Fannie Mae Offers Rental Option to Borrowers in Foreclosure

Homeowners in trouble are being offered a new option to stay in their homes if they can’t pay their mortgage. On November 5, Fannie Mae announced that it will begin allowing borrowers on the verge of foreclosure to rent back their homes for up to one year.

The new Deeds for Lease Program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under the program, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

“This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Fannie Mae Vice President Jay Ryan said in a statement.

In interviews with the Associated Press, two members of the NeighborWorks America network had different takes on the new Fannie Mae effort to stave off foreclosures.

"It shows that you put your best effort to work out a solution," said Gabe Del Rio, director of homeownership at Community HousingWorks of San Diego.

However, Mike Himes, director of homeownership services at NeighborWorks Sacramento, said the industry should push harder to modify loans at lower monthly payments. “The preferred option is allowing people to retain ownership,” he said.

Read Fannie Mae Press Release.

Read AP story.

NeighborWorks Northeast District Honors Newark Mayor Cory A. Booker and F.B. Heron Foundation President Sharon King

The Honorable Cory A. Booker, mayor of Newark and Sharon King, president of the F.B. Heron Foundation were honored as “Visionary Leaders in Community Development” at the Fourth Annual NeighborWorks America Northeast District Reception, hosted by the Federal Home Loan Bank of New York on Park Avenue in Manhattan.

The Annual District Reception, known as “A Community United,” drew 300 leaders from the housing field, finance, government, foundations and nonprofits.

NeighborWorks America CEO Ken Wade spoke about Mayor Booker’s dedication to “development without displacement” in more than doubling the number of affordable housing units in the City of Newark while significantly reducing crime, beautifying public spaces and enforcing an aggressive anti-abandonment strategy.

King, a long-time NeighborWorks supporter, was cited by Wade for having “shaped a foundation that is known for its uncommonly close partnership with grantees -- a collaboration based on a culture of engagement, trust, mutual learning and a focus on results.”

Read more.

NeighborWorks COO Eileen Fitzgerald Featured on "Code Red" Radio Show

Yesterday Eileen Fitzgerald, chief operating officer for NeighborWorks America, joined Code Red! radio host Alfred McComber to discuss the new Loan Modification Scam Alert campaign.

Listen to Eileen share tips consumers can use to spot and avoid loan modification scams. Eileen's half-hour interview begins 28 minutes and 42 seconds into the show.

For more information about NeighborWorks' new Loan Modification Scam Alert campaign, visit our web site at http://www.loanscamalert.org/.

Former Executive Director George Knight Inducted into Affordable Housing Hall of Fame

George Knight, former executive director of NeighborWorks America, was inducted into the Affordable Housing Hall of Fame in a luncheon ceremony held during The Affordable Housing Developers’ Summit on October 28 at the Palmer House Hotel in Chicago. Knight's wife, Kathy Desmond, accepted the award. Steve Tuminaro, NeighborWorks America’s director of Public Policy and Legislative Affairs and long-time colleague of George Knight, addressed the attendees, speaking of the significant growth of the NeighborWorks system under the Knight’s leadership. Tuminaro also spoke of the legacy for continued growth that Knight left with us.

Read the article in Affordable Housing Finance Magazine regarding the Hall of Fame inductees, and a tribute to George Knight.

View NeighborWorks America's tribute to Knight: Remembering George Knight: A Model for Servant Leadership

NeighborWorks America Adds Two New “Green” Courses to its National Training Institute Curriculum; Offerings Designed to Help Communities Go Green

NeighborWorks America expanded its curriculum of energy efficiency and healthy homes courses to include two new classes designed to help community leaders engage residents in creating greener communities, and to help non-profit managers improve the green footprint of their organizations.

The new courses, Taking Green Action in Your Community, and Greening Your Organization” bring the total number of “Green” courses taught at the upcoming NeighborWorks Training institute to six. In all, NeighborWorks America offers 16 green courses. The next NeighborWorks Training institute is December 7-11 in suburban Washington, D.C. Registration is still open at http://www.nw.org/network/training/training.asp.

“These courses are great additions to our existing offerings, providing important information for nonprofit leaders that will help them reduce the carbon footprint of their organizations, and help educate residents on how to ensure that the communities in which they live are healthy and sustainable,” said Thomas Deyo, director of green programs at NeighborWorks America.

Greening Your Organization is supplemented by a guide released earlier this year by NeighborWorks America, Greening Your Nonprofit From the Inside Out. Produced in conjunction with Strategic Sustainability Consulting, the 84-page guide contains case studies that non-profit organizations around the country can follow to lower their energy usage and increase the health quality of the places they work and the housing that they build.

“All of the courses and the guide are part of NeighborWorks America’s program called, “Think Green, Act Green”, a commitment to advance environment responsibility across the community development industry,” added Deyo. More on this commitment can be found at www.nw/green.