October 21, 2011

GOV. MALLOY AND TREASURER'S OFFICE KEEP STATE EMERGENCY MORTGAGE ASSISTANCE PROGRAM RUNNING

(HARTFORD, CT) - Governor Dannel P. Malloy today announced that, working with Treasurer Denise Nappier, the Connecticut Housing and Finance Authority's popular Emergency Mortgage Assistance Program will continue to operate, after being in danger of shutting down. An identified lapse in the general fund debt service account will allow Governor Malloy's administration the flexibility to provide additional assistance for this program, which will allow CHFA to provide an additional 280 loans to homeowners facing foreclosure over the next six months.

"This is great news for homeowners in Connecticut who are at risk of losing their home," Governor Malloy said. "Because of additional strain on this state program after the federal program ended at the beginning of this month, it looked as though CHFA would have to end its program, too. My administration worked with Treasurer Nappier's office to find a way to keep this program operational for the next six months, and help an additional 280 homeowners in the process."

Attached is Office of Policy and Management Secretary Ben Barnes' letter to the Treasurer's Office suggesting a way to keep the program operational.

"Our efficient management of the state's debt has helped save on debt service. Those savings, thankfully, are now available to support this vitally important program," State Treasurer Denise L. Nappier said. "With more than 40,000 Connecticut homeowners seriously delinquent or in foreclosure, it's crucial we do all we can to help our friends and neighbors who are struggling."

EMAP requires that the loan to homeowners must be repaid, and helps bring their mortgage to current status and provide a monthly subsidy for up to five years bridging the gap between the mortgage amount and the amount the homeowner can pay based on income. Already this year, EMAP has made 247 loans to Connecticut homeowners. Further information about the program can be found at www.chfa.org.

**Attached: Letter from Office of Policy and Management Secretary Barnes to Treasurer's Office

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For Immediate Release: October 21, 2011

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