Financial Products

The foreclosure crisis was spurred by the proliferation of higher-cost and high risk financing that was often targeted to borrowers and communities of color.  These borrowers and neighborhoods have been disproportionately impacted by foreclosures and will need access to loan modifications and affordable mortgage loans if they are to stabilize and participate in any type of economic recovery.    
 
In order to avoid as many foreclosures as possible, the Home Affordable Modification Program (HAMP) and other federal foreclosure prevention programs must be made more efficient and expand their criteria to more effectively offer loan modifications to unemployed and underwater homeowners.  The program has also suffered from slow implementation and a failure by servicers to quickly convert trial modifications into permanent modifications.
 
Additionally, neighborhoods need new home buyers to fill the holes left behind by foreclosure. However, demand is weak and credit for home purchasing is scarce, especially in the communities hardest hit by the crisis. Prospective home buyers need creative and sustainable loan products designed with current market realities in mind, such as down payment assistance, and housing counseling to help them buy and keep a home they can afford.  Non-profit lenders such as Neighborhood Housing Services (NHS) of Chicago understand communities and specialize in making affordable loans. However, they need public and private leverage to expand their ability to lend to the broader Chicago region.  Additionally, there is a need for banks to return to the hardest hit markets and make safe and affordable mortgages.
 
This page details the efforts of RHOPI partners to advocate for improvements to local and national foreclosure prevention programs and to expand access to mortgage credit for prospective homebuyers in communities hit hard by the foreclosure crisis.

A new report shows nearly $46 billion in consumer relief has been provided nationwide to victims of the robosigning scandal as part of last year’s national foreclosure settlement with the five largest mortgage servicers.
 
Independent settlement monitor Joseph Smith released his third in a...

Unequal Opportunity
Female mortgage applicants are less likely to have their loans originated than are male mortgage applicants, Woodstock Institute finds in a new fact sheet. The Institute also found evidence  that female-headed joint applications (a...

From the Office of the Comptroller of the Currency:
 
WASHINGTON — Payments to 4.2 million borrowers are scheduled to begin on April 12 following an agreement reached by the Office of the Comptroller of the Currency and the Federal Reserve Board with 13 mortgage servicers.
 
The agreement, which was reached earlier this year, provides $3.6...

Attorney General Alerts Foreclosed Borrowers to Payments Mailed This Week
 
Chicago — Attorney General Lisa Madigan today announced nearly 30,000 Illinois borrowers will receive $43.3 million in relief payments this week through the national foreclosure settlement.
 
Madigan said the settlement administrator will mail 29,795 checks averaging $1,...

The nation’s five biggest mortgage lenders have likely already satisfied their financial obligations under last year’s $25 billion settlement over mortgage abuses, helping hundreds of thousands of families keep their homes. But four of the five have yet to meet the settlement’s second goal: ending the maze of frustrations that borrowers must navigate in order to modify their...

Cinthya Melero’s and Luis Barajas’ house was giving them nothing but headaches. The small row house they rented in Pullman, dating from the 1880s, had become too small for their family. Wouldn’t it be nice, the couple wondered, to buy our first...

Completed foreclosure auctions remain near record-high levels, new data from Woodstock Institute show

CHICAGO—New foreclosure filings in the Chicago six county region dropped by more than a third from the first half of 2012 to the first half of 2013, new data from...

 
Materials Offer Consumers Tips on Taking Advantage of New Protections
 
WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) launched a campaign to educate the public about the new protections provided by the Bureau’s mortgage rules. The Bureau is releasing educational materials in advance of the January 10, 2014 effective...

Last year, together with the Department of Justice, we filed a complaint against National City Bank (National City) for discriminating in mortgage loan pricing. The complaint alleged that National City charged African-American and Hispanic borrowers higher prices on their mortgage loans than similarly-situated white borrowers between 2002 and 2008. The parties agreed on a settlement, and a...

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) released a report finding that almost half of consumers do not shop around for a mortgage when purchasing a home. The report also found that informed consumers are more likely to shop, especially if they are familiar with available mortgage rates. As part of its Know Before You Owe mortgage initiative, the CFPB is...

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