Bill > H3676

This bill aims to establish a Resolution Trust Fund (the "Fund") to protect citizens and municipalities affected by the mortgage foreclosure crisis. The key provisions of the bill are: 1. The Fund will be authorized to receive monies, including residential mortgage payments where the mortgagee cannot be ascertained, to help rebuild the economy and municipal tax base in neighborhoods affected by predatory lending and foreclosure. 2. The Fund will modify any transferred mortgages to comply with traditional prime lending characteristics, such as a principal not exceeding 80% of the property's present-day value, prime lending rates, fixed payment schedules, and no prepayment penalties or balloon payments. 3. The Fund will record the transfer of mortgages, notify mortgagors of the modified loan characteristics, and assist delinquent homeowners to stay in their homes. If foreclosure is necessary, the proceeds will be credited to the Fund. 4. The Fund will be administered by the Community Economic Development Assistance Corporation (CEDAC) and its investment will be prudently managed. 5. When the Fund reaches certain thresholds in a county or local area, CEDAC will hold public hearings to gather input on the distribution and usage of the funds, with a focus on affordable housing and community development projects in the regions most affected by the foreclosure crisis.

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https://malegislature.gov/Bills/190/H3676