Bill > H3953

This bill establishes a publicly owned and administered Resolution Trust Fund to receive and manage mortgage payments where the mortgagee or note owner cannot be identified. The fund can accept mortgage loans that are found to have no identifiable mortgagee or note owner, and will modify the loans to comply with traditional prime lending characteristics, including a maximum 80% loan-to-value ratio, prime interest rate, fixed payment schedule, and no prepayment penalties or balloon payments. The fund will service the loans, pay taxes and other costs, and assist homeowners to prevent foreclosure. Proceeds from the sale of foreclosed properties will be credited to the fund. The fund will be administered by the Community Economic Development Assistance Corporation (CEDAC) and allocate monies to counties based on the proportion of Eaton affidavits filed in the previous 5 years, with a focus on areas with high numbers of such affidavits.