The U.S. Treasury has approved the launch of the Mortgage Resolution Fund developed by Mercy Portfolio Services, a nonprofit organization created with start-up funding from the Foundation. With $100 million in funding from the Illinois Housing Development Authority, the Fund will purchase pools of distressed loans for which there is little private buyer interest, in targeted neighborhoods. The loans will be bought at steep discounts and homeowners will be directed to counseling agencies to craft a sustainable loan modification plan. Once the modified loans have been "seasoned," the Fund will package and sell them in the secondary market — freeing up dollars to be used for more loan purchases and modifications. The Fund will operate through a partnership among Mercy, Enterprise, National Community Stabilization Trust, and Housing Partnership Network, all of which also are recipients of major Foundation support.

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Program-Related Investments, Community Development, Housing, United States