The second key element of the program is investment of $8 billion by the banks in The Massachusetts Business Exchange (MBE) fund that
will be used to provide investment in new and existing business with the goal of preserving and creating jobs.
This fund will make investments and generate returns for its investors.
The Massachusetts Business Exchange (MBE)
The purpose of the MBE will be to provide new business/job growth throughout Massachusetts. The exchange will be established on a
regional basis to coincide with the CHPF and also having its own regional board of directors.
Projected Private Sector Jobs Created Massachusetts 160,000 Jobs
Nationwide 8,000,000 Jobs
Projected Return on Investment Per Year
ROI Total Investment Yearly ROI
6% x $8 Billion Dollars = $480 Million Dollars
Division of Profits
Participating Banks/Lenders 50% or $240 Million
Home Mortgage Resolution Trust 50% or $240 Million
The Homeowners Mortgage Resolution Trust (HMRT) – to be established at the State level:
The HMRT will advance the funds to said participating banks/lenders who in turn will issue a new/reset first mortgage regarding said troubled
mortgages. The HMRT, in conjunction with the rest of the first mortgage, will issue a fifteen year shared appreciation second mortgage.
This second mortgage will share in the appreciation with the homeowner over a ten year period as outlined within Schedule A.
Repayment of said second mortgage shall be triggered by the sale of the home or a refinance of the home by the homeowner. Upon sale, the seller
will pay his or her share of the appreciation owed to the HMRT. The buyer will assume the 2nd mortgage and said obligations of the 2nd mortgage.
Assumptions for Schedule A:
Original Mortgage on property $300,000
Buy-down of first mortgage $ 75,000
Mortgage reset amount $225,000
Projected yearly appreciation rate 3%.