News Release

March 4, 2009

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

NeighborWorks America Offers Full Support to the Obama Administration’s
Efforts to Combat Foreclosure
Nonprofit Foreclosure Counseling Continues to be Essential

Washington, D.C.—Today new details of the Obama administration’s plan to prevent foreclosure and stabilize communities were announced and NeighborWorks America is committing its full support to the plan’s scope and strategy. Details of the plan clearly demonstrate the Administration’s focus on supporting foreclosure prevention and neighborhood stabilization initiatives that will help the largest number of homeowners.

“This is a promising step forward for millions of homeowners who are worried about losing their homes,” said Ken Wade, CEO of NeighborWorks America. “The programs detailed today give hope and important guidance to millions of homeowners who thought that the only solution to their mortgage trouble was foreclosure. Foreclosure doesn’t have to happen.”

NeighborWorks organizations and other HUD-approved counseling agencies — important parts of the President’s foreclosure prevention plan — stand ready to do their part to help qualified homeowners prepare to talk to their lender and to take full advantage of the bold plan announced by the Obama administration.

For 30 years, NeighborWorks America has supported efforts to help homeowners stay in their homes and preserve our nation’s vibrant communities. We look forward to working with the Administration and Congress to bring our resources and programs to this initiative and to producing the greatest impact possible, added Wade.

Long-Term Loan Modifications
In addition to low-cost refinancing and lower mortgage interest rates, the President's plan gets out in front of the foreclosure problem and creates a standard for loan modification. NeighborWorks America is pleased to see modifications completed under the Homeowner Affordability and Stability Plan must be in place for at least five years, and that under the plan, a homeowner’s mortgage debt-to-income ratio will be brought down to 31 percent. However, NeighborWorks maintains that in order achieve sustainable homeownership, loan modifications must be sustainable over the course of the loan.

The Importance of Nonprofit Foreclosure Intervention Counseling
Community-based foreclosure intervention counseling provided by nonprofit certified counselors is a critical part of the foreclosure prevention process. Nonprofit counselors help homeowners understand their options and the steps they can take to stay in their homes.

NeighborWorks urges homeowners who may be in danger of foreclosure to contact a local HUD-approved nonprofit NeighborWorks organization for assistance. To find a nonprofit NeighborWorks organization near you or other HUD-approved counseling agency, visit www.findaforeclosurecounselor.org

For more information about the Homeowner Affordability and Stability Plan, visit www.financialstability.gov.

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. In the last five years, NeighborWorks organizations have generated more than $19.5 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.