National Foreclosure Mitigation Counseling Program

The National Foreclosure Mitigation Counseling (NFMC) Program was launched in December 2007 with funds appropriated by Congress to address the nationwide foreclosure crisis by dramatically increasing the availability of housing counseling for families at risk of foreclosure. NeighborWorks America distributes funds to competitively selected grantee organizations, which in turn provide the counseling services, either directly or through Subgrantee organizations. Grants are also being made to fund legal assistance to homeowners, and to train foreclosure counselors. Upwards of 1,700 counseling agencies operate under the program.

Announcements

• New! NFMC Announces a Sixth Round of Funding for Foreclosure Counseling On March 19, 2012, NeighborWorks America announced that $73.8 million 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.
• 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.  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.  View more information and a list of Grantees.

• A new report prepared by the Urban Institute shows that homeowners who received NFMC counseling were nearly twice as likely to obtain a mortgage modification and at least 67 percent more likely to remain current on their mortgage nine months after receiving one. The report also shows that homeowners received, on average, a mortgage modification that lowered their payment by $176 more per month, than homeowners who didn’t work with an NFMC counselor – a savings of close to $2,100 a year. Learn more.
• Applications for the sixth round of National Foreclosure Mitigation Counseling Funds were due on Monday, January 30, 2012.  In total, 138 organizations requested over $124 million, as follows:
  • 19 HUD-Approved Housing Counseling Intermediaries requested over $61.1 million
  • 32 state Housing Finance Agencies requested over $46.5 million
  • 87 NeighborWorks Organizations requested over $16.5 million.

  At least $73 million is available in funding for NFMC Round 6. Award announcements will be posted on www.nw.org/nfmc and Letters of Intention to Award Funds are expected to be sent to all applicants during or before the first week in April, 2012.

• NFMC Releases Sixth Congressional Report (September 13, 2011)
  On September 13, NeighborWorks America released its sixth report to Congress on NFMC Program activity. The report covers counseling activity reported by program grantees and counselor training provided by NeighborWorks between March 1, 2008 and June 30, 2011. For additional information and access to the report, go to NFMC Congressional Reports.
  
  

Foreclosure Counseling Training

NFMC Funds are being used to build mortgage foreclosure and default mitigation counseling capacity of counseling organizations. NeighborWorks is providing:

• Scholarships to attend NeighborWorks Training Institutes
• Regional, multi-course Place Based Trainings sponsored and hosted by
  NeighborWorks America
• Place-Based Trainings sponsored by NeighborWorks America and
  hosted by HUD Intermediaries and/or state Housing Finance Agencies
• Three on-line foreclosure counseling/program courses

For information about accessing these opportunities, go to the NeighborWorks Center for Homeownership Education and Counseling (NCHEC) Foreclosure Counseling Training Program.

For more information about the National Foreclosure Mitigation Counseling Program, call 202-220-6314, or email nfmc@nw.org.