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GRANHOLM APPLAUDS SENATE ACTION ON BILLS TO COMBAT MORTGAGE FORECOSUREContact: Communication Director (517) 373-0011 Agency: State Housing Development Authority
FOR IMMEDIATE RELEASE
March 6, 2008
GRANHOLM APPLAUDS SENATE ACTION ON BILLS TO COMBAT MORTGAGE FORECOSURE
LANSING – Governor Jennifer M. Granholm today applauded the state Senate for approving bills that will help protect Michigan homeowners facing mortgage foreclosures by offering them new refinancing options. The legislation, proposed by the governor last fall, will allow the Michigan State Housing Development Authority (MSHDA) to implement two new refinance loan programs as part of its Save the Dream public awareness campaign to help citizens avoid foreclosure.
To qualify for one of the new loan products, homeowners must meet the same income and sales price limits as other MSHDA loan products require. Under the proposed legislation, however, the household income limit would increase to $108,000, and the purchase price limit of a home for a single family cannot exceed $224,500.
The initiatives will be funded by taxable bonds, and homeowners will be responsible for paying off the full value of their refinanced mortgages. Rates for the programs will be aggressively priced, ensuring below industry market rates.
The foreclosure rate in Detroit is one of the highest in the nation, and 62 percent of the sub-prime loans have been made to African American residents.
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