2013 Session

Budget Amendments - HB1500 (Member Request)

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Chief Patron: Surovell
Dedicate Mortgage Settlement to HTF

Item 108 #4h

Item 108 #4h

First Year - FY2013 Second Year - FY2014
Commerce And Trade
Housing and Community Development, Department of FY2013 $0 FY2014 $57,650,000 GF

Page 88, line 39, strike "$47,049,112" and insert "$104,699,112".
Page 89, line 35, strike "$7,000,000" and insert "$64,700,000."

(This amendment dedicates the entirety of the Commonwealth's portion of the Mortgage Servicing Settlement Agreement to the Housing Trust Fund. The Fund was created in Chapter 3, 2012 General Assembly, at which time an initial capitalization of $7.0 million was provided. This amendment would dedicate an additional $58.9 million to the Fund. The settlement provided Virginia a total of $409.9 million in benefits, including; $294.3 million for loan modifications, short sale/deed in lieu approvals, deficiency waivers and transitional funds; $31.1 million to approximately 15,000 borrowers of the five banks included in the settlement, or approximately $2,000 per borrower, regardless of any wrongdoing; $84.3 million for refinancing for underwater borrowers, or borrowers with existing loans that have over a 5.25 percent interest rate. In addition, the Commonwealth will receive a one-time payment of $65.9 million to partially offset the state's loss in revenue related to the mortgage crisis. The remaining amounts were dedicated to the Regulatory, Consumer Advocacy, Litigation and Enforcement Revolving Trust Fund.)