State Senator Joseph J. Crisco, Jr.
May 7, 2008
Crisco Endorses Bill to Help Connecticut Homeowners Deal With Subprime Mortgage Crisis
Senator Joseph Crisco (D-Woodbridge) voted in favor of the comprehensive bill approved by the Senate and House of Representatives that provides mortgage relief and other programs to help the thousands of homeowners in Connecticut who are facing the possibility of foreclosure because of the subprime mortgage crisis.
The legislation creates mortgage relief programs and changes to state banking laws to focus on the subprime mortgage crisis in Connecticut. That includes:
- Establishes the Homeowner's Equity Recovery Opportunity Loan (HERO) program through the Connecticut Housing Finance Authority (CHFA). It authorizes CHFA to use $30 million in existing bonds to purchase mortgages directly from lenders and place eligible borrowers on an affordable payment schedule for a 30-year fixed-rate mortgage.
- Reinvests $14 million in the state's emergency mortgage assistance program (EMAP) for borrowers facing foreclosure
- Continuation of the $40 million CT FAMILIES assistance program
- Empowers CHFA develop a program to purchase foreclosed residential property for the purpose of providing affordable and supportive housing.
- Creates a foreclosure mediation program within the state Judicial Branch.
- Establishes a mortgage crisis job training program at Workplace Inc., in association with other regional workforce development boards and one-stop centers.
- Defines "nonprime loans" and imposes new restrictions and licensing requirements on mortgage lenders and brokers.
- Gives the commissioner of the state Department of Banking additional responsibilities.
- Allows the commissioner to participate in the Nationwide Mortgage Licensing System.
"This legislation provides assistance for some of the 71,000 homeowners in Connecticut who have subprime mortgages," said Senator Crisco. "Our goal was to approve a bill that will help homeowners avoid foreclosure. This legislation provides much needed mortgage relief and also sets new restrictions on mortgage lenders and brokers to help avert this kind of problem in the future."
|
Senator Crisco’s |
Listing of Senator Crisco’s recent press releases and a Press Kit with official head shots and bio. |
Press Aide Lloyd Wimbish |
