Governor O'Malley Announces Federal, State and Local Support for Foreclosure Prevention
Governor holds roundtable discussion with counselors and homeowners on foreclosure prevention initiatives
ANNAPOLIS, MD (April 29, 2009) – Today, Governor Martin O’Malley joined housing counselors, pro-bono attorneys and homeowners from Prince George’s County to announce the latest federal, state and local funding awards totaling more than $2.5 million to help prevent foreclosures in Maryland.
“Housing counselors are the first line of defense for homeowners threatened with foreclosure,” said Governor O’Malley. “These funds will support and strengthen these efforts, protecting families throughout Maryland and supporting their efforts to avoid foreclosure. These awards recognize the hard work of these counselors and are symbolic of our appreciation for their public service.”
The Governor’s roundtable discussion was made at the New Chapel Baptist Church, which is affiliated with KAIROS Community Development Corporation, an agency providing foreclosure prevention counseling. Governor O’Malley was joined by Harold Davis, Executive Director of the KAIROS Community Development Corporation and Reverend Kerry Hill, President of the Collective Banking Group.
“We are so grateful for the Governor’s support of this effort,” said Reverend Hill. “When we began this crisis it was all about subprime lending. As this crisis has grown, we see people losing jobs and everything completely unraveling in their lives as they struggle with multiple challenges. I am very worried about the seniors in our community and the families that are over extended and now owe more than their houses are worth."
The Maryland Department of Housing and Community Development (DHCD) supports a statewide network of 30 nonprofit housing counseling agencies and 2 nonprofit legal services providers as part of its Home Ownership Preserving Equity (HOPE) initiative.
The Governor’s announcement includes nearly $1.8 million of federal National Foreclosure Mitigation Counseling (NFMC) - NeighborWorks funds and $500,000 from the State of Maryland. In addition, during the roundtable discussion, DHCD Secretary Raymond A. Skinner highlighted $240,000 in matching funds from Montgomery County for housing counseling agencies operating in that County.
“Maryland’s housing counseling community has been an important partner in this fight to combat foreclosures,” said Secretary Skinner. “Not only do they continue to fulfill their traditional role in providing financial and mortgage guidance, but they have advocating mightily for the better part of two years on behalf on thousands of families who are threatened with losing their homes. Their work is greatly appreciated.”
Thirty non-profit housing counseling agencies statewide and two legal service providers will share in the NFMC funds. Of those, nine including Belair-Edison Neighborhood, St. Ambrose Housing Aid Center, Druid Heights CDC, Home Free USA, Housing Initiative Partnership (HIP), Kairos CDC and Sowing Empowerment & Economic Development (SEED) and statewide legal services organizations Civil Justice Network and the Pro Bono Resource Center, will receive additional funds from the State’s $500,000 contribution.
Overall, the State has distributed more than $5.5 million in assistance since the summer of 2007. The counseling network has assisted nearly 23,000 consumers and helped more than 6,800 homeowners avoid foreclosure. Through a statewide Foreclosure Prevention Pro Bono Project, more than 700 lawyers have volunteered their time to help distressed homeowners in need of legal assistance. The State of Maryland’s “Mortgage Late? Don’t Wait!” campaign has brought thousands of Marylanders to the HOPE Hotline, 1-877-462-7555 and the HOPE Web Site, www.mdhope.org.
In November, Governor O’Malley announced agreements with six mortgage servicing companies to create a streamlined and transparent loss mitigation process for distressed Maryland homeowners. Together, these companies service 23 percent of home loans in Maryland. The agreements are part of the O’Malley-Brown Administration’s comprehensive efforts to combat what has become the worst housing crisis the nation has seen since the Great Depression. Last year Governor O’Malley signed into law a legislative package that The Washington Post called “among the most sweeping in the country” to help keep families in their homes. The package included legislation that:
- Lengthened the foreclosure process to approximately 150 days, providing homeowners with more time and notice before a foreclosure sale;
- Made mortgage fraud a crime for anyone involved in the mortgage transaction and cracked down on foreclosure rescue scams;
- Reformed lending practices by banning pre-payment penalties on mortgage loans, requiring lenders to verify a borrower’s ability to repay a loan and strengthening the licensing requirements for mortgage professionals.
This announcement comes on the heels of DHCD's release of the first quarter 2009 foreclosure report. The report shows 9,289 property foreclosures in Maryland during the first quarter of 2009 which is a reduction of 7.5% from the previous quarter and a decline of 18.5 % from the same time a year ago. Total foreclosure filings in Maryland posted the second lowest number since the first quarter of 2008 when the State's foreclosure prevention legislation went into effect. To view the report, log on to www.mdhope.org.
