HSBC-North America, the Prospect Heights-based financial services firm, today will announce a $1 million grant to Money Management International, Inc., a non-profit consumer debt counseling agency affiliated with Consumer Credit Counseling Services.
The program, called PHASES — Preserving Homeownership and Savings Education Strategy — was designed to work with leading organizations to provide funding and counseling for homeowners. The news comes as foreclosure rates soar, amid rising monthly pay-ments on adjustable-rate mortgages.
HSBC says the money will be used to help homeowners who have fallen behind on their payments and are in danger of foreclosure. Through this pilot program, Money Management International will provide counseling and budgeting assistance to families to help them get back on track after temporary financial setbacks, such as medical expenses or loss of a job.
Grant money will be used to help pay outstanding debts, allowing the homeowner to resume monthly mortgage payments.
Cate Williams, of MMI said, “Sometimes one setback can destroy a family’s entire financial security. We’re here to help them deal with reality, create a new money management plan, keep their family home and their share in the American dream.”
Money Management International can be reached at (800) 762-2271 or at www.moneymanagement.org.
Earlier this year HSBC, one of the largest lenders in the subprime market, warned of losses 20 percent higher than forecast, stemming from loans made to borrowers who could not maintain payments.