December 3, 2008
Contacts:
Douglas Robinson, 202-220-2360, drobinson@nw.org
Erin Angell Collins, 202-870-3584, ecollins@nw.org
$177.5 MILLION AWARDED THROUGH NATIONAL FORECLOSURE MITIGATION COUNSELING PROGRAM
Washington, D.C. – Today NeighborWorks America announced that $177.5 million has been awarded to 35 state housing finance agencies (HFAs), 15 HUD-approved housing counseling intermediaries, and 84 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. In addition to the $177.5 million awarded for foreclosure counseling, $25.1 million in grants has also been awarded to 23 HFAs, six intermediaries, and 25 NeighborWorks organizations to provide legal assistance to homeowners facing foreclosure.
In total, more than 1,500 nonprofit counseling agencies and local NeighborWorks organizations across the country are expected to be engaged in the National Foreclosure Mitigation Counseling Program. These organizations provide invaluable, free assistance to families at risk of losing their homes, helping clients to understand the complex foreclosure process and identifying possible courses of action so they can make informed decisions and take action. It is estimated that nearly 500,000 families facing the threat of foreclosure will be directly assisted with this funding — and many more will be helped by the training of foreclosure counselors, provided through the National Foreclosure Mitigation Counseling (NFMC) Program. During the first eleven months of the NFMC program, NeighborWorks awarded 3,089 scholarships for counselors to receive foreclosure counseling training, issued 4,395 certificates of completion for its foreclosure-related courses, and provided 1,508 certificates of completion for its new Foreclosure Basics e-learning course. NeighborWorks expects to train more than 2,500 counselors with the second round of NFMC funding.
“We know that families facing foreclosure are in crisis mode and they need neutral, informed guidance to help them understand their options,” said Ken Wade, CEO of NeighborWorks America. “This funding provides nonprofit organizations the critical resources they need to meet the burgeoning demand for foreclosure prevention counseling assistance.”
Round Two Awardees Listed by State [PDF].
More information about these awards can be found at www.nw.org/nfmc.
National Foreclosure Mitigation Counseling Program
In December 2007, NeighborWorks America was named in the FY2008 Consolidated Appropriations Act to administer the first round of $180 million in grant funding through the National Foreclosure Mitigation Counseling program. Initially Congress required that NeighborWorks America award $50 million within 60 days; NeighborWorks America exceeded that objective by awarding $130 million to state housing finance agencies, HUD-approved counseling intermediaries, and community-based NeighborWorks organizations within the specified timeframe.
On July 30, 2008, Congress passed the Housing and Economic Recovery Act of 2008 (PL 110-289) which appropriated an additional $180 million to this effort. A second pool of $37.8 million from the first round of grant funding is included in the $177.5 million announced today, in addition to funds de-obligated from Round 1 Grantees. According to the FY2008 Consolidated Appropriations Act, this second pool of funding was to be awarded by December 31, 2008.
Forty-one percent of the counseling funding announced today is being provided to housing counseling agencies that commit to provide loss mitigation counseling services to minority and low-income homeowners or communities with high concentrations of minority and low-income homeowners. Nearly ninety percent of the counseling units awarded will be targeted to Areas of Greatest Need. The legislation also appropriated up to $30 million dollars in grants for housing counseling agencies to provide legal counseling to assist homeowners in foreclosure, provided up to $5 million for training of foreclosure intervention counselors across the nation, and allowed 4 percent of the funds to be used to administer the program.
To date, more than 224,600 units of counseling have been provided through the NFMC Program, assisting 210,000 homeowners in all 50 states, Puerto Rico and Guam. A preliminary report on the first six months of progress is available.
Background on NeighborWorks America
Created by Congress in 1978 (Public Law 95-557) as the Neighborhood Reinvestment Corporation, and now doing business as NeighborWorks America, the organization is the nation’s original community/public/private partnership model, providing grants, programmatic support, training scholarships, organizational assessment/evaluation and other programmatic support services to an affiliated network of community-based organizations (known collectively as the NeighborWorks network) and the broader community development field to support and promote vibrant, healthy communities. The NeighborWorks network comprises more than 235 community-based organizations serving more than 4,450 urban, suburban and rural communities in 50 states, Puerto Rico and the District of Columbia. Local NeighborWorks organizations operate in our nation’s largest cities and in some of its smallest rural communities.
For more information about these awards, the National Foreclosure Mitigation Counseling program, foreclosure training opportunities or NeighborWorks America, please see NeighborWorks’ Foreclosure Resources.
