Tweaking Voluntary Measures Won't Stop Foreclosures

/PRNewswire/ -- The following is a statement by Michael Calhoun, President, Center for Responsible Lending:

"The Obama administration's latest adjustments to its nine-month-old foreclosure prevention program do little but highlight the continued failure of lenders' voluntary efforts to stop the foreclosure crisis. The number of Americans in foreclosure continues to rise dramatically, with up to three million new foreclosure starts this year alone, a trend that undermines economic recovery.

To address the foreclosure crisis that's at the root of the current slump will require more comprehensive action. Specifically, Congress must:

-- Require loan companies stop foreclosure proceedings while loan
modifications are under consideration.
-- Require loan companies to work with homeowners in distress.
Recognizing that the current voluntary system has failed, the House
and Senate currently are considering bills to make loss mitigation
efforts mandatory.
-- Create a low-cost, short-term loan program for unemployed homeowners
who have no other option for keeping current on their mortgage.
-- Require Treasury to go beyond selectively publishing loan servicing
data and make all data available so the public - including taxpayers -
can better evaluate the program and the efforts of individual
companies.
-- Allow stressed homeowners the option of lowering their principal
mortgage balance, including through bankruptcy courts.


Lenders have insisted for almost three years now that they will voluntarily address the foreclosure crisis, but the record shows they've made too few long-term modifications. The HAMP program the administration introduced last spring was an improvement, but it was originally designed as just one part of the solution, along with allowing homeowners to seek loan modifications through the existing court system.

Without mandatory requirements and fully disclosed results, foreclosure prevention efforts--no matter how well-intentioned--will not succeed. And the cost of failure will be borne by not just struggling homeowners, but by their neighbors, communities, and the larger economy."

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Consumer Credit Counseling Service of Greater Atlanta Receives $3.5 Million Grant to Support Foreclosure Prevention Counseling Efforts

/PRNewswire/ -- Consumer Credit Counseling Service (CCCS) of Greater Atlanta today announced that it has received a $3.5 million grant to support its national foreclosure prevention counseling efforts in several metropolitan areas. The much-needed boost will enable CCCS of Greater Atlanta to provide more foreclosure counseling than ever before to homeowners in danger of foreclosure.

"This grant will enable us to help homeowners in metropolitan areas that have been hit hardest by the nation's foreclosure crisis," said Suzanne Boas, president of CCCS of Greater Atlanta. "At no cost to the homeowner, counseling provides people with information and resources to help them avoid foreclosure. This is most effective when they reach out for help shortly after they become delinquent on their mortgage payments. We hope people concerned about foreclosure will call us for assistance at 800-251-2227."

Funds from this grant will enable CCCS of Greater Atlanta to conduct 18,400 foreclosure prevention counseling sessions. Based on the agency's historic client distribution, the 10 largest Metropolitan Statistical Areas (MSAs) that will benefit most from the grant are: Atlanta, Miami/Fort Lauderdale, New York/Northern New Jersey, Los Angeles, Washington, D.C., Orlando, Chicago, Tampa/St. Petersburg, Riverside/San Bernardino, Calif., and Phoenix.

The grant to support CCCS of Greater Atlanta's foreclosure intervention efforts was provided by funds from the National Foreclosure Mitigation Counseling Program. The initial funding was provided by Congress in the fiscal 2008 Consolidated Appropriations Act. Additional funding was provided through the Housing and Economic Recovery Act of 2008 and the Omnibus Appropriations Act of 2009.

The National Foreclosure Mitigation Counseling Program is administered through a competitive application process by NeighborWorks® America, within guidelines defined by Congressional legislation. NeighborWorks America is an independent, Congressionally-chartered non-profit organization based in Washington, D.C., with a mission to provide access to sustainable homeownership and safe, affordable rental housing.

The $3.5 million grant is the highest amount awarded to any single organization by NeighborWorks America. Four other nonprofit housing organizations also received $3.5 million.

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