What Realtors should know about ‘golden ticket’ for homebuyers
HUD leader explains the benefits of housing counseling and the “critical role” of agents, says the agency has no “official position” on the NAR settlement.
Housing counseling is a "golden ticket" that every real estate professional — and consumer — should know about, whether they are struggling to pay their mortgage or looking to stretch their budget as far as possible to buy their dream home.
"There are so many mortgage programs today," said David Berenbaum, deputy assistant secretary for housing counseling at HUD, aka the Department of Housing and Urban Development.
From helping people navigate down-payment assistance options to special mortgage programs and more, counselors — and Realtors — "play a critical role" in supporting housing affordability and fairness, Berenbaum said. It's a challenge he knows well, as the former CEO of the Homeownership Preservation Foundation, which has helped millions of Americans stay in their homes even when facing difficult economic times.
Berenbaum spoke with Real Estate Insiders Unfiltered podcast hosts James Dwiggins and Keith Robinson during a special Drive with NAR event recorded earlier this month at NAR NXT. Here are some other takeaways from their conversation:
The post-NAR settlement landscape: HUD "has not taken an official position yet," on the potential implications of the settlement, which requires agents to get a signed compensation agreement from buyers before touring a home. But it's a hot topic, Berenbaum said.
"That small difference in having to pay potentially for a broker who is representing you definitely could make a difference in homeownership for many low- to moderate-income consumers," Berenbaum said. "There's also a lot of discussion by down-payment assistance programs right now. Is it appropriate for down-payment assistance programs to be paying for professional fees?"
There are "a lot of open questions right now," Berenbaum said, but in his view, "having a licensed real estate professional, a Realtor, is a benefit to all consumers. They know the community. They can answer questions. They often have relationships with other partners," like a lender or valuation professional.
Fairness as good business: "We have to acknowledge that this nation each and every day is becoming more diverse," Berenbaum said. "So not only is it the law, it's just good business to embrace diversity, right?"
That means doing things like finding ways to speak to people in their native language. "In my office, if you call our 800 number to speak with a housing counselor, we offer interpreters in 300 languages. And so the concept of embracing cultural diversity, whether someone has been living in a community for 20 years or is new to our nation, we all have to be thinking out of the box to do it together."
It's not about politics: Talking about housing affordability — or for that matter, the role of the federal government — can get political quickly, but Berenbaum made clear his role is nonpolitical, as mandated by Congress. He's focused on helping people become homeowners, stay homeowners, and learn about the people and programs that can help them.
"There's a wealth of responsible information on the internet, whether it's through going to the National Association of Realtors website, a website such as Fannie Mae or Freddie Mac, or HUD's own website at hud.gov," Berenbaum said.
Speak with multiple people, he added, and make sure you understand each other. "I think that working with a professional in any area trust is a big part of the equation, but also make sure they're knowledgeable of your needs and respect that."