This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RI Ramps Up Spending On Foreclosure Prevention


PROVIDENCE, R.I. (AP) â¿¿ Rhode Island has spent over 60 percent of $79 million available in a federal foreclosure prevention program, and housing officials say the state is on track to draw down the rest in the coming months.

Nearly $48 million in Hardest Hit Fund money had gone to about 2,560 homeowners by the end of December, Rhode Island Housing officials said Thursday. Over $5 million more has been approved but not finalized. The funds generally go toward mortgage payments made on behalf of qualified homeowners.

The spending was slow at first partly because fewer people applied than expected; federal officials also said some lenders initially resisted participating. But Rhode Island Housing, the quasi-public agency that administers the Hardest Hit Fund program in the state, says it will stop accepting applications at the end of January because it expects to have the rest of the money committed.

Rhode Island Housing Executive Director Richard Godfrey described the program as highly successful â¿¿ so successful, in fact, that the agency has asked the state's congressional delegation for $35 million more. The additional funding would allow the agency to extend the program for a year and help about another 1,200 homeowners make their mortgage payments, he said.

"We're very sad that we've run out of money because Rhode Islanders are still struggling," Godfrey said.

Andrea Risotto, a spokeswoman for the U.S. Treasury Department, which oversees the program, said the overall funding level is capped under federal law at $7.6 billion, and the amount each state is getting is also set. Chip Unruh, a spokesman for U.S. Sen. Jack Reed, said the delegation has asked Treasury if unspent funds from other Hardest Hit states might be used in Rhode Island.

The Obama administration launched the Hardest Hit Fund in 2010 to provide assistance to the states most affected by the housing and economic downturns. It operates in 18 states and the District of Columbia. Rhode Island was selected because of its high unemployment rate, which is now 10.4 percent.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,832.52 +56.09 0.33%
S&P 500 1,982.88 -4.17 -0.21%
NASDAQ 4,753.0490 -28.2150 -0.59%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs