home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Foreclosure News

Foreclosure Prevention Alliances Grow

Foreclosure programs initiated

July 23, 2007


photo of Coco Salazar

Politicians, political organizations and private companies are teaming up to help borrowers who will potentially face foreclosure.

To guide struggling borrowers, the U.S. Department of Housing and Urban Development recently issued a list with top-10 tips to avoid foreclosure and related scams.

"We want to encourage homeowners to take action and use every resource available so that they can get control of their finances and stay in their home," said HUD Secretary Alphonso Jackson in a written statement.

Troubled borrowers were advised to not ignore they have a problem when they cannot make the mortgage payment; contact the lender as soon as the problem arises; open and respond to all mail from the lender; know their mortgage rights by reviewing loan documents and foreclosure laws and time frames in their state; understand foreclosure prevention options; contact a non-profit housing counselor; prioritize spending; and use their available assets. HUD also warned about for-profit foreclosure prevention companies that may charge hefty fees for services that are free through the lender or a HUD-approved housing counselor and about firms that claim to immediately stop a foreclosure if the borrower signs a document giving them right to act on their behalf.

American Business Advantage and Community Loan Service Center have partnered to launch a national foreclosure prevention program. American offers refinance options and foreclosure mitigation specialists, and has a professional, certified, foreclosure counseling program. While the company's primary focus is to develop and assist borrowers "who will, unfortunately, be faced with the terrible experience of managing their own foreclosure," its secondary focus is to educate the public about the mortgage and foreclosure industry, according to an announcement.

"There are an overwhelming number of individuals who are not prepared to interface with their lenders," said R. Elliott Bradley, president and chief executive of American, in the announcement. "Adjustable rate mortgages, predatory lending, and an over-valued real estate market have all fueled the foreclosure epidemic."

Meanwhile, the Federal Deposit Insurance Corp. and the NeighborWorks Center for Foreclosure Solutions have teamed up to promote foreclosure-prevention strategies for subprime and nontraditional loan borrowers at risk of losing their home. The efforts will be focused in nine markets : the Greater Boston area of Massachusetts; Wilmington, Dela.; Baltimore, Md.; South Texas; Chicago, Ill.; the Louisiana and Mississippi Gulf Coast; Alabama's Black Belt; Kansas City; and Los Angeles.

"More and more consumers with subprime and so-called 'hybrid' mortgage products are facing the very real prospect of losing their homes through foreclosure as their payments begin to rise and become unaffordable," said FDIC Chairman Sheila C. Bair in the announcement. "We need to find workable solutions to keep these good-faith borrowers in their homes, which is the goal of the partnership."

The organizations aim to build capacity at the local level to reach out to at-risk borrowers, identify successful foreclosure intervention strategies and deliver homeownership education counseling. Across the nine markets, a foreclosure solution and prevention working committee will be established in each coalition of the FDIC's Alliance for Economic Inclusion, which consist banks and thrifts, community leaders, public officials and others seeking to improve access to banking products and services for underserved populations.

The Senate Appropriations Committee approved for funds of $100 million to be provided to the U.S. Department of Housing and Urban Development for foreclosure prevention counseling, according to a news release issued by the office of Democratic Sen. Bob Casey. The federal funds will be used by non-profit counseling agencies that work one-on-one with borrowers in unaffordable subprime loans. Because the individual nature of such counseling often costs between $1,000 to $3,000 per person and subprime foreclosures have been rising, existing programs have become overwhelmed by requests for assistance. While the funds should help stem the tide, the bill must now pass the Senate and the House to then be signed by the president.

"The current situation in the subprime mortgage market is untenable," Sen. Charles E. Schumer D-N.Y., said in the written statement. "The more we do to help solve it, the fewer families will be faced with losing their homes because of bad loans and dubious mortgage brokers."

Democratic Sen. Sherrod Brown of Ohio, who along with Schumer and requested the funds, noted these will be essential as "tens of thousands of predatory loans hit their reset dates in the coming months," but that "there is much more work to be done" to curb the effect of subprime loans.

The Association of Community Organizations for Reform Now recently announced that, at its Presidential Candidates Forum, Senator Hillary Clinton said she would propose subprime lending legislation that requires face-to-face mortgage counseling for risky home loans if she were president. The focus of the ACORN-hosted forum was on living wages, the foreclosure crisis, immigration and education.

"Sometimes when borrowers get that counseling, they decide they couldn't afford that home or loan," Clinton was quoted as saying in the announcement. "We need to educate people and support and help them make good decisions. We need to change laws, change attitudes and have solidarity in getting it done."

Coco Salazar is an associate editor and staff writer for MortgageDaily.com.

e-mail: [email protected]

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders