Richmond Fed Partners With HOPE NOW and NeighborWorks America to Help Homeowners
RICHMOND, Va., April 2 /PRNewswire-USNewswire/ -- Growing numbers of homeowners in the region are at risk of foreclosure and may be unsure of where to turn for guidance. To help address the problem, the Federal Reserve Bank of Richmond will join HOPE NOW and NeighborWorks America in sponsoring a free, public event for Carolina borrowers facing foreclosure. The event will take place on April 25 from 9 a.m. until 3 p.m. at The Park on 2500 E. Independence Boulevard in Charlotte, N.C. The goal of the event is to bring borrowers at risk of foreclosure together with servicers for face-to-face discussions about possible mortgage resolutions.
HOPE NOW Alliance serves as an intermediary between lenders, mortgage service companies and non-profit housing counselors on behalf of troubled homeowners. They have an extensive alliance of more than 25 organizations. This event will offer homeowners the opportunity to meet individually with their mortgage servicer and housing counselors to discuss feasible options to avoid foreclosure. Throughout the day, certified housing counselors will offer educational workshops on foreclosure prevention and credit counseling. Studies have shown counseling to increase the chances of borrowers receiving direct assistance from mortgage servicers.
Weaknesses within the housing market and rising unemployment rates have left families uncertain about the viability of homeownership. Areas once unaffected by foreclosure are now experiencing unemployment and spillover effects from adjacent communities. The Federal Reserve Bank of Richmond has identified the Charlotte region as an area with increasing mortgage delinquency and foreclosure challenges. In January 2009, according to LPS Applied Analytics, 4 percent of the loans in the Charlotte region were more than 90 days delinquent, a figure higher than the state average.
Data recently released from the Bureau of Labor Statistics show that the unadjusted rate of unemployed persons for the Charlotte region in February 2009 reached 11.7 percent compared with 11.3 percent for North Carolina.
The Federal Reserve Bank of Richmond is one of 12 District Reserve Banks that together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Richmond Fed serves the Fifth Federal Reserve District, which encompasses the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.
