The Federal Reserve Board Launches Credit Card Web Site to Help Consumers Understand New Rules

The Federal Reserve Board has launched a new interactive Web site to help consumers better understand the new credit card protections that will take effect on February 22. These rules ban several harmful practices and require greater transparency in the disclosure of the terms and conditions of credit card accounts.

The site, which can be found at www.federalreserve.gov/creditcard, summarizes the main provisions of the rules and explains how they will affect credit card users. Two interactive features will allow consumers to learn more about the terms and fees of credit card offers and about the new features of their monthly statements.

"These online tools and resources will help consumers make well-informed decisions about their use of credit," said Federal Reserve Board Governor Elizabeth A. Duke. "We will update the site regularly to provide the most useful and current information."

Read more about it in the Federal Reserve Board's press release. Visit the site.

HOPE Now Expands HOPE LoanPort™

The HOPE NOW Alliance announced that it is expanding HOPE LoanPort™, its housing counselor Web portal, to 25 states and over 100 cities to help at-risk homeowners avoid foreclosure. The portal allows Housing and Urban Development (HUD) -approved counselors to submit completed Home Affordable Modification (HAMP) applications directly to a homeowner’s servicer, track the status and provide borrowers with more timely decisions.

Five NeighborWorks Organizations will participate in the expansion: Los Angeles Neighborhood Housing Services, Community HousingWorks in San Diego, The Housing Partnership, Inc., in Louisville, Neighborhood Housing Services of Baltimore and St. Mary Development Corporation in Dayton. Home Free USA and Consumer Credit Counseling Services (CCCS) of Atlanta and Dallas will also participate in helping homeowners through the HOPE LoanPort™.

The program began in December 2009 with several servicers and housing counseling agencies affiliated with NeighborWorks America and Home Free USA. According to HOPE Now, housing counselors and servicers involved in the pilot have provided positive feedback on the portal, including that it eases the document traffic jam that has plagued the system. This means that decisions can be made faster and struggling homeowners can get the help they need sooner.

USDA Provides $25 Million to Help Low-Income Appalachians Make Mortgage Payments

The U.S. Department of Agriculture (USDA) is setting aside $25 million in mortgage funds for low-income homebuyers in Central Appalachia. The money is being provided to the Federation of Appalachian Housing Enterprises (FAHE), a NeighborWorks member organization based in Berea, Kentucky.

The program targets pockets of poverty in the Central Appalachia states of Kentucky, Tennessee, Virginia and West Virginia. Through the program, low-income buyers will get mortgage payment assistance and interest rates as low as 1 percent. Some who qualify may even get 100 percent financing.

Known as The 502 Demonstration, these funds will be made available based on USDA’s existing Section 502 Direct Loan program, which received substantialnew funding through the American Recovery and Reinvestment Act, or Stimulus Bill, passed in February of last year.

Learn more about it here.

Do's and Don'ts When Buying A Home

UNHS NeighborWorks HomeOwnership Center in Utica, NY, brings you the second in its series of 12 educational videos for consumers. In this video, Homeownership Coordinator Julie Howarth clears up the myths and gives homebuyers the real scoop on buying a home. If you are unable to view the embedded video below, view it here.

Underwater Mortgages Hit 11.3 Million

Millions of homeowners are underwater on their mortgages — owing more than their homes are worth — according to new research released this week. According to the study conducted by First American CoreLogic and reported by DSNews.com, more than 11.3 million residential properties, or 24 percent of all homes in the U.S. with mortgages, were in negative equity at the end of 2009.

Many of the people who own these homes are facing foreclosure because of job loss or other circumstance. Faced with these issues, many homeowners are confused about what to do.

Disreputable companies are betting that people in financial distress will be easy targets for their foreclosure and mortgage modification scams. NeighborWorks America continues to push its loan scam prevention efforts and promote its foreclosure prevention counseling initiatives.