WASHINGTON, DC – Congresswoman Marcia L. Fudge (OH-11) heralds President Obama’s release of $172 million for Ohio’s Housing Finance Agency. A staunch advocate for curbing the Nation’s foreclosure epidemic, Congresswoman Fudge is proud the funding will assist unemployed homeowners with their mortgage payments and establish a statewide loan modification program.
“Families worried about losing their homes due to job loss will find hope in this announcement. This aid is not smoke and mirrors, it’s real change,” said Congresswoman Marcia L. Fudge. (D-OH11) “Before the foreclosure crisis made national news, Ohio’s families were suffering. The state’s mandatory mediation program has had a positive impact on reducing foreclosures, but that effort alone cannot cure all. I’ve long advocated for targeted funding to the hardest hit states, and was proud when the Hardest Hit Fund was established. The President’s multi-pronged approach will help families keep their dreams, even in the midst of this recession.”
The state estimates that 15,356 homeowners will benefit from the following programs made possible by this funding:
- Assistance to bring delinquent mortgage payments current for borrowers who experience hardships due to a reduction or loss of income.
- Help for unemployed borrowers to pay their mortgage for up to 12 months while they search for a new job and/or participate in a job training program.
- A state-run modification program to incentivize lenders and servicers to reduce a homeowner’s mortgage principal balance to a target 115 percent or less of the loan-to-value, at which point the loan may be eligible for HAMP or another modification.
- Facilitation of short sales or deeds-in-lieu of foreclosures, by providing incentive payments to servicers as well as relocation aid to borrowers in exchange for the release of second liens.
The investment is made possible by the Hardest Hit Fund, an initiative of the Treasury Department to assist struggling homeowners in states that have high percentages of their population living in areas of distress due to unemployment.