National Foundation for Debt Management (NFDM) maps out a best way forward for the US mortgage industry

NFDM Director of Public Policy, Vern Farnsworth, makes the case for mortgage readiness counseling 


Philadelphia, Pennsylvania – Vern Farnsworth, National Foundation for Debt Management Director of Public Policy, made the case for forward mortgage counseling for all federally guaranteed mortgages, at American Marketing Association’s 2008 Marketing and Public Policy (MPP) Conference, May 29-31, 2008.

Sponsored by the Center for Marketing and Public Policy Research at the Villanova School of Business, the MPP conference brought together business leaders, policy experts, and consumer advocates to share their ideas on finance and health related issues affecting the American consumer.

“Owning a home is a vital component of family capital formation,” Farnsworth affirmed. But for many, he added, that dream has “turned into a nightmare of vast proportions.”

Farnsworth supports required counseling for consumers seeking federally guaranteed home loans. He acknowledges that many homeowners may not have fully understood the long term consequence of their home purchase.

“The realtor wants a closing,” Farnsworth explained. “The mortgage broker may not know what form of mortgage can be approved by underwriting …” An independent counseling session could help potential homeowners stay focused and informed throughout the home buying process.

NFDM has already conducted over 50,000 successful counseling sessions for reverse mortgages, under U.S. Department of Housing and Urban Development guidelines. Farnsworth believes this is a good model for peforming forward mortgage counseling based on criteria set by the U.S. Federal Housing Administration agency.

“Homeownership Counseling,” he suggested, “is a valuable resource for consumers and is in the government’s best interest.”

About NFDM
National Foundation for Debt Management is committed to providing education on money management, homeownership, and appropriate use of credit. Visit www.nfdm.org to learn more about NFDM’s efforts and success helping consumers understand, build, control and protect their personal finances.  

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