Settlement Helps Fund $4M in Reverse Mortgage Assistance

On Friday ""HUD"":http://portal.hud.gov/hudportal/HUD unveiled an infusion of more than $42 million in grants to housing counseling agencies, with some of the funds on the way from an historic $25-billion settlement reached with servicers several weeks ago.

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""The HUD-approved counseling agencies this funding supports are crucial in helping struggling families on a one-to-one basis to manage their money, navigate the homebuying process, and

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secure their financial futures,"" ""HUD Secretary Shaun Donovan"":http://portal.hud.gov/hudportal/HUD?src=/about/hud_secretary said in a statement.

Of $36 million in grants made available to housing counseling agencies, $4 million will shore up services designed to help more elderly homeowners secure reverse mortgages and Home Equity Conversion Mortgages.

More than 400 housing agencies across the nation will benefit from the availability of new funds, with 27 national and regional organizations in queue with 16 State Housing Finance Agencies and six multi-state agencies, among others.

""These funds are complemented by the roughly $2.5 billion provided to the states as part of the $25 billion mortgage servicing settlement. Most states can use those funds for foreclosure prevention activities such as housing counseling and legal aid services,"" Donovan added.

Forty-nine state attorneys general and officials from federal agencies recently reached a landmark deal with the nation's five largest servicers to provide homeowners across the country with foreclosure relief, loan modification servicers, and refinance assistance.