Citing lackluster results of three state-administered mortgage relief programs, Connecticut Gov. Jodi Rell has proposed changes to the programs that she says will expand eligibility. The Hartford Courant reports that $134 million has been allocated to CTFAMLIES, the Emergency Mortgage Assistance Program (EMAP) and the Homeowner's Equity Recovery Opportunity Loan program (HERO), but only $13 million has been spent to assist homeowners.
Rell suggested that CTFAMLIES, a refinance program, be expanded to include borrowers in the early stages of delinquency (the program is now available only to current borrowers); that EMAP eliminate a requirement that says borrowers must suffer a 25% drop in income as a result of unanticipated expenses (e.g., medical expenses); and that HERO be opened up to include two-, three- and four-unit properties. Rell also proposed scrapping the HERO requirement for holders of second liens to write off the entire debt.
The Courant reports that it is unclear whether the changes will demand legislative approval or if they will be implemented without legislative approval by the Connecticut Housing Finance Authority, which oversees the three programs.
SOURCE: Hartford Courant