New Legislation to Propose Mortgage Rescue Fund

State Representative Peter Daley, a Democrat from Washington County and fellow lawmakers Dwight Evans and Michael McGeehan of Philadelphia, announced legislation today that would create a housing trust fund and a mortgage foreclosure rescue program. The bills call for a $25 million fund to pay for new mortgage assistance programs through the Pennsylvania Housing Finance Agency. According to the measures, the money would be drawn from the state budget. Representative Daley emphasized that the mortgage foreclosure rescue program was not a grant, but a loan to those in danger of foreclosure. He says that the idea is to take the adjustable rate mortgages the homeowner's currently pay, and transform them into set rate mortgages. 38 other states have already enacted similar measures.