More information on the mortgage assistance legislation approved this year.

Here is some information, sent to legislators by the Connecticut Housing Finance Authority (CHFA), with some of the details of Public Act 08-176, "An Act Concerning Responsible Lending and Economic Security". I hope this information is helpful:

Summary of P.A. 08-176

“An Act Concerning Responsible Lending and Economic Security”

Emergency Mortgage Assistance Program (EMAP),

Homeowner’s Equity Recovery Opportunity (HERO) Loan Program,

Foreclosure Mediation and CT FAMLIES Program

P.A. 08 -176 “An Act Concerning Responsible Lending and Economic Security” takes effect on July 1, 2008 and includes several components relative to homeowners who are delinquent and/or facing foreclosure.

Emergency Mortgage Assistance Program (EMAP)
The Emergency Mortgage Assistance Program is available to provide emergency mortgage assistance payments to eligible homeowners. Funding in the amount of $64 million has been provided for EMAP and will be administered by Connecticut Housing Finance Authority (CHFA).

• All lenders are required by law to take specific actions prior to commencing a judgment of strict foreclosure or foreclosure by sale for one-to-four family, owner-occupied residential real property located in the State of Connecticut, including condominiums.
• Lenders who start a foreclosure process upon a borrower, are required to give written notice to the borrower by registered or certified mail indicating that the borrower has 60 days from the date of the notice to confer with the lender or have a face-to-face meeting with a consumer credit counseling agency to attempt to resolve the delinquency or default. (A list of CHFA-approved counseling agencies is attached for your reference.)
• In the notice, the lender must also inform the borrower that the EMAP Program is being administered by Connecticut Housing Finance Authority (CHFA). If the lender and borrower are unable to resolve the delinquency or default, the borrower will have 60 days from receipt of the written notice to obtain information and apply for the EMAP Program.
• EMAP is not available to borrowers who have FHA-insured loans.
• Homeowners may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at EMAPinfo@chfa.org
  

WorkPlace, Inc., in conjunction with other regional workforce development boards, will establish a mortgage crisis job training program for eligible borrowers if they are at least 60 days delinquent on their mortgage, are referred by the CHFA lender or demonstrate an imminent need to increase earnings in order to avoid delinquency or foreclosure.

Homeowner’s Equity Recovery Opportunity (HERO) Loan Program

The purpose of the HERO Program is to permit CHFA to purchase eligible mortgages directly from lenders and place those borrowers on an affordable repayment plan. Funding in the amount of $30 million will be available for this program. There are several options currently being developed. Anyone with questions may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at HEROinfo@chfa.org.

Foreclosure Mediation
All lenders are required by law to attach to the front of the complaint that is served on the borrower a copy of the “Notice to Homeowner: Availability of Foreclosure Mediation” form and a “Foreclosure Mediation Request” form. In the mediation process, EMAP, HERO and the CT FAMLIES Programs will also be discussed with the borrower as alternatives to saving the borrower’s home from foreclosure. Inquires regarding Foreclosure Mediation may be directed to Roberta Palmer, Superior Court Operations at (860) 363-2734 or via e-mail at: roberta.palmer@jud.ct.gov.

CT FAMLIES Program

CHFA continues to offer the Connecticut Fair Alternative Mortgage Lending Initiative and Education Services (CT FAMLIES) Program, a refinancing mortgage loan that is at a fixed rate for a term of 30 years. Eligible homeowners who have an Adjustable Rate Mortgage (ARM) or their current mortgage is no longer suitable for their financial situation may qualify for a CT FAMLIES Loan. Homeowners may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at CTFAMLIES@chfa.org.

CONNECTICUT HOUSING FINANCE AUTHORITY

EMAP COUNSELOR LISTING

AGENCY INFORMATION

Co-opportunity, Inc. 20-28 Sargeant Street Hartford, CT 06105 (860)236-3617 (860)808-1757

Housing Education Resource Center 901 Wethersfield Avenue Hartford, CT 06114 (860) 296-4242 (860) 296-1317

Neighborhood Housing Services of New Britain 223 Broad Street New Britain, CT 06053 (860) 224-2433 (860) 225-6131

Urban League of Greater Hartford 140 Woodland Street Hartford, CT 06132 (860) 527-0147 (860) 293-2621