The COVID-19 pandemic has had ongoing negative impacts on renters facing housing insecurity. A study by the Joint Center for Housing Studies of Harvard University describes the overlapping set of challenges that renters have faced through COVID-19, with half of renters losing income through joblessness and reduced hours, and a full 40% of renters losing half of their income. In this environment, renters relied on eviction moratoriums and other financial assistance programs to stay in their homes during the pandemic. However, the federal eviction moratorium recently ended, on August 21, 2021.

SpringFour is aware that tenants all over the country are very concerned about the end of the federal eviction moratorium. We know that families are in need of support systems and resources in order to avoid eviction or utility shutoff.  To this end, SpringFour has been following the needs of renters closely, and has seen a major uptick in demand for rental resources. Rental Resources is the top category of referrals for S4pro in 2021, accounting for 18% of referrals–up from being the 5th most used S4pro category in 2020, with 8.5% of referrals. The 2nd most used S4pro category is Heating and Utility Costs, accounting for 11% of referrals in 2021. This is also a crucial lifeline for families making difficult decisions about paying for utilities or rent.

“My client was struggling with making her rent payment because of the COVID19 Pandemic. The SpringFour referral I gave her helped her catch up on her rent in a state that no longer had a moratorium on evictions.  She was so grateful.” –Counselor, GreenPath

To address the impending potential crisis facing tenants who will no longer be covered by eviction moratoriums, SpringFour is dedicated to providing as much information as possible to help families who need resources. Companies looking to help their customers avoid eviction can count on SpringFour to provide the most up to date information for tenants, with extensive information in the following five areas:

1. SEE IF YOU’RE PROTECTED UNDER A STATE OR LOCAL EVICTION MORATORIUM

The nationwide eviction moratorium ended on August 26, 2021, but state or local governments might still have a moratorium in place. SpringFour provides information on state and local eviction bans and bans on utility cutoffs. 

2. KNOW WHAT TO DO IF YOU’RE FACING EVICTION

SpringFour provides access to resources for tenants who have received a demand for rent, an eviction notice, or an eviction lawsuit. This includes information on: free legal aid programs; federal funds to cover rent and utilities; emergency financial assistance; emergency rental assistance programs that help with moving costs and security deposits; ways to file complaints, and more.

3. FIND RENTAL ASSISTANCE

The American Rescue Plan Act provides funds for an Emergency Rental Assistance program (ERA) for renters who have experienced a financial hardship due to the coronavirus outbreak; have a household income at or below 80 percent of the area median; and can demonstrate a risk of experiencing homelessness or housing instability. Tenants and landlords are eligible to apply for past due and future rent and utility assistance, plus an additional three months as demonstrated by need (and based on availability of funds). Additionally, many state and local government entities are expanding rental assistance programs to help pay for rent that is owed. If tenants are not eligible for ERA, they may be eligible for another program in their state, city, or county. SpringFour has created an easy to navigate system to help tenants find these resources in all states that have active programs–just click on the state icon and receive the most up-to -date information on that state’s programs.

4. CONSIDER HUD-CERTIFIED RENTAL COUNSELING

SpringFour also provides links to housing counselors from non-profit counseling agencies that can provide assistance with calculating an affordable rent payment, understanding lease agreements, and basic tenant rights. Help is available in-person at local organizations or nationwide by phone.

5. AVOID EMERGENCY RENTAL ASSISTANCE SCAMS

Scammers try to take advantage of people during times of disaster and emergency, and the COVID-19 pandemic is no different. Federal rental assistance is being provided in communities across the country and scammers are actively using this opportunity to prey on consumers in need, by pretending to be someone they’re not. SpringFour links to The Consumer Finance Protection Bureau’s site that helps tenants spot a rental assistance scam.

If you are unsure how to help your customer or clients through a potential eviction, or if you know that your customer base includes a high proportion of tenants that are impacted by the recent lifting of the eviction moratorium, SpringFour would be happy to help. Contact us at resources@springfour.com.

Cassandra Compton

Vice President, Data Integrity & User Experience, SpringFour

The Homeowner Assistance Fund (HAF) is a new federal program to help homeowners impacted by COVID-19 catch up on mortgage and utility bills and pay other housing costs. Funding for the program is provided by the United States Department of the Treasury through the American Rescue Plan Act, and will be rolled out as states develop their programs over the coming months.

We expect most states to have programs rolled out by September, and are poised to serve as a one-stop shop of information on each individual state program. SpringFour has created a category, Mortgage Relief (HAF) to connect homeowners to information about the HAF resources available in their state. Our team is actively tracking programs and adding information about eligibility and the application process. Expert authored guides provide a quick way for homeowners to understand the options in their state. We include contact information and eligibility and application information; our resources are updated daily. Our tip sheets on each state program provide extensive information for servicers, banks, and others to use. SpringFour is unique in its ability to serve as an expert one-stop shop of information on HAF programs throughout the country.

In addition to being a one-stop shop for information on HAF, SpringFour is proud to announce a new offering: S4direct for Mortgage Servicers. This custom tool enables servicers to utilize SpringFour’s S4direct technology solution to connect borrowers to effective and vetted mortgage assistance programs, HAF state funds, HUD certified counselors and other basic need resources.

S4direct for Mortgage Servicers is an easy to implement digital solution that enables quick and simple access to the most up-to-date and vetted resources – helping borrowers find the most accurate and timely information pertaining to HAF, HUD-certified housing counseling, and basic needs. This SpringFour direct limited edition is designed to go to market in 15 days or less–meeting consumer demand and regulatory requirements/CFPB guidance.

And why do so many financial institutions and credit counseling organizations look to SpringFour as their source of housing program information? Because we’ve been providing this information since our founding in 2005. For over a decade, SpringFour has served as the trusted source for information on Hardest-hit funds, foreclosure laws, local HUD-approved counselors, fair housing resources, and, most recently, Emergency Rental Assistance. 

