Gov. M. Jodi Rell, R-Conn., has signed into law a landmark bill that funds three programs to help struggling homeowners cope with the mortgage credit crunch and imposes reforms on the mortgage industry to avoid future problems.
‘This bill sets a new national standard for efforts to help homeowners caught up in the whirlwind of the subprime mortgage crisis and a national economic decline,’ says Rell. ‘Connecticut residents are feeling the pressure from all sides – from staggering gas prices, rising prices for all forms of energy, food prices and the overall cost of living – and many middle-class families are having trouble making their mortgage. We are here to help – and with this legislation, we will.’
The new legislation directs $40 million to continue the CT FAMLIES program while boosting the existing Emergency Mortgage Assistance Program with an additional $70 million and creating a new, $30 million Homeowners Equity Recovery Opportunity program. Most of the money for these programs is coming from existing bond funds.
The bill also establishes foreclosure mediation programs to be conducted through the judicial branch, puts new regulations in place on the mortgage industry – including a ban on prepayment penalties – and expands the authority of the Department of Banking. It also sets up a training team within the CTWorks Career Center to help eligible borrowers with overdue loans to find good jobs and get back on financial track.
Source: Office Of Governor M. Jodi Rell