NeighborWorks America Says FHA is an Important Part of Safely Growing America’s Housing Market

Statement from Ken Wade, NeighborWorks America Chief Executive Officer

“The Federal Housing Administration continues to serve American homebuyers well and is expected to do so into the future, according to a new financial report released Thursday by the Agency. With total reserves in excess of $30 billion and a plan to further strengthen its capital, the FHA is an important part of stabilizing and safely growing America’s housing market.

The FHA has been there to make mortgage lending possible when the private sector has not, creating opportunities for low- and moderate-income homebuyers who have the credit record, capacity to pay and desire to grab their piece of the American Dream. The truth is that without the FHA’s increased presence in the mortgage market in recent months, many houses around the country would be vacant, destabilizing communities.

As importantly, the FHA has been the fuel for first-time homeowners, enabling an estimated one-half of all first-time homebuyers achieve homeownership in the second quarter of 2009 alone.

The Agency’s book of business today is stronger than ever. Average FICO scores are nearly 700 on the recent books of business, significantly higher than earlier books that are driving current period losses.

The FHA is on the right track. It is serving qualified homebuyers, developing a plan to increase its capital strength, and laying the foundation to continue stabilizing the housing market until the private sector is back on its feet."

See more information on this from NeighborWorks Public Policy and Legislative Affairs division.

Responsible Approaches to Neighborhood Stabilization: Case Studies in Action

Join NeighborWorks America and the Annie E. Casey Foundation for a free webinar, Responsible Approaches to Neighborhood Stabilization: Case Studies in Action, Thursday, November 19, 2-3 PM. This webinar will feature three organizations who are working to stabilize their neighborhoods in the wake of foreclosure. It will also highlight ways communities are taking a comprehensive and responsible approach to neighborhood stabilization. Presentations made by Hudson River Housing out of Poughkeepsie, NY, Neighborhood Housing Services of New Orleans and Lawrence CommunityWorks of Lawrence, MA will highlight strategies ranging from acquisition rehab to community building and organizing.

To join the webinar please register in advance here.

The Annie E. Casey Foundation's Guiding Principles of Responsible Redevelopment highlight 12 core principles organizations and communities should consider during a redevelopment project. This webinar is hosted by NeighborWorks America and the Annie E. Casey Foundation and is part of the Responsible Approach to Neighborhood Stabilization partnership; a partnership to promote comprehensive and sustainable community stabilization efforts. For more information visit www.StableCommunities.org/redevelop.

NeighborWorks America Receives More than $4.8M in HUD Support for Housing Counseling

The U.S. Department of Housing and Urban Development (HUD) has awarded NeighborWorks America $4,860,802, which will support training and certification opportunities for thousands of counselors from HUD-approved nonprofit counseling agencies, as well as nonprofit housing counseling at local NeighborWorks organizations.

“The grants announced by Secretary Donovan provide tremendous support for the critical housing counseling and training activities being carried out by NeighborWorks America and our affiliated NeighborWorks organizations across the country,” said Jayna Bower, director of the NeighborWorks Center Homeownership Education and Counseling (NCHEC). “Homeownership education and counseling enables families to make sound financial decisions and achieve and sustain homeownership, which contributes to healthy, stable communities nationwide.”

Of the $4.8 million awarded, $3.2 million will enable NCHEC and the NeighborWorks Training Institute to provide nationally-recognized training and certification to thousands of counselors, including more than 1,300 training scholarships throughout the year. About $1.6 million will provide direct operational support to individual HUD-approved NeighborWorks organizations that provide nonprofit housing counseling in their communities.

More details are in the NeighborWorks newsroom.

NeighborWorks America Announces $1.9 Million in Community Stabilization Grants

Today NeighborWorks America announced that it awarded a total of $1.9 million in community stabilization grants to 38 local NeighborWorks organizations throughout the country. Each NeighborWorks organization will use its $50,000 grant to support its community stabilization efforts, which are primarily focused on acquiring, renovating, and selling foreclosed or vacant homes to low- and moderate-income families.

Altogether, the NeighborWorks organization grantees and their local strategic partners plan to purchase 2,800 housing units. After necessary improvements, 1,400 homes will be sold, 630 will become rental housing, and 322 will be sold through lease-purchase programs. In addition, approximately 451 blighted homes are slated for demolition. Just over 8,000 prospective homeowners will be served through pre-purchase counseling programs expanded to address the challenges of buying bank-owned properties.

Read more about where these grants are going and how they will be used.

NeighborWorks America Supports Extension of Homebuyer Tax Credit

NeighborWorks America applauds the latest decision by Congress and the Obama Administration to renew the homebuyer tax credit and make the credit available to both first-time homebuyers and repeat homeowners who have lived in their homes for five years.

Regardless of whether you are a first-time homebuyer or an existing homeowner ready to make your next home purchase, NeighborWorks urges all homebuyers to seek homeownership education from a HUD-approved nonprofit organization before purchasing a home.

“Buying a home is a complex financial transaction and homeowners who begin the process with the right information through homeownership education lay the groundwork for long-term success for themselves and the community at-large,” said Ken Wade, CEO of NeighborWorks America. “Millions have been affected by the short-term approach to homeownership that was prevalent earlier this decade. Had homebuyers had adequate access to homebuyer education prior to their home purchases, I am sure that the foreclosure crisis would have been less severe.”

For 30 years, the NeighborWorks network and nearly 100 other locally-based nonprofit organizations have worked with thousands of homebuyers to help them achieve their dream of long-term homeownership. These HUD-approved counseling organizations have trained counselors on-staff, ready to advise families one-on-one and help them make the right homeownership choices for them. View a list of NeighborWorks Homeownership Centers to find homeownership education courses offered near you.