Scroll down for news about foreclosure trends and prevention strategies, recent publications, and brochures and other resources for consumers.
Recent News
New Loan Product from FHA
FHA has introduced a new product, FHASecure, to help consumers refinance out of adjustable rate mortgages into fixed-interest FHA loans. Extensive information is available at the FHA web site. To qualify, borrowers, must meet several criteria,including:
- A history of on-time mortgage payments before their teaser rates expired and loans reset;
- Interest rate must have or will reset between June 2005 and December 2009;
- Three percent cash or equity in the home;
- A sustained history of employment; and
- Sufficient income to make the new mortgage payment.
New Product from FHLB Cincinnati
The Federal Home Loan Bank for Cincinatti has introduced a new funding program to help mitigate rising numbers of foreclosures
in Kentucky, Ohio and Tennessee.Through the new HomeProtect Program,
the FHLBank will make available $250 million in Advances to member
financial institutions at the FHLBank’s cost of funds. The financial
institutions can then use those funds to help homeowners at risk of
foreclosure to refinance their homes on more favorable terms. Read the press release and review the FHLB program fact sheet.Download 2007_homeprotect_program_fact_sheet.doc
Ohio Programs
The State of Ohio has been in the news
lately for some new programs designed to address the state's high rate
of foreclosure, one of the worst in the nation. Links to some
additional information are below.
- Refinance loan program
- One of two rescue funds.
New Ad Campaigns Coming
A new ad campaign utilizing radio,
TV, billboards, and other media is rolling out nationally, beginning in
June. It was developed by Neighborworks, the Ad Council, and the
Homeownership Preservation Foundation. Radio and billboards will be
used locally. To look at samples and for further information, go to the
campaign web site.
In addition, Memphis Housing Counseling Network and other partners are
teaming up later this year for our own local campaign, utilizing
billboards and bus shelter ads. Stay tuned for updates.
Publications
Frayser 2006 Foreclosure Report
October, 2007
Download frayser_foreclosures_2006.pdf
Foreclosure Prevention: Improving Contact with Borrowers
Office of the Comptroller of the Currency, June 2007.
Report on best practices loan services are using to improve their contact rate with deliquent mortgage borrowers. Three main strategies are in sue, two involving direct customer contact by the servicer or a nonproft counseling agency, and one depending on the deliquent borrower to make the contact using a toll-free number. 12 page, PDF.
From Boom to Bust: Helping Families Prepare for the Rise in Subprime Mortgage Foreclosure
Center for American Progress, March 2007
Examines the impact of increased foreclosures and discusses several innovative state and local foreclosure prevention program. 16 pages, PDF.
Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners
Center for Responsible Lending, December 2006.
New study reveals that millions of American households will
lose their homes and as much as $164 billion due to foreclosures in the
subprime mortgage market.
The study is the first comprehensive, nationwide
review of millions of subprime mortgages originated from 1998 through
the third quarter of 2006. In addition, CRL has issued an issue paper finding that subprime lending actually has led to a net loss in homeownership.
State Strategies to Address Foreclosures
A new issue brief from the National Governors Association Center for Best
Practices highlights state efforts to help families avoid foreclosure and
prevent future problems by eliminating predatory lending practices and enacting
regulations covering nontraditional and subprime mortgage products. The brief
also examines how the current foreclosure crisis evolved and the impact of
foreclosures on states, neighborhoods and families. Additionally, it contains a
mortgage lending primer which overviews loan products, borrowers, and lenders.
Resources for Consumers
Want to know if you are getting a good deal on a home loan?
This brochure from Memphis DEBT Collaborative describes common loan terms in user friendly language, and helps consumers make sound decisions about mortgage loans. Links to the brochure in English and Spanish are below. For paper copies, email the CD Council: info@memphiscommunitydevelopment.com
Download final_updated_english_loan_terms_brochure.pdf
Download final_updated_spanish_loan_terms_brochure.pdf
