HUD to Fund Loan Mod Counseling Centers

HUD to Fund Loan Mod Counseling Centers

May 16, 2011

The U.S. Department of Housing & Urban Development (HUD) has announced that the agency anticipates making approximately $10 million available under its Fiscal Year (FY) 2010 Mortgage Modification and Mortgage Scams Assistance (MMMSA) under the Housing Counseling Program Notice of Funding Availability (NOFA). HUD expects to post its FY2010 MMMSA NOFA on later this year.
The MMMSA NOFA will establish the deadline for applications and all thresholds and selection factors governing the competitive distribution of this assistance. In addition to the application requirements set forth in the NOFA, applicants will also be required to comply with applicable requirements established in HUD’s FY2010 Notice of Funding Availability (NOFA) Policy Requirements and General Section to HUD’s FY2010 NOFAs for Discretionary Programs (General Section) posted on on June 7, 2010.
The MMMSA NOFA supports the delivery of counseling services to homeowners to prevent or resolve mortgage delinquency, default, and foreclosure, with the primary objective to preserve homeownership. Counselors will provide guidance and advice to assist families and individuals meet the responsibilities of homeownership and modify or refinance their loans to avoid unreasonably high interest rates, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default and eventually foreclosure. Counselors also assist homeowners with inquiries related to mortgage scams, and reporting instances of potential mortgage scams victimization.

Compliance, Residential, Servicing, Settlement