May 26, 2009

Richmond Fed Partners with HOPE NOW and NeighborWorks America to Help Homeowners

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The Federal Reserve Bank of Richmond joined HOPE NOW and NeighborWorks America in sponsoring an event for Carolina borrowers facing foreclosure. The event drew hundreds of homeowners seeking a chance to meet with their mortgage lenders to receive possible mortgage resolutions. The event, held in Charlotte, N.C., gathered 15 servicers, 12 housing counselors and 12 nonprofit organizations to connect people at risk of losing their homes with information that could help prevent foreclosure and improve their credit.

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.

Visit the Richmond Fed’s Foreclosure Resource Center for more information on foreclosure prevention resources.

View Article: Mortgage Delinquencies on the Rise
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Press Release: Richmond Fed Partners with HOPE NOW and NeighborWorks America to Help Homeowners