While we continue to offer foreclosure help to financially struggling homeowners, HPF is also looking ahead to see what role we can play in helping to prevent another housing crisis. This is largely the reason behind an op-ed I wrote, recently published by American Banker, which explains that counseling homebuyers before they purchase a home increases the likelihood of them staying current on their mortgage. And current, financially healthy homeowners are good for everyone – the family who remains in their home, the communities that exist around them, and the banks that can lend to better-prepared borrowers.

For more information on the benefits of pre-purchase counseling, please read the op-ed on the American Banker website: “Pre-Purchase Counseling Benefits Banks and Homeowners.”

HPF is extending a heartfelt congratulations to Mr. Daniel Burnham, the recipient of the 2012 Homeownership Preservation Foundation’s (HPF) Counselor of the Year Award.

Mr. Burnham of Money Management International (MMI), one of HPF’s network counseling partners, was recognized for the high standard of counseling that he provides to the distressed homeowners who call HPF’s national HOPE Hotline at 888-995-HOPE (4673). Based in Warwick, RI, Mr. Burnham was acknowledged for his outstanding abilities in guiding homeowners through budgeting and loss mitigation processes. Additionally, Mr. Burnham’s strong leadership role and peer-mentoring initiatives among his colleagues made him an exceptional candidate for this award.

“I couldn’t be more proud of Daniel for being selected by HPF as their Counselor of the Year,” said Jeanine Lipka, Vice President of Housing and Bankruptcy Services at MMI. “He continues to emulate all of the qualities of an outstanding counselor, and he is an integral part of both the MMI and HPF teams.”

Mr. Burnham has been counseling homeowners who call HPF’s HOPE Hotline since 2010. In the last year, HPF received over one million calls from homeowners across the country.

To determine the inaugural HPF Counselor of the Year, HPF’s seven partner agencies were each asked to nominate one counselor who goes above and beyond the call of duty. Mr. Burnham was anonymously chosen as the recipient based on this nomination, which featured a narrative of his merits and achievements during the 2012 calendar year.

On behalf of all of us at HPF, we salute Mr. Burnham for the time and dedication he has demonstrated in helping to guide homeowners on the path to financial stability. It is because of compassionate, professional counselors like Mr. Burnham that so many homeowners are able to reach a sustainable solution and avoid foreclosure. Congratulations, Mr. Burnham!

Why does this matter, anyway? Finding out who owns your loan becomes especially important when you realize you may be in danger of falling behind on your mortgage. The owner of your loan is the only entity that can agree to a mortgage modification, refinance, or other form of mortgage relief. And various government mortgage relief programs are often specific to the owner of your loan – for example, the Making Home Affordable modification and refinance programs are specific to loans that are owned by Fannie Mae and Freddie Mac. Similarly, the recently announced Streamlined Modification Program is available only to homeowners with Fannie Mae- and Freddie Mac-backed loans.

So how do you find out who owns your loan? That part is actually quite simple. Our housing counselors, who are available by calling 888-995-HOPE (4673), have the expertise and tools to help you determine who owns your loan. Counselors can then use their direct relationships within many lenders’ loss mitigation departments to initiate a three-way conference call between you and your lender to discuss the most appropriate solutions to your mortgage issue.

Also, if you’d like to quickly find out if either Fannie Mae or Freddie Mac owns your loan, both organizations offer the following loan look-up tools:

• Fannie Mae loan look-up: https://knowyouroptions.com/loanlookup
• Freddie Mac loan look-up: https://ww3.freddiemac.com/corporate/

Tip #1 | Check to see if you qualify for the various government-sponsored programs for homeowners

There are several government programs available to homeowners who have been affected by the housing crisis. For example, the Obama Administration’s Making Home Affordable (MHA) program offers a refinancing option for homeowners who are underwater on their mortgage as well as a modification program for those who are struggling financially and may qualify for a modified payment plan. Both of these programs expire at the end of 2013, so now is the time to see if you qualify.

There are also special programs for service members, those who are unemployed, and homeowners who may be looking to make a graceful exit from their home via a short sale. HPF counselors, who are available by calling 888-995-HOPE (4673), can walk homeowners through all of these programs and their corresponding application processes.

Tip #2 | Use free online resources to evaluate your finances

Take advantage of the financial tools and information that are available for free online. Money Management International (MMI), one of HPF’s counseling agency partners, created FinancialLiteracyMonth.com, a website that supports Financial Literacy Month by offering free financial wellness webinars, worksheets, and eBooks.  Additionally, HPF’s website includes several tips on managing credit cards, utility payments, and education expenses via its “Homeowner’s HOPE Hotline Guide to Saving Money” page; the website also offers a large list of government and financial industry resources that can help struggling borrowers.

Tip #3 | Avoid scams

Unfortunately, there are many unsavory individuals out there who prey on financially-strapped consumers, either by convincing them into financial products that can be harmful or offering “too good to be true” debt rescue schemes. Before entering into any financial agreement with an organization, do your research to make sure that the organization is legitimate. Even a quick “Google” search can reveal negative consumer reviews on a particular organization or an “F” ranking from the Better Business Bureau, which are immediate red flags.

