May 2015 Newsletter
RAISE Texas News
Register Now: Deadline Approaching for the Advanced Financial Coaching Training in June
RAISE Texas is partnering with TSAHC to offer HO370- Advanced Financial Coaching- Taking Your Practice to the Next Level on June 1-3, 2015 in San Antonio. Registration is now open for the training but you only have until May 15th to sign up for a spot in the class. The training is being offered for only $75 thanks to our generous sponsors: The Federal Reserve Bank of Dallas- San Antonio Branch, BB&T, J. P Morgan Chase Foundation, Bank of America, and Department of Housing & Community Affairs. Also, the final day to reserve a hotel room under the room block (use code: G-TAHC) is Friday, May 8th. Click here for more information about the training and hotel accommodations. We hope to see you there!
The 2015 Legislative Session Policy Update
Over the past two weeks many of the bills that we are tracking have been heard in House or Senate committee public hearings. Below is a quick update of the bills that are moving through the legislature this session. For a comprehensive look at the stage of each bill we are following, please visit our Texas Legislation page.
- Savings Programs and Post-Secondary Education/College Access
- HB 1628: Relating to authorizing a credit union or other financial institution to conduct savings promotion raffles. Passed favorably as substituted out of the Investment & Financial Services Committee, and was sent to Local & Consent Calendar on April 21, 2015.
- HB 3987: Relating to programs in public schools designed to facilitate planning and savings for higher education and facilitate personal literacy instruction. Passed favorably as substituted out of the Public Education Committee on April 28, 2015.
- Payday, Auto Title, and Consumer Loans Regulations
- Most of the major payday and auto-title loan reform bills had public hearings over the last two week, but all were left pending in committee.
- Additional bills that are smaller in scope or relate to the regulatory authority (‘cleanup bills”) of the Office of the Consumer Credit Commissioner (OCCC) are moving forward in both the House and Senate.
- Financial Education, Financial Accounts and Related Services
- SB 1664: Relating to the establishment of the Texas Achieving a Better Life Experience (ABLE) Program; authorizing the imposition of fees. Passed favorably out of the Senate and was referred to the House Human Services Committee on May 1, 2015.
- HB 1626: Relating to the designation of certain areas of banking development districts to encourage the establishment of financial institution branches in those areas. Passed favorably as substituted out of the Investment & Financial Services Committee, and was placed on the General State Calendar for May 7, 2015.
- EITC and Tax Preparation
- HB 322: Relating to the regulation of persons who facilitate the issuance of tax refund anticipation checks. Considered in a public hearing in the Investments & Financial Services Committee on April 15, 2015, and the bill was left pending.
Texas News
Texas’ Alternative Payday Loan Highlighted in Article
The National Alliance of Community Economic Development Associations (NACEDA) highlighted the tremendous work of Nick Mitchell-Bennett, executive director of the Community Development Corporation of Brownsville, on developing the Community Loan Center model to provide safe, small-dollar loans so families don’t have to go to payday lenders. To date, they have issued over 4,000 loans up to $1,000, and these loans are now available in other parts of the state. Community Loan Centers have launched in Houston, Austin, the Brazos Valley and Dallas. Click here to read about the creation of the Community Loan Center, or visit www.tccapital.org/community-loan-center-of-texas.html to find more information about how to bring a Community Loan Center to your community.
New Report: Texas isn’t Producing Enough College Graduates to Meet Employer Needs
Center for Public Policy Priorities (CPPP) recently released a new report, Keeping College Within Reach: How Texans Can Move More Low-Income and Adult Students through College, showing that Texas is losing its higher education competitive edge. By 2020, 62 percent of jobs in Texas will require some form of postsecondary education, but only one-third of prime working-age adults today have an Associate’s Degree or higher. Without significant changes, our state will continue to rank near the bottom when it comes to adults earning an Associate’s Degree or higher. There are several challenges facing college students in Texas:
- Economically disadvantaged students are three times less likely than their more well-off peers to complete a college degree;
- The number of older students (those who start college at 25 or older) who attend part-time is increasing, and due to their need to balance school, work, and family requirements, only about one-third graduate within six years;
- Declining state support for higher education has contributed to soaring tuition rates (286 percent between 1990-2010), making college costs out of reach for many, and forcing others to take on high amounts of student loan debt to cover costs.
