Federal Government Cuts Off Funding To Home Loan Help Group
DENVER (CBS4) - The federal government has cut off funding for a home loan modification program holding a big event in Denver this weekend.
The Neighborhood Assistance Corporation of America (NACA) has brought it's "Save the Dream" tour to the Colorado Convention Center. The Department of Housing and Urban Development (HUD) won't say exactly why it has cut off its funding to NACA. But the group claims it is politics because NACA has been critical of government programs to help homeowners.
NACA is now fighting back.
The Save the Dream tour is a way for homeowners like Ann Stump to hold onto their homes.
"We have been in our home 18 years and I just had my last day of work yesterday," Stump said. "I lost my job."
So Stump and others came to the Convention Center for free counseling and face-to-face meetings with mortgage lenders hoping for a deal like a man CBS4 investigator Rick Sallinger met who had $33,000 forgiven.
"I can't thank these people enough. They've made life livable again," said the man who didn't want to be identified.
But HUD told CBS4 there were seven areas where NACA didn't comply with its requirements, but wouldn't say which ones. HUD said it's currently reviewing NACA's response, and if it's resolved it will restore the funding.
"No one should pay anybody to save their home," said Bruce Marks, NACA founder and CEO. "That's why with NACA everything is absolutely free."
Marks told CBS4 they are now operating without any tax dollars. They get most of their money from a mortgage product they sell, and the banks who present at their events pay them $300 to $500 for each homeowner who makes three on-time payments after their loan is modified.
NACA is now firing back at HUD through a flyer calling HUD and the FHA outrageous and urging calls to HUD secretary Shaun Donovan.
Marks called the cutoff of federal funds nothing short of blackmail. Then he laughed and said it was really a badge of honor.
NACA says only a small percentage of its funding has come from the government.
The home loan modification program at the convention center runs through Monday.
Link: NACA