If you believe that you have been the victim of a financial scam, report it to the Consumer Financial Protection Bureau (CFPB). Foreclosure-related scams can also be reported to HPF’s anti-scam team at 888-995-HOPE. These complaints are then used by law enforcement agencies during their investigations into fraudulent activity.

As financial columnist Michelle Singletary mentioned in the Washington Post earlier this month, April is the perfect time to revisit your finances, considering that you’ve likely had to compile all of your financial information in order to file your taxes. We couldn’t agree more, which is why we hope you will use this month to learn more about personal finance and apply the knowledge you gain to make better-informed financial decisions.

Over the past few days, we’ve received several comments on our blog from readers asking about the Independent Foreclosure Review (IFR) agreement and, specifically, the recent mailing of postcards to those who are eligible for compensation. First and foremost, we suggest that all those with questions visit the OCC’s website and read its list of “Independent Foreclosure Review Settlement Frequently Asked Questions,” which provides detailed answers to many of the questions that were posted on our blog. The FAQ also includes a breakdown of the servicers that are participating in the IFR agreement and those that are continuing with the review process.

Many of the questions we received were about the timing of the expected payments stemming from the IFR agreement with 13 major servicers. As we’ve previously posted, the over four million families who are expected to receive settlement checks from the IFR agreement were sent postcards over the last two weeks; these postcards provided further details on the anticipated payments. We urge those who believe they qualify for remediation via the settlement to check their mailboxes and open all mail that may pertain to the settlement. Additionally, it’s important to make sure that the program administrators have your current contact information, which you can verify by calling the payment administrator, Rust Consulting, at 888-952-9105.

Those who have received an IFR agreement check may have noticed that HPF’s Hotline number, 888-995-HOPE, is also listed in the accompanying letter. Homeowners who are still struggling financially or who are not sure how to best use their settlement payments to handle other debt issues are invited to call HPF to speak with a financial counselor. For more information on HPF counseling, read our previous blog post on the subject by clicking here.

This study is the latest of several that validate the effectiveness of foreclosure prevention and pre-purchase housing counseling (see here and here). With so much positive, independently analyzed and verified data highlighting the benefits of housing counseling, it makes the case that every homeowner should have access to a nonprofit counselor, whether they are in distress or just getting their feet wet in the home buying process. In fact, this most recent study even found that repeat homebuyers who complete pre-purchase counseling are able to avoid delinquency more than those who do not participate in a counseling program – proving that even the experienced can use an ally when considering various mortgage options.

The NeighborWorks release also touched on a report from the Bipartisan Policy Center’s Housing Commission, which said that “housing counseling can improve prospective borrowers’ access to affordable, prudent mortgage loans, especially for families that otherwise might not qualify or who may experience other barriers to mainstream lending.” The report itself mentions data from NeighborWorks’ National Foreclosure Mitigation Counseling program (NFMC), noting “counselors can also be an ally in the event of an unexpected financial change and can start the conversation with a lender about ways to help struggling homeowners.”

These studies do more than reiterate that housing counseling works; they also send the message that homeownership can still be a very viable option for those who are mentally and financially prepared. Many people who witnessed the housing market collapse are nervous about pursuing homeownership, fearing that they too might end up facing foreclosure or trapped in an underwater mortgage. These fears, while very real, can cause even the most prepared consumer to ignore the many advantages of homeownership, which includes building equity in your home, tax savings, and, on a more personal level, creating a home for your family and becoming a contributing member of a stable neighborhood or community. It’s important that prospective homeowners do a lot of research and take everything into consideration – the good and the bad – so that they can make a truly informed decision.

HPF currently offers free foreclosure prevention counseling to struggling homeowners and is working with several lenders and organizations on pre-purchase counseling programs that help homeowners before they sign on the dotted line. For more information, call 888-995-HOPE (4673) to speak with a housing counselor today.

Mr. Segal’s February 23 column particularly resonated with me.  In January, he was contacted by a robocaller offering an opportunity to lower his credit card interest rates.  Mr. Segal was immediately suspicious of the offer and decided to investigate the company.  It turns out that the company is run by a Florida couple who, according to Mr. Segal, control other outfits that were sued by the attorney general of Arkansas for violating various laws, including the Telemarketing Consumer Fraud and Abuse Prevention Act.

Mr. Segal is understandably outraged that the company continues to find new ways to operate, but he shouldn’t be.  Stamping out individuals bent on preying on unsuspecting consumers is akin to playing Whac-A-Mole – you stamp them down and they often instantly appear elsewhere.

HPF’s HOPE Hotline has received more than 30,000 reports of alleged mortgage scams in the past three years.  Many of the scamsters are repeat offenders – they get charged and then reemerge doing business under a different name.  They know how to circumvent the legal system and are quite sophisticated marketers.  Indeed, when Mr. Segal asked the robocaller where he was located, the person knew to terminate the call.

