Washington, D.C. – Nevada Senator Harry Reid has sent a letter to four lenders in Nevada urging them to match, dollar-for-dollar, the $102.8 million in federal housing funding, known as the “Hardest Hit” funds, which will assist Nevada homeowners struggling to make payments and remain above water. Reid sent the letter to Bank of America, Wells Fargo Bank, Citibank, and JP Morgan in the wake of the Obama administration’s approval of the final amount, the highest per capita of any state, last month.
“Now we must ensure that the program is a success, and your company could contribute greatly to that result,” Reid said in the letter. “The federal dollars I helped secure for Nevada will go much further if matched by your bank, and would thereby help prevent more Nevada families from facing foreclosure and further stabilize Nevada’s housing market.”
Nevada will receive a total of $102.8 million in “Hardest Hit” funds to be used as follows:
· Nevada will create a mortgage modification program using a combination of forgiveness and forbearance with a goal of reducing principal to less than 115 percent of LTV (loan-to-value) and lowering payments to 31 percent of DTI (debt-to-income).
· The state will also offer assistance to reduce/eliminate second liens with earned forgiveness over a three-year term.
· Additionally, the state will provide allowances for appraisal and transaction fees, moving fees, a legal allowance for up to three months, and a combination of incentives for borrowers and servicers to facilitate short sales.
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