Date: December 20, 2015Author: Denbeaux & Denbeaux
The $1.1 trillion omnibus appropriations bill that will keep the federal government running until September 16, 2016 will also help homeowners fighting foreclosure by increasing the Hardest Hit Fund and extending the Home Affordable Modification Program through next year, December 31, 2016,
The program that is extended is the Hardest Hit Fund, which Congress is allocating another $2 billion to help homeowners who couldn’t keep up mortgage payments. The program has been used in 18 states in the past including New Jersey, Ohio and Michigan, hit hardest by the mortgage foreclosure crisis.
The New Jersey HomeSaver program uses the Hardest Hit Fund allocation to facilitate a refinance, recast, or permanent modification of the first mortgage loan, and offers eligible homeowners impacted by unemployment and underemployment up to $50,000 in financial assistance to help bring their household monthly payment to an affordable level.
In New Jersey, the allocation of funds is currently tagged at $300,548,144 according the U.S. Department of Treasury website for information about the Hardest Hit Fund program. The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is the official administrator of the program for the State of New Jersey.
7 (a) EXTENSION OF HARDEST HIT FUND.—Section 8 120(b) of the Emergency Economic Stabilization Act of 9 2008 (12 U.S.C. 5230(b)) is amended by inserting after 10 the period at the end the following: ‘‘Notwithstanding the foregoing, the Secretary may further extend the authority provided under this Act to expire on December 31, 2017, provided that (1) any such extension shall apply only with respect to current program participants in the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, and (2) funds obligated following such extension shall not exceed $2,000,000,000.’’
The program that is being terminated is the Home Affordable Modification Program or HAMP, which will end at the end of next December 31, 2016.
Page 1,983 (b) TERMINATION. (1) IN GENERAL.—The Making Home Affordable initiative of the Secretary of the Treasury, as authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), shall terminate on December 31, 2016. (2) APPLICABILITY.—Paragraph (1) shall not apply to any loan modification application made under the Home Affordable Modification Program under the Making Home Affordable initiative of the Secretary of the Treasury, as authorized under the Emergency Economic Stabilization Act of 2008 (12 4 U.S.C. 5201 et seq.), before December 31, 2016.