation of expected living expenses and income during retirement. Begin to reduce or limit outstanding debt, review accumulated retirement accounts (Employer contribution plans (401(k), Individual Retirement Accounts, and non-retirement accounts as well as estimated Social Security benefits.

The Silent Generation-70-87 Control reoccurring living

expenses and rate of retirement income withdrawals from your retirement accounts. Look for senior discounts and financial perks. Review your estate plan, including a review of your will and/or trust.

Whatever your age the key to having what you need when you need it to increase your knowledge of how to use personal money management concepts as well as how they are interrelated to your financial well-being.

Remember to use your money build contentment, wealth, and power.

Theodore R. Daniels Founder and President

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You can earn interest at a guaranteed rate of 4.25% APY for the first six months, with competitive returns after that. Call 800.399.5919 or learn more at sandyspringbank.com/premier *Annual Percentage Yield (APY) is accurate as of 10/04/2023. During the first 6 months after you open an account, the account will earn no less than 4.25% APY. At the end of the 6-month period, the APY will be based upon your account balance. As of 10/04/2023, the APY for corresponding account balances is as follows: $250,000 and above: 3.50%; $100,000.00 -$249,999.99: 3.15%; $50,000.00 - $99,999.00: 2.55%; $25,000.00 - $49,999.99: 1.95%; $10,000.00 - $24,999.99: 1.35%; below $10,000.00: 0.00%. This is a variable-rate account, and the rate may change any time without notice, except as otherwise set forth herein. Minimum opening deposit is $10,000 in funds not already on deposit with Sandy Spring Bank. Maximum opening deposit is $10,000,000. Fees may reduce earnings. Premier Money Market Savings is available to clients who open or maintain a Premier or Private Banking Checking account. For other provisions applicable to the account, please see our Personal Deposit Account and Electronic Banking Agreement.

1 By law, banks are permitted to limit certain types of withdrawals and transfers from your savings and money market accounts and charge an excess activity fee when you exceed such limits. The limitations apply to withdrawals by check, draft, debit card purchase or similar order (if available on the account), or telephone, or automatic or pre-authorized transfers to another of your accounts with us or to a third party. The limitations also apply to transfers made by Telephone Banking, Online Banking, or Mobile Banking and transfers from your savings or money market account to cover overdrafts. Due to federal regulation changes, we are currently not applying these limits or charging an excess activity fee.

Member FDIC. Sandy Spring Bank and the SSB logo are registered trademarks of Sandy Spring Bank. © 2023 Sandy Spring Bank. All rights reserved.

SSB-124 PMM_RateOnly_9.875x5.5.indd 1

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10/4/23 3:19 PM

As Student Loan Payments Resume, Timely Tips and Help for Borrowers 6 Key Steps from Federal Agencies

By Charlene Crowell

2. Get info about your Days before student borrowers next payment. across the nation resume student After updating your contact loan payments after a more than two-year pause prompted by the COVID-19 pandemic, a diverse group of 20 cities and counties representing more than 1.2 million people with nearly $50 billion in student loan debt sent a letter on September 21 to President Biden. Although the letter began by applauding his leadership in pursuing debt relief, it also urged even more persistent and aggressive actions.

“We must not accept a return to the failed pre-COVID status quo where nine million borrowers were in default – one borrower defaulting on their student loans every 26 seconds,” wrote the local officials that included Boston, Cleveland, Little Rock, Newark, Philadelphia, San Francisco and other locales. “Black and Latino/a borrowers have faced the greatest debt burdens and worst repayment outcomes, expanding and perpetuating racial inequality across American cities.”

The nation’s 44 million and rising student loan borrowers collectively owe an unsustainable $1.7 trillion. And this October – regardless of what the White House may yet launch, payments will become due again.

Fortunately, online resources developed by the federal government can assist borrowers to adjust to the return of payments. Moreover, many of these tools make clear borrower responsibilities, consequences for failure to make timely payments, and where needed information can be found.

