Washington, D.C. – June 8, 2011 – (RealEstateRama) — Today NeighborWorks America announced that $67.7 million has been awarded to 37 state housing finance agencies (HFAs), 17 HUD-approved housing counseling intermediaries, and 84 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. Just two months after the fifth round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated, communities across our country will be able to put the funds to immediate use.
At a time when foreclosures continue to affect communities around the country and unemployment rates remain stubbornly high, the need for the NFMC funding is critical. Demand for these funds far exceeded the amount of funding available; eligible applicants requested over $212.7 million in NFMC grant funds.
In total, more than 1,400 nonprofit counseling agencies and local NeighborWorks organizations across the country are expected to be engaged in the NFMC Program as a result of these awards. These organizations provide invaluable, free assistance to families at risk of losing their homes, determine client eligibility for the Making Home Affordable programs, help clients understand the complex foreclosure process, and identify possible courses of action so their clients can make informed decisions and take action.
To date, more than 1,186,000 families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC Program. It is estimated that nearly 184,000 families facing the threat of foreclosure will be directly assisted with this fifth round of funding. Many more will be helped by the training of foreclosure counselors, provided through the NFMC Program. NeighborWorks expects to train more than 2,000 counselors with the fifth round of NFMC funding.
In February 2011, the Urban Institute released an evaluation of the NFMC Program years 2008 and 2009 which found that the odds of curing a foreclosure is 1.7 times greater for a homeowner who works with a NFMC counselor than for a homeowner who does not receive such counseling. In addition, homeowners who obtained a mortgage modification through the NFMC Program counseling saved an average of $555 per month – or more than $6,000 annually — through lower payments, compared to savings of just $288 per month for homeowners who did not work with a NFMC Program counselor. And homeowners who received NFMC counseling and obtained a loan modification were more likely to remain current on their loan modification payments.
Awardees are listed and more information is available at NFMC Round Five.
About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated $20 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.
For more information about these awards, the National Foreclosure Mitigation Counseling program, foreclosure training opportunities or NeighborWorks America, please see NeighborWorks’ Foreclosure Resources
Doug Robinson, 202-220-2360,