Big Changes to Hardest Hit Fund
During today’s Florida Housing Finance Corporation’s Board of Directors meeting in Jacksonville, they approved several changes to the Hardest Hit foreclosure prevention program. If the changes are next approved by the U.S. Treasury, it is expected that they should have a significant positive impact on the number of homeowners who are determined eligible and how much benefit they will receive from the Hardest Hit Fund (HHF). The changes are listed below, but are more fully in outlined in the action item presented to the FHFC Board and available at this link:http://bit.ly/I8DkU4 .
The following changes apply to future and current applicants, as well as past applicants who were deemed ineligible due to criteria that has now been changed:
Increase Amounts of Assistance
Increase Unemployment Mortgage Assistance Program (UMAP) from 6 months to 12 months of maximum assistance and offer a maximum of $24,000 of this monthly mortgage payment assistance to each eligible homeowner.
Increase Mortgage Loan Reinstatement Program (MLRP) assistance from $6000 to $18,000 in those instances when it is provided in conjunction with UMAP assistance. This money may be used to pay off the amounts that are past due on the first mortgage. This MLRP reinstatement assistance will now be provided upfront before UMAP is received.
For eligible homeowners who need MLRP assistance only, up to $25,000 is available.
Changes to Eligibility Criteria
For applicants living in condos, there will no longer be a requirement for the condo to be listed on the FHA or Fannie Mae lists. Instead, the applicant must submit the most recent condo association financial statements. A limited review of these financials will be used to determine the financial health of the condo.
Eliminate the requirement that first mortgages must be originated before 2009. This will now allow homeowners to qualify no matter when their mortgage was originated.
Eliminate the requirement that an applicant must be no more than 180 days past due at the time of application. There will no longer be a past due limit, which will allow servicers to determine if an applicant is too delinquent to be HHF eligible.
Eliminate the Combined Loan to Value ratio limit of 200%.
Adjust the threshold for what constitutes a qualifying hardship. Require that there be at least a 10% reduction in income to constitute a hardship.
Florida Housing staff are now asking each of the almost 90 agencies implementing Hardest Hit to generate a list of questions, concerns and ideas for the most effective way to implement these changes. They are also meeting next week with U.S. Treasury staff and hope to have Treasury’s authorization by the end of May.
Our Manatee County Habitat for Humanity Affiliate was recently featured in the Bradenton Herald article, which highlighted the green building techniques used in the construction of the home.