Connecticut Seal

General Assembly

 

Proposed Bill No. 5201

 

January Session, 2009

 

LCO No. 397

   

Referred to Committee on Banks

 

Introduced by:

 

REP. STRIPP, 135th Dist.

 

AN ACT PROVIDING RELIEF TO HOMEOWNERS IN FORECLOSURE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That the general statutes be amended to permit the state to guarantee first mortgage loans that enter foreclosure proceedings between July 1, 2009, and June 30, 2011, provided (1) the bank adjusts the interest rate on any such first mortgage loan to be equal to the United States Treasury rate of a similar term plus two and one-half per cent; (2) such guarantees shall be available only to mortgages held by banks regulated by the state; (3) such guarantees shall not exceed an aggregate amount of one hundred million dollars in mortgage value; (4) borrowers of such guaranteed mortgages shall meet all qualification requirements established by the Connecticut Housing Finance Authority, except the requirement that the borrower be a first time homebuyer; and (5) the program shall be managed by the Connecticut Housing Finance Authority within available appropriations.

Statement of Purpose:

To provide relief at no cost to homeowners who are in foreclosure.