February 7, 2018
Albany, NY

Governor Cuomo Announces 172 Distressed Mortgages Purchased in High Foreclosure Communities

TOP Governor Cuomo Announces 172 Distressed...

Second Round of CRF Program Brings Total Mortgages Purchased to 570 to Help Struggling Families Avoid Foreclosure and Prevent Zombie Properties

New York's Total $10 Million Investment by the Community Restoration Fund Leverages More Than $111 Million in Private Investment


Governor Andrew M. Cuomo today announced the state's Community Restoration Fund has purchased 172 mortgages in a strategic effort to bring owners in targeted communities out of foreclosure and keep the homes from abandonment. The Community Restoration Fund has helped strengthen the financial position of homeowners, bringing stability back to the housing market in neighborhoods across the state. This latest effort brings the total investment through the Fund to $10 million, which has leveraged more than $111 million in private funds and enabled the purchase of 570 distressed mortgages to date.


"New York continues to fight the spread of Zombie properties by supporting homeowners seeking the American Dream and investing in at-risk neighborhoods," Governor Cuomo said. "Through this transformative program, New Yorkers are provided the tools they need to make critical home improvements, while helping communities grow stronger in every corner of the state."  


The Community Restoration Fund offers a second chance for homeowners with non-performing mortgages whose private servicers have been unable to assist. As the second phase of the CRF program, these 172 newly acquired mortgages are consistent with the concentrations of mortgages in the first phase of CRF, which will increase the overall impact the program has on these communities.


The Governor launched the CRF in 2017 to purchase the first 378 distressed mortgages through the fund and modify them to help homeowners regain stable financial footing. To keep original owners in their homes, the CRF program works in ways that public and private servicers cannot. The program engages a network of locally based nonprofit housing organizations that provide one-on-one counselling with the owner and direct outreach to the lender to help modify the loan and provide support for necessary repairs to address deferred maintenance.


The CRF is a key component of the Governor's unprecedented $20 billion, five-year Housing Plan to increase access to housing and help combat foreclosure, Zombie properties and homelessness, by building and preserving 112,000 units of affordable housing. The program is run by NYS Homes and Community Renewal's State of New York Mortgage Agency subsidiary.  


The 570 homes currently in the CRF program are located in nine of the state's 10 regions:

  • Capital Region: 47
  • Central New York: 13
  • Finger Lakes: 19
  • Long Island: 295
  • Mid-Hudson Valley: 132
  • Mohawk Valley: 8
  • North Country: 4
  • Southern Tier: 9
  • Western New York: 43


As of January 2018, the CRF approved trial or permanent mortgage modifications for 37 homeowners, representing more than $3 million in approved debt forgiveness. A total of 22 homeowners have either become current on or fully paid off their original mortgage loan. Another 105 borrowers are working with a housing counselor in hopes of arriving at a loan modification. 


In cases where a mortgage modification is not possible and the homeowner cannot financially support a reduced mortgage or no longer wants to own a home, HCR and its nonprofit partners can offer resources and support to help the owner get a fresh start. This ensures that the property is not abandoned, is quickly repaired and is resold as affordable housing to a qualified buyer.


HCR, working in partnership with New Jersey Community Capital, a nonprofit community development financial institution, and a private equity partner, completed the purchase of the delinquent, non-performing mortgage notes in communities that have high rates of foreclosure. Funding for the initiative came from settlement funds paid to New York State by Morgan Stanley. Governor Cuomo signed wide-ranging anti-foreclosure legislation in June 2016, which included the creation of the CRF. This committed settlement funds derived from actions that led to the mortgage crisis, toward fighting foreclosure.


New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Governor Cuomo recognizes that even though the mortgage crisis is in the past, its effects linger and threaten hardworking homeowners and their communities. Through CRF, the State is delivering relief and support to hundreds of New York homeowners, helping ensure our communities continue to achieve economic success."


Senator Betty Little, Chair of the Senate Housing, Construction and Community Development Committee, said, "The Community Restoration Fund has been a valuable tool in helping individuals and families avoid foreclosure, while also stabilizing our neighborhoods. One of the real benefits of this program is the one-on-one counseling that helps people get back on track, and facilitates health and safety repairs when needed. This is a shining example of public-private partnership and a credit to the not-for-profit network of locally based program administrators. It's more than a helping hand, but a guiding hand that makes this program a success. I am pleased that working with Governor Cuomo and my colleagues in the Legislature we're able to make this program available for another year."


Assemblyman Steven Cymbrowitz, Chair of the Assembly Housing Committee said, "Foreclosure has a devastating effect on families and communities, leading to unwanted displacement and an increase in homelessness. I commend the Community Restoration Fund for its success in preventing foreclosures, assisting families in recovering from financial challenges and, ultimately, helping to keep New York's communities stable."


Wayne T. Meyer, President of NJCC said, "In addition to the 'micro' effect of preventing families from being displaced by foreclosure and repurposing vacant homes as affordable housing, it also has the 'macro' impact of reducing neighborhood decline and stabilizing the value of surrounding homes."

Contact the Governor's Press Office
Contact the Governor's Press Office