Homeowners who receive counseling through the National Foreclosure Mitigation Counseling (NFMC) Program are at least 67 percent more likely to be current on their loans nine months after a loan modification than those who do not, according to NeighborWorks America.

Additionally, among homeowners who receive mortgage modifications, those who participate in counseling are able to decrease their monthly payments by $176 more than those who do not, according to a study conducted by the Urban Institute for NeighborWorks America.

However, NeighborWorks says the reduced redefault rate is more a result of the counseling than the lower monthly payment received by homeowners who undergo counseling.

“The NFMC program works incredibly well for homeowners and communities,” said Eileen Fitzgerald, CEO of NeighborWorks America.

“Importantly, the NFMC program is an investment that also has benefits for mortgage servicers. By significantly reducing the chance that a homeowner re-defaults after a mortgage modification, servicers are saved added expense,” Fitzgerald said. “This tells us that increased servicer investment in partnerships with nonprofit counselors is a win for everyone.”

HAMP was also credited for improving mortgage modifications. Prior to the implementation of HAMP, 5 percent of homeowners applying for modifications who did not receive counseling obtained modifications, while 8 percent of those who received counseling obtained modifications.

Since the implementation of HAMP, both rates have risen. Nine percent of those who do not receive counseling obtain modifications, and 17 percent of those who do receive counseling receive modifications.