Governor Martin O'Malley Praises Federal Housing Assistance for Maryland Homeowners
Press Release
Governor Martin O'Malley praised an announcement today by David Stevens, Assistant Secretary for Housing and Commissioner of the Federal Housing Administration with the U.S. Department of Housing and Urban Affairs, that Maryland will receive $40 million to assist homeowners in becoming current with back mortgage payments. The federal government's announcement along with the rollout of new initiatives with the Maryland Mortgage Program and the distribution of Commitment to Excellence Awards were highlights at today's Governor's Conference on Housing and Sustainable Communities. The event at the Baltimore Convention Center was sponsored by the Maryland Department of Housing and Community Development, the Home Builders Association of Maryland, and the Maryland Affordable Housing Association.
"Even as we move beyond the fallout of the subprime mortgage and predatory lending crisis, I know that there are still too many families in our state struggling to get by," said Governor Martin O'Malley. "This program strengthens an important safety net for hard-working people and protects the investment they made in the American dream."
The Emergency Mortgage Assistance Program will offer a declining balance, deferred payment "bridge loan" for up to $50,000 to assist eligible homeowners with payments of arrears, including delinquent taxes and insurance plus up to 24 months of monthly payments on their mortgage principal, interest, insurance, taxes, and hazard insurance.
The department's allocation will fund emergency loans for borrowers as well as provide support to cover the administrative costs of performing the intake and housing counseling and fiscal agent. Eligible homeowners will be able submit applications for assistance in December.
Today's announcement comes a day after Governor O'Malley issued a letter, along with Congressman Cummings and Attorney General Gansler, calling on Maryland mortgage servicers to suspend both new and ongoing foreclosure actions in Maryland until they review their practices in Maryland and can ensure that Marylanders are not being mistreated.
Source