NACA held an even in DC over the past few days. The organization helps homeowners who have trouble paying their mortgages work something out - either with the lender, a NACA partner, or even NACA itself. The process seems really responsible - you have to show up with all the paperwork and there are extensive post-transaction assistance programs. This non-profit is doing precisely what some argue the government should do and others argue might be a good idea - but not for the government. This would seem to be best of both worlds.
Here is what I don't get: Funding. NACA has membership dues, but I doubt they are enough to run the whole organization. I can't find information on their site about accepting donations or entering into partnerships. The lack of transparency makes me a little skeptical. Anyone have any insight?
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On a plane, a little less than two years ago, I sat with a man who ran an organization that sounds similar to NACA. We got talking about the program and he said that Wall Street invested in his non-profit organization. Basically the organization would go out and rehabilitate previously bad mortgages and this drew investor money because the default rate on these mortgages (after getting into the program) is very low. Perhaps it's the same for NACA.
From what I understand, they partner with Citibank, who has committed 10 billion dollars to the organization.
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