NEW YORK-A "Credit Union Foreclosure Intervention Toolkit" has been released by the National Federation of Community Development Credit Unions.
The goal is to help "credit unions combat the foreclosure crisis in their communities," the Federation said.
As part of the effort, the Federation has also been holding "train-the-trainer" workshops about the toolkit to credit unions and state leagues. The toolkit was created with support from the National Credit Union Foundation.
"With record rates of foreclosures projected through the year 2014, millions of at-risk homeowners need to take action early in the process to achieve the best possible outcomes," said the NCUF's Christopher Morris. "Unfortunately, many of these homeowners are paralyzed by fear, distrustful of the financial institutions that provided their mortgage loans and uncertain where to turn for help. Credit unions are the one type of financial institution that has retained a position of trust"
The Federation reported it has seen the national foreclosure crisis reflected in a "dramatic shift in demand between different types of counseling services, from pre-purchase to foreclosure intervention counseling." Prior to the crisis, pre-purchase counseling accounted for more than 75% of all individual counseling clients, said the Federation. But since 2006, the proportion of individual counseling clients that seek pre-purchase counseling has dropped dramatically and the proportion of delinquency and foreclosure intervention clients has risen sharply.
As part of the effort, the Federation has also collaborated with NeighborWorks to customize its Loan Scam Alert campaign materials for a CU audience. The materials are packaged and made available in electronic form as part of the toolkit. The Federation is also working with members of the HOPE Now Alliance, and specifically with the Housing Preservation Foundation (HPF), to establish a channel for credit union members to obtain foreclosure intervention assistance.
