HOUSTON, Nov. 25, 2008 (GLOBE NEWSWIRE) -- Allied Home Mortgage Capital Corporation, the Houston Based nationwide lender, today announced it is the first nationwide lender to partner with the Rainy Day Foundation, a national non-profit organization to offer educational tools and mortgage loan protections services through their new Homeowner Education and Loan Protection program (H.E.L.P.)
"The Rainy Day Foundation, headquartered in Washington, D.C., encourages responsible home ownership. Through its HELP program it teaches home buyers how to position themselves for success with their new mortgage. It educates them about home ownership and teaches them how to resolve problems that may arise," said Jim Hodge, chief executive officer of Allied Mortgage.
Participation in the Rainy Day HELP program is made available to all FHA borrowers who finance their homes through Allied, at no cost to the borrower. "We feel that it is essential that we do our part to provide financial stability to our borrowers," added Allied.
The program provides:
-- Monthly communication and newsletters that focus on budgeting and offers solutions to home ownership challenges for a period of two years. -- Direct communication between the non-profit and borrower for a period of twelve months after the loan closes to reinforce standards, answer questions and gauge financial challenges. -- A job loss insurance policy that is in effect for the first year of the home loan. Depending on circumstances, the policy will pay up to six months of a borrower's mortgage, up to a maximum of $1,800 (principal, interest, taxes and insurance). -- The ability for the homeowner to apply for an emergency grant to resolve short term financial challenges. These grants are specific for mortgage assistance.
"We know that many borrowers today don't have the ability to navigate through real life issues. These are trying economic times and we believe that we want to give our customers every chance at successful homeownership," said Hodge. "No one, including banks and lenders, wants a homeowner to default on a loan. We feel the Rainy Day program will proactively address problems that our borrowers might encounter."
This year alone it is anticipated that the Foundation will enroll more than 20,000 homeowners, a figure that is projected to double in 2009.
"What happens when homeowners suddenly are scheduled for less hours at work, or they encounter unexpected medical expenses?" asks Rick Del Sontro, chief executive officer of the Rainy Day Foundation. "Life happens and there is no way to underwrite a loan to life. Our goal is to help families achieve and maintain the American Dream. We applaud Allied for taking this significant step and proving that not only do they care about making a loan, but those they want to create successful homeowners."
About Allied:
Founded in 1991, AHMCC is the largest privately held mortgage banker/broker in the U.S., with hundreds of offices licensed in 50 states and the United States Virgin Islands. It offers a wide variety of mortgage products and services from hundreds of lenders.
In 2004 the company funded over $12 billion in loans and was named as one of "The Top 25 Tech-Savvy Lending Firms" by Mortgage Technology magazine.
The Allied Home Mortgage logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=704