FL S1236

Florida Housing Finance Corporation must apply to U.S. Department of Treasury by October 1, 2013, to request $100 million from the federal Hardest-Hit Fund program to establish a mortgage principal reduction program.

Program funds will be used to purchase delinquent mortgages at a discount from lenders and reduce the principal amount owed on homestead properties in active foreclosure.

Applicants must demonstrate financial hardship, own homestead property in active foreclosure with mortgage value at least 25 percent of fair market value, and have ability to repay the reduced loan.

Interest rate on reduced mortgages may not exceed 2 percent per annum; only Florida Bar members and HUD-certified counselors working for nonprofits may assist applicants or loan servicers.

Florida Housing Finance Corporation must submit monthly reports to the Governor, President of Senate, and Speaker of House beginning December 31, 2013, describing program status and progress.