LANSING, Mich., Dec. 5, 2013 /PRNewswire-USNewswire/ -- Michigan State Housing Development Authority (MSHDA) Executive Director Scott Woosley today announced three counseling agencies will receive National Mortgage Settlement (NMS) Fund grants to help homeowners avoid or recover from foreclosure.
The grants, totaling $593,450, were open to MSHDA's existing statewide network of counseling agencies and reward successful, results-driven activities. GreenPath Debt Solutions, a statewide agency, will receive $225,000, and Ingham County-based Franklin Street Community Housing Corporation and Greater Lansing Housing Coalition will receive $143,550 and $224,900, respectively.
"While the economy in Michigan is improving, we continue to see the impact foreclosure -- or the threat of it -- has on our residents," Woosley said. "These funds will give a boost to counselors so they can continue the critical work of helping families and individuals get back on solid footing."
The goal of the grants is to increase or sustain an agency's ability to deliver thoughtful, effective foreclosure-related counseling services to homeowners in need.
"It allows counseling agencies to focus on staffing, best practices, quality of service and positive case resolution," said Mary Townley, MSHDA Homeownership Division Director.
This is the fourth funding round of grants aimed at supporting individuals impacted by the foreclosure crisis. A total of about $7 million was issued in the three previous rounds.
The money for the grants comes from a settlement between 49 state attorneys general (including Michigan Attorney General Bill Schuette) and five leading bank mortgage servicers over deceptive foreclosure practices. In the settlement, the State of Michigan received a direct payment of $97 million from the servicers. Schuette worked with the legislature and Gov. Snyder to establish the Michigan Homeowner Protection Fund to ensure the funds are directed toward victims of foreclosure. MSHDA received $15 million of those funds to expand free homeowner counseling services for citizens seeking to avoid foreclosure.
To access MSHDA's existing statewide network of counseling agencies, visit www.mshda.info/counseling_search/
The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*
*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit www.michigan.gov/mshda.
Contact: Katie Bach
Media Affairs Manager
SOURCE Michigan State Housing Development Authority