Governors Take Action To Address Foreclosure Crisis

Governors Take Action To Address Foreclosure Crisis

(Folks who have been looking for: Rick Santelli and the Rant of the Year YouTube and transcript #Dayhoff http://tinyurl.com/dd5cd4 )

NGA News Release

FOR IMMEDIATE RELEASE

February 22, 2009

Contact: Christopher Cashman, 202-345-8659

GOVERNORS TAKE ACTION TO ADDRESS FORECLOSURE CRISIS

NGA Center Report Highlights State Efforts to Mitigate and Prevent Foreclosures

WASHINGTON-The deepening foreclosure crisis and its impact on states was among the focal points today as the nation's governors convened for the 2009 National Governors Association (NGA) Winter Meeting in Washington, D.C., to discuss a host of critical challenges facing states.

During NGA's Economic Development and Commerce Committee session here, which emphasized state efforts to mitigate foreclosures, the NGA Center for Best Practices (NGA Center) unveiled two new resources for governors and state policymakers: a report, Emerging Trends: State Actions to Tackle the Foreclosure Crisis <http://www.nga.org/Files/pdf/0902FORECLOSUREREPORT.PDF>, which examines the larger economic trends influencing foreclosures and highlights state best practices in addressing the foreclosure problem, and a Web site<http://www.nga.org/center/foreclosures>, which will serve as a central repository for state actions related to foreclosure mitigation and prevention.

"Governors have been on the frontlines of developing policies and programs to help homeowners facing foreclosure and to keep more borrowers in their homes," said NGA Center Director John Thomasian. "Not only have states led the way in regulating mortgage brokers and lenders, but they also have been laying the groundwork for rebuilding the nation's housing market."

Since 2006, when residential foreclosures began dramatically increasing, states have established numerous programs and resources to assist borrowers and tightened rules governing mortgage brokers and lenders. In 2008 alone, governors in 33 states signed 70 pieces of legislation to combat the rise in foreclosures. Nearly all states have adopted new regulations to improve oversight of the mortgage lending industry.

As the report details, state actions related to foreclosure have focused on three key areas:

· Mitigation - To slow the number of homes that fall into foreclosure, states have stepped up efforts to reach out to at-risk borrowers, connect borrowers with counseling and legal assistance, negotiate agreements with loan servicers to streamline modifications and improve the foreclosure process.

· Stabilization - As the number of foreclosures rises, so does the number of vacant and abandoned homes, which can attract crime and decrease property values. States are working to stabilize neighborhoods with multiple vacant and abandoned properties by streamlining property acquisition; ensuring properties are located quickly and maintained properly; creating land banks; and designing programs to market foreclosed property to new, responsible homeowners.

· Prevention -To protect borrowers from future housing crises and prepare for better times, states are enacting laws to regulate mortgage brokers, increase transparency and disclosure during the loan origination process, prevent predatory practices and improve financial education among consumers.

In addition to cataloguing state actions to address foreclosures, the NGA Center's interactive Web site will provide the latest information on state foreclosure programs and legislation as well as links to all NGA Center publications covering foreclosures and related issues.

For more information on state actions to address foreclosures, please visit http://www.nga.org/center/foreclosures.

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Founded in 1908, the National Governors Association (NGA) is the collective voice of the nation's governors and one of Washington, D.C.'s most respected public policy organizations. Its members are the governors of the 50 states, three territories and two commonwealths. NGA provides governors and their senior staff members with services that range from representing states on Capitol Hill and before the Administration on key federal issues to developing and implementing innovative solutions to public policy challenges through the NGA Center for Best Practices.

For more information, visit www.nga.org<http://www.nga.org/>.

20090222 Governors Take Action To Address Foreclosure Crisis
Kevin Dayhoff www.kevindayhoff.net http://kevindayhoff.blogspot.com/