HUD Gives $10M Grant to Counter Mortgage Scams

Allison Tussey —  September 6, 2011 — Leave a comment

In an effort to help families avoid mortgage scams, more than $10 million in housing counseling grants have been issued. This is unspent funding from the 2010 appropriation that was re-competed and awarded to HUD-approved counseling agencies.

HUD is awarding $3 million to 139 local housing counseling agencies nationwide, and more than $7 million to 23 housing counseling intermediary agencies. These funds are designed to serve residents in the nation’s top 100 metropolitan areas that are experiencing the worse foreclosure problems.

The funding is predominately for foreclosure prevention counseling, assistance with application to Federal and other mortgage modification and loss mitigation programs, and related outreach. It will also support outreach and counseling efforts designed to identify and assist victims of mortgage modification scams, and report those cases to the applicable authorities.

HUD awards grants under the housing counseling program through a competitive process. Organizations that apply for grants must be HUD-approved and are subject to performance reviews to maintain their HUD-approved status.

For a list of all grants, organized by state, visit HUD’s website.

For summary of each grant, organized by state, visit HUD’s website.

“The funding announced…is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams,” said HUD Secretary Shaun Donovan. “It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage ‘rescue’ companies.”

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Allison Tussey

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