Rep. Doris Matsui Applauds New Funds for Financial Counseling

Press Release

Today, Rep. Doris Matsui (CA-05) applauded HopeNow, a coalition of lenders and nonprofit groups, for providing funding for financial counselors to assist troubled homeowners. HopeNow will adopt guidelines for the payments, up to $150 for a session with a distressed homeowner. Nonprofit agencies can receive more if there is a positive outcome for the lender.

Earlier this year, Rep. Matsui introduced the Home Retention and Economic Stabilization Act in the U.S. House of Representatives. This timely and necessary legislation will provide responsible relief to homeowners struggling to find solutions to avoid foreclosure. One of the provisions of the Matsui bill would authorize $200 million housing for counseling assistance. The funding would go through the Neighborhood Reinvestment Corporation to be allocated to states and areas impacted the most by foreclosures.

"We must find responsible solutions to the mortgage crisis and preserve the American dream of homeownership. Providing expanded financial counseling will help homeowners now, and educate future waves of borrowers so that they fully understand the lending process," said Rep. Matsui.

The funds will be in addition to the $180 million in grants Congress has approved for nonprofit counseling agencies. According to the Washington Post "888-995-HOPE, has reported 315,000 calls this year, compared with 245,000 for all of last year." ["Mortgage Investors to Chip in for Homeowners' Counseling," Thursday, June 12, 2008; Page D03]

Sacramento ranks amongst the top cities in the nation in the amount of foreclosures happening everyday. Across the state, one in 20 homes is projected to experience foreclosure over the next two years, and three of the top five counties in the nation for foreclosures are in California: Sacramento, Riverside, and Modesto Counties. This summer, Los Angeles County is forecasted to be particularly hard-hit by the ongoing mortgage crisis.

The mortgage crisis affects homeowners, renters, and community residents. In addition to borrowers at risk of foreclosure activity, homeowners across the country are seeing their home values decreasing. Increased foreclosure activity leads to an increased amount of homes standing vacant, neighborhood blight, and crime rate increases.

"We cannot sit idly by while our neighbors fall victim to the mortgage crisis. Sacramento has been particularly hard-hit by the housing crisis. My intention is to find responsible relief for homeowners to find viable solutions to their financial challenges," said Rep. Matsui. "By moving forward with these solutions now, we can ensure a better, more stable America in the future."

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