NeighborWorks Campaign for Home Ownership Exceeds $7 Billion in Mortgage Lending

For Immediate Release

March 20, 2007
Contact: Douglas Robinson, NeighborWorks® America, 202-220-2360; drobinson@nw.org

NeighborWorks Campaign for Home Ownership
Exceeds $7 Billion in Mortgage Lending

Campaign Means Success for Low- and Moderate-Income Homebuyers

Washington, DC - The NeighborWorks Campaign for Homeownership (the Campaign) today announced that it has helped more than 51,000 families achieve the dream of homeownership and generated nearly $7.2 billion in new mortgage lending between January 1, 2003 and December 31, 2006. The results announced today extend the tradition of success for the Campaign, which since 1993 has assisted more than 110,000 low- and moderate-income families become homeowners.

In the fourth quarter of 2006, NeighborWorks organizations generated more than $500 million in new mortgages, increasing third to fourth quarter mortgage volume by almost nine percent.

“The results for 2006 show that NeighborWorks organizations remained committed to their goal of helping low- and moderate-income families secure affordable and sustainable homeownership,” said Ken Wade, CEO of NeighborWorks America, the sponsor of The NeighborWorks Campaign for Home Ownership.

“Whether it was for families in Boise, Idaho, or Gainesville, Florida, NeighborWorks organizations across the U.S. connected homebuyers with education, counseling and capital that made the American Dream a reality.”

Wade added that 92 percent of the homebuyers served by the Campaign are first-time homeowners, and 41 percent of the borrowers are female-headed households.

The vast majority of mortgage loans generated by the Campaign are written by traditional mortgage lenders that have partnered with local NeighborWorks organizations. These organizations also provide first mortgages, second mortgages, down-payment assistance and other financial services that help homebuyers to close the deal.

Wade noted that cumulative first mortgages made by NeighborWorks organizations ended 2006 at $193 million, up from $181 million at September 30. Second mortgage loans, which are often used to help finance closing costs, increased to $128 million at year-end, up from $120 million on September 30.

The Campaign Serves Proportionally More Minority Borrowers
The Campaign has successfully targeted underserved communities. Approximately 21 percent of the Campaign’s recent homebuyers are African-American. Data provided by the Home Mortgage Disclosure Act indicate that only nine percent of mortgage loans issued by the conventional market in 2005 (the most recent year for which data is available) served African-American buyers. Similarly, 24 percent of the Campaign’s recent borrowers were Hispanic, as compared to 16 percent of loans within the conventional market in 2005.

More details on the loans and borrowers in the Campaign are available at http://nw.org/network/nwdata/campResults.asp.

NeighborWorks America provides financial support, technical assistance and training for communities across the nation through the NeighborWorks network of over 235 nonprofit organizations covering nearly 4,500 urban, suburban and rural communities. These organizations engage in revitalization strategies that strengthen communities and transform lives. In the last five years alone, NeighborWorks organizations have generated more than $12 billion in reinvestment and helped more than 845,000 families of modest means purchase or improve their homes, or secure safe, decent rental or mutual housing.

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