NeighborWorks Applauds Mortgage Market Moves to Find

For Immediate Release

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

NeighborWorks Applauds Mortgage Market Moves to Find
Answers to Subprime Mortgage Foreclosure Crisis

Washington, DC - NeighborWorks America, one of the nation’s largest housing and community development organizations, today applauded the commitments of lenders and the secondary market to develop viable mortgage refinance solutions for the tens of thousands of borrowers who are in danger of losing their homes to foreclosure because of excessive payment shock brought on from some adjustable-rate subprime mortgages.

“The recent commitments by Fannie Mae, Freddie Mac and Washington Mutual to commit to invest billions of dollars into new mortgages at terms that help families avoid foreclosure and continue the dream of homeownership is enthusiastically welcomed,” said NeighborWorks America CEO Ken Wade.

“NeighborWorks organizations stand ready to work with these and other investors to deliver mortgage products with affordable terms to homeowners who are at risk of losing their homes,” added Wade.

In addition, the NeighborWorks Center for Foreclosure Solutions, through its support of a 24/7 toll free housing counseling hotline – 888-995-HOPE, is available to help homeowners connect with their lenders and begin the process of working out possible foreclosure situations.

Wade added that the efforts of lenders and the secondary market to assist homeowners in financial distress are bolstered by strong support from the federal banking regulators. He noted that last week federal banking regulators encouraged financial institutions to work constructively with residential borrowers who are financially unable to make their contractual obligations on their home loans, by providing prudent workout arrangements consistent with safe and sound lending practices.

“We know that no one wins with a foreclosure,” said Wade. “By prudently helping a borrower keep her or his home by enabling a new and appropriate mortgage, lenders help families, stabilize communities, and in fact save their shareholders money.”

NeighborWorks organizations in more than 4,400 urban, suburban and rural communities across America are ready to work with these lenders, investors and others in the mortgage finance system to help homeowners understand the mortgage process and to help them make the best mortgage choice for their families’ housing future. Over the past five years, NeighborWorks organizations, working with lenders around the country, have originated more than $7 billion of mortgages, many to low- and moderate-income borrowers with less than perfect credit.

The NeighborWorks Center for Foreclosure Solutions, an initiative of NeighborWorks America, was created to preserve homeownership in the face of rising foreclosure rates. In conjunction with national nonprofit, mortgage and insurance partners, the Center builds capacity among foreclosure counselors around the nation, conducts public outreach campaigns to reach struggling homeowners, and researches local and national trends to develop strategic solutions.

More information about the NeighborWorks Center for Foreclosure Solutions can be found at www.nw.org.

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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