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Justin Fitzhugh

The CFPB Announces Plans for a Financial Coaching Program

Thursday, September 11, 2014 - Article by: Justin Fitzhugh - Nations Lending Corporation - Message

The Consumer Financial Protection Bureau, CFPB, announced its plan to launch a financial coaching program for veterans and economically vulnerable consumers. The Bureau requests commentary from stakeholders, which will be used as part of the authorization request from the Office of Management and Budget for the program. The financial coaching would likely direct clients to engage in Housing Counselling sessions whenever they face homeownership troubles, or want to finance the purchase of their home through a mortgage.

The program will offer direct, one on one, financial coaching to program participants for a three year period. The Bureau proposes to collect information from program administrators, delivery agents, and clients to understand and evaluate the effectiveness of the program.

The CFPB would need to collect data on three levels:

  1. Administrative data collected about clients by financial coaches for programmatic purposes
  2. Interview data collected by evaluators from key informants such as coaching clients, financial coaches and program administrators
  3. Self-reported survey data from coaches and coaching clients

Information collected would include a combination of the following data:

  • personal information: basic contact and demographic information
  • performance metrics: results
  • client-level outcomes: progress towards financial goals or other relevant outcomes
  • programmatic and organizational outcomes

The program is intended to help transitioning veterans and economically vulnerable consumers. Transitioning veterans are servicemen who leave active duty and are in the process of incorporating into civilian life. Transitioning veterans may be in the process of finding a job and/or facing a housing crisis. Economically vulnerable consumers may be any of the 49 million people who live below the poverty line, and any of the 68 million who are financially underserved.

In a blog post released by the Bureau last summer, CFPB said With a potential drawdown of active-duty military forces in the next few years, these numbers could increase over time.... Our project aims to provide financial coaching services at critical points in consumers lives as they move along the path to financial stability. That includes veterans transitioning to civilian life, along with their spouses and surviving spouses, and economically vulnerable consumers seeking assistance from social service providers.

The program will be placed where consumers already receive other social services like job training, Housing Counselling, etc.

I LIKE THE IDEA OF ONE ON ONE FINANCIAL COACHING; particularly if we are facing a potential influx of servicemembers from an increased drawdown like the CFPB said in Summer 2013, and given that we have many recent college graduates looking for jobs. I think financial coaching will enable many of these people to take on a mortgage and become homeowners. Not only that, but a nice side effect of a program like this is the institutionalization of counselling and coaching consumption. If we want to lower our consumption of trinkets, we need to establish occupational channels that allow us to exchange knowledge and guidance for income. Self reliance has been one of our greatest limitations, and I applaud the Governments sponsorship of a program that will prompt us to seriously consider coaching and counselling can add value to a persons life.

Submit your feedback on this proposal through the Federal Registeres website:



Through our mortgage branch opportunities, we help our branch partners grow their referral business. To help loan officers communicate with realtors and manage borrowers expectations, Nations Lending Corporation is committed to keeping partners in the loop through all stages of the approval process. It is our intention to promote homeownership. Although we are not a net branch company, and we dont offer net branch opportunities, our partners benefit from bundled solutions that help them build sustainable businesses. Please visit our website to learn more

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