1
Money Smart News Spring 2009
IN THIS ISSUE
Message from the FDIC
New FDIC Brochure to High-
light Foreclosure Rescue
Scams
Launch of Hmong Translation
of Money Smart
Big Results for Small Business-
es: More Success Stories from
Financial Education
FDIC Releases Survey Case
Studies of Banks’ Efforts to
Serve “Underserved” Consum-
ers
Updated Guidance on Commu-
nity Reinvestment Promotes
Foreclosure Prevention Educa-
tion
New Federal Programs to Help
Mortgage Borrowers Facing
Payment Problems
The FDIC Issues Tips to Help
Consumers Manage Their Mon-
ey in Good Times and Bad
New Online Tool Reinforces
Importance of Paying Down
Credit Card Debt
Message from the FDIC
April once again was designated Financial Literacy Month by Congress.
During this month, government agencies, schools, businesses and other
organizations were encouraged to engage in programs or activities to
raise the nation's awareness of the importance of financial education. With
the nation's economic crisis now spanning about 18 months, we have
even more reasons to promote financial education not just in April but year
-around, and we hope this issue of Money Smart News will support your
efforts in this area.
For example, the FDIC is releasing a new brochure to help financial educators, the me-
dia and others raise consumer awareness of mortgage rescue scams. This brochure
will highlight major scams and direct consumers to legitimate sources of free, safe
help.
The FDIC has also issued a new translation of our Money Smart curriculum – our sev-
enth language – in Hmong. As of the last Census in 2000, more than 200,000 persons
of Hmong origin were residing in the United States, representing a 97 percent increase
from 1990, and the numbers are expected to increase in the next Census. The FDIC is
pleased to offer this growing community a Hmong version of Money Smart, particularly
so that first-generation immigrants can quickly learn about banking services in the U.S.
and realize the benefits of using mainstream financial services.
Among the challenges facing our nation in the current financial environment, ensuring
access to credit for consumers and businesses is certainly a priority. This issue of our
newsletter presents tips on how financial institutions and financial educators can meet
the credit-related needs of some very large markets -- small business owners, low- and
moderate-income consumers, and homeowners facing mortgage problems serious
enough that they face foreclosure.
We also are calling attention to a new online tool -- a credit card repayment calculator
from the Federal Trade Commission -- that Money Smart educators can use to help
consumers understand the costs of carrying a balance on their charge cards.
Although April is financial education month, educators can help consumers handle their
finances more effectively year-round. Consider the FDIC a partner in your efforts. As
always, if you have questions or suggestions about, contact your FDIC Regional Com-
munity Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
New FDIC Brochure to Highlight Foreclosure Rescue Scams
In May, the FDIC plans to publish a brochure on foreclosure rescue scams, which tar-
get homeowners having trouble paying their mortgage and offer false, and very costly,
promises of hope. The FDIC's new brochure will highlights warning signs for consum-
ers and direct them to legitimate sources of free counseling. The brochure will be avail-
able at http://www.fdic.gov/quicklinks/consumers.html.
Money Smart News Spring 2009
IN THIS ISSUE
Message from the FDIC
New FDIC Brochure to High-
light Foreclosure Rescue
Scams
Launch of Hmong Translation
of Money Smart
Big Results for Small Business-
es: More Success Stories from
Financial Education
FDIC Releases Survey Case
Studies of Banks’ Efforts to
Serve “Underserved” Consum-
ers
Updated Guidance on Commu-
nity Reinvestment Promotes
Foreclosure Prevention Educa-
tion
New Federal Programs to Help
Mortgage Borrowers Facing
Payment Problems
The FDIC Issues Tips to Help
Consumers Manage Their Mon-
ey in Good Times and Bad
New Online Tool Reinforces
Importance of Paying Down
Credit Card Debt
Message from the FDIC
April once again was designated Financial Literacy Month by Congress.
During this month, government agencies, schools, businesses and other
organizations were encouraged to engage in programs or activities to
raise the nation's awareness of the importance of financial education. With
the nation's economic crisis now spanning about 18 months, we have
even more reasons to promote financial education not just in April but year
-around, and we hope this issue of Money Smart News will support your
efforts in this area.
