U.S. Senators Blanche Lincoln and Mark Pryor and U.S. Representative Vic Snyder (AR-02) today announced that Arkansas will receive $17,736,991 in U.S. Department of Housing and Urban Development (HUD) funds through the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law in July. The funding will provide loans for homeowners who are behind on their mortgage payments and facing foreclosure.
Funds under HUD's Emergency Homeowners Loan Program will be used to offer zero-interest loans for lower and middle-class homeowners struggling to keep up with their mortgage payments due to unemployment or a significant income reduction. HUD will work with NeighborWorks America and designate the Arkansas organizations that will administer loans to eligible homeowners. These homeowners will be able to receive a maximum of $50,000 to use toward late payments, taxes, insurance, and up to 24 months of payments on mortgage principal, interest, insurance premiums, taxes and hazard insurance.
"This investment will help reduce foreclosures in Arkansas by helping homeowners who have lost their jobs or are struggling to keep up with their mortgage payments," Lincoln said. "I played a key role in crafting the Wall Street Reform legislation that was designed to stand up for Main Street and provide funding like this that protects the interests of hardworking Arkansans. As Chairman of the Senate Agriculture Committee, I will continue working to secure important resources for Arkansas."
"The housing crisis and economic climate have affected many Arkansans throughout the state, as home prices fall and families struggle to make their mortgage payments," Pryor said. "These federal funds will give Arkansas homeowners the lifeline they need to stay in their homes and make ends meet. This is what the Wall Street Reform Act was meant to do -- help Main Street and working families -- and I'm pleased to see its benefits at work for Arkansas."