On Friday, March 4, 2011, we informed you of HUD's notice to reinstate the Emergency Homeowners' Loan Program (EHLP), effective April 4, 2011. EHLP provides emergency relief to homeowners experiencing temporary involuntary loss of employment or underemployment resulting in a substantial reduction in income due to adverse economic conditions, and who consequently are financially unable to make full mortgage payments.
However, on March 3, 2011, virtually coinciding with HUD's Federal Register notice about its interim rule to reinstate EHLP, the House Financial Services Committee approved bills to terminate both the FHA Refinance Program and the Emergency Mortgage Relief Program.
In Congressional Newspeak, these two bills are the "Emergency Mortgage Relief Program Termination Act" (HR 836), and the "FHA Refinance Program Termination Act" (HR 830).
"Ineffective Foreclosure Programs"
Under the rubric Committee Votes To End Failed And Ineffective Foreclosure Programs, the Committee issued a Press Release late in the day on Thursday, March 3, 2011, about the termination bills.
The Committee believes that the elimination of these two programs -- the FHA Refinance Program and the Emergency Mortgage Relief Program -- provides $9 billion in savings.
-Emergency Mortgage Relief - Committee's View
-FHA Refinance Program - Committee's View
-Push-Back: Carolyn Maloney (D-NY), Maxine Waters (D-CA)
Mrs. Waters: "This is just part one of the Republican assault on homeowners and working-class people. The same attitude that led Speaker Boehner to say 'so-be-it,' in response to news that the Republican budget would eliminate jobs, is fueling the Republicans' 'repeal-but-don't-replace' agenda on foreclosure assistance."
This week, the Committee will take up plans to terminate two other government foreclosure programs:
* Home Affordable Modification Program (HAMP)
* Neighborhood Stabilization Program (NSP)
Article contains hyperlinks to legislation, resources and our Library.