ANNAPOLIS, MD (February 26, 2008) – Governor Martin O’Malley today met with mortgage loan servicers in an emergency work-session, and called for a public agreement to set a standard for consistent, timely and sustainable loss mitigation services for Maryland homeowners. The work-session was called last week, after fourth quarter numbers doubled for several counties in the state, to help find real solutions to the foreclosure crisis and protect middle class families from losing their homes.
“We invited the loan servicers here today because we need their help. If we are going to end the fast-track to foreclosure in our State, we must work together to find a solution,” said Governor O’Malley. “The financial security of our families and the strength and health of our communities depends on our ability to help preserve and sustain homeownership in our State. Working together with loan servicers, we hope to develop a framework and a model for large-scale relief for homeowners that will keep people in their homes.”
Last week, Governor O’Malley, Department of Labor Licensing and Regulation (DLLR) Secretary Thomas Perez and Department of Housing and Community Development (DHCD) Secretary Raymond Skinner announced that Maryland has adopted new emergency regulations requiring reports from mortgage loan servicers detailing their efforts to help homeowners facing default and foreclosure. Maryland is only the second state in the nation to require this data. The regulation requires servicers to provide DLLR with lists of homeowners who have adjustable rate mortgages that are about to reset to higher interest rates. DLLR will use this information to reach out to those homeowners, providing them with information on resources available to help them.
Participants in attendance included representatives from mortgage companies, servicers, and non-profit counseling agencies, including CitiFinancial, Ocwen, St. Ambrose Housing Aid Center, Countrywide, AmeriNational, Civil Justice, Inc., CitiGroup, Inc., IndyMac, GMAC ResCap, PHH Mortgage, and Mortgage Bankers Association.
“The servicers, the state and Maryland homeowners have a shared interest in avoiding foreclosures,” said Secretary Tom Perez. “We are working together to develop a comprehensive plan for preserving counties by preserving homes.”
“DHCD has put a number of financing options in place to assist Marylander's facing possible foreclosure,” said Raymond A. Skinner, Secretary of Housing and Community Development. “However, these will only assist a limited number of homeowners. To reach a scalable solution and have an impact on the largest number of homeowners we need the mortgage servicers to work with us to put in place a transparent, systematic and effective loss mitigation process that works on the ground here in Maryland. We need them to come to the table to contribute to a workable process. There's no time to lose.”
In the fourth quarter, Prince George’s, Montgomery, Washington and Worcester Counties saw the number of foreclosure events double from previous quarter. In other counties, such as Kent, Garret and Somerset, the numbers nearly tripled. Statewide, Maryland saw 9,722 foreclosures, compared to 7,001 in the previous quarter, an increase of 2,721 foreclosure events statewide.
According to RealtyTrac, one of the major providers of property foreclosure data, Prince George’s County continued to have the highest number of foreclosure events, with 2,732. Montgomery County had the second highest number of events, with 1,310, while Baltimore City ranked third with 1,268 events.
This year, Governor O’Malley has introduced sweeping reforms to address and find solutions to the foreclosure crisis, including improving the regulation of mortgage industry professionals and reforming lending practices, creating a criminal mortgage fraud statute that covers all potential actors engaged in mortgage fraud, modifying the Protection for Homeowners in Foreclosure Act (PHIFA), and reforming the foreclosure process. Earlier this year, Governor O’Malley announced the “Bridge to HOPE” Loan Program, which will provide small gap loans at zero percent interest to homeowners facing difficulty, giving them time to get back on their feet or find a solution. The statewide program will be administered by the Maryland Department of Housing and Community Development’s Community Development Administration (CDA).
February 26, 2008 |
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