State Democratic leaders have unveiled a proposal to help thousands of Connecticut homeowners facing foreclosure.
State Senator Bob Duff and Representative Ryan Berry say the Connecticut Housing Finance Authority or CHFA isn't doing enough to help subprime mortgage-holders.
Duff and Barry are sponsoring legislation that includes a three-tiered mortgage assistance program. They says the proposal may help stave off a mortgage crisis. Just last month, Connecticut ranked eighth in the country for the highest foreclosure rates-- a 185 percent increase from last year.
Their proposal calls for 100% financing, in-person financial counseling and the ability for the state to buy foreclosed property Funding for the plan would come from money apportioned for CHFA's current mortgage assistance program, called Connecticut Families.
State Attorney General Richard Blumenthal called the state's response to the current crisis, "anemic."
â€œIt is bound to serve a very narrow part of the population in need. Because very likely someone is going to pay their mortgage before they pay their electric bills and a lot of other expenses and so they may be in default on those bills and therefore they wonâ€™t meet the eligibility criteria for the Connecticut Families program."
He says only 25 out of of 1,000 applicants to the state's program have been approved so far.
A public hearing on the bill will be held this Thursday in front of the General Assembly's Banks committee.