National CAPACD Partners with Members to Launch AAPI Foreclosure Response Plan

Excerpt from the article:

National CAPACD launches a coordinated national effort to increase the capacity of AAPI community development organizations to serve AAPI neighborhoods and at-risk homeowners. The plan will work to ensure that a majority of AAPI residents of every major metropolitan area in the U.S. are aware of the foreclosure risk factors and options available to at-risk borrowers, and community-based organizations have the resources to stabilize neighborhoods. As part of the AAPI National Foreclosure Response Plan, Freddie Mac, NeighborWorks America, and Countrywide are supporting National CAPACD to address the increasing number of at-risk homeowners among Asian Americans and Pacific Islanders.

The AAPI National Response Plan will consist of:

• Convening an AAPI National Response Team of community advocates, top lenders and housing industry leaders that will provide credible foreclosure information to AAPI communities, leverage funding, and coordinate research
• Establishing grants for regional advocacy initiatives to ensure AAPIs are served and neighborhoods are stabilized
• Providing 50 NeighborWorks America Training Institute Scholarships for AAPI organizations to build their housing, community, and economic development capacity

“While Congress and many leaders in the mortgage industry have worked to increase resources for foreclosure counseling programs, many of those resources have not reached AAPI communities. National CAPACD’s AAPI Foreclosure Response Plan will address many of the gaps that prevent families in crisis from being able to stay in their homes and AAPI community organizations from accessing the resources available,” said Lisa Hasegawa, Executive Director of National CAPACD.

“The foreclosure crisis has impacted communities across the country. Homeowners are in need of information and assistance from trusted advisors and counselors. Freddie Mac is proud to support National CAPACD in its efforts to ensure the AAPI community will have access to much-needed information, services and assistance,” said Dwight Robinson, Senior Vice President, Corporate Relations & Housing Outreach at Freddie Mac.

Subprime loans among Asian Americans almost tripled between 2004-05. Native Hawaiians and Pacific Islanders have significantly higher percentages of high cost loans than the general population. Many of the current efforts to address the foreclosure crisis excludes almost all organizations that have the language and cultural expertise to reach diverse AAPI communities across the country.

“National CAPACD provides a unique opportunity for Countrywide to reach out to our Asian Pacific American borrowers who may be facing financial difficulties. Countrywide is proud to partner with National CAPACD and provide the assistance to strengthen neighborhoods by helping individuals and families keep their homes,” said Tiarzha Taylor, Vice President of the Home Retention Division for Countrywide.

“There are significant AAPI populations in cities where the foreclosure crisis has hit the hardest. We are working closely with National CAPACD to ensure that the needs of AAPI communities are addressed throughout our programs,” said Nelson Merced, director of National Initiatives and Applied Research at NeighborWorks America.

“We have been working with both tenants impacted by foreclosures and owners with now unaffordable mortgages. The support of National CAPACD will help us build capacity to address the South Asian community’s needs,” said Seema Agnani, Executive Director of Chhaya CDC.

Estimates of AAPI Families Facing Foreclosures

• 117, 222 high cost loans to Asian Americans with an average loan amount of $232,000
• 22,368 high cost loans to Native Hawaiians and Pacific Islanders, with an average loan amount of $223,000
• 3.5% of high cost loans are to AAPIs, comparable to their percentage of the population in the U.S.
• 22% of loans to Asian Americans are high cost loans. If the data was disaggregated by subpopulation, it is likely that certain sub-populations would face higher rates of high cost loans.
• 33% of loans to Native Hawaiians and Pacific Islanders are high cost loans.

National CAPACD

The National Coalition for Asian Pacific American Community Development is the first national advocacy organization dedicated to addressing the community development, organizing and advocacy needs of the diverse and rapidly growing Asian American and Pacific Islander communities nationwide. Our mission is to be a powerful voice for the unique community development needs of AAPI communities and to strengthen the capacity of community-based organizations to create neighborhoods of hope and opportunity.

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