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$1 Billion on the Way for Unemployed Homeowners

By Matthew Yglesias on July 17, 2010 at 11:31 am

"$1 Billion on the Way for Unemployed Homeowners"

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I didn’t know about this, but Annie Lowrey describes a provision of the Financial Regulation bill that sounds a lot like additional stimulus:

One of those is the Emergency Homeowners’ Relief Fund, a $1 billion fund to help unemployed workers stay in their homes. The brainchild of Rep. Chaka Fattah (D-Pa.), ushered into the bill by Rep. Maxine Waters (D-Calif.), the EHRF should be in place by Oct. 1. It will offer qualified unemployed homeowners low-interest loans up to $50,000 to help them keep up with their mortgage payments and remain in their homes.

Legislators modeled the program after Pennsylvania’s successful Homeowners’ Emergency Mortgage Assistance Program, or HEMAP. Since its creation in 1984, HEMAP has helped 41,500 homeowners with $433 million in loans. About half of HEMAP loan-takers have repaid in full to date. And 90 percent of HEMAP participants have avoided foreclosure.

Smallish relative to the size of the economy, but sounds like a good idea to me.

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