HEMAP receives funding through joint mortgage settlement
The bill establishes a trust fund to use the more than $60 million Pennsylvania is set to receive as part of the $25 billion joint state-federal mortgage settlement with the country’s five largest loan servicers.
Senate Bill 1433 will not only fund HEMAP, which hasn’t provided assistance to new clients since July 2011 because of state budgetary issues, but also Attorney General consumer protection services and legal assistance related to housing issues. Ninety percent of the fund’s money is set aside for the Pennsylvania Housing Finance Agency (PHFA) to operate the HEMAP, with the remaining ten percent split evenly between the other two purposes. HEMAP will receive an additional $6 million this year to address an anticipated backlog of foreclosure applicants.
The legislation stipulates no more than $12 million will be distributed from the fund on a yearly basis for the targeted services.
PHFA will announce further plans and how to apply in the coming weeks.
Kim Shindle is the Manager of Media Relations at the Pennsylvania Association of Realtors®. Follow Kim on Twitter.