Tag Archives: Neighborhood Stabilization Program

In an effort to reduce neighborhood blight and eliminate potential hot spots for crime, Mayor Dave Bing of Detroit has set a goal of demolishing 10,000 abandoned homes and residential structures in the city by the end of his term in December 2013. Since Detroit's Residential Demolition Program began in April 2010, about 1,850 vacant homes have been bulldozed. By comparison, in all of 2009, the city tore down just 860 empty homes.

Federal regulators on Wednesday announced changes to the Community Reinvestment Act (CRA) parameters to support communities affected by high foreclosure levels. The final rule encourages depository institutions to finance development projects in areas that qualify for HUD's Neighborhood Stabilization Program (NSP). Institutions will receive CRA credit for any NSP-eligible activities, such as loans extended to grant recipients to buy foreclosed homes or a donation of REO properties to a nonprofit housing organization.

Fannie Mae announced Monday that more than 29,000 owner occupants have purchased Fannie-owned REO homes over the last year through the GSE's First Look initiative. Fannie Mae also worked with nearly 800 public entities under HUD's Neighborhood Stabilization Program, enabling state and local governments and nonprofit groups to purchase nearly 5,000 foreclosure properties from the GSE's portfolio. Fannie says homebuyers who intend to occupy a home merit priority consideration in its REO sales process.

Freddie Mac said Wednesday that it is expanding its First Look Initiative to allow any home shopper to buy a HomeSteps REO home as their primary residence during the first 15 days of the property's listing, without competition from investors. The new policy takes effect Friday, September 17. In addition to owner-occupant buyers, Freddie Mac's First Look window is open to buyers who are part of HUD's Neighborhood Stabilization Program, as well as groups affiliated with the National Community Stabilization Trust.

HUD awarded an additional $1 billion Wednesday to state and county governments to help communities reverse the effects of the foreclosure crisis and assist with the cleanup of vacant homes. The grants represent the third round of Neighborhood Stabilization Program funding - which so far amounts to a total of $7 billion - earmarked for acquiring, redeveloping, or demolishing foreclosed properties. Recipients are able to take advantage of HUD's new REO ""First Look"" program with the nation's largest mortgage lenders.

Neighborhoods across the country are riddled with empty bank-owned homes and unoccupied foreclosures that erode neighboring property values and open the door for blight and criminal activity. The nation's glut of vacant REOs took center stage in Washington Wednesday. HUD announced a new nationwide REO ""First Look"" program, in partnership with the nation's largest mortgage lenders, and it was the first of a two-day Federal Reserve summit to examine the community impacts of foreclosed and vacant properties.