Foreclosure prevention programs emerging in legislatures
While Americans wait on Congress and the administration to act on the mortgage foreclosure crisis, several states have chosen to move forward to help homeowners navigate the subprime mortgage mess. The map to the right is represented as a "real-time map of 504,518 foreclosure listings" using various sources.
My counterpart in Michigan, House Majority Floor Leader Steve Tobocman, has been working with the Michigan State Housing Development Authority (MSHDA) to provide immediate relief to homeowners at risk of losing their homes. We interviewed Tobocman here on the blog back in January -- click here for the audio. As a result of his efforts, the Michigan Legislature has passed a bipartisan package of bills that empowers MSHDA to refinance distressed loans.
Known as the Save the Dream program, this initiative offers two new loan products: an Adjustable Rate Refinance Program for homeowners trapped in adjustable-rate mortgages; as well as a Rescue Refinance Program for homeowners who have missed up to three payments in the past year. Homeowners with a credit score as low as 620 in adjustable-rate mortgages will be able to refinance into a 30-year fixed rate mortgage at affordable rates estimated to be 6.625%. Similarly, homeowners who were more than 30 days late on up to three payments in the past year and have a credit score of 575 also will be able to refinance into a 30-year fixed rate mortgage at 6.625 percent. In order to qualify for the program, Save the Dream borrowers must have a household income less than $108,000 and a sliding-scale requires that the value of the home be less than $224,000.
The Save the Dream package has already created waiting lists at Michigan banks. It was signed into law on April 2, 2008, by Gov. Jennifer Granholm and is expected to complement the state's new loan officer registration laws, anti-predatory lending legislation that is being debated in the state House, and stricter penalties against fraudulent appraisals to create a comprehensive state response to the foreclosure crisis in Michigan. Similar programs are in the works in Ohio, Maryland, Delaware and New York.
My counterpart in Michigan, House Majority Floor Leader Steve Tobocman, has been working with the Michigan State Housing Development Authority (MSHDA) to provide immediate relief to homeowners at risk of losing their homes. We interviewed Tobocman here on the blog back in January -- click here for the audio. As a result of his efforts, the Michigan Legislature has passed a bipartisan package of bills that empowers MSHDA to refinance distressed loans.
Known as the Save the Dream program, this initiative offers two new loan products: an Adjustable Rate Refinance Program for homeowners trapped in adjustable-rate mortgages; as well as a Rescue Refinance Program for homeowners who have missed up to three payments in the past year. Homeowners with a credit score as low as 620 in adjustable-rate mortgages will be able to refinance into a 30-year fixed rate mortgage at affordable rates estimated to be 6.625%. Similarly, homeowners who were more than 30 days late on up to three payments in the past year and have a credit score of 575 also will be able to refinance into a 30-year fixed rate mortgage at 6.625 percent. In order to qualify for the program, Save the Dream borrowers must have a household income less than $108,000 and a sliding-scale requires that the value of the home be less than $224,000.
The Save the Dream package has already created waiting lists at Michigan banks. It was signed into law on April 2, 2008, by Gov. Jennifer Granholm and is expected to complement the state's new loan officer registration laws, anti-predatory lending legislation that is being debated in the state House, and stricter penalties against fraudulent appraisals to create a comprehensive state response to the foreclosure crisis in Michigan. Similar programs are in the works in Ohio, Maryland, Delaware and New York.
posted by Steve Harrelson @ 4/16/2008 09:40:00 AM | Permalink |
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