The Washington Independent just put this up. Please spread far and wide.
A ban on foreclosure sales and evictions from houses owned by mortgage giants Fannie Mae and Freddie Mac, which began as a high-profile effort just before the holidays to keep people in their homes as the government tried to come up with homeowner rescue plans, is over.
Spokesmen for Fannie Mae and Freddie Mac confirmed the ban ended March 31, in a response to an inquiry from TWI. The agencies made a major announcement in November to roll out the ban, garnering headlines and extensive news coverage. Freddie Mac CEO David Moffett issued a statement at the time, saying the ban “provides a new measure of certainty” to families facing foreclosures during the holidays.
But its expiration didn’t seem to merit the same level of fanfare, with some housing advocates caught by surprise, scrambling for information today and Wednesday on listservs and in phone calls.
Please read Mary Kane's full story here. http://washingtonindependent.com/37160/fannie-freddie-quietly-lift-moratorium-on-foreclosures
Showing posts with label Mortgage Forclosures. Show all posts
Showing posts with label Mortgage Forclosures. Show all posts
Thursday, April 2, 2009
Sunday, September 21, 2008
ACORN Demands Moratorium on Forclosures in Harrisburg
September 18, 2008
There are an expected 45,470 subprime foreclosures between the third quarter 2007 and the end of 2009.[i] Over this same period of time, the subprime mortgage-related foreclosures will cost Pennsylvania $2.42 billion.[ii] The impacts of this devastating crisis are being felt not only by the families themselves, but also by neighborhoods, cities and our economy as a whole as the number of vacant properties is growing, the property values of nearby properties are declining, and cities face a loss in property taxes. Many of these foreclosures are the direct result of predatory lending - cases where brokers and/or lenders convinced borrowers to take out a risky, soon to be unaffordable, loans.
The economic and social costs of this crisis to our state are serious enough to warrant emergency action to stem the tide of foreclosures. Many foreclosures are preventable, particularly in the current climate in which mortgage servicers are being pressured by elected officials, from the federal government on down, to make loan modifications in order to achieve affordable mortgages for borrowers. Additionally, when a qualified housing counselor negotiates on behalf of a borrower, a better resolution is often achieved. However, these loan “workouts” take time, as they require a case-by-case review of a borrower's financial situation. And time is something that, by all accounts, neither the mortgage servicers or the housing counselors have enough of, given the huge number of borrowers going into default and foreclosure.
Therefore, It is in Pennsylvania’s interest to “stop the clock” for a period of time to allow families to get back on their feet financially and to encourage negotiated settlements – loan workouts - that move people into more affordable loans and thereby reduce the number of foreclosures. Reform proposals being advanced nationally are necessary, but not sufficient. The depth of the crisis and the costs to the state argue for a moratorium as the only sure way to put a brake on the hemorrhaging and buy parties the needed time to work out viable alternatives to foreclosures.
ACORN is calling on policy makers to follow the lead of New York, Minnesota, & others and implement a moratorium on foreclosures involving subprime mortgages that were recklessly and inappropriately underwritten and call for the lenders to make new affordable loans to these customers.
● This would include Adjustable Rate Mortgages (ARMs) for which the borrower was qualified using the starting interest rate and ARMs which were made to borrowers on fixed incomes. In both these types of cases, the lenders should convert the adjustable rates to a fixed rate loan at the starting interest rate.
● It would also include so-called stated income loans which were unaffordable from the beginning of the loan. In these cases, the lenders should reduce the interest and/or balance of the loan in order to make it affordable based on the borrower’s real income.
Several reform proposals in the PA general assembly are a good start: including McGeehan’s HB 2694, to create a statewide diversion program based on the successful Philadelphia Diversion program, and John Taylors HB that follows the lead of Minnesota’s model legislation. For more information on the specifics of the legislation, please contact PA ACORN Legislative Director Ian Phillips 35 406 4386.
[i] Mortgage Bankers Association, Joint Economic Committee of Congress, October 25th Subprime Lending Crisis Report
[ii] Ibid
www.acorn.org
There are an expected 45,470 subprime foreclosures between the third quarter 2007 and the end of 2009.[i] Over this same period of time, the subprime mortgage-related foreclosures will cost Pennsylvania $2.42 billion.[ii] The impacts of this devastating crisis are being felt not only by the families themselves, but also by neighborhoods, cities and our economy as a whole as the number of vacant properties is growing, the property values of nearby properties are declining, and cities face a loss in property taxes. Many of these foreclosures are the direct result of predatory lending - cases where brokers and/or lenders convinced borrowers to take out a risky, soon to be unaffordable, loans.
The economic and social costs of this crisis to our state are serious enough to warrant emergency action to stem the tide of foreclosures. Many foreclosures are preventable, particularly in the current climate in which mortgage servicers are being pressured by elected officials, from the federal government on down, to make loan modifications in order to achieve affordable mortgages for borrowers. Additionally, when a qualified housing counselor negotiates on behalf of a borrower, a better resolution is often achieved. However, these loan “workouts” take time, as they require a case-by-case review of a borrower's financial situation. And time is something that, by all accounts, neither the mortgage servicers or the housing counselors have enough of, given the huge number of borrowers going into default and foreclosure.
Therefore, It is in Pennsylvania’s interest to “stop the clock” for a period of time to allow families to get back on their feet financially and to encourage negotiated settlements – loan workouts - that move people into more affordable loans and thereby reduce the number of foreclosures. Reform proposals being advanced nationally are necessary, but not sufficient. The depth of the crisis and the costs to the state argue for a moratorium as the only sure way to put a brake on the hemorrhaging and buy parties the needed time to work out viable alternatives to foreclosures.
