Mississippi House Bill HB346

Mississippi 2022 Regular Session

• Introduced: 1/4/22
• Refer: 1/4/22
• Failed: 2/1/22

Caption

Homeowner's Emergency Mortgage Assistance Program; create.

Impact

The legislation mandates that before any mortgagee can initiate foreclosure actions, they must first provide the mortgagor with specific notices and verify the application for emergency assistance. This provision aims to temporarily stay foreclosure actions during the evaluation process, ensuring that homeowners have a fair chance at receiving assistance. This measure is expected to reduce the number of home foreclosures across Mississippi, which has seen an increase in homeowners struggling with their mortgage obligations.

Summary

House Bill 346 establishes the Homeowner's Emergency Mortgage Assistance Program to aid Mississippi residents who are delinquent on their mortgage payments. This program is specifically designed to help homeowners who face the risk of foreclosure due to circumstances beyond their control. The program will be administered by the Mississippi Home Corporation, which is authorized to provide loans to eligible residents as a means of preventing widespread mortgage foreclosures and improving the stability of housing in the state.

Contention

Although the bill has a positive intent to protect homeowners, there may be concerns regarding the financial implications for the state. Critics could argue that the funding for the Homeowner's Emergency Mortgage Assistance Fund might be insufficient to support the proposed program, leading to potential limitations in the number of homeowners who can receive assistance. Additionally, there may be concerns regarding the requirement for consumer credit counseling, as some homeowners may find the process cumbersome or unhelpful in situations of severe financial distress.