NeighborWorks: Counseled Homeowners Twice As Likely To Receive Modifications
NeighborWorks® America recently released new data on its National Foreclosure Mitigation Counseling (NFMC) program, announcing that nearly 1.5 million homeowners have received counseling through the program since it was enacted. As an NFMC national counseling partner, HPF is proud to have helped the program reach this new milestone.
The data, which was released in this December Congressional Report, also featured statistics underscoring the efficacy of foreclosure prevention counseling, including that homeowners who completed NFMC counseling were twice as likely to receive a loan modification.
Another statistic featured in the report is the default rates among homeowners who received loan modifications – those who were counseled were 67 percent more likely to remain current on their mortgages in the nine months after receiving a modification. Additionally, those who qualified for the Home Affordable Modification Program (HAMP) and completed counseling experienced a high level of success, lowering the overall loan modification re-default rate by 83 percent. The Urban Institute independently verified all findings.
The positive statistics referenced in this report match data that NeighborWorks released in June of 2012 (see press release on that report here). That the counseling results remained consistent over the course of the year underscores the value of third party, independent housing counseling like that offered through the NFMC program.