Florida Housing Mortgage Intervention Strategy looking for credit unions
08/09/2010 07:59 am
Earlier this year, President Obama set aside $1.5 billion for the five hardest hit states with foreclosure and unemployment. Florida was earmarked to get $418 million and
Florida Housing will distribute the funds. Florida Housing has come up with a Mortgage Intervention Strategy that has been sent to Treasury for approval. There is an opportunity for credit unions to partner with Florida Housing on this project to help unemployed or underemployed homeowners achieve sustainable homeownership.
Among the strategies Florida Housing submitted to Treasury are extending the time period for homeowners to become re-employed at a salary that is sufficient to either resume making full mortgage payments or qualify for a mortgage modification that will lower the payments and terms of the mortgage to an affordable level. Florida Housing will partner with credit unions on a matching basis (50%) and provide up to nine months of mortgage payments. The funds are expected to be disbursed over a five-year period. Florida Housing anticipates that this strategy will be able to serve approximately 1,500 to 2,500 homeowners a year for a total of 7,500 to 12,500 homeowners over a five-year period.
This program will kick off in Lehigh Acres in Lee County, Florida on August 23, 2010. To help credit unions understand the parameters of this program, the LSCU will be arranging an audio conference call with Florida Housing to further explain how these programs can be of benefit to credit unions.
Click here to read a longer summary of the program.
If you have any questions, contact LSCU Vice President, Regulatory Affairs
Bill Berg at 866.231.0545 ext. 1028.