Washington, DC – September 29, 2010 – (RealEstateRama) — Congressman Dennis Kucinich (D-OH) today welcomed a new infusion of federal funds from the Department of Treasury to prevent foreclosures in Ohio. Treasury will release an additional $249.7 million in funding for Ohio’s Hardest Hit Program. This funding comes in addition to the $172 million Kucinich already secured for Ohio.
Demand for the funding was so great, Cuyahoga County ran out of their allocation of the money today. Treasury stepped in to meet the need for which Congressman Kucinich had advocated so strongly.
The Hardest Hit Program is already estimated to help 26,000 Ohio homeowners. Money made available can be used to help with late payments, reduce a homeowner’s loan balance or help a homeowner extricate themselves from a bad loan.
“Northeast Ohio has been the epicenter of the foreclosure crisis. We made the case to the Treasury Department and have significant results to show for it. If a homeowner thinks he is eligible, he should immediately call my office at (216) 228-8850,” added Kucinich.
Congressman Kucinich has been at the forefront of issues related to the housing and foreclosure crisis, holding ten hearings in his Congressional subcommittee on the issue, including two in Cleveland. After the Department of the Treasury initially left Ohio out of the Hardest Hit Fund, a new program for home foreclosure prevention, he rallied the Ohio delegation and secured $172 million for Ohio in a second round of funding.
Kucinich also brought a top Treasury official, Assistant Secretary for Financial Security Herb Allison, to Cleveland in May 2010 to meet with from state and local housing officials about the needs of the community. Assistant Secretary Allison heard of the great need in Northeast Ohio and helped Kucinich secure support for assistance in Washington D.C.
“After returning to Washington, I shared your constituent’s concerns with senior Treasury officials and with the leaders of top mortgage services when I met with them to discuss their performance. I used my visit to Cleveland to suggest specific improvements in customer service that the servicers need to make. Please let your constituents know that their voices were heard,” Assistant Secretary Allison wrote to Kucinich following the meeting.
Kucinich was also working to ensure that new federal funds were used effectively in Ohio. In particular, Kucinich focused on enabling federal funds to be used to hire foreclosure prevention counselors. Borrowers receiving counseling assistance show a markedly higher rate of successful loan modifications than those who do not. Earlier in the year, the standard interpretation of Treasury rules restricted how federal funds could pay for foreclosure prevention counselors, which was an obstacle for the state of Ohio. Kucinich worked with the Department of Treasury to remove that obstacle. Now, Ohio and other states are able to use this money in a way that allows them to hire and train new counselors.
