Senate takes final action on bill to continue program through 2012
May 6, 2010 – (RealEstateRama) — The state Senate today took final action on legislation to extend the state’s highly successful foreclosure mediation program for an additional two years, a move shepherded by Banks Committee co-chair Senator Bob Duff (D-Norwalk)
The landmark program—which brings together mortgage lenders and borrowers facing foreclosure in mandatory sessions with Judicial Branch mediators—has helped to keep more than 3,300 Connecticut homeowners in their homes since it was created in 2008 and has become a national model. However, the program was scheduled to sunset this year.
Under the bill passed out of the Senate today, the sunset date would be extended until July 1, 2012.
“We know that keeping people in their homes is good for the economy, it’s good for the state of Connecticut and, ultimately, it helps save us money on other social costs,” said Senator Duff. “This legislation was a priority for us this session, so I’m pleased to see it passed through the legislature this year. This is a good initiative, a proven initiative, and its extension will mean continued assistance for those who need still very much need it.”
Senator Duff also praised his co-chair in the House of Representatives, Representative Ryan Barry (D-Manchester) for his advocacy on behalf of the legislation.
Funding for an additional year of the program—$3.3 million—was included in a deficit mitigation plan approved in the Senate on April 14. The funding came from the state’s Special Banking Fund, which is independent of the General Fund and is funded by licensing and other fees applied to banks, credit unions and other financial institutions.
The legislation—House Bill 5270, An Act Concerning Foreclosure Mediation—was approved unanimously by consent in the Senate. It was previously approved unanimously in the House of Representatives and now moves to Governor M. Jodi Rell for consideration. Governor Rell has previously indicated her support for the measure.
The 2010 regular legislative session adjourned tonight at midnight.
Contact:
Press Aide
Jaclyn Falkowski
860-240-8671
Jaclyn.Falkowski (at) cga.ct (dot) gov
