11-R375
2011 -- S 1054
Enacted 06/16/11
S E N A T E R E
S O L U T I O N
RESPECTFULLY
URGING NATIONAL BANKS TO PARTICIPATE IN THE LOAN MODIFICATION PROGRAM OF THE
HARDEST HIT FUND PROGRAM IN
Introduced By: Senators Pichardo, Tassoni, Miller, Jabour, and Perry
Date Introduced: June 16, 2011
WHEREAS,
foreclosure starts and serious delinquencies. During the two-year
period from January 2009
through December 2010, there were a total of 4,738 actual
foreclosures filed in
WHEREAS, Over the last couple of years, the foreclosure crisis has
affected an average
of 13,750
delinquency. This translates into roughly one in every 10
homeowners in our state; and
WHEREAS, A foreclosure dramatically erodes the tax base, adding to
intense pressure
on municipalities to raise taxes on other property
owners; and
WHEREAS, Unsound lending practices contributed to the rapid
escalation of home
prices and
factor in
mortgage delinquencies and foreclosures; and
WHEREAS, The housing market remains in a severe recession. Until the
housing market
recovers, the economic recovery is imperiled; and
WHEREAS, The U.S.
Treasury has made available to Rhode Islanders $80 million to
help those at risk of losing their homes through the
Hardest Hit Fund Program (HHFRI). The goal
of HHFRI is to prevent avoidable foreclosures by helping
homeowners who are unable to make
their mortgage payments due to a hardship such as job loss
or under-employment. This fund
includes a Loan Modification Program; and
WHEREAS, Local and
community banks in
willingness to participate in the Loan Modification Program and
work with delinquent customers
to keep them in their homes and avoid foreclosure; and
WHEREAS, No requirements
exist on the national level requiring national banks to
participate in the Loan Modification Program of the Hardest Hit
Fund; and
WHEREAS, No national
lender has agreed to participate in the Loan Modification
Program of the Hardest Hit Fund in
significant financial incentives for lenders to participate; and
WHEREAS, The goal in achieving a Loan Modification is to establish
new mortgage
payment levels that are sufficiently affordable to the
borrowers so that they can avoid
foreclosures, and by preventing foreclosure, reduce the financial
loss to the lender; now, therefore
be it
RESOLVED,
That this Senate of the State of
hereby urges national banks to voluntarily participate in
the Loan Modification Program of the
Hardest Hit Fund in
RESOLVED,
That national lenders and servicers
make a good faith effort to reach an
agreement with each
mortgage loans; and be it further
RESOLVED,
That the Secretary of State be and he hereby is
authorized and directed to
transmit a duly certified copy of this resolution to the Rhode
Island Mortgage Bankers
Association.
=======
LC02864
=======