90% of Foreclosure Settlement Money Going to HEMAP!

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Robert Swift brings us the good news that fully 90% of the foreclosure settlement money will go to restoring HEMAP. This is the best news I’ve heard in months. HEMAP is widely regarded as one of the best foreclosure mediation programs out there. Cutting funding for it was easily one of the dumbest things the Corbett administration has done so far, but today let’s give them some credit for walking back the mistake:

Pennsylvania’s program to help homeowners avert foreclosure is reopening after a year’s hiatus, thanks to a deposit last week of millions of dollars from a multistate legal settlement.

Homeowners who have received foreclosure notices can apply again for loans and other assistance through the Homeowner’s Emergency Mortgage Assistance Program, Sen. John Gordner, R-27, Berwick, announced Wednesday. He wrote a new state law that outlines how some of the settlement money will be spent […]

Mr. Gordner’s legislation establishes a trust fund using approximately $60 million of the settlement money to fund HEMAP for an extended period of years, as well as consumer protection programs.

This law targets 90 percent of the settlement to HEMAP, 5 percent to the state attorney general for housing consumer protection programs and 5 percent for legal assistance related to housing issues.

In addition, the law provides a $6 million appropriation to help PHFA officials deal with a backlog of applications.

Mr. Gordner said he’s been waiting for the settlement money to be deposited so the law can go into effect. He said the program has been very effective since it started in 1983, enabling 85 percent of homeowners who have participated to remain in their homes.

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