Earlier this month, USA Today reported that over half of the $1 billion allocated to assist unemployed and underemployed people stave off foreclosure will not be used. The Emergency Homeowners’ Loan Program would have given up to $50,000 loans in 32 states and Puerto Rico.
Only 11,832 applicants of the total 100,000 were conditionally approved. It took almost a full year for the program to start taking applications, which left only a three month window in which to apply and be approved.
Under the terms of this program, homeowners could have received up to $50,000, which would be forgiven if they stayed in their home for at least five years. The program, administered by the U.S. Department Housing and Urban Development (HUD) was made possible by Wall Street reform legislation. Critics say that HUD added eligibility criteria that slowed the process.
A HUD spokesperson admitted a longer than anticipated ramp up, but also said the eligibility criteria defined by the law that created the program disqualified a higher than expected number of applicants. You can read the entire article here.
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