“Housing counseling from nonprofit HUD intermediaries like MMI allows homeowners to borrow upon the expertise of their counselor during what is often an unfamiliar and traumatic experience. Overall, 79% of our clients report a reduction in stress after counseling.”

— Jamie Payne, Senior Director of Counseling, MMI

For more information about how you can leverage HAF and other housing resources for your customers contact sales@springfour.com

In the wake of climate change and social unrest surrounding racial inequality, many companies are ramping up their environmental, social and governance (ESG) programs to highlight the importance of being a good corporate citizen with a positive impact on customers and community. Banks in particular are reimagining their role as corporate stewards, and rethinking what ESG means for them as part of a broader emphasis on corporate social responsibility (CSR). In fact, in a report focused on banks in a post-COVID world, McKinsey states that in order to thrive, banks must bring “environmental, social, and governance (ESG) considerations to the fore, along with a better sense of corporate purpose.”

According to Forbes:

“ESG issues were first mentioned in the 2006 United Nation’s Principles for Responsible Investment (PRI) report… ESG criteria was, for the first time, required to be incorporated in the financial evaluations of companies. This effort was focused on further developing sustainable investments. At the time, 63 investment companies… signed with $6.5 trillion in assets under management (AUM) incorporating ESG issues. As of June 2019, there are 2450 signatories representing over $80 trillion in AUM.”

Indeed, in the wake of COVID-19, political protests about racial inequality, and natural disasters and climate-related tragedies that have devastated many communities, we understand the domino effect that one area of inequality has on others. At SpringFour, we see these impacts every day: as renters are disproportionately impacted by job loss; as communities of color are disproportionately impacted by natural disasters; as a worldwide pandemic leads to hyper-local impacts in neighborhoods that lack access to adequate healthcare. Each one of these realities means that people struggle in a variety of ways every day–one job loss, one health care crisis, one prolonged utility outage can have a cascading impact on a family’s ability to pay for other basic necessities, like food and childcare.

And so often, those families don’t know where to go for help. For 15 years, long before ESG and CSR  became household acronyms, SpringFour’s mission was to assist companies in realizing their larger role and impact on families and communities by giving them tools to help those in financial crisis become whole. We have always believed that financial institutions have not only the opportunity, but the responsibility, to be a positive force in people’s lives.

Banks seem to be on the same page in the wake of the COVID crisis. Recently, more than 60 major companies, including large financial institutions such as Bank of America, have announced that they will be adopting a new framework for reporting on ESG metrics in partnership with the World Economic Forum. This framework encompasses metrics from greenhouse gas emissions to board and staff diversity to programs to fight income inequality. 

According to BankDirector, “the banks that become ESG leaders will create products that improve the long-term financial health of their retail and small business customers.” ESG programs at financial institutions include more than just retail products–they encompass community services, partnerships with nonprofits and fintechs, green investing strategies, and more. Recently, SpringFour has become an important component in ESG  reporting for many of our clients, who are highlighting the social impact of their partnership with us as part of their overall corporate social responsibility strategies. 

“Banks and other financial institutions play a crucial role in the fabric of every community. They are not only the places that families trust with their money–they impact community development, serve as employment anchors, influence environmental practice and lead local investment policy. Banks have an opportunity through ESG programs, in partnership with experts such as SpringFour, to showcase their values and commitment to holistically-healthy communities.”

–Katy Jacob, VP of Research and Impact, SpringFour

We know that families want to engage in a variety of ways with the companies with whom they have a financial relationship. For example, in a survey conducted by SpringFour last summer, we learned that 83% of respondents would like to get additional financial resources and assistance from their bank. Almost two-thirds would appreciate the same kind of assistance from their credit card company. People are looking for meaningful relationships with entities that they already have a financial relationship with–and they are expecting those companies to deliver.

“It was important for Mariner Finance to include its partnership with SpringFour in its inaugural ESG report. Mariner is committed to ensuring that its digital platforms and customer service initiatives provide borrowers with local support in their communities. Working with SpringFour has enabled Mariner to provide tens of thousands of referrals to its customers who are able to use the SpringFour tool to access verified and vetted food, financial, and health resources in their communities.”

–Mariner Finance

A 2021 survey by MX Technologies found that 50% of bank customers don’t think their financial institution helps them become financially healthy. While this means that half of customers DO think their banks are helping their financial health, there is obvious room for improvement. This is where programs that focus on ESG come in, in addition to compliance with regulations such as CRA that demonstrate a bank’s commitment to investing in all of the communities that they serve. Financial institutions can show that they recognize the role they play in the larger community by dedicating resources to environmental and social programs–and by actively not harming the environmental and social infrastructure of their communities. ESG puts a company’s larger values on the table, and customers are hungry to understand what those values are in light of the COVID-19 pandemic that has impacted almost every economic sector and reverberated across America. 

“As banks ramp up their ESG efforts and define their metrics of success, they can be assured that they are not alone. For more than a decade, SpringFour has put thousands of financial assistance resources into the hands of bank clientele. We are proud that our partnership with banks is core to their business model – and that it is a win-win-win for all, helping them meet clients’ needs, increase repayment rates, and improve the world.”

–Rochelle Gorey, Co-Founder and CEO, SpringFour

Since the arrival of the COVID pandemic, it has become clearer than ever before that many American households are living precarious financial lives. While this was true before the pandemic, these struggles are now exacerbated by historically high unemployment rates, food insecurity, and a decreased ability for individuals to band together with family and friends to overcome hardship.

Now more than ever, people need access to appropriate resources to help them through this crisis–and they need those resources right now.

Katy Jacob

VP of Research & Impact, SpringFour