On the same day the Baltimore Sun reported that state housing officials were “working feverishly” to use up $57 million in emergency loans from Maryland’s Emergency Mortgage Assistance program before a deadline would force them to give any unspent funds back to the government, the Atlantic reported that probably half of the $1 billion in national funding will be unspent. Both articles were published on September 29, 2011, with the Sun noting that Maryland had gone through its original allotment before receiving $20 million more to continue processing applications.
According to the Atlantic, the U.S. Department of Housing and Urban Development estimated no more than half of the $1 billion Congress allocated nationwide last year for the forgivable loans is likely to be spent and many of the 100,000 homeowners who applied didn’t qualify. Maryland got a two-and-a-half month jump start because it was one of five states permitted to run their own versions of the federal Emergency Homeowners’ Loan Program, the Atlantic noted.
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