On March 18, 2014, NeighborWorks® America announced that $63.1 million has been awarded to 29 State Housing Finance Agencies (HFAs), 18 HUD-Approved Housing Counseling Intermediaries, and 67 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. Just eight weeks after the eighth round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated through the 2014 Consolidated Appropriations Act, communities across our country will be able to put the funds to immediate use.
At a time when foreclosures continue to affect communities around the country and unemployment rates remain high, the need for the NFMC funding is critical. Demand for these funds far exceeded the amount of funding available; eligible applicants requested over $100 million in NFMC grant funds. A cap was placed on the amount of funds any one applicant could request; without this cap, the requested amount would have been much higher. In total, more than 1,100 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. To date, more than 1.7 million families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC Program since the program began in 2007. It is estimated that over 167,800 families facing the threat of foreclosure will be directly assisted with the awards announced today. These awards bring the total grants awarded by the NFMC Program to over $717 million. Many more will be helped by the training of foreclosure counselors, provided through the NFMC Program. NeighborWorks expects to train 2,000 counselors with the eighth round of NFMC funding.
In December 2011, the Urban Institute updated its evaluation of the NFMC Program years 2008 and 2009, and found that homeowners who received NFMC counseling were nearly twice as likely to obtain a mortgage modification as a homeowner who did not receive such counseling. In addition, NFMC-counseled homeowners received, on average, a mortgage modification that lowered their payment by $176 more per month than non-counseled homeowners received. That means $2,100 a year in additional savings. NFMC-counseled homeowners also were at least 67% more likely to remain current on their mortgage 9 months after receiving a loan modification cure.
Additional information on Grantees and award amounts is available here