ACORN is calling on policy makers to follow the lead of New York, Minnesota, & others and implement a moratorium on foreclosures involving subprime mortgages that were recklessly and inappropriately underwritten and call for the lenders to make new affordable loans to these customers.
● This would include Adjustable Rate Mortgages (ARMs) for which the borrower was qualified using the starting interest rate and ARMs which were made to borrowers on fixed incomes. In both these types of cases, the lenders should convert the adjustable rates to a fixed rate loan at the starting interest rate.
● It would also include so-called stated income loans which were unaffordable from the beginning of the loan. In these cases, the lenders should reduce the interest and/or balance of the loan in order to make it affordable based on the borrower’s real income.
Several reform proposals in the PA general assembly are a good start: including McGeehan’s HB 2694, to create a statewide diversion program based on the successful Philadelphia Diversion program, and John Taylors HB that follows the lead of Minnesota’s model legislation. For more information on the specifics of the legislation, please contact PA ACORN Legislative Director Ian Phillips 35 406 4386.
[i] Mortgage Bankers Association, Joint Economic Committee of Congress, October 25th Subprime Lending Crisis Report
[ii] Ibid
www.acorn.org
Tuesday, September 16, 2008
ACORN Members call on McCain to Back Fannie/Freddie Foreclosure Freeze
Philadelphia ACORN members confront McCain Campaign in Philadelphia on September 16, 2008.
ACORN Members call on McCain to Back Fannie/Freddie Foreclosure Freeze
Philadelphia –About 2 dozen ACORN members gathered to call on Presidential candidate Senator John McCain to join his colleagues in calling for a freeze on foreclosures of the Fannie Mae and Freddie Mac portfolios which were recently placed into conservatorship by the federal government. Recently, Senators Charles Schumer, Sherrod Brown, Bob Menendez, and Bob Casey called on the Federal Housing Finance Agency and the two Government Sponsored Enterprises to institute a 90 day moratorium on foreclosures of loans owned by the mortgage giants. “We think it’s long overdue that the McCain campaign actually get serious about what they’re going to do to help hard working American families.” Said ACORN member Christina Jones, who is struggling with an adjustable rate mortgage.
ACORN is also demanding that all delinquent loans owned by Fannie and Freddie be pulled from their securities and modified to a fixed rate interest and a monthly payment that is affordable to the homeowner, and will call upon Senators McCain and Obama to join in this demand to ensure that American homeowners will share in the benefits of the recently announced federal takeover. ACORN leader Junette Marcano said, “It’s tough for me to understand how John McCain can own 7 luxury homes, but doesn’t think it’s important to help working families save their homes.”
The rally was part of ACORN’s statewide “Stop Foreclosure” campaign; most recently, ACORN members won a new program, the Philadelphia Sheriff Sale Diversion Program, that has saved 100s of homes in the past three months. In addition to this event, activists from across the state will travel to Harrisburg for a statewide “Stop Foreclosure Day of Action” on Thursday September 18th. During the day of action, activists will attend a hearing in support of McGeehan’s bill to replicate the Philadelphia diversion program statewide and protest the Republicans planned use of the foreclosure filings to suppress the November vote.
ACORN is the nation's largest community organization of low- and moderate-income families with over 400,000 member-families organized into 1200 neighborhood chapters in 103 cities nationwide. Since 1970, ACORN has taken action and won victories on issues of concern to our members, including better housing for first-time homebuyers and tenants; living wages for low-wage workers; more investment in our communities from banks and governments, and better public schools.
ACORN Members call on McCain to Back Fannie/Freddie Foreclosure Freeze
Philadelphia –About 2 dozen ACORN members gathered to call on Presidential candidate Senator John McCain to join his colleagues in calling for a freeze on foreclosures of the Fannie Mae and Freddie Mac portfolios which were recently placed into conservatorship by the federal government. Recently, Senators Charles Schumer, Sherrod Brown, Bob Menendez, and Bob Casey called on the Federal Housing Finance Agency and the two Government Sponsored Enterprises to institute a 90 day moratorium on foreclosures of loans owned by the mortgage giants. “We think it’s long overdue that the McCain campaign actually get serious about what they’re going to do to help hard working American families.” Said ACORN member Christina Jones, who is struggling with an adjustable rate mortgage.
ACORN is also demanding that all delinquent loans owned by Fannie and Freddie be pulled from their securities and modified to a fixed rate interest and a monthly payment that is affordable to the homeowner, and will call upon Senators McCain and Obama to join in this demand to ensure that American homeowners will share in the benefits of the recently announced federal takeover. ACORN leader Junette Marcano said, “It’s tough for me to understand how John McCain can own 7 luxury homes, but doesn’t think it’s important to help working families save their homes.”
The rally was part of ACORN’s statewide “Stop Foreclosure” campaign; most recently, ACORN members won a new program, the Philadelphia Sheriff Sale Diversion Program, that has saved 100s of homes in the past three months. In addition to this event, activists from across the state will travel to Harrisburg for a statewide “Stop Foreclosure Day of Action” on Thursday September 18th. During the day of action, activists will attend a hearing in support of McGeehan’s bill to replicate the Philadelphia diversion program statewide and protest the Republicans planned use of the foreclosure filings to suppress the November vote.
ACORN is the nation's largest community organization of low- and moderate-income families with over 400,000 member-families organized into 1200 neighborhood chapters in 103 cities nationwide. Since 1970, ACORN has taken action and won victories on issues of concern to our members, including better housing for first-time homebuyers and tenants; living wages for low-wage workers; more investment in our communities from banks and governments, and better public schools.
Subscribe to:
Posts (Atom)