Will Louisiana See a Surge in Mortgage Defaults After the Oil Spill?

In today’s Wall Street Journal, housing nonprofits expressed fear that the oil spill in the Gulf may cause a surge in mortgage defaults as residents lose income and business from the ongoing crisis. With the caveat that its way too early to know what will be the long-term economic impact of the oil spill, economists, real estate agents and nonprofit leaders interviewed for the piece, pointed to some “worrisome” signs.

Lorna Bourg, president of NeighborWorks member Southern Mutual Help Association (SMHA) based in New Iberia, Louisiana said, "It's a real crisis." She added that many fishermen rely on the summer shrimp season for most of their income.

Lauren Anderson, chief executive officer of Neighborhood Housing Services of New Orleans, another NeighborWorks organization in Louisiana, said in her interview that she expects a surge in mortgage defaults within the next few months from people whose income has been hurt by the spill.

According to the Wall Street Journal, Louisiana has been spared from the worst of economic recession due to a boom in rebuilding following Hurricane Katrina, as well as stable employment from the oil and fishing industries. With jobless and mortgage default rates currently below national averages, some are worried that Louisiana’s rebound will be lost.

Read more about it in the Wall Street Journal.

NeighborWorks America Salutes Operation Stolen Dreams for Efforts to Stamp out Mortgage Fraud

NeighborWorks America salutes the efforts to stamp out mortgage fraud undertaken by Operation Stolen Dreams. As reported by the U.S. Department of Justice, the task force has gone after more than 1,200 criminal defendants who are responsible for more than $2.3 billion in losses, and made 485 arrests.

“We applaud Operation Stolen Dreams and all of the interagency partners for getting these mortgage fraud scam artists off our streets and away from the innocent people being victimized,” said Marietta Rodriguez, national director of homeownership programs and lending for NeighborWorks America. “The homeowners who are being ripped off by these scam artists are facing foreclosure and desperate to listen to anyone who claims to be able to help them. These scam artists use slick sales pitches and advertising to lure in homeowners, guarantee to give them loan modifications, charge for their services in advance and then leave homeowners facing foreclosure and without anywhere from several hundred to several thousand dollars.”

In October 2009, NeighborWorks America and a host of local, state, and national partners launched the Loan Scam Alert campaign to raise awareness of loan modification scams, inform consumers about the signs of a loan modification scam, and encourage consumers to report scams occurring in their communities.

“The more we continue to raise awareness of loan modification scams through public education campaigns like the Loan Scam Alert campaign and encourage homeowners who have been scammed to report being scammed, the more we can help Operation Stolen Dreams track down these criminals and prosecute them,” said Rodriguez.

For more information about the Loan Scam Alert campaign or to report being scammed, visit http://www.loanscamalert.org/.

NeighborWorks and WNBA Team Up on Mortgage Fraud

If you're watching women's professional basketball this month, don't be surprised to see our loan scam alerts up near the scoreboard. In honor of National Homeownership Month, the Women’s National Basketball Association (WNBA) and NeighborWorks America are teaming up to raise awareness on homeownership loan issues and fraudulent activities. http://bit.ly/dCzeyi

NeighborWorks America will host awareness nights in WNBA games in June, including Atlanta, Chicago, Los Angeles, New York, San Antonio, and Washington, D.C. Experts will be onsite to provide information and collateral materials that will help homeowners protect themselves against loan modification scams, find trusted help to protect themselves against such fraud, and report illegal activity to authorities.

This partnership is part of the Loan Modification Scam Alert campaign, which was launched in October 2009 and is the largest national effort to educate homeowners on scams. For more information, visit www.LoanScamAlert.org.

NeighborWorks America Reflects on 2010 NeighborWorks Week

More than 320 events celebrated local communities and informed consumers June 5-12, 2010

During the 2010 NeighborWorks Week (June 5-12) NeighborWorks America and local NeighborWorks organizations held more than 320 community revitalization and 150 loan modification scam awareness events nationwide.

The theme for the 27th anniversary of NeighborWorks Week was informing homeowners on how to identify, avoid and report mortgage modification scams. The educational events ranged from canvassing neighborhoods with tip-sheets to holding one-on-one and group workshops about reputable mortgage modification programs.

One such event took place on Friday, June 4, hosted by Neighborhood Housing Services of New York City, a NeighborWorks affiliate. Held in Times Square, the event featured dozens of volunteers talking to thousands of people, and NeighborWorks loan modification scam Alert campaign materials were featured on the Times Square jumbotrons.

Tents were also set up where homeowners could talk to NeighborWorks representatives about scams, foreclosures, mortgage payments or any other issues associated with homeownership. This event raised awareness of loan modification scams, educated New Yorkers on how to buy their first home and celebrated the surrounding communities.

In New Jersey, Mayor Cory Booker of Newark, joined NeighborWorks America and the Newark-Essex Foreclosure Task Force to launch the Loan Scam Alert Campaign for Community Outreach Day in Newark. The event was held at a vacant, foreclosed home, which is to be re-developed into a community park.

In addition to the mortgage modification scam prevention events nationwide, NeighborWorks organizations held community celebrations and hands-on community building activities, including home repair and painting events, landscaping projects and mural painting.

Pictures, videos and more stories can be viewed here. More information is also available in the NeighborWorks newsroom.

National NeighborWorks Week is Your Chance to Get Involved in Your Community

By Omar Velarde-Wong
Project Manager, Communications and Marketing
NeighborWorks America

National NeighborWorks Week has been a core part of NeighborWorks America’s fabric for the past 27 years. But this year it has taken on special meaning for me. This is my first time managing it and it has been an absolute pleasure to witness first-hand the dedication of our member organizations to their communities. There are more than 230 organizations across the country but this particular program is the one that connects us on a single week and embodies the mission of the organization.

We have more than 300 volunteer events planned so far during NeighborWorks Week, June 5-12. About half of them will involve local NeighborWorks organizations spreading the word in their communities about loan modification scams. The proliferation of these scams is a huge problem in our neighborhoods, and we’re doing all we can to inform homeowners facing foreclosure how to avoid loan modification scams and report them to trusted authorities.

This year’s National NeighborWorks Week will be no different. We will be holding our traditional community building activities, including home repair and painting events, landscaping projects, and mural painting.

I’m looking forward to getting involved myself. I’ll be one of dozens of volunteers on Saturday, June 5, who will be landscaping the Willowbrook Condominium, a tenant purchase project developed by our local D.C. member organization, Manna, Inc. I also will be canvassing the Brookland neighborhood and inviting residents to a Loan Modification Scam Alert seminar later in the day.

I encourage you all to get involved in your community during this volunteer week and beyond. Find an event near you here. If you’ve already selected an event, please share your comments, pictures and videos with us! Contact me to find out where to send them in.