For example, Federal Student Aid’s website offers useful and easy to understand tips on how borrowers should begin repayments.

Here’s a summary of its content:

info, your loan servicer alerts borrowers to three important items – payment due dates, upcoming interest, and payment amounts.

Your payment will be due no sooner than 21 days after your servicer sends the billing statement. Borrowers may also call or email their loan servicers for this information.

If loan servicer contact info is not known, borrowers are urged to find out that important information by phoning 1-800-4-FEDAID (1-800-433-3243).

3. Find out if you’re enrolled in the best repayment plan for you.

Borrowers have options on se-

lecting the best repayment plan for their circumstances. Federal Aid’s online Loan Simulator tool helps borrowers to better understand their repayment options on federal loans. Browsers using this tool are advised that its availability does not guarantee full accuracy. But for borrowers who need clarification on determining their best strategy for loan repayment, whether to consolidate their loans, or are struggling with current loan repayments, it provides useful information and direction. The Loan Simulator also offers an option to learn more about student loan limits, how your choice of school affects borrowing levels, and more.

Access the Federal Student’s Loan Simulator at: https://studentaid. gov/loan-simulator/

The nation’s 44 million and rising student loan borrowers collectively owe an unsustainable $1.7 trillion And this October – regardless of what the White House may yet launch, payments will become due again. ployment and income, family and marital status must also be documented in an updated application.

5. If you need immediate relief, contact your loan servicer ASAP. Your loan servicer is your point of contact for your loan, loan payments, and other needs.

4. Take action now if you need to lower your 6. Fully understand the difference between loan monthly payment.

Borrowers previously enrolled in delinquency and loan an income-driven repayment plan 1.Update yourcontactinfo. or IDR, but have had a change of default.

Review your Student Aid.gov If you miss a payment, your income since payments were susprofile as well as your loan servicer’s website. Failure to complete both can result failing to receive updates on your loan.

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pended, may be able to receive a new and lower monthly payment.

Specific steps are required for borrowers in this category. For instance, beyond certifying your em-

loan is delinquent. If it remains delinquent for 270 days, it is defaulted and brings specific financial penalties: a. The default status will damage

your credit score. b. You can lose your access to more student aid. c. The government can seize your tax refund, up to 15 percent of Social Security benefits, and/or your paycheck towards paying off your defaulted loan.

Beyond these resources, the Consumer Financial Protection Bureau (CFPB) recently encouraged consumers to remember filing complaints on loan servicer issues remains an option.

“As borrowers prepare for student loan payments to resume, CFPB is working to ensure that servicers follow the law and that consumers are protected,” states a September web advisory. “We will be looking closely at loan servicers’ practices, borrower outcomes, information from fellow regulators, and issues raised through consumer complaints…CFPB has a num-

ber of tools for holding student loan servicers accountable, but consumer complaints are particularly powerful because they allow us to help consumers, identify and address emerging issues, and hold companies accountable for following the law.”

Anyone desiring to register a complaint with CFPB should visit: https://www.consumerfinance. gov/complaint/. Complaints may also be made by phone weekdays between the hours of 8am and 8pm Eastern Time. Callers should expect to spend an average of 30 minutes for completion. The tollfree phone line is 855-411-3732.

Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.

THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

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AI's Role in Shaping Our Tomorrow Eric D. Bailey Bailey Wealth Advisors Recently, the buzzword artificial intelligence (AI) is on everyone’s minds, not just in the tech world but across multiple industries, including financial services. Given the growing interest and concerns surrounding AI, it would be beneficial to provide some insights into the topic and its impact on the financial services industry.

AI traces back to ancient philosophers and mathematicians, but its modern interpretation emerged in the mid-20th century. Today, AI is a branch of computer science that focuses on giving machines or computer-controlled robots the ability to execute intelligent tasks. While some applications are getting headlines today, the concept and foundational technology have a rich development history.