For example, the FDIC is releasing a new brochure to help financial educators, the me-
dia and others raise consumer awareness of mortgage rescue scams. This brochure
will highlight major scams and direct consumers to legitimate sources of free, safe
help.
The FDIC has also issued a new translation of our Money Smart curriculum – our sev-
enth language – in Hmong. As of the last Census in 2000, more than 200,000 persons
of Hmong origin were residing in the United States, representing a 97 percent increase
from 1990, and the numbers are expected to increase in the next Census. The FDIC is
pleased to offer this growing community a Hmong version of Money Smart, particularly
so that first-generation immigrants can quickly learn about banking services in the U.S.
and realize the benefits of using mainstream financial services.
Among the challenges facing our nation in the current financial environment, ensuring
access to credit for consumers and businesses is certainly a priority. This issue of our
newsletter presents tips on how financial institutions and financial educators can meet
the credit-related needs of some very large markets -- small business owners, low- and
moderate-income consumers, and homeowners facing mortgage problems serious
enough that they face foreclosure.
We also are calling attention to a new online tool -- a credit card repayment calculator
from the Federal Trade Commission -- that Money Smart educators can use to help
consumers understand the costs of carrying a balance on their charge cards.
Although April is financial education month, educators can help consumers handle their
finances more effectively year-round. Consider the FDIC a partner in your efforts. As
always, if you have questions or suggestions about, contact your FDIC Regional Com-
munity Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
New FDIC Brochure to Highlight Foreclosure Rescue Scams
In May, the FDIC plans to publish a brochure on foreclosure rescue scams, which tar-
get homeowners having trouble paying their mortgage and offer false, and very costly,
promises of hope. The FDIC's new brochure will highlights warning signs for consum-
ers and direct them to legitimate sources of free counseling. The brochure will be avail-
able at http://www.fdic.gov/quicklinks/consumers.html.
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Money Smart News Spring 2009
Launch of Hmong Translation of Money Smart
The FDIC's Money Smart financial education curriculum is now available in seven languages with the addition of the
Hmong version in April. The participant guides, handouts and overheads in Hmong are suitable for instructor-led classes.
To order a copy, visit https://vcart.velocitypayment.com/fdic/.
Big Results for Small Businesses: More Success Stories from Financial Education
The credit needs of small businesses have not gone unnoticed, as new federal initiatives provide tax incentives and fi-
nancing opportunities to help these companies survive and create jobs. That's why Money Smart News is highlighting
financial education for would-be entrepreneurs and other small business owners. To learn more about how financial edu-
cators can help their students start or more effectively run a small business, see the latest installment of our Money
Smart "Success Stories." ( Read this story and tips.)
FDIC Releases Survey, Case Studies of Banks' Efforts to Serve "Underserved" Consumers
Results of the FDIC's first nationwide survey of banks' efforts to serve unbanked and underbanked individuals, issued in
February, include case studies of 16 banks that appeared to be successful in developing business opportunities by
reaching out to these consumers. These case studies may provide financial educators with ideas about how to link finan-
cial education to other efforts to reach underserved consumers. To read the report, go to http://www.fdic.gov/
unbankedsurveys.
Updated Guidance on Community Reinvestment Promotes Foreclosure Prevention Education
The four federal banking regulators in January issued new and revised "Questions and Answers" about the agencies'
Community Reinvestment Act regulations, including guidance that encourages financial institutions to participate in mort-
gage foreclosure prevention programs, such as credit counseling for low- and moderate-income borrowers. For more
information, visit http://www.fdic.gov/news/news/press/2009/pr09003.html.
New Federal Programs to Help Mortgage Borrowers Facing Payment Problems
Financial educators working with homeowners facing mortgage payment problems should be aware of new federal loan
refinancing and modification programs. Educators can refer homeowners to http://www.makinghomeaffordable.gov/ to
find out if they may be eligible for help under the Obama Administration's new "Making Home Affordable" programs. Al-
so, the federal bank, thrift and credit union regulatory agencies continue to encourage all financial institutions that service
or hold residential mortgages to participate in the loan modification program. Financial educators should encourage con-
sumers having problems making their mortgage payment to seek help quickly from free, legitimate sources.
