Senate Majority Leader Martin Looney Helps Keep Foreclosure Mediation Program in Place

Harford, CT – April 15, 2010 – (RealEstateRama) — State Senate Majority Leader Martin Looney helped to lead passage of a bipartisan bill that not only resolves most of the state’s budget deficit for the current year but also extends the state’s landmark foreclosure mediation program for an additional year.

“New Haven has one of the highest foreclosure rates in Connecticut,” said Senator Looney. “We know this program has helped keep people in their homes and thanks to our action today—it will continue to do that. And, when people are able to keep their homes it not only helps their families, it stabilize entire neighborhoods—protecting property values and increasing public safety.”

Created in 2008, the foreclosure mediation program has helped to keep more than 3,300 individuals and families in their homes and has become a national model for coping with the foreclosure crisis. However, the program is scheduled to sunset this year.

The provisions to continue the program for an additional year, including the $3.3 million in necessary funding, were included in a deficit mitigation plan approved in the Senate today. Funding from the program will come from the state’s Special Banking Fund, which is independent of the General Fund and comes from licensing and other fees applied to banks, credit unions and other financial institutions.

The bipartisan legislation was approved by the state House of Representatives last evening and now moves to Governor M. Jodi Rell for consideration. The 2010 regular legislative session adjourns on May 5.

Contact:
Senator Looney’s
Press Aide
Derek Slap
860-240-8641
derek.slap (at) cga.ct (dot) gov