A brief chronology of AI highlights the progression from 1950s chess-playing computer programs to adopting machine learning for tasks such as filtering spam and enhancing search engine capabilities in the 2000s.1 By the 2010s, programmers had integrated AI into voice assistants, self-driving By the 2010s, programmers had integrated AI into voice assistants, self-driving cars, and healthcare diagnostics. More recently, AI applications have expanded to almost every industry, from weather modeling to improving remote working and learning.2 However, what does AI’s proliferation mean for our future, specifically for your interactions with me as your financial professional?

One thing is clear—AI’s capacity to quickly analyze large data sets far exceeds our human capacities. It promises to revolutionize several industries, but the notion that AI-infused machines may surpass human abilities, thus “taking over the world,” remains largely a matter of science fiction.

AI’s adoption in financial services has helped firms automate certain back-office functions, enhancing efficiency and providing more time for financial professionals to spend with clients like you. Your key financial decisions are seldom straightforward and often don’t have a simple right or wrong answer. They require a nuanced approach informed by your unique circumstances, including risk tolerance, time horizon, goals, and, of course, emotional factors.

Financial professionals bridge the gap between cold data and human emotions. We know how to balance financial data with common sense and empathy. While AI can aid in data-driven technical aspects of financial services, it lacks the human touch, which remains paramount.

Please remember that the most effective guidance requires trust, effective communication, realistic expectations, and a comprehensive understanding of each client’s financial situation. In our professional relationship, we prioritize your needs over technological advances.

As we navigate the AI wave, we may see it as the next technology that will drastically change our lives, similar to personal computers, the internet, and cell phones. It certainly has the potential to be one of the 21st century’s most transformative technologies. However, its emergence only

Eric Bailey CFP®, CMFC® eric.bailey@lfg.com 301.585.4701 Bailey Wealth Advisors http://www.baileywealthadvisors.com/

highlights the importance of the human element in decision-making processes and the unique, personalized approach a financial professional like myself can provide.

If you have questions about AI and its implications on your financial journey or other concerns, please don’t hesitate to reach out.

It’s my goal to stay ahead of these trends and provide you with the most up-to-date information about industry trends. g 1. G2.com, May 25, 2021. “A Complete History of Artificial Intelligence.”

2. MITTechologyReview.com, March 3, 2023 This material was developed and produced by FMG Suite to provide information on a topic that may be of interest.

FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.

Become a District homeowner with the help of a DCHFA down payment assistance program! www.dchfa.org/homeownership

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We’re committed to providing extensive, personalized support to help people gain the knowledge they need to make confident financial decisions.

Better Money Habits® offers free, easy-to-understand tools, which help people make sense of their money and take action to improve their financial picture.

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

Homeowner Alert! Protect your Investment and Legacy Today for everyone? No. We recommend:

By Marcia Griffin A home is more than a roof over our heads. It’s where we make memories with our loved ones. Our place of refuge from the day-to-day. And our pride as we invest in its comfort, utility, and beauty.

Homeownership is also a cornerstone of closing the racial wealth gap. At HomeFree-USA, we have been advancing economic equity since 1994 through financial education and homeownership.

Here are top tips from our decades of experience to get the best and most out of your most valuable asset.

7 ways NOT to get ripped off by a contractor.

1. Get a quote that’s too good to be true? It probably is.

Some contractors will under-bid to land the job or because they don’t have the skill to know better. Compare at least three quotes to get an accurate expected cost baseline.

2. Make sure they get any required permits.

Some contractors try to claim that permits are unnecessary or your responsibility.

Don’t be fooled! Most jurisdictions require permits for large construction projects, and the party doing the work must obtain them.

3. Don’t pay a big deposit up front.

A scammer might ask for 30-50% of the job cost up front… then disappear. “Never prepay more than $1,000 or 10% of the job total, whichever is less,” Angie’s List recommends.

4. Don’t take their word for it.

Verbal agreements don’t cut it. Require a written contract that includes who’s responsible for what, timeline, terms, and a detailed description of work, materials, warranties, and subcontractors.

