First Guaranty Mortgage Corp. (FGMC) will join forces with the National Association of Real Estate Brokers (NAREB) to participate in the newly introduced, nationwide effort called the Homeowner’s Assurance Program (HAP).

HAP was created by NAREB, a trade group formed in 1947 by African American real estate professionals, to help re-stabilize urban communities impacted by the housing market crises. The program will invest in REO properties and non-performing

loans in 25 selected communities throughout the U.S. to be resold after renovations, which in turn will help create jobs.

HAP participants such as FGMC will collaborate by acquiring, managing, marketing, and disposing of non-performing loans and REO properties. NAREB will refer homebuyers to FGMC, who will act as the preferred lender on all new mortgages originated through the program and also facilitate REO sales.

“HAP is a promising and practical approach to a national nightmare,” said FGMC assistant VP of national business development James Cromartie. “HAP will address social and economic barriers to homeownership and help rebuild communities, mitigating the deep costs of the crisis while restoring dignity and empathy to a huge number of borrowers.”

HAP will provide asset oversight and lead efforts in community mobilization and industry partnerships. The initiative will place NAREB members known as realtists in direct contact with distressed homeowners and first-time homebuyers who are having difficulty obtaining a loan.

McLean, Virginia-based FGMC is a national, full-service mortgage lending firm offering retail and wholesale mortgage solutions to clients of varying income and credit types.