May 7, 2008

Contact: Douglas Robinson
202-220-2360
drobinson@nw.org

 

NeighborWorks America Announces New Partnership with the
Federal Reserve to Help Stabilize Communities Affected by Foreclosure

Federal Reserve Board Governor Randall S. Kroszner announces new partnership with NeighborWorks America

Cincinnati, OH – NeighborWorks® America today announced a new partnership with the Federal Reserve aimed at providing assistance to local communities across the country as they assess housing conditions in their areas. The agreement will help local governments and non-profit organizations evaluate strategies and tailor responses to the increase in foreclosures and real estate owned properties ("REO").

“We are excited by the opportunity this collaboration represents,” said Ken Wade, CEO of NeighborWorks America. “Working together with the Federal Reserve to better understand the impact of foreclosures on communities and to enhance the ability of local residents mitigate this crisis is an important step toward stabilizing the housing market.”

One of the main goals of the partnership is to develop resources that assist local communities to return vacant properties back into productive use. By providing training and analytical tools to increase the pace of affordable sales of REO to families who want to live and work in these communities, the Federal Reserve and NeighborWorks America will help lower the cost burden to cities that vacant and abandoned properties create.

"It is in everyone's interest to avoid foreclosures whenever other viable options exist,” said Federal Reserve Board Governor Randall S. Kroszner.  "When foreclosures do occur, however, it is important to understand the potential impact on the neighborhood and to address the risks to the vitality and stability of that community."

The announcement was made at a NeighborWorks Training Institute in Cincinnati.

In 2005, NeighborWorks America launched the NeighborWorks Center for Foreclosure Solutions. The Center was created to preserve homeownership and healthy neighborhoods in the face of rising foreclosure rates. Community stabilization is a key goal of the Center.  Since inception, the Center has developed more than 30 state and local partnerships and partnered in the creation of a national public service advertising campaign to help prevent foreclosure.   To date, the public awareness campaign has garnered over $16 million in donated media; the outreach has targeted borrowers in financial distress.

Importantly, NeighborWorks America through its NeighborWorks Center for Homeownership Education and Counseling and NeighborWorks Training Institutes offers training courses and resources for foreclosure mitigation counselors.

About NeighborWorks America

NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWork America is the nation’s leading trainer of community development and affordable housing professionals. www.nw.org.