Wells Fargo & Company says it will increase its commitment to credit counseling nonprofits by $5.4 million to a total of $12.4 million in 2011 – a 35 percent increase over the $9.2 million in 2010 – for national and local credit counseling agencies.
“At Wells Fargo, we share the desire of many non-profit agencies to help as many Americans as possible achieve and sustain the dream of homeownership,” said Jon R. Campbell, EVP and head of Wells Fargo’s Social Responsibility Group. “Yet public funding for credit counseling is becoming more scarce, while considerable demand remains.”
The $5.4 million in new commitments from the San Francisco-based lender this year will be provided in the form of grant money directly to nonprofit agencies and support foreclosure prevention counseling services and training.
Grants totaling $1.25 million will be awarded in $250,000 sums to each of five nonprofits including: Alliance for Stabilizing our Communities, Housing Partnership Network, National Community Reinvestment Coalition, HomeFree-USA, and National Foundation for Credit Counseling, Inc.
Another $3 million will be given to NeighborWorks America to support “train-the-trainer” scholarships for local counseling agencies to attend industry counseling standards training.
In addition, $1.2 million of the new funding will go to approved housing agencies to help extend home preservation services through face-to-face credit coun-
seling and mortgage payment assistance. Through this program, counselors can transmit the necessary documents for customers’ mortgage modifications through a Web-enabled portal.
“At a time when our country is still working through the effects of a historic downturn in the housing markets and high unemployment, Wells Fargo believes it’s critical to continue to support the work of these non-profit agencies,” said Mary Coffin, EVP of Wells Fargo Home Mortgage Servicing. “Experience has shown us that their coaching and counseling can have a dramatic impact on helping individuals and families become more successful homeowners through better management of their finances.”
On April 14, federal government officials voted to discontinue $88 million of HUD grants to housing counselors. This money enabled counseling agencies to offer their services free of charge or for a small fee.
In 2010, HUD-approved counseling agencies provided services to more than 2.1 million clients, and achieved $29 billion in measurable economic benefits on an investment of $75 million, according to HUD data cited by the National Council of La Raza.
“We applaud Wells Fargo for demonstrating their commitment to the tens of thousands of families that rely on housing counselors to help them navigate a complex housing market,” said Janet Murguía, president and CEOof the National Council of La Raza.
“Research has shown that the objective advice housing counselors offer to struggling homeowners and first-time buyers has proven results for families and lenders alike,” Murguía added.
Marc H. Morial, president and CEO of the National Urban League, also recognized Wells Fargo’s expanded commitment to credit counseling providers.
“As the dialogue and discourse continues to disproportionately center on the well being and vitality of Wall Street, Wells Fargo is to be commended for its support of evidenced-based solutions for Main Street,” Morial said. “We believe their leadership on this issue can have a catalytic effect on all sectors to do more to support counseling services throughout this period of government cut backs and economic uncertainty.”
