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March 19, 2015

Management Questioned at U.S.-Backed Mortgage-Aid Nonprofit

Bloomberg reports on allegations of questionable management and procurement practices at NeighborWorks America, a nonprofit that has received some $2 billion in federal money since 2007 to help homeowners battered by the mortgage crisis.

The organization, which was chartered by Congress in 1978, was tapped by the government to fund counseling groups that provide advice and financial aid to struggling borrowers. According to Bloomberg, NeighborWorks executives awarded at least two large, no-bid contracts to entities with ties to the organization, and managers approved a technology deal with a recently formed firm that shared board members with the nonprofit.

NeighborWorks has also experienced turmoil at the top, with four officials leaving over a few months last year. Some government inspectors and Republican lawmakers question whether the organization has met its charge of keeping people in their homes. A NeighborWorks spokesman said the group has been a good steward of federal funds and took quick action to address problems with its procurement process.