Community Developments Investments (Updated September 2016)
A Look Inside …
States are implementing their individual Hardest Hit Fund programs in innovative ways. By working closely with state agencies, banks can identify solutions that may help borrowers remain in their homes.This report describes the innovative ways state housing agencies are using funds from the U.S. Department of the Treasury to help homeowners in areas still struggling to recover from the housing crisis.
Protect My Kentucky Home: Unemployment Bridge Program
Kentucky Housing Corporation focuses its state’s Hardest Hit Fund relief on temporary mortgage assistance for unemployed and underemployed homeowners, along with reinstatement assistance to help bring borrowers current on their mortgages.
Keep Your Home California: Principal Reduction Program
California’s principal reduction program is designed to be as flexible as possible to meet the needs of both homeowners and lenders under numerous scenarios. Lenders and investors routinely use the program to help struggling homeowners in their portfolios get the help they need.
Florida Hardest Hit Fund: Modification-Enabling Pilot Program
Florida Housing Finance Corporation developed an innovative “buy and modify” principal reduction program using Hardest Hit Fund assistance. Working with a private partner that acquires nonperforming mortgage notes, the program provides assistance to reduce the principal balance of qualified homeowners’ loans and improve the viability of loan modifications.
North Carolina Foreclosure Prevention Fund: Outreach Initiatives
One of the challenges Hardest Hit Fund administrators grapple with is how to efficiently identify eligible homeowners who may be interested in participating in a state’s Hardest Hit Fund program. The North Carolina Housing Finance Agency’s emphasis has been direct outreach to homeowners who are potentially eligible.