Two Kentucky NeighborWorks Groups Approved for FHLBank Membership

Two Kentucky NeighborWorks organizations, which operate as community development financial institutions (CDFIs), were recently approved for membership at the Federal Home Loan Bank of Cincinnati (FHLBank). Only a handful of CDFIs have joined the FHLBank system nationally, according to FHLBank. Membership in the FHLBank will provide the organizations with a source of low-cost funding to support their community development initiatives, as well as access to funds from the FHLBank’s Affordable Housing Program.

Community Ventures Corporation (CVC) of Lexington was approved in November for membership by the bank. The Federation of Appalachian Housing Enterprises (FAHE) of Berea, Kentucky, was approved for membership at FHLBank this month.

“Achieving FHLBank membership is a significant milestone for FAHE, because it will help us reach more people in Appalachian communities with superior financial products,” said Jim King, chief executive officer and president of FAHE. View news release.

In January 2010, the Federal Housing Finance Agency implemented provisions of the Housing and Economic Recovery Act of 2008 (HERA) that permitted qualifying CDFIs to become members of a Federal Home Loan Bank.

Reporting Scams: One Important Thing Victimized Homeowners Should Do

By Marietta Rodriguez,
Director, National Homeownership Programs and Lending, NeighborWorks America

"Where do I report a loan modification scam? How do I file a complaint against a foreclosure rescue company?" Unfortunately, many homeowners have asked these questions when they realize the company that was supposed to help them actually scammed them instead.

Knowing the signs of a scam is critical, but reporting a scam is just as important for homeowners who believe they have been victimized. Whether they have been scammed or just approached by a scammer, homeowners should fight back and report these scam artists to authorities.

But many homeowners decide not to report. Why? They have used words like embarrassed, humiliated, and ashamed to explain why they didn't come forward. But remember, reporting scams to authorities is one of the best ways to get more scammers off the street and protect others. The higher the number of reports filed against a scam company, the better the chances that scammer can be out of business. Just last month, the North Carolina Attorney General announced that another foreclosure rescue company has been shut down.

The Loan Scam Alert website has four easy ways to report a scam:

• By calling the Homeowner’s Hope Hotline: 1-888-995-HOPE (4673)
• By filing a complaint online through the Loan Scam Prevention Network.
• By calling the Federal Trade Commission (FTC) at 877-FTC-HELP (1-877-382-4357) or submitting the complaint online.
• By contacting the state Attorney General or another local.

Homeowners can report the scams in multiple languages, too. Please visit http://www.loanscamalert.org/ and report these scams!

NeighborWorks Network Organizations Offer Free Tax Prep Services

As W-2 and other income forms make their way to taxpayers’ mailboxes, signaling the start of the 2010 tax season, NeighborWorks America reminds consumers to be aware of the real cost of quick refund services offered in the market today and to seek advice from nonprofit organizations that provide free tax preparation services.

Several NeighborWorks network organizations offer free tax preparation services to new and existing low- and moderate-income clients. Depending on the complexity of the return, using a free service can save each taxpayer hundreds of dollars.

The economy continues to be the big story and many NeighborWorks organizations are here to help low- and moderate-income families prepare or to find help to prepare their returns professionally, quickly and comprehensively,” said Chris Krehmeyer, president and CEO of Beyond Housing, a NeighborWorks network member based in St. Louis. “The foreclosure situation around the country means that for many there’s new paperwork and having someone experience helping out could be a big relief.”

Most NeighborWorks organizations that offer free tax preparation help are staffed with volunteer tax professionals who believe in helping their community.

NeighborWorks America also wants consumers to be financially savvy in their short-term finance decisions, particularly those that relate to tax-refund anticipation loans. Refund anticipation loans are costly and often unnecessary because taxpayers who file their returns electronically often can expect to have their tax refund within about 10 days if they choose the direct deposit option.

And despite the weaker than normal housing market in 2010, many low- and moderate-income people became first-time homeowners this year, said Roy Nash, executive director of NeighborWorks® Waco. Many of them may have never filed an itemized return and may now benefit from the longer form.

"Our volunteer tax preparers have had great training,” said Roy Nash, executive director of NeighborWorks Waco. “We think that the tax preparation service is an added value to the people of our community and is in keeping with our mission of service and economic empowerment.”

It’s best to call ahead to your local NeighborWorks organization to determine if they offer tax services or have a referral network of free, trained professionals ready to help. Contact information for local NeighborWorks network organizations can be found at http://www.nw.org/network/nwdata/NeighborWorksOrganizations.asp.

NeighborWorks and PBS Present 'Facing the Mortgage Crisis: Stopping Scams'

NeighborWorks America has teamed up with the Texas Foreclosure Prevention Task Force and Texas PBS stations to present a special program on loan modification scams. The 26-minute special, Mortgage Crisis: Stopping Scams, warns consumers about falling victim to false promises of mortgage modification or foreclosure rescue, and details information on how to identify and avoid common scams. Play the video below or if you're having trouble, view it online.

Watch the full episode. See more KLRU Presents.

Brooklyn Clergy Embrace Loan Scam Alert Campaign

Use the player below, or enjoy the photos on Flickr.

Over 70 members of the clergy and community leaders from Central Brooklyn gathered for a breakfast recently to learn about the foreclosure crisis facing their community, the dangers of rescue scams, and to pledge their support for a local unified day of action, Empowerment Sunday. On Empowerment Sunday, set for February 6, 2011, clergy are asked to preach a message of proactive investment in one’s personal life and community by taking control of one’s financial future.

Brooklyn is known the “Borough of Churches”. Its Clergy have a unique opportunity to help struggling homeowners and a deep commitment to the preservation of this historic African-American community that, for many, has been their lifelong residence.

Nationally, Brooklyn ranks number 41 among counties with the highest foreclosure rate. Central Brooklyn is part of Congressional District 10, where 20% of the home mortgages are over 90 days delinquent, placing $5.7 billion dollars in community wealth at risk, reported Kenneth Tiongson of the Federal Reserve Bank of New York.

Rev. Valerie Cousin, the First Lady of the Bridge Street AWME Church, Reverend Waterman of the Antioch Baptist Church, and NYS Assemblywoman Annette Robinson were among the inspiring speakers calling for collective action. The Clergy Breakfast was organized by Bridge Street Development Corporation, working with the Coalition for the Improvement of Bedford Stuyvesant, with funding from NeighborWorks America.

"NeighborWorks America is proud to partner with Bridge Street Development Corporation and the Coalition for the Improvement of Bedford Stuyvesant to bring the important messages of Loan Scam Alert Campaign to Brooklyn's clergy and their congregations,” said Deborah Boatright, Northeast District Director.

"As a national corporation, NeighborWorks has worked hard to develop an educational campaign that resonates with the communities most at risk, but it is only through partners on the ground that those messages will be heard. We are thrilled with the strong response of the ministers, and we are looking forward with great enthusiasm to Empowerment Day on February 6," said Boatright.