Hennepin County, MN Three-Month Moratorium on Foreclosures

Type: Resolution

Status: Introduced on 10/2/07 -- It's unclear if it was adopted

Source File: http://tinyurl.com/38284k

Text:

Resolution No. 07-10-385R1

WHEREAS, there were 11,112 foreclosures in the State of Minnesota in 2006, and 3,039 of these properties (27%) are located in Hennepin County; and

WHEREAS, foreclosures in Hennepin County increased by 82% from 2005 to 2006, with an additional projected increase of 60% from 2006 to 2007; and

WHEREAS, various research reports have shown a strong correlation between the increase in foreclosures and the increase in subprime mortgages; and

WHEREAS, the Center for Responsible Lending estimated in a December 2006 report that one in five subprime loans originated in Minnesota last year may go into foreclosure; and

WHEREAS, subprime loans are prevalent in lower-income neighborhoods and communities of color, and the foreclosure crisis is devastating vulnerable populations and neighborhoods; and

WHEREAS, 31% of all foreclosures in the City of Minneapolis in 2006 occurred in the 55411 zip code, whose population is over 85% persons of color, and 19.5% in the 55412 zip code, whose population is over 55% persons of color; and

WHEREAS, the lending community is a critical partner in efforts by the public and private sectors to address the mortgage foreclosure crisis; and

WHEREAS, time is needed to identify issues and approaches that can positively resolve the crisis that thousands of Hennepin County homeowners and renters face due to the foreclosure epidemic;

BE IT RESOLVED, that the Hennepin County Board of Commissioners calls on subprime mortgage lenders and servicers for properties in Hennepin County to voluntarily agree to a three-month moratorium on foreclosures; and

BE IT FURTHER RESOLVED, that the Board calls on these lenders and servicers to make every effort during the moratorium period to develop long-term solutions with affected homeowners that allow them to remain in their homes; and

BE IT FURTHER RESOLVED, that the Board asks these lenders and servicers to provide a timely response to the Board noting whether the company will agree to the voluntary moratorium on foreclosures, or provide information on activities under way or under consideration to help alleviate the crisis; and

BE IT FURTHER RESOLVED, that the Board invites each lender and servicer on this list to participate and provide information as requested to the Hennepin County Foreclosure Task Force, established to evaluate the foreclosure crisis and develop recommendations for further consideration by the Board.