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FakeNoose

(32,767 posts)
Wed Feb 1, 2023, 02:58 PM Feb 2023

State takes over troubled mortgage relief program from private contractor after complaints, backlogs

(link) https://www.spotlightpa.org/news/2023/02/pa-phfa-mortgage-utility-tax-relief-applications-paused/

HARRISBURG — In an abrupt change, Pennsylvania’s struggling mortgage relief program will no longer work with the private company originally hired to run it, and will temporarily stop accepting new applications starting Feb. 1 while it makes the transition.

The move comes less than a week after a Spotlight PA investigation found that the program has been struggling to get the information it needs from mortgage companies, leaving homeowners grasping for answers and waiting months to get help. As a result, some applicants had their utilities shut off and saw their credit scores plummet.

The application pause — announced with only a few days’ notice — will give the program time to address a backlog of pending applications and handle the transition from the contractor’s software systems, according to the Pennsylvania Housing Finance Agency.

- snip -

As of Jan. 30, the program had paid out roughly $94 million, about a quarter of the money available. In its first six months, Pennsylvania’s spending rate was similar to those of other states, many of which have faced similar difficulties. After Pennsylvania lawmakers decided the housing agency would oversee the program, officials there outsourced the day-to-day administration because of the “massive effort” involved in quickly ramping up a new and complex program, according to an agency newsletter.


- more at link -

SPOTLIGHT has been reporting on this mortgage relief program since last year, and updates on this mess will continue. Their most recent story highlighted homeowners' complaints over delays, misdirections and failures. I guess the state administrators have been listening and decided to act.





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