Section Highlights

Urban Institute Report on NFMC Program Activity

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    Homeowners and servicers at a foreclosure prevention outreach eventOn December 20, 2010 NeighborWorks America released a second Urban Institute report to Congress on NFMC Program activity.

    The National Foreclosure Mitigation Counseling (NFMC) Program continues to help homeowners facing foreclosure by providing them with much needed loss mitigation counseling. As of December 15, 2010, the program has provided 1,119,976 struggling homeowners with foreclosure prevention counseling.

    As part of their larger evaluation of the NFMC Program, the Urban Institute provided NeighborWorks America with a second analysis of counseling outcomes, based on statistical modeling to determine the impact of NFMC counseling. Urban Institute used a representative sample of 180,000 out of the 800,000 homeowners who received NFMC counseling during the first 24 months of the program (January 2008 through December 2009) in their modeling, and a comparison sample of 155,000 similarly-situated homeowners who were not counseled through NFMC.

    Key findings:

    • NFMC counseled homeowners had almost 70 percent– or 1.7 times—higher relative odds of curing their foreclosure than if they had not received NFMC counseling.

    • Urban Institute estimates that on average NFMC clients who received loan modifications reduced their loan payments by $267 more each month – or more than $3,200 per year –than they would have without NFMC counseling.

    • Counseling helped homeowners who obtained a loan modification remain current on their loan modification payments. For clients in serious delinquency or foreclosure who were counseled in 2008 and received a loan mod after counseling, there was a 45 percent increase in the relative odds they would remain current on their loan mod payments through the end of 2009.

    • Homeowners who got NFMC counseling before obtaining a loan mod were more likely to cure their loan defaults. For clients in serious delinquency or foreclosure who were counseled in 2008 and who received a loan mod after counseling, there was a 53 percent increase in the relative odds that they would bring their loans current.

    Download Full Report | NFMC Home


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