Posted on Thursday, March 17, 2011
On Friday the U.S. House voted to end the Emergency Homeowner Loan Program (EHLP), a program that helps homeowners who are unable to make their mortgage payments because of unemployment.
The fund was established under the Dodd-Frank Act to provide interest-free loans to homeowners for up to 24 months, and would need to be paid back, along with the money homeowners already owe on their mortgages.
This is the second vote to end a foreclosure mitigation program that some lawmakers claim just isn’t working.
On Thursday the House voted to end the Federal Housing Administration’s Short Refi Program which is aimed at homeowners who are underwater.
The House voted to end EHLP 242 to 177, but the termination bill is not expected to make it through the Senate. Even if it did, the White House has promised to veto it.
The vote comes only a few days after HUD announced it would in April begin allocating funds for the program.
Next week the House is set to vote on two more bills that would kill the Home Affordable Modification Program (HAMP) and HUD’s Neighborhood Stabilization Program.
Rep. Spencer Bachus (R-Alabama) said he is pleased with the progress the House has made in terminating the programs.
“The American people sent us here to tell them the truth, and the truth is our country is in serious trouble because of excessive government spending,” he said.
He continued, “We are on an unsustainable path that will lead to ruin … We must take action immediately to change course and put a stop to this reckless culture of spending that has ruled Washington for far too long.”
By: Joy Leopold, DS NEWS