So take a bow, Mr. Segal, for doing your part to protect consumers in advance of National Consumer Protection Week.  And if you want to help stamp out the rapidly growing legion of mortgage scamsters, tell your readers to call the HPF HOPE Hotline at 888-995-HOPE (4673) to report suspected mortgage fraud. Reported scams are put in a database that is accessed by various law enforcement agencies.  And let your readers know that, if they are in need of FREE loan modification counseling, they can get it simply by calling the HPF HOPE Hotline.

Anyone who demands upfront fees for loan modification counseling is not worth listening to. Especially if the person making the offer is a robocaller.

As our directors don’t get public recognition for their HPF board work, we take satisfaction when they are honored for their other accomplishments. So we are incredibly proud that founding member and longstanding board member Sharon Sayles Belton is having a Minneapolis bridge named in her honor.

Ms. Sayles Belton is a former two-term Mayor of Minneapolis, where HPF is headquartered.  Sharon’s major accomplishments during her tenure include revitalizing one of the poorest neighborhoods in Minneapolis through public safety, job creation, and quality housing initiatives. It was also during Sharon’s tenure that the Minneapolis Convention Center, one of the city’s most important assets, was built. The bridge that will be renamed for Sharon, also constructed during Sharon’s term as mayor, connects the Convention Center with the Minnesota African American Museum. Sharon was the first woman and first African American to serve as mayor of Minneapolis.

Sharon is currently the Vice President of Government Affairs and Community Relations at Thomson Reuters Legal, where she directs government affairs activities affecting all Thomson Reuters businesses, customers, and employees; she is also responsible for the company’s Community Relations activities. Additionally, Sharon is a senior fellow at the Hubert Humphrey Institute at the University of Minnesota.

The Frank Lloyd Wright-inspired Minneapolis bridge, currently known as the Third Avenue South bridge and located over Interstate 94, will be renamed the “Sharon Sayles Belton Bridge” and renovated to feature public artwork honoring Sharon’s achievements as mayor. Sharon was instrumental in transforming Minneapolis through public art and was responsible for renovating the city’s historic theaters and bringing housing, entertainment, and culture back to the city’s neglected Mississippi Riverfront communities.

We salute Sharon for all her impressive accomplishments serving the residents and businesses of Minneapolis and are grateful for her continued service on HPF’s Board.

Click here to read the official announcement of the bridge rededication.

The advertising campaign urges homeowners to call HPF’s Hotline at 888-995-HOPE in order to speak with a housing expert about eligibility for the MHA program, which has been extended through the end of 2013. To view the TV version of this PSA campaign, click the play button just below (a Spanish version of the ad is available here).

The campaign is an initiative supported by the U.S. Department of the Treasury, the U.S. Department of Housing and Urban Development (HUD), and the Ad Council. The full press release announcing the campaign, as well as links to all TV, radio, print, outdoor, and online ads, is available here.

To date, we’ve helped more than six million homeowners in need of mortgage assistance and information find sustainable solutions to their unique financial challenges and, whenever possible, to stop foreclosure and stay in their homes.  By any measure, that’s a lot of people — and there are millions more still struggling and in need of reliable, accurate information on their mortgage options.  At last count, we’re still getting an average 5,000 calls to the Hotline every day.

And while the call volume may be holding steady, we have detected a slight shift in who is doing the calling.

As we reported earlier, whereas people in default on their mortgage used to be the HOPE Hotline’s primary caller, there’s been an uptick in calls from mortgage borrowers who are current but on the brink of default. These borrowers now make up 50% of our call volume — that’s a 70% increase from last year.

What does that likely tell us about the changing profile of today’s distressed homeowner?

While it has always been overly simplistic, inaccurate, and unfair to paint the millions of people who are underwater, behind on their payments, or had lost their home to foreclosure as irresponsible borrowers, we have known firsthand that there is a wide array of homeowners who call us for help, from those who are severely delinquent to those have never missed a payment.

The latest data on our callers report that they are current on their mortgages, but they are actually in financial duress.  Many have upwards of $20,000 in unsecured or credit card debt as well as monthly budget deficits of, on average, $755. Even more alarming, three out of four of our callers tell us that a loss of income, whether from unemployment, underemployment, or loss of hours, was the reason they were finding themselves on the verge of default.

These are largely homeowners who were classified as low-risk borrowers when they first took out their mortgages — good job history, strong wages, easily manageable debt obligations, etc.  Yet something changed.  They experienced some type of economic setback that changed their financial health, such as a job loss, medical problem, divorce, or a death of their spouse.  Although they’ve kept the mortgage payments going, they tell us it’s getting harder and harder for them to do so and that here is great fear that they won’t be able to do so much longer.  Savings are wiped out, credit cards are maxed, and the 401k has been raided.

Hopefully, this emerging pattern we’re seeing doesn’t result in a second wave for the housing crisis.  With very limited options available to homeowners who are struggling but not yet delinquent, those of us working to resolve this housing crisis need to be thinking collectively about ways to help these borrowers — before their crises could potentially set the housing market back again.

Did this emerging caller profile sound familiar?  If so, call our Homeowner’s HOPE Hotline at 888-995-HOPE (4673).  We’d like to try to help.