Demand for Counseling Funds Far Exceeded Supply
WASHINGTON, March 19, 2012 /PRNewswire-USNewswire/ -- Today NeighborWorks America announced that $73,870,078 has been awarded to 32 state housing finance agencies (HFAs), 18 HUD-approved housing counseling intermediaries, and 86 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. Just four months after the sixth 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 $124 million in NFMC grant funds.
In total, more than 1,300 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 homeowner eligibility for the various state and federal foreclosure prevention assistance programs, help homeowners understand the complex foreclosure process, and identify possible courses of action so their homeowner clients can make informed decisions and take action.
To date, more than 1,350,000 families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC Program. It is estimated that nearly 190,000 families facing the threat of foreclosure will be directly assisted with this sixth 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 sixth round of NFMC funding.
In December 2011, the Urban Institute released an evaluation of the NFMC Program's effect on loan performance through 2010 which found that counseled homeowners were at least 67% more likely to remain current on their mortgage nine months after receiving a loan modification, compared to homeowners who do not receive such counseling. In addition, homeowners who obtained a mortgage modification through the NFMC Program counseling saved an average of $176 per month – or more than $2,100 annually.
Awardees are listed and more information is available at www.nw.org/nfmc
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 nearly $20 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.
SOURCE NeighborWorks America