As reported, The Preservation Program was restored plus a “bump” resulting in $150,000 for each Coalition (same funding as last year) and about a $10,000 plus or minus increase for groups. There was a three way agreement on this so all need to be thanked. While the Senate and the Assembly agreed to fund restoration, the final bump was provided by Attorney General Eric Schneiderman, paid out of the National Mortgage Servicing Settlement Agreement
Subprime Foreclosure Prevention Counselors with existing contracts will get a 6 month extension. The Attorney General’s office provided $9 million to continue funding HCR contracts for the next 6 months, after which, the program will be transferred to the AG’s office.
A press release from the AGs office explains this: (I bold printed the connection between this funding and Preservation Program- ndb) A clear recognition of the critical role RPCs and NPCs play in providing pre and post purchase counseling.
A.G. SCHNEIDERMAN ANNOUNCES UP TO $15 MILLION OF NATIONAL MORTGAGE SETTLEMENT TO EXTEND FUNDING FOR FORECLOSURE PREVENTION AND OTHER RELATED SERVICES A.G.’s Commitment Will Continue Funding For Legal Services And Housing Counseling For Six Months Current Funding Was To Expire On April 1 Schneiderman: Settlement Fight Was To Ensure A Fair Deal For New York Homeowners, Funding Is First Step To Deliver On That Promise
NEW YORK – Attorney General Eric T. Schneiderman today announced that up to $15 million of the $132 million he secured in the national mortgage servicing settlement will be used to extend funding for foreclosure prevention and other related services. Up to $9 million of the allocation will be used to support the state’s Foreclosure Prevention Services Program, which was set to expire on April 1. And up to $6 million will support housing and community renewal activities statewide through not-for-profit community-based housing organizations. “We have an obligation to provide assistance to the struggling homeowners across the state facing foreclosure, and this portion of the national mortgage settlement will ensure that families in New York State have the legal services they deserve to fight wrongful foreclosures and protect themselves in court,” said Attorney General Schneiderman. “Funding for legal services is an essential first step in bringing relief to the homeowners and communities that have been devastated by the crash of the housing market. As we continue to investigate the mortgage crisis that has impacted communities in every corner of this state, we must ensure that justice and accountability prevail at every step of the way. I’d like to thank the Assembly, Senate and Governor for working with our office to make this happen. ” Legal services funded through the Foreclosure Prevention Services Program have become an integral part of our state’s foreclosure process. New York’s comprehensive foreclosure prevention law entitles homeowners to a 90 day pre-foreclosure notice before a lender can begin a foreclosure action. This notice is required to include a list of at least five nonprofit housing counseling agencies that can assist homeowners at risk of foreclosure. Organizations funded by the Foreclosure Prevention Services Program have also made possible the courts’ successes in negotiating loan modifications from lenders at foreclosure settlement conferences. Without funding for the Foreclosure Prevention Services Program, most of these agencies would lose the resources necessary to fulfill these critical obligations to homeowners. Today’s announcement comes weeks after Attorney General Schneiderman announced his office will fund an additional $3 million in foreclosure prevention services to aid New Yorkers struggling through the mortgage crisis from proceeds secured from two separate settlements. ”