REPRESENTATIVE GENE WHISNANT
REPRESENTATIVE MATTHEW WAND
FOR IMMEDIATE RELEASE February 21, 2012 | Contact: Rep. Gene Whisnant 503-986-1453 |
REPUBLICANS OFFER FORECLOSURE SOLUTION TO ASSIST DISTRESSED HOMEOWNERS
Amendment Expands Homeowners Assistance Including Mediation with Dedicated Funds
SALEM—Rep. Gene Whisnant (R-Sunriver) and Rep. Matt Wand (R-Troutdale) yesterday briefed House and Senate Leaders on an amendment to pending foreclosure legislation that would dedicate funds from the recent bank settlement agreement to provide direct assistance for Oregonians.
“Our amendment to SB 1552 expands homeowner assistance to include counseling and mediation services by using the Oregon Housing and Community Services agency to distribute dedicated funds from the recently announced bank settlement agreement,” said Rep. Whisnant, Co-Chair of the House General Government and Consumer Protection Committee.
“Our intent is to help more Oregon distressed homeowners with increased services by the 21 local OHCS offices which have been helping people through federal and state assistance programs,” Rep. Whisnant said. “I worked to have the bill directed to the Consumer Protection Committee, but we’ve run out of time in this brief session. I’ll work with the House Rules Committee to secure bipartisan support for these amendments so we can pass it before this session adjourns.”
Rep. Wand explained the details of the bill’s language which includes addressing the issue of “dual tracks” and providing for mediation.
“I have helped people with foreclosure issues and mediation is not helpful in all cases because often federal regulations prevent homeowners from qualifying for modifications to their FHA mortgages,” said Rep. Wand, an attorney. “Our amendment allows people to have mediation in those cases where it can help, and it dedicates more than $25 million to provide essential services to help Oregonians in distress. Under our plan all Oregonians facing foreclosure would benefit.”
The amendment to SB 1552 would ensure that money from the federal settlement is directly allocated to Oregonians facing foreclosure. This provision is important in order to prevent legislators from using the revenue to balance the state’s declining budget.
The amendment establishes the Foreclosure Counseling Fund. Within the fund, $13.345 million would provide direct financial assistance to homeowners for loan modifications, refinancing, gap financing and other related efforts; $5.35 million would go directly for counseling for homeowners; $3.1 million would be set aside for voluntary mediation. $2.25 million would be allocated for outreach to homeowners; and $1.98 million is provided for assistance for low and moderate income homeowners to help them avoid foreclosure.
Both Republican representatives expressed a willingness to try to work with both parties and chambers to create real comprehensive legislation to help more distressed homeowners.
“We all want to help distressed homeowners but the real solution is to create more jobs. The number one cause of home foreclosures is loss of jobs,” Rep. Wand said.
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