Freddie Announces Foreclosure-Linked Grants

Freddie Mac has announced $10.5 million in grants to 12 nonprofit housing counseling organizations for outreach, education, and foreclosure prevention efforts. The groups were selected for their abilities to educate and advise borrowers (especially subprime borrowers) about foreclosure options or help them obtain workouts from mortgage servicers, the government-sponsored enterprise said. The largest share of the funds will be administered through the Hope Now Alliance in grants totaling more than $6 million, of which approximately two-thirds is allocated for Hope Now's counseling, operations, and outreach. Other organizations receiving grants of $500,000 or more from Freddie are: Center for Responsible Lending, $1 million; Neighborhood Assistance Corporation of America, $500,000; and Don't Borrow Trouble, $500,000. Freddie said the grants are the result of the November settlement between the Office of Federal Housing Enterprise Oversight and former Freddie Mac chief executive Leland Brendsel. The GSE can be found online at http://www.freddiemac.com.