HUD APPROVES IDAHO’S $13 MILLION EMERGENCY HOME LOAN PROGRAM | Sun Valley Real Estate

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FOR RELEASE: Friday April 1, 2011

HUD No. 11-045

HUD APPROVES IDAHO’S $13 MILLION EMERGENCY HOME LOAN PROGRAM

Idaho Housing & Finance Association is ready to take applications immediately

WASHINGTON – U.S. Department of Housing and Urban Development HUD Secretary Shaun Donovan today approved the State of Idaho’s bid to administer HUD’s Emergency Homeowner Loan Program EHLP, a bridge loan program designed to help unemployed families pay their mortgages. HUD determined Idaho’s Housing and Finance Association’s mortgage bridge loan program is “substantially similar” to HUD’s program, thereby allowing the State to begin implementing the program itself.

Late last year, HUD awarded $1 billion to 32 states and Puerto Rico, including $13 million to the State of Idaho, to provide emergency assistance to homeowners at risk of foreclosure due to a substantial reduction in income brought on by layoff, underemployment, or a medical condition. With today’s approval, the Idaho Housing and Finance Association will begin taking applications. Interested homeowners should contact the Association’s housing counseling department at 877 888-3135 for further information.

“The Emergency Homeowner Loan Program will provide limited and targeted assistance to help working families get back on their feet and keep their home while they look for work,” said Secretary Donovan. “We are pleased to get the program off the ground in Idaho, which is already working to help keep families in their homes during difficult economic times.”

EHLP was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law authorized HUD’s Secretary to allow funds to be administered by states that have an existing program that provides substantially similar assistance to homeowners. HUD found Idaho is administering an equivalent program and the grant funds may be used for reasonable administrative costs and to provide EHLP loans to homeowners in the state.

HUD’s Emergency Home Loan Program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” zero percent interest, non-recourse, subordinate loan for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;

Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home; and

Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD determined that 27 states will use the delegated approach to program administration. Under this approach, HUD will delegate key program administration functions to an experienced and highly regarded national network of affiliated housing counseling agencies. Under the program, nonprofit housing counselors who are part of the National Foreclosure Mitigation Counseling Program administered by NeighborWorks® America will coordinate intake counseling, document preparation and outreach functions. HUD will also use it delegation authority to contract with an experienced entity to provide loan servicing and fiscal control functions such as collecting payments from homeowners, distributing payments to servicers, and managing loan balances.

HUD will announce additional details and program specifics for the delegated approach states when NeighborWorks® America launches the program in the coming weeks.

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Aly Chiman

Aly Chiman is a Blogger & Reporter at AlyChiTech.com which covers a wide variety of topics from local news from digital world fashion and beauty . AlyChiTech covers the top notch content from the around the world covering a wide variety of topics. Aly is currently studying BS Mass Communication at University.

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