From Helping Families Cope with Debt to Improving Their Credit and Ability to Afford Homes, State Farm and NeighborWorks Mark 30 Years of a Unique Partnership

Posted by RealEstateRama

August 12, 2008

Washington, D.C. - August 12, 2008 - (RealEstateRama) — A single mother of two disabled children receives help to untangle her credit problems, obtains down payment assistance and a 30-year mortgage to buy her first home. A couple with good jobs is trapped with a high interest home mortgage and too much debt. With the help of a credit counselor, they put together a financial plan that allowed them to pay off old debts, improve their credit rating, and refinance their home at a much lower interest rate. These are just two examples of the thousands who have been helped form a long-standing partnership between NeighborWorks and State Farm.

The two companies launched their partnership thirty years ago, and since then have helped thousands of families of modest means purchase or improve their homes, strengthen their communities and learn to make informed financial decisions.

State Farm Insurance Companies has contributed and invested nearly $258 million to NeighborWorks, supporting efforts to promote affordable homeownership and community development nationwide. State Farm Bank also invested $85 million in NeighborWorks to support homeownership. The NeighborWorks system comprises NeighborWorks America, Neighborhood Housing Services of America (NHSA) and more than 230 local nonprofits nationwide.

“State Farm has allowed NHSA to be a leader in community development lending as well as to provide innovative technology support to improve the efficiency and effectiveness of nonprofit lending services nationally,” said Mary Lee Widener, president of NHSA.

“State Farm knew from the beginning that an investment in NeighborWorks was a sound investment,” said Clayton Adams, vice president of community development for State Farm. “Through this partnership, we have provided quality financial literacy education, solid homeownership education, home safety resources, foreclosure prevention, mortgage loans for working families, and much more.”

State Farm is one of the largest private-sector investors in the NeighborWorks system. In addition to financial support, State Farm employees and agents serve on national and local boards and committees across the country, contributing ideas, encouraging other businesses to participate, and even providing physical labor for neighborhood beautification projects.

“State Farm was a pioneer in corporate support for community development, working with us to help lower-income homeowners access affordable property and casualty insurance,” said NeighborWorks America CEO Kenneth D. Wade. “As our work expanded to include affordable rental housing, economic development, and environmentally sustainable housing, State Farm’s support has grown with us. They have been and will continue to be a valued partner in our success.”

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. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals. www.nw.org.

About State Farm
State Farm® insures more cars and homes than any other insurer in the U.S. , is the leading insurer of watercraft and also a leading insurer in Canada. State Farm’s 17,000 agents and 67,000 employees serve over 77million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 31 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com or in Canada statefarm.ca.

Contact:
Douglas Robinson, 202-220-2360, “>
Claudia Askew, 202-863-9060, “>