Due to recent housing downturns and lack of funding, Neighborhood Housing Services of America (NHSA), a 35 year old nonprofit, providing assistance to many homeowners, is closing its doors and services. For years, NHSA raised funds from the private sector to purchase loans from local nonprofit housing organizations, in effort to support low-income, new home buyers.
NHSA Chairman of the Board of Directors, Bruce Gottschall, said, “Neighborhood Housing Services of America has been a strong supporter of the community development field for 35 years. NHSA has arranged responsible mortgage financing for thousands of homeowners who otherwise would have been unable to own or rehabilitate their homes, or would have paid higher, unaffordable interest rates. Its unique programs have also helped many current homeowners
avoid foreclosure during these difficult economic times.
NHSA has also served its investors by maintaining delinquencies and credit losses on its mortgage loans at levels well below national averages for similar borrowers. NHSA is proud of its success in meeting the needs of so many low and moderate income and minority citizens. It is unfortunate that circumstances require the ending of this exemplary contribution to the nation`s housing needs.”
As a result of the housing market’s harsh downturn, there has been a flood of liquidity demands…which are seemingly impossible to meet. This coupled with NHSA’s rejection for its annual grant from Neighbor Works America (NWA), make it nearly impossible to continue operations.
While NHSA slowly pulls the reigns on its operations, they intend to continue to protect the interest of its lenders, creditors, its customers and employees. They plan on continuing to accept payments and provide services to existing mortgage loans until an eventual transfer to other parties.
NHSA is following its own restructuring plan which it introduced within the past year. The plan calls for a reduction in operating expenses, changes in management and the hiring of restructuring specialists to provide input and provide direction.
For over 30 years, NHSA successfully helped low and moderate income home buyers, get their first homes. Working closely with local, community-based conglomerates, they were able to lend to these buyers while providing them first mortgages and down payment financing.