HelpCenter to use funds to assist Rhode Islanders with mortgage trouble

Providence, R.I. (June 17, 2011) – Senators Jack Reed and Sheldon Whitehouse and Congressmen James Langevin and David Cicilline along with Richard Godfrey, Executive Director of Rhode Island Housing, today announced that Rhode Island will be receiving nearly $547,000 from NeighborWorks America to help pay for counseling to families and individuals facing the threat of foreclosure.

The National Foreclosure Mitigation Counseling (NFMC) Program funds will be used to support Rhode Island Housing’s HelpCenter as well as community partners. The HelpCenter, which has provided guidance to more than 10,500 Rhode Islanders since its opening in November 2007, is staffed by HUD approved and HHFRI certified counselors. It has worked with Rhode Islanders on a broad array of housing issues including assisting them to apply for funding through the Hardest Hit Fund Rhode Island, HHFRI.

“Rhode Island neighborhoods and families struggling with mortgage and foreclosure problems need help because our economy’s improvement depends on it. This federal funding gives Rhode Island Housing the opportunity to help more families at risk of losing their homes,” said Senator Reed, author of the proposed Preserving Homes and Communities Act of 2011, a foreclosure-prevention bill that improves the loan modification process, increases consumer protection by eliminating “dual track” foreclosures and ensures a fair playing field for consumers and banks at the negotiating table.

- Advertisement -

Nearly half of the homeowners counseled at the HelpCenter, which can be reached by dialing 401-457-1130, are households with annual incomes of less than $40,000. Some 71 percent make less than $60,000; Spanish is the first language for 29 percent.
“The recession hit Rhode Island earlier and harder than most states, and our foreclosure crisis continues to be the worst in New England,” said Senator Whitehouse, who has held hearings in the Senate to address the foreclosure crisis and has introduced legislation to support successful mortgage mediation programs. “These federal funds will support Rhode Island Housing’s efforts to keep families in their homes and protect them from unreasonable behavior by big out-of-state banks.”
Nearly 6,000 R.I. homeowners have met face-to-face with HelpCenter staff. Of the some 5,000 homeowners who have completed counseling, about 50 percent have remained in their home successfully or have been referred to legal or other services such as credit counseling. Another 842 homeowners are currently being reviewed by their servicers for a loan modification.

“Rhode Island Housing’s HelpCenter has a proven track record in using this program to prevent foreclosures, and I will continue to support resources for this effort,” said Congressman Langevin. “Foreclosures cause great damage not only by leaving families without a home but also by preventing them from contributing fully to our economy. I thank Executive Director Richard Godfrey and everyone involved with the HelpCenter for their commitment to keeping people in their homes.”

According to the latest Mortgage Bankers Association’s National Delinquency Survey, at the end of the first quarter of 2011, approximately 7,000 Rhode Island homeowners were either 90-plus days delinquent on their mortgage or had foreclosure proceedings started during the quarter.

“A safe and affordable home is one of the keys to the American Dream and central to a strong neighborhood and a thriving economy. In Rhode Island, that dream has been fading because our state has been extremely hard hit by the national foreclosure crisis. The fact of the matter is that we still face a serious housing crisis in our state,” said Congressman Cicilline. “The housing sector is key to our economic recovery and that is why we should be investing in programs like Rhode Island Housing’s HelpCenter. These funds will assist the HelpCenter in connecting with struggling homeowners in our community so that we can make sure people stay in their homes and continue to build their own American dream.”
Congress created the NFMC in 2007 to help families at risk of foreclosure by connecting them to trained housing counselors. For this latest round of funding, 37 state housing finance agencies were awarded more than $31 million in funds.

“Our HelpCenter, which is staffed by experienced HUD approved and HHFRI certified counselors, is a safe place where Rhode Islanders at risk of losing their home can go for counseling,” said Godfrey. “The services at the HelpCenter are free and we encourage Rhode Islanders to call the HelpCenter at the first sign of having difficulty making a mortgage payment. The sooner people come to us for help, the more options they will have.”

To date, Congress has provided $540 million for the program. In total, more than 1,400 nonprofit counseling agencies and local NeighborWorks organizations around the country are expected to be engaged in the NFMC program as a result of these awards.

Locally, two NeighborWorks organizations, West Elmwood Housing Development Corporation and CommunityWorks Rhode Island, both based in Providence, received awards totaling $72,900.

Community Works Rhode Island (CWRI), a first-time recipient, plans to use these funds to provide counseling and financial education in English and Spanish. “Helping families to stay in their homes is essential to preserving communities in hard financial times,” said Carrie Marsh, executive director of CWRI. “We will use these important funds to help families seeking loan modifications, assistance with developing personal budgets and other guidance to save their homes and community from the negative impact of the foreclosure crisis.”

More than 1,186,000 families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC. It is estimated that nearly 184,000 families facing the threat of foreclosure will be directly assisted by this fifth round of funding.

FOR IMMEDIATE RELEASE

Contact: Faye Zuckerman, 401-277-1564 or fzuckerman@rhodeislandhousing.org
Jane D’Arcy, 401-453-4748 or jdarcy@addventures.com