The Obama Administration has recently announced an expansion of the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (the "HFA Hardest Hit Fund") to target five additional states with high shares of their populations living in local areas of concentrated economic distress.

This second HFA Hardest Hit Fund will include up to $600 million in funding for innovative measures to help families stay in their homes or otherwise avoid foreclosure in states that have been hit hard by concentrated economic distress: Ohio ($172), North Carolina ($159), South Carolina ($138), Oregon ($88) and Rhode Island ($43).

The HFA Hardest Hit Fund is designed to allow the maximum possible flexibility to HFAs in designing programs that are tailored to the needs of each participating state, and allows HFAs to develop creative, effective approaches that consider local conditions. The Treasury has developed an outlined guide to possible transactions that would meet the requirements of the Emergency Economic Stabilization Act of 2008 (EESA):

• Unemployment Programs
• Mortgage Modifications
• Mortgage Modifications with Principal Forbearance
• Short Sales / Deeds-In-Lieu of Foreclosure
• Principal Reduction Programs for Borrowers with Severe Negative Equity
• Second Lien Reductions

The EESA determines the eligibility of funding and aims to restore liquidity and stability to the financial system by protecting home values, preserves homeownership, promotes jobs and economic growth, and provides public accountability.

Read more at FinancialStability.gov.

Posted in Mortgage, Real Estate Market Conditions, Foreclosure, National News

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