Friday, July 15, 2011

Freddie Mac authorizes HUD unemployment program

Freddie Mac directed its servicers to fully participate in the Emergency Homeowner Loan Program, which provides mortgage assistance for the unemployed.

The Dodd-Frank Act authorized the Department of Housing and Urban Development to allocate $1 billion toward EHLP in the form of interest-free loans to roughly 30,000 borrowers in 27 states and five others with a similar program. The loans can range as high as $50,000, but HUD expects the average amount to be $35,000. The borrower must put at least $150 toward the monthly mortgage payment themselves.

Borrowers have until July 22 to apply for assistance.

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