Maryland's housing department said Monday that it had managed to commit all the nearly $57 million it had for emergency loans to homeowners facing foreclosure, money that had to be used up by last Friday or returned to the federal government.
Staffers at the state Department of Housing and Community Development worked until midnight that day to process the final batch of loans, which can repay amounts past due on mortgages and help borrowers with their monthly payments for up to two years. More than 1,400 homeowners who lost their jobs or suffered a hit to their income were approved for the no-interest, forgivable loans, the state said.
Congress set a Sept. 30 deadline for $1 billion in loans to be committed nationwide. The U.S. Department of Housing and Urban Development said last week that it expected at least half the money would have to be returned to the U.S. Treasury — making Maryland one of the rare states to use up its allotment.
The application process did not begin until June in most states, but Maryland — permitted to run its own program — got a jump start of about two and a half months.