As foreclosures continue to be a problem in our community, Fifth Third Bank is taking an aggressive step to help some customers stay in their homes.
They've teamed up with NextJob, a re-employment solutions company, to offer a unique program, the first of it's kind in the country being offered by a bank.
Fifth Third tested it in a number of communities last year, including Toledo. The bank is now launching it everywhere for unemployed customers who are struggling to make their payments. It's a program that should pay dividends for the entire community.
Bob LeClair heads up Fifth Third Bank of Northwest Ohio. "If we are ever going to see a rebound in the housing market we have to stem the number of foreclosures in our community and this is just another way for us to help do that," he says.
The program was tested with unemployed Fifth Third customers who were in serious risk of defaulting on their mortgages. According to the bank, about half of all mortgage delinquencies are due to job loss. "We're always looking for ways to improve the communities we are in. We're hoping to take a tough situation and be creative in addressing a need we believe the community has," says LeClair.
Customers who were part of the test program had been out of work for an average of 22 months, but, after going through the program, almost 40 percent were fully employed after six months.
"The average foreclosure costs the bank $50,000-$60,000 dollars, so if we can help keep people in their homes, it is a win-win for all of us," LeClair says.
After identifying customers in need, Fifth Third connects them with NextJob. NextJob then provides things like one-on-one coaching, weekly webinars and on-line job search software, and the entire cost is picked up by Fifth Third.
"There is no one magic bullet , it is a lot of little things done right that help. We think this is one program that will help a lot with this recovery," LeClair says.
Fifth Third and NextJob have signed a multi-year deal for the program. They hope to put several hundred people through it this year. Customers can use the program for up to 39 weeks.
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