5. “Unforeseen problems” spike your job cost?

Get a second and even a third opinion before moving forward. Consult a building inspector, especially if your contractor is claiming structural issues.

Choose a home equity conversion mortgage (HECM) which is federally insured.

Determine whether you can continue to pay real estate taxes, utilities, and maintenance throughout the mortgage term.

Work with an impartial educator like Cambridge, who will fully inform and prepare you. (Most legit lenders require this counseling.)

Although reverse mortgages are not risk-free, there are ways to ensure it’s safe—by being well-informed before making the decision.

Need help paying your mortgage?

Denise nearly lost her home when she found herself hospitalized, unable to work. “I had no income coming in,” she said. She fell behind on her mortgage.

Denise asked her lender for help but didn’t get the support she wanted. She attended one of our foreclosure prevention webinars. After a few months of working with us, not only did Denise catch up on her mortgage, she could pay a month ahead.

“If it wasn’t for my Homeownership Advisor at HomeFree-USA, I think I would have lost my house,” she said.

If you find yourself falling behind on mortgage payments, whether because of a job loss, illness, or any other reason, the good news is that there are trusted ways to get mortgage help: Apply to governmental programs that prevent people from losing their homes.

Access state grants and representatives that help homeowners pay down their mortgages.

Negotiate better terms with your mortgage servicer.

“There’s an answer out there and a company willing to help,” Denise advises. “Keep moving until you get the answer you need.”

HomeFree-USA has helped people of color buy and keep homes for almost 30 years, with a remarkable 0% foreclosure rate among families served. Whether you are wrestling with any of the issues in this article or looking for sound, impartial advice you can trust on refinancing, home equity loans, or purchasing another home, we are here for you.

Get quick answers to your questions at no cost or obligation to you. Schedule a free homeownership consultation at 855-493-4002 or HomeFreeUSA.org.

About Marcia Griffin Marcia Griffin, Founder and CEO of HomeFree-USA, is a recognized homeownership expert and featured guest speaker, serving as a bridge between financial institutions and 4.5 million diverse families nationwide. g

6. Don’t hire an unsolicited contractor.

If they “happen to be in the neighborhood” or can “give you a great deal on materials” from a nearby job… Be wary. Don’t hire anyone without doing your due diligence.

7. Do your homework before hiring a contractor.

Check their reviews, industry associations, and references—and for their suppliers.

Confirm licensing, insurance, and bonding, if applicable.

Is a reverse mortgage safe?

If you or someone you know are considering a reverse mortgage, you may be worried that they’re a scam, preying on elderly folks on a fixed income.

There are a lot of misconceptions about reverse mortgages. It’s a loan that doesn’t require payments… which can be especially confusing.

“When you get a reverse mortgage, you’re converting your home equity into cash,” explains Jen Cosentini, Housing Director at Cambridge Credit Counseling, a HomeFree-USA affiliate.

Are reverse mortgages safe? Yes. Are they

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Enjoy a discount with Citi’s Mortgage Relationship Pricing *

for the love of

feeling right at home.

SM

for the love of progress

An offer for new or existing Citi banking customers

$500 off

typical fees and expenses due at final closing

-OR-

an interest rate discount for the life of the loan

Ask how your clients can take advantage of Mortgage Relationship Pricing Anthony Ogun Home Lending Officer 301-332-6017 anthony.ogun@citi.com citi.com/anthonyogun NMLS# 132153

William Glacken Home Lending Officer 408-602-8859 william.glacken@citi.com citi.com/williamglacken NLMS# 1011993

* Citi Mortgage Relationship Pricing — A Citibank deposit account is required to receive the interest rate discount or closing cost credit.

Automated monthly transfers of the mortgage payment from a Citibank Deposit Account using automated drafting will be required. Actual interest rate discount or closing cost credit will depend on the level of the Citi Eligible Balances, which will be verified after final loan approval.

