Washington, DC – May 24, 2010 – (RealEstateRama) — When the Senate passed the Wall Street Reform Act last week, it included a provision that offers a remedy to the 5.5 million homeowners facing foreclosure. The plan, endorsed by the Administration, reduces mortgage payments for the unemployed and is patterned after legislation already passed in the House. The provision will ensure those adversely impacted by the recession will remain in their homes.
The plan, which provides $3 billion in TARP funds to unemployed homeowners, is patterned after a highly successful program introduced by Congressman Chaka Fattah (D-PA) when he was a Pennsylvania State Legislator. Pennsylvania’s Homeowner’s Emergency Mortgage Assistance Program (HEMAP) has a proven track record and has provided $236 million to tens of thousands of unemployed workers to stave off the foreclosure process.
Under the Senate-passed bill, homeowners will be able to borrow up to $50,000 to assist them with their mortgage payments that have a reasonable prospect of resuming mortgage payments within 24 months.
Fattah introduced HEMA in the House knowing that as the unemployment rate continues to rise, millions of families nationwide would be in jeopardy of losing their homes. “American’s need help, 8 percent of all mortgage holders are currently at risk of losing their homes and that is unacceptable,” Fattah said. “I’m encouraged that my colleagues supported my legislation in both the House and the Senate to ensure that families won’t be faced with the double blow of being unemployed and homeless.
John Cochran, CEO and Executive Director of the U.S. Conference of Mayor’s praised Fattah for his leadership on foreclosure avoidance and said, “The additional funds will certainly be welcomed by the nation’s mayors who work daily to prevent mortgage foreclosures that are still ravaging too many families and neighborhoods in our nation.”
Philadelphia Mayor Michael A. Nutter agreed. “I want to congratulate my friend Congressman Fattah for his efforts to secure additional funding for mortgage foreclosure support in the financial reform legislation making its way through Congress,” Nutter said. “This funding will help so many Philadelphians and homeowners across the country who risks losing their homes after falling on hard times through no fault of their own. Philadelphia is a national leader on this issue and Congressman Fattah has been a great supporter.”
Lawmakers hope to have the measure to the President for his signature by the July 4th recess.