Ally Financial expands mortgage assistance to all Hardest Hit Fund states
Ally Financial ($25.66 0.04%) will provide mortgage assistance to borrowers in all 19 states participating in the $7.6 billion Hardest Hit Fund program.
The Treasury Department initiated the program in February 2010. State housing finance agencies proposed plans to help homeowners hardest hit by the financial crisis and received federal grants to fund them. California got the most funding at $1.9 billion, followed by Florida with more than $1 billion and Michigan at $498 million.
Other states receiving funds were: Alabama, Arizona, Georgia, Illinois, Indiana, Kentucky, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C.
Ally will evaluate borrowers for assistance using the various options each state provides in their programs. These include modifications, forbearance and even principal reduction in at least once state, Michigan.
Ally said it will also provide assistance through the Department of Housing and Urban Development's Emergency Home Loan Program to provide interest-free loans to unemployed borrowers to help with mortgage payments. The program got off to a slow start but began taking applications in April.
"Providing our customers with as many options as possible for affordable and sustainable payment relief remains our top priority," said Tom Marano, CEO of Ally's mortgage operations. "Both of these programs are fully operational and we have already been able to assist borrowers throughout the country."
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