Subject: RE: MBA Secures Extension of Opt-In Period for Fri, 7 Apr 2006 18:03:36 -0400
From: <VVidal@mortgagebankers.org>

MBA Secures Extension of Opt-In Period for HUD-Approved Mississippi Housing Plan:  This week, HUD approved Mississippi's plan to direct approximately $3 billion of Community Development Block Grant funding to people whose homes were damaged by floods.  As part of the plan, lenders could agree to opt-in to the “closing process” in order to be co-payees on grant checks.  The Opt In Agreement, however, requires that the lender be made current (and taxes due and owning be paid) but the balance of the grant funds go to the homeowner to use at his or her discretion (rebuilding is not a condition).  Failure to sign the Opt In Agreement would result in the grant funds going to the homeowner directly. The deadline for agreeing to sign the Opt-In Agreement was today.  MBA was able to secure an extension of the opt-in period late this afternoon. Lenders will have at least until April 13 to determine if they can opt-in to the program, with the possibility of a short extension beyond that date.  MBA will try to get a more formal communication from the MDA concerning this extension. 

Below is the email we and other individuals from lender companies received directly from Terri Hudson, CFO for MDA at 4PM today EDT based on our letter (  MS Gov LetterFINAL.doc ) and member requests.
 
Mortgage Lenders,
 
Thank you for your continued work on the Homeowner Assistance Program.
We have received numerous requests for extensions with regard to today's deadline.  Please send us a status update today if at all possible.
Because of the work we have yet to do, our strong preference is that this process be concluded by the end of next week (April 14).  We would like to know by next Thursday if you will need a few more days but we must conclude the process by April 19th.  Thanks again for all your feedback and work as we try to bring this to closure.
 
Terri P. Hudson, CFO
Mississippi Development Authority
601-359-2902