The FDIC Issues Tips to Help Consumers Manage Their Money in Good Times and Bad
The Winter 2008-2009 FDIC Consumer News, entitled "Managing Your Money in Good Times and Bad," features tips to
help consumers spend less, save more, protect against fraud and borrow wisely at any time, but especially during a diffi-
cult economy. The FDIC encourages financial institutions, financial educators and others to distribute the information
in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing their name or logo. Educa-
tors and their students can subscribe for free. See the latest newsletter and subscription information at www.fdic.gov/
consumers/consumer/news/cnwin0809.
New Online Tool Reinforces Importance of Paying Down Credit Card Debt
A new resource from the Federal Trade Commission (FTC) can be a useful complement to the FDIC's Money
Smart module "Charge It Right," which discusses the importance of paying more than the minimum payment due on a
credit card bill. The FTC has posted on its Web site a calculator that helps consumers understand how long it would take
to pay off a credit card balance if the cardholder makes only the minimum payment. Find the new calculator at http://
www.ftc.gov/creditcardcalculator.
Money Smart News Spring 2009
Launch of Hmong Translation of Money Smart
The FDIC's Money Smart financial education curriculum is now available in seven languages with the addition of the
Hmong version in April. The participant guides, handouts and overheads in Hmong are suitable for instructor-led classes.
To order a copy, visit https://vcart.velocitypayment.com/fdic/.
Big Results for Small Businesses: More Success Stories from Financial Education
The credit needs of small businesses have not gone unnoticed, as new federal initiatives provide tax incentives and fi-
nancing opportunities to help these companies survive and create jobs. That's why Money Smart News is highlighting
financial education for would-be entrepreneurs and other small business owners. To learn more about how financial edu-
cators can help their students start or more effectively run a small business, see the latest installment of our Money
Smart "Success Stories." ( Read this story and tips.)
FDIC Releases Survey, Case Studies of Banks' Efforts to Serve "Underserved" Consumers
Results of the FDIC's first nationwide survey of banks' efforts to serve unbanked and underbanked individuals, issued in
February, include case studies of 16 banks that appeared to be successful in developing business opportunities by
reaching out to these consumers. These case studies may provide financial educators with ideas about how to link finan-
cial education to other efforts to reach underserved consumers. To read the report, go to http://www.fdic.gov/
unbankedsurveys.
Updated Guidance on Community Reinvestment Promotes Foreclosure Prevention Education
The four federal banking regulators in January issued new and revised "Questions and Answers" about the agencies'
Community Reinvestment Act regulations, including guidance that encourages financial institutions to participate in mort-
gage foreclosure prevention programs, such as credit counseling for low- and moderate-income borrowers. For more
information, visit http://www.fdic.gov/news/news/press/2009/pr09003.html.
New Federal Programs to Help Mortgage Borrowers Facing Payment Problems
Financial educators working with homeowners facing mortgage payment problems should be aware of new federal loan
refinancing and modification programs. Educators can refer homeowners to http://www.makinghomeaffordable.gov/ to
find out if they may be eligible for help under the Obama Administration's new "Making Home Affordable" programs. Al-
so, the federal bank, thrift and credit union regulatory agencies continue to encourage all financial institutions that service
or hold residential mortgages to participate in the loan modification program. Financial educators should encourage con-
sumers having problems making their mortgage payment to seek help quickly from free, legitimate sources.
The FDIC Issues Tips to Help Consumers Manage Their Money in Good Times and Bad
The Winter 2008-2009 FDIC Consumer News, entitled "Managing Your Money in Good Times and Bad," features tips to
help consumers spend less, save more, protect against fraud and borrow wisely at any time, but especially during a diffi-
cult economy. The FDIC encourages financial institutions, financial educators and others to distribute the information
in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing their name or logo. Educa-
tors and their students can subscribe for free. See the latest newsletter and subscription information at www.fdic.gov/
consumers/consumer/news/cnwin0809.
New Online Tool Reinforces Importance of Paying Down Credit Card Debt
A new resource from the Federal Trade Commission (FTC) can be a useful complement to the FDIC's Money
Smart module "Charge It Right," which discusses the importance of paying more than the minimum payment due on a
credit card bill. The FTC has posted on its Web site a calculator that helps consumers understand how long it would take
to pay off a credit card balance if the cardholder makes only the minimum payment. Find the new calculator at http://
www.ftc.gov/creditcardcalculator.