Rep. John Taylor (R-Philadelphia) has co-sponsored legislation that would create a dedicated funding source to the Homeowners’ Emergency Mortgage Assistance Program (HEMAP), which helps homeowners in danger of foreclosure stay afloat with short-term loans.

HEMAP funding has been eliminated in Gov. Tom Corbett’s budget proposal after being cut by more 80 percent in last year’s budget.

“Cutting the funds for this program is painfully shortsighted,” Taylor said. “When homeowners default on mortgages they cost the state and local lending institutions far more money than it would take to help them with these loans.”

Under the legislation, which is being crafted, $15 million would be taken from table games tax revenue and transferred into the HEMAP program.

“I believe this is consistent with the goal of using gaming revenue to assist homeowners,” Taylor said.

In February, Taylor sent the governor a letter asking HEMAP be funded with the $266 million the state received from a federal-state agreement reached with the five largest services accused of various mortgage abuses.

“Re-establishing funding to HEMAP is an investment in the long-term viability of Pennsylvania’s communities – rural, suburban and urban,” Taylor said in his letter.

A recent study of HEMAP showed the program saved 6,100 homeowners from foreclosure between 2008 and 2010.  The total three-year financial impact of these saved homes to lenders, homeowners, neighbors, and local governments was approximately $480 million.

HEMAP, working with loan counselors, offers state loans to homeowners who, through no fault of their own, have fallen behind in their mortgage payments, but who have a reasonable chance of resuming their mortgage payments within three years.