The U.S. Departments of Treasury and Housing and Urban Development (HUD) have approved the Granholm Administration’s plan to distribute $154.5 million in federal funds that should help more than 17,000 Michigan households avoid foreclosure, including 11,000 homeowners who are currently drawing unemployment benefits and are struggling to make monthly mortgage payments. The Michigan State Housing Development Authority (MSHDA) was selected as one of the five state Housing Finance Agencies (HFAs) to share in the Hardest-Hit Fund investment. Michigan will be the first of the nation’s five state HFAs to implement its plan.
Credit unions servicing loans for property within the state of Michigan may begin to utilize the H4HH funds on Monday, July 12, 2010. MSHDA’s three programs are as follows:
1. Unemployment Mortgage Subsidy Grant (pdf): One-time fund to assist the borrower in retaining homeownership by subsidizing mortgage payments during their time of unemployment, not to exceed a total of 12 consecutive months.
2. Principal Curtailment Grant (pdf): One time matching funds for homeowners with severe negative equity greater than or equal to 115% Combined Loan to Value (CLTV) to assist a borrower and lender/servicer in reaching an amicable Loan Modification Agreement.
3. Loan Rescue Grant (pdf) One time assistance to borrower and lender/servicer to reach an amicable Loan Rescue Plan which may include, but not require, a Loan Modification Agreement. The fund amount may include delinquent PITI payments, escrow shortage and delinquent property taxes.
Credit unions are urged to act quickly in order to access the Help for Hardest Hit Housing Market funds. To participate please complete the following:
MSHDA Webinar on Hardest-Hit Fund Participation
MSHDA Michigan’s Hardest-Hit Fund FAQs
Borrowers Authorization Disclosure Agreements
Lender Notification Letter
Credit unions are urged to participate in MSHDA training webinars starting the week of June 28th. All schedules for training will be posted on www.mittac.org, look for these webinars under registration "MSHDA-H4HH".