Industry NewsMortgage

Lenders pony up $1M to produce foreclosure-prevention PSAs

Three-year TV, radio, print Internet campaign kicks off in July

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Borrowers facing difficulty making their mortgage payments will be urged to call their lenders in a TV, radio, print and Internet public awareness campaign produced by NeighborWorks America and the Ad Council. The public service announcements -- which cost about $1 million to produce -- urge homeowners in financial trouble to call a hotline maintained by the Homeownership Preservation Foundation, 888-995-HOPE. The announcements were paid for by lenders who stand to lose $30,000 on every mortgage they are forced to foreclose on. With some estimates predicting that more than 1 million homes will enter the foreclosure process this year, the cost to lenders could approach $30 billion, NeighborWorks estimates. According to research by government-sponsored mortgage repurchaser Freddie Mac, half of families who end up in foreclosure never call their lenders for help. For lenders, funding the production of the announcements -- and counselors who advise troubled borrowers -- "is a public se...