Cordray makes foreclosure prevention funds available

Ashley Stinnett Sep. 10, 2009, 4:26pm

COLUMBUS, Ohio (Legal Newsline) - Ohio Attorney General Richard Cordray on Thursday said his office has allocated $1 million in foreclosure prevention funds which are available to participating agencies across the state.

Eligible agencies must be certified by the U.S. Department of Housing and Urban Development and must have an 18-month track record of providing foreclosure assistance, including established relationships with mortgage servicers.

The available $1 million in funding is part of last year's settlement between the state and Countrywide Financial Corporation.

That settlement resolved allegations that the mortgage lender used unfair and deceptive tactics in its loan servicing activities.

"As foreclosures continue in Ohio at unprecedented rates, we're beginning to identify what works best in the fight to preserve our homes," Cordray said.

"Community-based housing counseling and outreach services have proven to be one of the most effective means to combating the foreclosure crisis. Consequently, we hope to target these organizations with supplemental funding."

Cordray is urging nonprofit organizations across the state to apply for the funding before the October 9 deadline.

Recipients of the funding will be announced in November.

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