FOR IMMEDIATE RELEASE
Contact:
Joseph Rendeiro
(202) 776-1566
jrendeiro@nclr.org
Yesterday, the Obama administration announced changes to its signature Home Affordable Modification Program (HAMP)—a program which lowers monthly mortgage payments for struggling homeowners—stating that funding can now be directed to housing counseling organizations, one of the most effective interventions for preventing foreclosure. NCLR (National Council of La Raza) applauds the administration for making this critical adjustment which will help to better serve Latino communities that are still plagued with disproportionately high foreclosure rates.
“This change represents an important recognition of the value that housing counseling has as one of the most productive foreclosure prevention methods we have at our disposal,” said Lot Diaz, Vice President of Housing and Community Development at NCLR. “The NCLR Homeownership Network (NHN) and hundreds of other local housing counseling organizations throughout the country have a proven track record of helping struggling homeowners, especially those who have limited English proficiency (LEP), navigate the complicated mortgage modification process. Putting more money into home-loss prevention strategies such as housing counseling will go a long way toward ultimately keeping families in their homes.”
In partnership with the National Foreclosure Mitigation Program (NFMC), HAMP funds will now allow housing counseling agencies to assist homeowners by completing and submitting application documents to their mortgage companies free of charge. It will also support the agencies’ outreach efforts, especially to underserved and LEP communities. NHN, which is composed of 51 community-based organizations throughout the country, offers culturally competent housing counseling services to Latino families, working closely with borrowers through the entire foreclosure process. In addition, the administration announced the creation of a new Office of Housing Counseling, which signals a commitment to ensuring access to high-quality counseling services for all American families.
“If potential homeowners seek sound advice from trusted community sources before buying their first home, there’s very little chance that they are going to make mistakes that lead them down the path of foreclosure,” added Diaz. “We need to ensure that our housing counseling agencies have the resources to assist homeowners at every step of the process, whether they are trying to buy or save their home. We applaud the administration for moving in the right direction, and we hope that they continue taking steps to improve HAMP and ensure that struggling homeowners can stay in their homes.”
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