SACRAMENTO (KCBS) – The state’s largest initiative to date to assist struggling homeowners is up and running.

The $2 billion effort called “Keep Your Home California” is funded by federal government TARP funds and is administered through the state.

“We’re really excited to be able to roll this out,” said program manager Diane Richardson.

KCBS’ Margie Shafer Reports:

She said three programs offer mortgage assistance and one is for principal reduction.

“For every dollar that we pay, we’re requiring banks to match, dollar for dollar, and to lower the borrower’s principal,” said Richardson.

Norma Torres, the chair of the Assembly Committee on Housing and Community Development, said dealing with bank bureaucracy has been frustrating.

“We don’t have Freddie Mac and Fannie Mae on board and it makes it very difficult to get the banks on board when these two organizations are not on board,” Torres said.

The programs are designed to help up to 100,000 struggling California homeowners.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments (2)
  1. James Adams says:

    Without Fannie Mae and Freddie Mac this program isn’t going anywhere. The banks may say they’re going to participate, but they’ve been lying so much and so long they couldn’t tell the truth if they wanted to. Being greedy has paid them magnificently so far. They make much more money foreclosing than by modifying mortgages. It’s a sop to the pols who want to be seen as doing something without actually doing it.