SF Press Conference Regarding Foreclosures on 11/29/07

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KCBS' Barbara Taylor questions City's attempt to hold mortgage lenders accountable for loans already done, especially if many are packaged and sold on the secondary markets. Paul Leonard of the Center for Responsible Lending responds. *** PRESS RELEASE *** MAYOR NEWSOM AND ASSESSOR-RECORDER TING CALL ON BANKS TO HELP PREVENT FORECLOSURES AND SUBPRIME MORTGAGE DEFAULTS San Francisco, CA -- In an effort to keep San Francisco homeowners in their homes, Mayor Gavin Newsom, Assessor-Recorder Phil Ting, Supervisor Sophie Maxwell, and Supervisor Tom Ammiano today announced that they have asked major financial institutions to sign an agreement outlining specific measures aimed at tackling the increasing number of foreclosures and mortgage defaults in San Francisco. City officials have given financial institutions until November 30 to respond to the request. "San Francisco residents should not have to suffer the same fate as countless other families who have lost their homes across the nation because of predatory lending practices," said Mayor Newsom. "I ask the financial community to help protect the American dream and be good partners in keeping families in their homes and in San Francisco." The request letter asks financial institutions to pledge to increase outreach to at-risk homeowners, including identifying and contacting borrowers at risk of default at least six months in advance of an approaching interest rate reset, and to modify loan terms for borrowers who have made timely payments. The financial institutions sent a letter requesting assistance include Bank of America, Countrywide, Citigroup, Washington Mutual, HSBC, Patelco Credit Union, Wells Fargo, US Bank, and the California Bankers Association. "I look forward to partnering with financial institutions so that we can protect homeowners, families and communities affected by this crisis," said Assessor-Recorder Ting. "It's important that we work together to find solutions now in order to prevent future losses." In 2006, San Francisco put into action a plan to educate and assist homeowners in danger of losing their home through the Don't Borrow Trouble initiative. Don't Borrow Trouble, a comprehensive selection of services for homeownership preservation, includes a toll-free counseling hotline, and access to homeownership counselors and legal advice. Over the past year, Assessor-Recorder Ting, Treasurer Jose Cisneros, and Supervisor Maxwell worked directly with community-based organizations to devise solutions to the local growing foreclosure problem. City officials recently met with leading financial institutions to hear from banks and lenders on how they plan to deal with borrowers in danger of losing their homes. "Homeowners in the southeast part of San Francisco are more likely to receive riskier, more expensive loans than residents in other areas of the City," said Supervisor Maxwell. "We need to support neighborhoods already facing the challenges of unemployment and disinvestment." The number of Trustee Deeds Upon Sale, documents recorded with the Recorder's Office once a foreclosure has occurred, has increased almost 250 percent in San Francisco since last year. Notices of Default, recorded when homeowners have defaulted on their mortgage loans, has increased by 65 percent. ###

Category: News
Uploaded: December 10th, 2007 @ 5:43 am
Author: lascuatrocs

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Tags: foreclosure francisco lending loss mitigation predatory san

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