Deposit Account Balances must be in the account five (5) Business Days following final loan approval and Investment Account balances must be in the account six (6) Business Days following final loan approval. Citi eligible accounts include a personal, consumer Citibank Deposit Account in which the borrower is a direct signer, Citibank IRAs, and Investments held in linked Citigroup Global Markets Inc. (“CGMI”) accounts. The borrower must be an account holder on investment accounts. IRA and annuity positions shown on linked CGMI Account statements Citi Eligible Balance Relationship Pricing Benefit are eligible (except tax qualified annuities under sections 401, 403, or 457 of the Internal Revenue Code). Balances from Citibank Business / Commercial accounts, ERISA accounts, Keogh accounts, Bank Collateral accounts, Foreign accounts, $1 – $49,999.99 $500 off closing cost Fiduciary accounts, and Trust accounts where the borrower is only listed as the Beneficiary are excluded. All Custodial type accounts are excluded with the exception of Custodial IRA accounts through Citibank or Pershing LLC where the $50,000 – $199,999.99 1/8% (0.125%) off interest rate borrower(s) is the beneficiary, which are eligible unless otherwise noted. Citibank IRAs that are not linked to a Citibank Deposit Account are excluded. $200,000 – $499,999.99 1/4% (0.250%) off interest rate The closing cost credit offer will be applied at closing and may not be used prior to closing. In Texas, the credit may not result in you receiving cash back. $500,000 – $999,999.99 3/8% (0.375%) off interest rate If you are interested in Citi’s banking account relationship offers, please contact your Home Lending Officer or Mortgage Representative. Speak to your loan officer about whether the relationship offer is best for you. $1,000,000 – $1,999,999.99 1/2% (0.500%) off interest rate Citibank Mortgage Relationship Pricing for Citibank account holders can only be applied prior to loan closing and is subject to account and balance validation. Citibank Mortgage Relationship Pricing is subject to change without notice. $2,000,000 or more 5/8% (0.625%) off interest rate Glossary of terms for this offer: Business Day means Monday through Friday and does not include federal holidays; Eligible Balances means total funds showing in the account at the time we verify the balances less any funds we determine you will need for a down payment or closing costs; Deposit Account means a Citibank personal checking and/or savings account as well as certificates of deposit and money market accounts; Investment Account means IRAs and investments held in Citigroup Global Markets Inc. accounts.

Terms, conditions and fees for accounts, programs, offers, products and services are subject to change without notice at any time. Offer may be modified or withdrawn at any time without notice. Offer cannot be combined with other offers, except when applied with specific Community Lending Programs. Offers are not applicable on Home Equity Loans and Lines of Credit. This is not a commitment to lend.

This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Investment products are offered through Citigroup Global Markets Inc. (“CGMI”), Member SIPC (http://sipc.org). Citibank and CGMI are affiliated companies under the common control of Citigroup Inc. © 2023 Citibank, N.A. NMLS# 412915. Member FDIC and Equal Housing Lender. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.

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THE WASHINGTON INFORMER 2023 FINANCIAL LITERACY SUPPLEMENT / OCTOBER 12, 2023 / WWW.WASHINGTONINFORMER.COM

9/12/2023 1:09:41 PM

Strength in Working Together The Black homeownership rate has seen the largest percentage point increase of any racial or ethnic group since the end of 2019, moving from 42.7% to 45.2% in the third quarter of 20221.

As the leading large bank lender to African Americans Wells Fargo understands that our strength comes from working together across the country to achieve racial equity in homeownership.

Our close collaboration with prominent African American civil rights organizations, real estate trade groups, and housing counseling agencies helps bring home buying information and resources to more communities.

At Wells Fargo we also continue to optimize our teams to better serve you and help you create a home buying journey that is right for you and your family.

Scan to learn more about our Home Lending Priorities

1 Wells Fargo Economics team Special Commentary: Gaining Economic & Financial Ground in the Black Community Since COVID Information is accurate as of the date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2023 Wells Fargo Bank, N.A. NMLSR ID 399801 AS5759580 Expires 04/2024

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