Today’s Headlines…

Today’s Headlines…

Homeowner’s Emergency Mortgage Assistance Program (HEMAP)

The state attorney general’s office is considering using $69 million to re-fund the Homeowner’s Emergency Mortgage Assistance Program (HEMAP). The commonwealth is set to receive about $266 million in mortgage assistance for homeowners in installments, and the first payment of $69 million will be directly deposited into a commonwealth account.

Earlier this month, the commonwealth joined a $25 billion joint federal-state agreement with five of the nation’s largest mortgage service banks. The settlement addresses concerns by state and federal investigators that loan servicers signed foreclosure-related documents without really knowing whether the facts they contained were correct.

This year, HEMAP was cut by about 81% from about $10.5 million to $2 million. The Pennsylvania Housing Financing Authority (PHFA) which administered HEMAP shut the program down in July after determining the $2 million appropriation was “insufficient” to continue the program. Gov. Tom Corbett’s proposed budget for 2012-13 would eliminate the program.