NeighborWorks America Selected To Award Intermediary Grants

Posted by Orb Staff on December 28, 2007 No Comments
Categories : Mortgage Servicing

NeighborWorks America has been named in the FY2008 Consolidated Appropriations Act to administer a $180 million national mortgage foreclosure mitigation counseling program. (See ‘HUD Counselor Network Receives Grant’.)

Under the legislation, NeighborWorks America will make grants to both housing counseling intermediaries approved by the U.S. Department of Housing and Urban Development (HUD) and qualifying state housing finance agencies (HFAs), and will provide foreclosure counseling training courses.

The legislation requires that NeighborWorks America grant at least $167.8 million to qualifying organizations that provide mortgage foreclosure mitigation assistance primarily in states and areas with high rates of defaults and foreclosures primarily in the subprime housing market, the organization adds.

NeighborWorks America must award $50 million of the funds within 60 days of the legislation's enactment in states and areas with the greatest need. Additional funds may be awarded to HUD-approved intermediaries and qualifying state HFAs that have the need for additional funds in states and areas with high rates of mortgage foreclosures, defaults or related activities and the expertise to use these funds effectively.

Additional funding and reporting guidelines specified in the legislation will further govern the organization's grant-awarding activities.

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