Housing links:

• Homeowner's Survival Guide
• Fight for HEMAP and FHA
• FHA
• Foreclosure Crisis Committee
• Foreclosure Prevention

HEMAP

The State Mortgage Assistance Program (HEMAP) has to work for the homeowner (only 28% are approved right now).

HEMAP (the Homeowners Emergency Mortgage Assistance Program) was the result of an intensive PUP led campaign during the recession of 1983. It provides loans to pay the mortgages of families facing foreclosure through no fault of their own. Homeowners, unions, religious organizations and others came together to fight the massive foreclosures of that time. The Legislature enacted HEMAP after a one-year struggle and it was signed into law by Governor Richard Thornburgh. Over 32,000 PA families have gotten HEMAP help since 1983. Nearly all were able to save their homes. Since that time over 30,000 families have been assisted.

As the current recession has deepened approvals for assistance have dropped to around 28%. See chart: PA foreclosure rates vs HEMAP approvals. Of those assisted the vast majority do not receive ongoing help, but a loan for arrearages only. Jobs have been lost for the past 22 months and this is the longest period of jobless recovery since World War II. Foreclosures are at record highs. HEMAP should be stepping up right now to assist families facing foreclosure.

A new $6.8 million appropriation has recently been made to HEMAP, the first since 1997. These funds and the foreclosure crisis should lead to a real increase in approvals for HEMAP loans.

Foreclosure Crisis Committee has been making progress on increasing HEMAP approvals. The meeting held on January 13, 2004 between Homeowners, Pennsylvania Banking Secretary William Schenck and PHFA Director Bryan Hudson was fruitful. Hudson is pressing his staff to increase HEMAP approvals and will make every denial be reviewed by a senior loan officer. Schenck has offered to strategize with advocates on how to increase funding for HEMAP. A follow up meeting has been scheduled to discuss this.

FHA

Legislative protection is needed for FHA homeowners not covered by HEMAP

FHA Foreclosures and Fattah bill:

FHA mortgages are not covered by HEMAP. This is because HUD had a program to offer ongoing help to FHA homeowners facing foreclosure. This program was killed by Congress in 1996. Now FHA homeowners have to rely on their mortgage companies for assistance. This has led to increased FHA foreclosures and frustration from housing counselors and homeowners looking to prevent foreclosure. FHA foreclosures are far higher than for other mortgages and HUD offers little help to those facing foreclosure, despite the fact that they pay 100% of the costs of foreclosures.

Representative Chaka Fattah (D-PA) has introduced the Homeowners Emergency Mortgage Assistance Act (HR 1357) in response to the loss of FHA protection , which would offer low interest loans to FHA homeowners to give them time to recover from periods of unemployment, illness, etc.