NeighborWorks Fight Against Loan Modification Scams Kicks Off in Ohio

NeighborWorks America’s Loan Modification Scam Alert campaign moved into Ohio on November 18 as part of a national effort to educate homeowners about scammers who are out to take advantage of those facing foreclosure.

"We can't afford to wait any longer," said Ken Wade, executive director of NeighborWorks America. "Loan modification scams have reached epidemic proportions. There are thousands of fraudulent companies out there making a mint," he said.

Ohio Attorney General Richard Cordray and Columbus Housing Partnership President and CEO Amy Klaben joined NeighborWorks America CEO Ken Wade at the statehouse in Columbus to launch the campaign. A homeowner who was scammed shared his story and street teams distributed materials.

Read more about it in the NeighborWorks newsroom.

NFMC Program Study Finds Counseling Helps Borrowers Avoid Foreclosure

To date, the National Foreclosure Mitigation Counseling (NMFC) Program has provided 762,284 struggling homeowners with foreclosure prevention counseling, and according to a recent study, these homeowners are significantly more likely to keep their homes than those who try to go it alone.

According to NFMC’s fourth report to Congress, troubled borrowers who receive foreclosure prevention counseling are 60 percent more likely to avoid foreclosure than borrowers who don't receive counseling. The report also found that NFMC Program clients, with the help of their counselors, secured loan modifications that lowered their monthly mortgage payments $454 more than the clients who received modifications without foreclosure counseling, which results in an average annual savings of $5,448.

“The findings announced today demonstrate the real impact foreclosure counseling can have for families facing foreclosure,” said Ken Wade, CEO of NeighborWorks America. “Thanks to the hard work of nonprofit, HUD-approved housing counseling agencies around the country, and the expertise of their certified counselors, families are less likely to lose their homes to foreclosure and receive substantially better mortgage modifications, significantly reducing the likelihood of falling behind again on their mortgage.”

In an interview with the Washington Post on the report, NeighborWorks America COO Eileen Fitzgerald said that since the beginning of the crisis, relationships have developed between nonprofit counseling agencies and lenders that can speed the process.

“While it is still a challenge in being as responsive as we would like, it is better than what the homeowner faces,” alone Fitzgerald told the Post.

NeighborWorks America, who administers the $360 million government-funded program, commissioned the Urban Institute to conduct the study on the effectiveness of NMFC counseling efforts. The report covers counseling activity reported by program grantees as well as counselor training efforts provided by NeighborWorks between March 1, 2008 and August 18, 2009. The report also details the NFMC Program’s role in the Making Home Affordable program and the successes and challenges counselors face when helping homeowners avoid foreclosure.

Read more about it in the NeighborWorks newsroom.

View Washington Post article.

Download the report at www.nw.org/nfmc.

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.