Read the entire report here.
Texas Organization Part of New A&O Network Learning Opportunity
The YWCA of Metropolitan Dallas is one of seven organizations selected for a new 18-month Learning Partnership launched on April 1 by the Assets & Opportunity Network of CFED. This partnership will combine tailored technical assistance and peer learning among Network members to improve integration of financial capability services both within multi-service organizations and externally among community partners, as well as identify learnings to share with the field. RAISE Texas would like to congratulate the YWCA on this opportunity and we look forward to hearing more in the future.National News
Funding Opportunity: Assets for Independence (AFI) Demonstration Program
The Administration for Children and Families (ACF) Office of Community Services (OCS) is seeking application for the Assets for Independence (AFI) demonstration program.
AFI enables community-based nonprofits and government agencies to implement asset building projects serving low-income individuals and their families. AFI grantees enroll participants to save earned income in special-purpose, matched savings accounts called Individual Development Accounts (IDAs). Every dollar that a participant deposits into an AFI IDA is matched (from $1 to $8 in combined federal and non-federal funds) by the AFI project, promoting savings and enabling participants to acquire a lasting asset.
AFI participants use their IDAs and matching funds for one of three allowable assets:
- Purchase a first home;
- Capitalize or expand a business for self-employment; or
- Fund post-secondary education or training.
AFI grantees also assist participants in obtaining the skills and information necessary to achieve economic self-sufficiency. Grantees are encouraged to tailor the strategies and services they offer to the needs of their project participants and the opportunities in their community. The awards of up to $1 million cover a 5 year project period.
Application Deadline: June 15, 2015
View information about resources, trainings, and other assistance for grantees and potential applicants is posted on the AFI Resource Center website. View the AFI Funding Opportunity Announcement.
Federal Law Discourages Consumers from Learning about Credit Reports and Scores
A new report, Is CROA Choking Credit Report Literacy?, from the Policy and Economic Research Council (PERC) and Take Charge America Institute (TCAI) found that the Credit Repair Organizations Act (a federal law), actually discourages consumers from learning more about their credit reports and scores. “This report finds that consumers who used an individualized credit education product experienced greater improvements in credit scores compared to those who received generic education materials,” said Dr. Michael Turner, president and CEO of PERC and one of the study’s co-authors. “Unfortunately, dated financial regulations create obstacles that deter significant numbers of consumers from using credit education products.” Recent court interpretations of the Credit Repair Organizations Act resulted in the reclassification of core credit bureau services including credit monitoring, credit education, identify verification as credit repair activities. These decisions have put the Credit Repair Organizations Act at odds with policy objectives in both the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act that hope for significant financial education roles for the three nationwide consumer reporting agencies, Equifax, Experian, and TransUnion. Click here to read the report.
Nonprofit Counselors can Share Purchased Credit Score with Their Clients
The Consumer Financial Protection Bureau (CFPB) announced that the three large credit bureaus are changing their policies to allow non-profit counselors to share the credit scores they purchased with their clients. Experian is also updating its policy to allow the non-profit counselors to share the actual credit reports they purchase with their clients. These policy changes will allow many consumers to have access to their credit scores and credit reports. Click here to read more.
White Paper Discusses Results of Rent Reporting for Credit Building Pilot
Credit Builder’s Alliance released a new white paper discussing the results of their Power of Rent Reporting Pilot. This pilot was designed to support and test a new credit building program meant to catalyze the power of rent reporting as a viable option for low-income affordable housing residents to build positive credit histories and financial capability. A late housing payment can damage the credit of renters and homeowners alike, but only on-time mortgage payments would help build positive credit. Click here to read the white paper to see how renters can now build positive credit by paying their rent on time.
