Bill > H835

This bill establishes a resolution trust fund to address the impact of the mortgage foreclosure crisis by creating a mechanism for homeowners to make payments on non-predatory loans into a state-administered fund. The Community Economic Development Assistance Corporation (CEDAC) will establish and manage this trust, which can receive funds from the state's general fund or other targeted sources. The trust will accept payments from mortgages where the original lender cannot prove their legal claim or where no responsible lender can be identified, effectively transferring the mortgage to the trust. These transferred mortgages will be monitored to ensure they meet traditional prime lending standards, such as having a principal no higher than 80% of the home's value, prime interest rates, fixed payment schedules, standard underwriting, and no prepayment penalties or high-cost balloon payments. The trust will be administered by a director appointed by CEDAC, with public input hearings held once the trust's annual income reaches $300,000, and local hearings will be held in counties or clusters of towns once $100,000 in funds are designated for those areas, potentially leading to the establishment of local trust funds. The director of the state trust fund is required to file an annual report detailing the fund's finances, usage, and the impact of funded projects on affordable housing and community development.