Vote Smart's Synopsis:

Vote to pass a bill that appropriates $21 million to develop a sub-prime mortgage assistance program.

Highlights:

-Establishes the HERO (Homeowner’s Equity Recovery Opportunity Loan) Program to purchase mortgages from lenders and place eligible buyers on an affordable repayment plan for up to 30 years (Sec. 2). -Requires the Connecticut Housing Finance Authority to determine if individuals applying for emergency assistance payments are eligible within 30 days of applying by reviewing certain criteria including payments that have been delinquent due to financial hardship, reasonable ability to resume full payments within 60 months, and no previous emergency mortgage assistance payments (Sec. 8). -Requires WorkPlace, Inc. to establish a mortgage crisis job-training program, with at least three teams established for different areas of the state that will provide job training and job placement assistance for borrowers who need a second job or are unemployed (Sec. 13). -Requires a licensed mortgage lender to have a minimal tangible net worth of $250,000 and a licensed mortgage broker to have a minimum tangible net worth of $25,000 prior to March 2, 2009 and $50,000 after that date (Sec. 42). -Prohibits mortgage brokers and lenders from advertising a mortgage loan offered in comparison to a hypothetical loan unless it includes interest rates, loan balances, total amounts of finance charges, total numbers of payments, and monthly payment amounts required (Sec. 52). -Prohibits mortgage lender making a secondary loan from imposing charges exceeding an aggregate 8% of principal amount of the loan or demanding full payment before scheduled maturity (Sec. 54). -Establishes a Commission on Nontraditional Loans and Home Equity Lines of Credit to determine the number of Connecticut residents with nontraditional home loans and home equity lines of credit, what loans and credit lines pose a high foreclosure risk, and appropriate circumstances for these loans and credit lines (Sec. 77).

Full Bill Text