Washington Governor Signs Two Foreclosure Prevention Bills; Commends ACORN Members for their WorkOLYMPIA, Wash. – On March 21, Gov. Christine Gregoire signed two ACORN-backed bills strengthening legislative protections for homeowners against predatory lending while praising ACORN members for their work in moving the bills forward.
SB 6381 requires that mortgage brokers have a fiduciary duty to borrowers, acting as the borrower’s agent in securing a loan. Previously, brokers were not required to act in the best interest of the borrower, and often acted only in the interest of the lending bank.
SHB 2770 makes further reforms in mortgage lending. It prohibits the abusive practice of “steering” borrowers into higher cost loans than they qualify for, bans loans with negative amortization in which the principal balance increases every month and limits pre-payment penalties that trap borrowers in unaffordable loans.
“If this legislation had been in effect when I refinanced my mortgage, I would not have lost my home,” said ACORN member Reverend Tony Brooks. “The mortgage brokers I dealt with were not interested in me. They were interested in lining their own pockets.”
Philadelphia ACORN Members Applaud Sheriff Sale MoratoriumPHILADELPHIA, Penn. – ACORN members applauded the decision by Sheriff John Green and City Council March 27 to put a stop to sheriff sales of owner-occupied homes with Adjustable Rate Mortgages (ARMs).
“Sheriff John Green’s decision to suspend the sheriff sales will have a major positive impact on our city,” said ACORN member and predatory lending victim Yajaira Rivera. “His decision today to suspend sheriff sales will give borrowers the breathing room to negotiate fixed loan modifications and send a real message to the lenders that they need to increase the number of modifications in Philadelphia.”
The announcement came immediately after Councilwoman Marian Tasco and Councilman Curtis Jones’ resolution calling on the sheriff to freeze sales passed unanimously in the city council.
On March 25, more than 100 Philadelphia ACORN members, homeowners and supporters rallied with Councilman Jones, Councilman Bill Green, and Councilwoman Maria Quinones Sanchez in support of a moratorium on sheriff sales.
“We are excited that Councilwoman Tasco, Councilman Jones, and the rest of our elected officials are acting aggressively to protect homeowners in Philadelphia,” said ACORN member and predatory lending victim Christina Jones. “The impact will be felt across our city, not just by desperate homeowners, but also by those of us who are worried about increasing abandoned houses and decreasing property values. A moratorium is exactly what we need.”
Sen. Dodd Meets with ACORN to Discuss Foreclosure PreventionBRIDGEPORT, Conn. – U.S. Senator Chris Dodd and Bridgeport Mayor Bill Finch met to discuss strategies for fighting foreclosures March 28 at the home of ACORN member Donna Pearce.
Pearce thanked the senator for his support of NeighborWorks, which helps provide funding for foreclosure counseling services. She was able to work out a loan modification to save her home from foreclosure by working with ACORN’s housing counselors.
"I think we're all just a bit jealous of the great work ACORN does," said Finch. He later added, “We should make sure everyone who signs that paperwork to buy a house has ACORN’s number tattooed on their wrist.”
Dodd recently unveiled draft legislation, the “HOPE for Homeowners Act of 2008,” that would set up a mortgage refinancing division of the Federal Housing Administration to aid homeowners overwhelmed with unaffordable mortgages. Similar legislation has also been drafted by House Financial Services Committee Chairman Barney Frank.
“This proposal will help provide much-needed relief for people on the brink of foreclosure,” Dodd said. The bill, which extends only to owner-occupied houses, is aimed at “keeping families in their houses and neighborhoods financially stable.”
Take Action: Tell Your Senator to Support the Foreclosure Prevention ActIn the next few days, the United States Senate will again take up S. 2636, “The Foreclosure Prevention Act,” which would provide strong, comprehensive legislative remedies to the current foreclosure crisis by providing greater resources for foreclosure counseling, allowing bankruptcy judges to modify loan terms for principle residences, and extending tax-exempt bonds to be used to refinance subprime loans.
Take Action: Email your Senators and urge them to support S. 2636, “The Foreclosure Prevention Act,” which would allow troubled borrowers to save their homes from foreclosure. Click here to email your Senators!
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