(COLUMBUS, Ohio) – Nonprofit agencies from around the state will be able to expand their foreclosure counseling services as a result of additional funding resulting from the state’s settlement with Countrywide Financial Corporation.
“These agencies are on the front line of our battle against foreclosure,” said Ohio Attorney General Richard Cordray. “A record number of Ohioans are at risk of losing their homes due to predatory lending practices and corporate greed. By working with these specialized programs which help homeowners complete mortgage workouts and court mediation, I hope we can help stabilize the situation a bit. ”
Grants will be directed to 14 HUD-Certified agencies throughout state and are expected to help more than 13,000 families in 2010.
Recipients include:
| Catholic Charities, Mahoning County |
$59,451 |
| Columbus Housing Partnership |
$66,500 |
| Columbus Urban League |
$56,877 |
| Community Action Commission of Belmont County |
$34,685 |
| Community Housing Solutions, Cuyahoga County |
$131,821 |
| Consumer Credit Counseling Service of the Midwest |
$66,500 |
| Corporation for Ohio Appalachian Development, Athens County |
$119,430 |
| Empowering and Strengthening Ohio’s People (ESOP), Cuyahoga County |
$115,886 |
| Family Service Agency, Mahoning County |
$26,076 |
| Fair Housing Resource Center, Lake County |
$49,875 |
| Mustard Seed Development Center, Summit County |
$104,405 |
| Neighborhood Housing Partnership of Greater Springfield |
$66,500 |
| Northwest Ohio Development Agency, Lucas County |
$52,119 |
| WSOS Community Action Commission, Inc., Sandusky County |
$49,875 |
The $1 million is part of a $4.39 million state settlement with Countrywide resolving allegations that the mortgage lender used unfair and deceptive tactics in its loan origination and servicing activities. The settlement also resolved allegations that borrowers were often placed in structurally unfair and unaffordable loans. The remainder of the settlement is being distributed to Countrywide borrowers in Ohio who have lost their homes to foreclosure.
Agency grantees were selected through a competitive process which included the requirements of an 18-month track record of providing foreclosure assistance, including established relationships with mortgage servicers. The Attorney General's office also received input from the Department of Commerce in deciding how to distribute the allocated funds.
Since taking office in January 2009, Attorney General Cordray has made the fight against foreclosures in Ohio a priority. In addition to the distribution of today’s grants to foreclosure counseling agencies, he has launched a full-on effort to hold companies accountable for violating Ohio law in the wake of the foreclosure crisis. To date, Cordray has issued approximately 30 cease-and-desist notices and has filed seven lawsuits against foreclosure rescue operations targeting Ohioans. Cordray has also sued two loan servicers for unfair or deceptive loan modification practices.
Media Contacts:
Kim Kowalski: (614) 728-9692
cell: (614) 893-6018
Holly Hollingsworth: (614) 644-0508
cell: (614) 353-7576