| 3,371 people were housed in emergency facilities when they found themselves without a home. |
| 7,132 area youth showed an increased knowledge of healthy behaviors such as avoiding drugs, alcohol and early sexual activity. |
| 11,037 people received crisis counseling in times of need. |
"Be the change you want to see in the world."
-Mahatma Gandhi
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Ohio’s declining
economy and changing labor needs are locking out those at the bottom of
the economic ladder with the least finance options and/or skills.
Also the banking, foreclosure, and predatory lending crisis are having
a significant negative effect in the low-to-moderate income (LMI)
communities. There should be an equitable and just distribution
of funds/resources to assist those who need it.
Issue: Financial
Stability
Predatory
lending practices and foreclosure policies have to be stopped.
For borrowers there is also a need to increase awareness and education
about prudent borrowing practices and where they should seek
recourse. The problem has received attention from Congress and
the change in political parties in Columbus should provide a more
receptive consideration of regulation and remediation. Financial
institutions, corporations and businesses should be involved in framing
the dialogue, information outreach and proposed actions to provide
resources and offer products that will help persons/families in the
low-to-moderate communities (LMI).
Issue:
Continuing Foreclosures and Severely Depressed Housing Market
The
worsening foreclosure and late payment figures continue to grow as the
country is on the edge of a recession or in one already. The wave
of foreclosures threatens to deepen the already depressed housing
market (current projections based on adjustable rate mortgages trend
increases throughout 2010). The impact of unemployment on
financial stability, the homes people are forced out of, the declining
mortgage interest rates and buyer hesitancy due to job uncertainty all
add to the cumulative affect of a depressed economy locally, across the
state and nationally. Keep or eliminate? (Tighter credit has
thwarted would-be home buyers, aggravating problems in the housing
market. Many homeowners with adjustable rate mortgages are still
facing steep monthly payment hikes. Experts estimate some 2
million loans nationwide are due to reset at higher rates in the next 6
months. Preliminary plans are underway between the City of Dayton
and Montgomery County which will pool resources to assist persons
facing foreclosure.
Issue: PayDay Loan
Offices are Increasing in the State of Ohio
Borrowers
end up in a never-ending continuous cycle of owing their paychecks to
the neighborhood payday lending store. The payday loans are
having a huge impact on the consumers' ability to make their payments
and to live day-to-day, because they continually owe on their loans to
the payday offices and with the increased amount of interest accruing
each week. Statewide the number of payday lending outlets
exploded from 107 to 1996 to 1,554 in 2007. The Coalition on
Homelessness and Housing in Ohio successfully supported state
legislation to address payday lending which capped the interest rate at
28 percent. Annual rates now can reach as high as 391
percent. Since the passage of PayDay loan legislation, pay
day businesses have discovered a loophole that allows them to charge
higher interest rates for short-term loans (two week period or
less).
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CON |
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Ohio reported one foreclosure filing for every 290 households.
°
The state had 17,276 filings in November of 2007, up nearly 136% from
October 2006.
° The State of Ohio was
ranked 1st in the nation for foreclosures as of November 29, 2007.
°
As of February 14, 2008, Dayton came in 15th nationwide for highest
level of unemployment.
° Montgomery
County had 5,076 filings in 2006, up 25.3% from 2005, and filings
continue to climb each month.
° The
delinquency rate for all mortgages nationwide climbed to 5.82% in the
fourth quarter of 2007, the highest since 1985.
°
More than 35,000 borrowers in the Miami Valley, including 17,015 in
Montgomery County were found to be paying high fees to payday lenders
in 2006.
° Montgomery County ranked
fourth in the state in both loan fees and the number of "trapped
borrowers" (those who took five or more high-interest payday loans a
year).
° By 2006, payday loan offices
had spread to all but two of Ohio's 88 counties. 35 of the counties
have more than ten locations.
° The impact of a depressed economy and the foreclosure crisis
continues to reduce the net worth of Ohio citizens.
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Predatory lending legislation was successfully enacted in the Columbus
statehouse and nationwide. Example:
Dayton's anti-predatory lending ordinance adopted in 2001 was struck
down in 2004 by the 2nd District Court of Appeals.
°
American Financial Services has won lawsuits against municipal lending
laws in several states.
° Continued loss of
manufacturing jobs in Ohio, a transforming job market, and a change in
the skills required to obtain a job (to more technology-based
positions) are also possible causes of the eroding economy and decrease
in the ability to replay mortgages and other debt.
°
State budgets are strained by other priorities, such as education, the
state penal system, health care issues, etc.
°
State budgets are negatively impacted by the decline in revenue.
°
Tendency to blame predatory lending, specifically for the current
mortgage crisis, when other factors are also involved.
°
Diminished access to credit and need for some limited sub-prime
lending. Most access to sub-prime lending has disappeared due to the
negative repercussions of the mortgage crisis.
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Position:
Pro
Therefore,
United Way of Greater Dayton Area will support efforts regarding
financial stability legislation at the local, state and federal level,
continue to advocate for the elimination of predatory lending practices
and work to promote laws and policies that would assist persons to work
their way out of foreclosure situations. United Way should also
advocate for ways to help stimulate the local economy move away from
the current paralyzed market to positive financial activity. All
of these efforts should encompass our tri-county area.
Action:
United Way should devote some staff and volunteer resources to
this issue. United Way volunteer leadership and staff will pursue
opportunities to meet with elected officials, other funders and service
providers to strategize about and advocate for increased financial
stability.
Adopted
by United Way of the Greater Dayton Area Board of Directors - 2008.
Revised March 2009.
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