Earlier this year, Michigan Attorney General Bill Schuette joined state attorneys general from around the country in entering into a settlement agreement stemming from mortgage servicing practices with the five leading bank mortgage servicers. As a result of the underlying lawsuit, the National Mortgage Settlement fund was created to facilitate these five servicers’ required efforts to provide monetary sanctions and relief to alleviate the effects of the foreclosure crisis.
The state Legislature recently passed House Bill 5015, sponsored by Rep. Chuck Moss, R-West Bloomfield, allocating Michigan’s share of the national settlement. From that allocation, the Michigan State Housing Development Authority was allocated $20 million to create two new grant programs – $15 million to administer the Assistance to Homebuyers program, and $5 million to provide grants for closing costs related to re-finances of single-family, owner occupied principal residences under the Home Affordable Refinance Program (HARP).
MSHDA is in the process of finalizing forms and processes for financial institutions and borrowers, and expects to roll out their programs in late November. For more information, contact Kieran Marion, MCUL vice president for governmental affairs, at Kieran.Marion@mcul.org.