Congressman Barney Frank praised the announcement this week by the Treasury Department that $3 billion has been allocated to assist unemployed homeowners who are at risk of losing their homes. The two programs target homeowners who face possible foreclosure because of the loss of a job.

Congressman Frank has long fought for special assistance for homeowners who face possible foreclosure simply because they are unemployed. As Chairman of the Financial Services Committee, he was the driving force in the House behind the Wall Street Reform and Consumer Protection Act, which included $1 billion to help unemployed homeowners. He also convinced the Treasury Department to release an additional $2 billion out of the funds repaid by major banks to the Troubled Assets Relief Program.

"This is very good news for the economy as a whole, for hard-working Americans who face difficulties because of unemployment. It is also very good news for Massachusetts because its residents will become eligible for this kind of help," said Congressman Frank.

One of the two programs, the Emergency Homeowners Loan Program administered by the Department of Housing and Urban Development, will provide $1 billion to states including Massachusetts.

The second program, the Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (also known as the "Hardest Hit Fund") will direct $2 billion in additional assistance to the 17 US states hit hardest by the current recession. Massachusetts is not one of the states fitting that designation.