Houston, TX - June 13, 2006 - The Houston Area Urban League joining with The National Urban League, and the Homeownership Preservation Foundation will hold a press conference Monday, June 19 at 2 pm, 1301 Texas Avenue to announce the start of the "Foreclosure Prevention and Counseling Program."

These organizations are joining forces to reduce the number of home foreclosures in African-American communities, where increases in foreclosure rates are threatening the recent progress made in minority homeownership gains. In Harris County, constable foreclosure listings increased from 345 for its May, 2006 auction, to 533 for its June auction - a 54% increase in number of foreclosures in one month. Overall foreclosures in Harris County have increased by 59.9% over the last year.

The Houston Area Urban League will launch the program July 1 as a part of a new partnership. The Homeownership Preservation Foundation will provide up to $1.2 million to the National Urban League over a three-year period to provide free foreclosure prevention counseling and education focused on reaching African-American homeowners in Houston, St. Louis, and Philadelphia, where minority foreclosure rates are high and rising. The program includes mortgage default counseling, post-purchase education, and a "foreclosure hotline."

"Even though we have made great strides over the past several years, it quickly can change through the foreclosure process. Our hope is to dramatically decrease the number of people who are in this position and assist them with resources to save their homes," said Sylvia K. Brooks, Houston Area Urban League President and CEO. "The partnership between the National Urban League, the local affiliates and the Homeownership Preservation Foundation will help more African Americans preserve their homes and continue to grow financially."

"The 19th of June is not only a great day as we introduce this new mortgage foreclosure service to the community, but a day of pride. The Houston Area Urban League, Inc was founded on this day in 1968. We are therefore proud to share and celebrate this special day with the community "adds Mrs. Brooks.

Our free foreclosure counseling hotline, 888-995-HOPE, has helped tens of thousands of America's homeowners receive the help they need," said Sharon Sayles-Belton, former Mayor of Minneapolis and member of the Board of Directors of the Homeownership Preservation Foundation. "With the help of the Houston Area Urban league, we are looking forward to reaching out to residents looking for ways to avoid foreclosure."

Katie Taylor, Housing Director of the National Urban League, notes that, "The Houston Area Urban League has a great legacy of service in the housing counseling area. It was most fitting that Houston be selected as one of the three cities to pilot this foreclosure prevention service. The National Urban League is proud to be a partner in this significant pilot".

As part of the partnership, the National Urban League will support the promotion of the Foundation's 888-995-HOPE hotline, which is available nationwide to all homeowners who are concerned about their finances and the possibility of foreclosure. Homeowners who call the hotline receive free, confidential advice and counseling from HUD-certified counseling agencies designed specifically to help homeowners avoid foreclosure. Those who are in need of additional face-to-face counseling and education will be referred to the Urban League affiliate in their city.

The programs will consist of default counseling, involving face-to-face meetings with homeowners to help them avoid foreclosure, and post-purchase homeownership classes that will cover such topics as budgeting, property and school taxes, debt management, home maintenance and repair.

Everyone suffers when foreclosures increase. The average cost of foreclosure for a lender is high --$58,759.00 per loan on average, according to a 2002 analysis by the TowerGroup. Homeowners experiencing foreclosures lose stability negatively influence their credit and negatively influence their future borrowing ability. They also face higher costs to replace housing and possible tax consequences. Cities with significant foreclosure rates face high property rehabilitation costs, and neighborhoods face lower property values and decreased marketability.

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