Mortgage

Federal approval of state mortgage relief programs ramps up

Federal approval of state mortgage relief programs ramps up
Written by Publishing Team

Oklahoma, Rhode Island, Tennessee and Pennsylvania are the latest states to announce government approval of homeowner assistance programs.

After Congress approved nearly $10 billion for the Homeowners Assistance Fund in March, approval of the state’s plans came slowly, pick up at first the new Year. The funding, which is included as part of the US Bailout Act, will be distributed by state governments, which submitted their proposals to the Treasury throughout the spring and summer.

On Monday, Oklahoma, Rhode Island and Tennessee revealed their plans for mortgage assistance, with the application process already open in each state.

In Rhode Island, several state officials applauded the launch of that state’s $50 million relief package, which provides up to $50,000 for each eligible applicant. Senior state senator Jack Reed helped lead efforts to create the Washington Homeowners Assistance Fund last spring.

“This is another example of the federal government giving states the resources to deal with the effects of the pandemic — in this case, to avoid further problems in an already stressed housing market,” Reid said in a press release. “Getting this money out quickly is essential if we are to help families, neighborhoods, and communities.”

Tennessee also announced that its $168 million livelihood, which was approved by the Treasury last week, was open to eligible borrowers. The funding provides up to $40,000 per family to residents of a volunteer country to help them eliminate or reduce late payments and other late housing costs.

Oklahoma, which received word of approval for its plan just before Christmas, delivered a package of just over $87 million on Monday as well, according to a spokesperson for the Oklahoma Housing Finance Agency. The Oklahoma Homeowners Financial Assistance Program will provide up to $20,000 in mortgage relief grants.

Last Thursday, Pennsylvania Governor Tom Wolf announced that his state had received Treasury approval for a $350 million package to benefit homeowners. Borrowers in Pennsylvania will be able to apply starting February 1, with assistance available to assist with re-mortgage, advance mortgage payment and residential property fee support and utility assistance.

“The Homeowners Assistance Fund will prioritize individuals and families most in need, as well as those socially disadvantaged. I am grateful that the US Treasury approved the Pennsylvania plan,” Governor Wolf said.

The financial assistance available through the Homeowners Assistance Fund consists of payments made directly to Mortgage Workers or other external billing agencies on behalf of distressed borrowers. Applicants must have experienced financial hardship that resulted in a significant loss of income after January 21, 2020, and not exceed income eligibility requirements, which vary by state.

at the same time, in New York, which won federal approval for the $540 million HAF scheme last month, Attorney General Letitia James a Consumer alert In many languages ​​it advises potential fraud attempts to exploit the fund. You have already sent Service warnings In December they needed to ensure that all loss mitigation options were available to clients before the federal grants could be applied.

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