The data was compiled by NeighborWorks America and prepared by the Urban Institute. In the study, they compared results against homeowners who obtained a mortgage modification without the assistance of an NFMC foreclosure prevention counselor.
The report also showed that homeowners who had counseling received, on average, a mortgage modification that lowered their payment by $176 more per month, than homeowners who didn’t work with an NFMC counselor.
The report also showed that homeowners who had counseling received, on average, a mortgage modification that lowered their payment by $176 more per month, than homeowners who didn’t work with an NFMC counselor.
The reduced re-default rate of homeowners helped by a mortgage modification comes, in part, from the financial counseling rather than the lower mortgage payment obtained. The Urban Institute’s analysis attributed it to the “impacts of counseling, such as helping borrowers to improve their financial management skills, assisting them in managing relationships with servicers/investors, and providing other types of support.” See the entire report here: Urban Institute analysis of the NFMC program impacting Loan Modification Rates .
