National and Federal Resources Aid Response to the Home Foreclosure Crisis
by Mike Wallace
Recent reports reveal that overall foreclosure activity
increased by 75 percent in 2007, and last December marked the fifth straight
month that more than 200,000 foreclosure filings were reported nationally.
The following are foreclosure mitigation
resources that may be beneficial for local elected officials to know.
HOPE NOW
HOPE NOW is a voluntary alliance of
housing counselors, mortgage lenders and servicers, investors and other
mortgage market participants that are coordinating efforts to reach out and
assist homeowners in distress. The
alliance, including such large lenders as Wells Fargo Home Mortgage,
Countrywide and Bank of America, as well as Fannie Mae and Freddie Mac, was
formed by the Department of the Treasury and the Department of Housing and Urban
Development.
HOPE NOW operates a nationwide helpline, (888) 995-HOPE, that places
homeowners in contact with qualified housing counselors. More information on HOPE NOW can be found on its website at www.hopenow.com.
NeighborWorks America
NeighborWorks America and its network of 240 local
organizations have been at the forefront of efforts to preserve homeownership
and sustain communities in the face of rising foreclosures.
Last December, NeighborWorks America launched a
$180-million program with funds appropriated by Congress to increase the availability
of foreclosure counseling services across the country. In addition, NeighborWorks America has partnered with
the Ad Council to create a national public service awareness campaign that is available
for any community.
Foreclosure resources
offered by NeighborWorks America can be found at www.nw.org/network/foreclosure/default.asp.
The Homeownership Preservation Foundation
The Homeownership Preservation Foundation is a nonprofit participant
in the HOPE NOW alliance that partners with local governments, nonprofit
organizations, borrowers and lenders to help families overcome obstacles that can
result in the loss of their homes. Its
website, www.995hope.org, allows homeowners to
begin online housing counseling sessions.
Department of Housing and Urban Development
The Department of Housing and Urban Development's (HUD) website offers a number of foreclosure
resources. HUD provides tips for
avoiding foreclosure at www.hud.gov/foreclosure/index.cfm.
In addition, a list of HUD-approved housing
counselors by state can be found at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. Finally, HUD, through the Federal Housing
Administration (FHA), has implemented a new program called FHA Secure. The program gives credit-worthy homeowners, who were making timely mortgage payments before
their loans reset but are now in default, a second chance with a FHA
insured loan refinancing product.
Details about FHA Secure can be found at www.FHA.gov.
The Federal Reserve
The Federal Reserve is the nation’s banking and monetary
regulator. As such, it is responsible for supervising the mortgage finance
system. The Federal Reserve offers a
list of foreclosure resources across several different federal agencies at www.federalreserve.gov/pubs/foreclosure/default.htm. In addition, it offers a consumer handbook
on adjustable-rate mortgages at www.federalreserve.gov/consumerinfo/default.htm. Also, consumers can file a complaint
against any federally-chartered bank if they think their lender was unfair,
misleading, or discriminatory, or if the consumer suspects their mortgage loan
violated federal regulations. They can do this at www.federalreserveconsumerhelp.gov
or calling the Federal Reserve, toll-free, at (888) 851-1920.
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