Published November 1, 2008 | November 2008 issue
The Federal Reserve System and NeighborWorks® America (NWA) have formed a partnership to mitigate the negative effects of mortgage foreclosures. NWA, a nonprofit organization created by Congress in 1978, promotes revitalization efforts and homeownership through a network of more than 230 community development organizations across the country. Under the foreclosure-mitigation partnership, the Federal Reserve will provide research and analysis to inform NWA's ongoing foreclosure-prevention and neighborhood-stabilization activities. In addition, the Federal Reserve and NWA will develop resources, materials, and training events that explore ways to reduce the costs and destabilizing effects of foreclosures and home vacancies. According to a statement from NWA, the aim of these efforts is to help community leaders tailor their responses to foreclosures and return vacant properties to productive uses.
The Federal Reserve-NWA partnership is an outgrowth of a longstanding relationship between the two entities. The Federal Reserve's Community Affairs offices have worked with NWA on a variety of past initiatives, and under federal law, the Board of Governors of the Federal Reserve System holds a permanent seat on NWA's board of directors.