NeighborWorks America Says Recent Moves by Regulators and Industry Strengthen Homeownership

For Immediate Release

March 14, 2007
Contact: Douglas Robinson, NeighborWorks® America, 202-220-2360; drobinson@nw.org

NeighborWorks America Says Recent Moves by Regulators and Industry
Strengthen Homeownership

Washington, DC - NeighborWorks America today applauded the recent separate decisions by federal banking regulators and Freddie Mac that offer new underwriting guidance for subprime and hybrid mortgage products.

The proposed changes by the federal banking regulators will help homebuyers who encounter increasingly complex mortgage products make the best choice for their long-term housing futures, says NeighborWorks America CEO Ken Wade.

"Giving consumers more information and counseling about the mortgage products that they choose and underwriting them at the likely full cost of the loan are strong steps toward protecting communities against the damaging impact of foreclosure while sustaining the gains we’ve made in homeownership, particularly among low- and moderate-income homebuyers," said Wade.

Wade added that the decision by Freddie Mac to soon cease buying subprime mortgages that have a high likelihood of excessive payment shock and possible foreclosure would help sustain the homeownership gains the nation has experienced in the past several years.

NeighborWorks America launched the NeighborWorks Center for Foreclosure Solutions in April 2005 with the support of many of the nation’s largest mortgage lenders, servicers and investors. The Center conducts research into the causes and solutions of foreclosure; supports the increase of the number of trained foreclosure prevention counselors, in collaboration with the NeighborWorks Center for Homeownership Education and Counseling, and the development of effective local public and private partnerships to avert foreclosure.

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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