Pennsylvania's House of Representatives has voted unanimously on Tuesday, passing a state Senate bill that will use all funds from the National Mortgage Settlement to aid homeowners at risk of foreclosure.
The settlement earlier this year between states’ Attorneys General and the largest mortgage companies provides $66 million to Pennsylvania. The House version passed 197-0.
The nation's five largest mortgage servicers agreed earlier this year to pay $25 billion to settle claims that they pushed foreclosures through without proper documentation, and part of the settlement included $2.5 billion for state governments.
The legislation calls for 90 percent of the funds to go to the Homeowners Emergency Mortgage Assistance Program (HEMAP), which was closed
Many cash-strapped states, though, are using at least some of the proceeds to help balance their budgets — funds consumer groups argue should be earmarked for homeowners facing foreclosure.
If the bill is signed into law, the state housing finance agency, which administers the program, will start taking applications from at-risk borrowers in July.
