Testimony of Terri R. Cook
Subcommittee on Housing and Community Opportunity
March 27, 1998

My name is Terri R. Cook and for the last 6 months I feel like I have been in a financial jungle looking for someone who would make a mortgage for my first home. The purchase of a home is the largest transaction I will probably ever make. That in itself makes it a frightening endeavor. The sheer amount of paperwork that I have seen is enough to confuse and frustrate anyone. I know all these disclosures are suppose to help me but how am I suppose to digest all of that material about a subject as foreign to me as a mortgage.

First I would like to tell you a little about me. I am a single mother of three who retired from the US Navy September 30, 1994. I have never owned a house I could call my own because I have been shipped around the world by the Navy. I was happy to serve my Country and I am not complaining about the times I had in the military.

But when I retired, I was amazed to find that the years of computer training I had either made me overqualified for career jobs or I was not properly certified. The only job I could find upon leaving the Navy was being a cashier at Cub Foods. I must say it was a challenge to live on $5.10/hour and the $12,000/year of military retirement with three children, 16, 14, 2 ½. I tried a job at the IRS but it was just a seasonal job.

From July 1995 to November 1995 I was totally unemployed and living solely on my retirement pay. This was a very difficult time but I was able to pay my rent, feed my children, and stay out of bankruptcy. Finally, in November 1995 I found a job at ASCAP (American Society of Composers Authors and Publishers) making $9.50/hour. Things still were not great but I could at least survive.

God was good to us, and in June of 1996 I was able to get a good job at Interim Technologies/IBM. Finally, I was able to pay my bills and catch up on all the things I was behind on. I have since been hired away by an even better job that pays me around $30,000/year. Now I want to fulfill my lifelong dream of owning a Home!

I entered the Fannie Mae Foundation Essay contest by writing an essay about what it means to own a home. I was pleased when I won and was awarded $1,000 toward the closing costs upon the purchase of my new home.

I was horrified to find out when I went to Home Bank to get a loan that I could not get financing. I soon found out that the greater bulk of the financial institutions today have a stringent set of rules, a sort of "in the box" way of thinking. When the average person comes to these types of organizations seeking a mortgage they better line up exactly in the box or they will go home empty handed. I tried again and again. Pultie Realty turned me down with even my VA eligibility backing me up.

I was ready to give up on my dream of home ownership. Then I was referred to a mortgage broker by the Realtor at the subdivision. Promethean Finance Inc. is a small mortgage brokerage firm in Marietta Georgia. John Harris took on my loan and amazed me with his dedication. No where else would anyone really consider the tough times I had gone through. John’s first comment was that it would be tough but he believed I should be doable.

From that point, John has helped me settle out the remainder of my small collection accounts. Helped me correct the inaccurate information on my credit report that is adversely affecting my credit score, and he has been an overall support and information source throughout this whole process.

I realize that I may not be able to get the very best rate that is available today. John is fighting for me to have the best deal. I know that both some of the money from the closing costs and money from the lender will help pay for all the work that John is doing on my behalf.

If John cannot get what he calls an "A" paper mortgage for me at 7.5% or better, he has promised that there is a combination 8.5% "B" paper mortgage and a small second mortgage that I can have for a year while my credit situation strengthens.

I can honestly say that without John at Promethean Finance I would not be moving into my home next month. But because of the hard work he has done I will be a new home owner very soon. I don’t fully understand what this Committee is here to do today, but whatever you do, don’t do anything that would take people like John Harris and companies like Promethean Finance away from people like me who need them.

A mortgage broker was the only avenue for me because of the survival decisions that I was forced to make for my family and myself. I am one of the "In the Box" casualties. My life did not line up with the financial institution’s guidelines. I am sure there are many other Americans that are also "In the Box" casualties like myself who also want a piece of the American Dream, home ownership.

Thank you for the opportunity to be heard by this Committee. I am prepared to answer any questions you might have for me.