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NEWSLETTER
August 2008
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Facilitating Mortgage Foreclosure Counseling
Since the launch in May, the ROOF Project has been directly reaching out to homeowners at risk of losing their homes. In July, the ROOF Project and the Mayor's Office of New Haven sent a letter encouraging at-risk homeowners to get help from mortgage intervention counselors and the earlier the better. The response has been overwhelming. Counseling partner Neighborhood Housing Services of New Haven received over one hundred calls in the week following the mailing.
If you or someone you know is having trouble making mortgage payments, contact the United Way's 2-1-1 hotline for referrals to foreclosure intervention counseling, legal assistance, state mortgage assistance, and job training programs. ROOF's services are completely FREE! |
New Federal & CT Legislation
In response the current mortgage crisis, Congress and CT have enacted legislation authorizing several changes to mortgage laws and providing additional funding to support distressed homeowners and communities.
The Housing and Economic Recovery Act of 2008 was signed into law on July 30th, 2008. For a summary of the legislation, click here.
Connecticut enacted Public Act No. 08-176 effective July 1st. On the front end, when lenders make mortgages, the state now imposes an affirmative duty to act in good faith toward borrowers. This means that lenders cannot engage in misleading, deceptive, or untruthful conduct. Further, lenders must make a good faith effort to determine a borrower's ability to pay, instead of simply lending on the value of the property. And when setting rates, the law now distinguishes three types of loans: prime, non-prime, and sub-prime. Non- and sub-prime loans are subject to stricter interpretations of these lenders' duties.
For homeowners with ARMs facing foreclosure because the loan has reset to an unaffordable rate, the state has created the Homeowner's Equity Recovery Opportunity Loan program (HERO). The Connecticut Housing Finance Authority (CHFA) will buy ARMs from banks and then issue a new loan to the homeowner at an affordable fixed rate. Homeowners must meet certain repayment requirements such as showing an effort to meet financial obligations and a stable income. For borrowers whose troubles stem from income or employment difficulties, the new laws established the Emergency Mortgage Assistance Program (EMAP). Under EMAP, families whose income has dropped, mortgage payments have increased, or both may be eligible for up to 5 years of assistance from CHFA. Moreover, lenders who initiate foreclosure must include notice that defaulted borrowers have 60 days to apply for EMAP assistance.
Finally, lenders starting foreclosure proceedings must also notify borrowers of the state's new foreclosure mediation program. Borrowers must request mediation within 15 days of the foreclosure return date. Banks can still go forward with foreclosure proceedings during mediation, but the court cannot enter judgment during the 60-day mediation period.
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ROOF Launches Website
The ROOF Project is online! Please visit us at www.theroofproject.org for general information on The ROOF Project, updates, events, and information for homeowners-at-risk.
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ROOF in the News
Connecticut
Public Radio did a piece on foreclosures in New Haven on July 9th. It
features the story of a New Haven homeowner who was able to get a loan
modification with the help of a mortgage intervention counselor. Click here to read the story or listen to the audio file.
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ROOF in the Community
The ROOF Project is getting the word out at festivals and events in New Haven.
Interested in having ROOF at an event? Contact Program Manager, Eva Heintzelman, at 203-401-3377.
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Contact Information
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email: info@theroofproject.org
phone: 203-401-3377
Visit us www.theroofproject.org
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The ROOF Project is a collaborative effort of the City of New Haven, the Greater New Haven Community Loan Fund, Neighborhood Housing Services of New Haven, the Yale Law School Clinic, and other nonprofit agencies.
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