News Release

April 16, 2010

Contact: Doug Robinson, drobinson@nw.org, 202 220-2360
Erin Angell Collins, eangell@nw.org, 202 220-6317

$59.5 Million Awarded Through National Foreclosure Mitigation Counseling Program

Washington, D.C. –Today NeighborWorks America announced that $59.5 million has been awarded to 35 state housing finance agencies (HFAs), 15 HUD-approved housing counseling intermediaries, and 81 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure.  Just four months after the fourth round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated, communities across our country will be able to put the funds to immediate use.

At a time when foreclosures continue to rise and near-record unemployment rates hold steady, the need for the NFMC funding is critical. Demand for these funds far exceeded the amount of funding available; eligible applicants requested over $195,000,000 in NFMC grant funds.

In total, more than 1,300 nonprofit counseling agencies and local NeighborWorks organizations across the country are expected to be engaged in the NFMC Program as a result of these awards.  These organizations provide invaluable, free assistance to families at risk of losing their homes, determine client eligibility for the Making Home Affordable programs, help clients understand the complex foreclosure process, and identify possible courses of action so their clients can make informed decisions and take action.

To date, more than 937,500 families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC Program.  It is estimated that more than 155,000 families facing the threat of foreclosure will be directly assisted with this fourth round of funding. Many more will be helped by the training of foreclosure counselors, provided through the NFMC Program; NeighborWorks expects to train more than 2,000 counselors with the fourth round of NFMC funding.

A pdf version of the list of NFMC Round Four awardees by state is available here.

To find a NFMC-funded nonprofit housing counseling organization near you, visit www.findaforeclosurecounselor.org

More information about these awards can be found at www.nw.org/nfmc.

National Foreclosure Mitigation Counseling Program
In December 2007, NeighborWorks America was named in the FY2008 Consolidated Appropriations Act (P.L. 110-161) to administer the first round of $180 million in grant funding through the National Foreclosure Mitigation Counseling Program. On July 30, 2008, Congress passed the Housing and Economic Recovery Act of 2008 (P.L. 110-289), which appropriated an additional $180 million to this effort.

On March 11, 2009, President Obama signed the Omnibus Appropriations Act of 2009 (P.L. 111-8), which appropriated $50 million to NeighborWorks America to continue the National Foreclosure Mitigation Counseling Program. The third appropriation provided funds for foreclosure counseling, training for foreclosure counselors (up to $5 million), and administrative expenses (four percent) associated with running the NFMC program.

On December 16, 2009, the Consolidated Appropriations Act of 2010 (P.L. 111-117) appropriated an additional $65 million to the program, including $59.4 million for counseling. This fourth appropriation also provided training for foreclosure counselors (up to $3 million), and administrative expenses (four percent) associated with running the NFMC program. 

48.3 percent of funding announced today is awarded to housing counseling agencies that commit at least half of their award to provide foreclosure mitigation counseling services to minority and/or low-income homeowners or communities with high concentrations of minority and/or low-income homeowners.  Ninety percent of the counseling units announced today will be targeted to Areas of Greatest Need.

NFMC Activity
On November 1, 2009, NeighborWorks released its fourth report to Congress on NFMC activity from March 1, 2008-August 18, 2009. The report is available at www.nw.org/nfmc.

As of April 14, 2010, 1,104,103 units of counseling have been provided through the NFMC Program, assisting 937,695 homeowners in all 50 states, Puerto Rico and Guam. 

In addition, NeighborWorks has awarded 7,040 scholarships for counselors to receive foreclosure counseling training, issued 9,728 certificates of completion for its foreclosure-related courses, and provided 4,350 certificates of completion for its Foreclosure Basics and Understanding and Applying Foreclosure Intervention and Loss Mitigation Tools e-learning courses.

For more information about these awards, the National Foreclosure Mitigation Counseling program, foreclosure training opportunities or NeighborWorks America, please see NeighborWorks’ Foreclosure Resources.

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.