Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Urging
Purpose: Urging the Administration of the City of Newark to work with the major owners of delinquent loans in an effort to encouraging them to sell delinquent mortgages to non-profits for purpose of principal reduction on behalf of our struggling homeowners
Additional Information:
Deferred 7R9-c 021815
body
WHEREAS, since the beginning of the housing crisis in 2007, more than four million families have lost their homes to foreclosure, which has caused state and local governments to face crippling budget crises; and
WHEREAS, thousands of homeowners in the City of Newark are caught-up in predatory mortgages that will become unaffordable in the coming years; and
WHEREAS, foreclosures have a negative social and economic impact on the affected families, neighborhoods, and our city as a whole; and
WHEREAS, HUD, Fannie Mae and Freddie Mac, and at times the big banks, are selling off pools of delinquent mortgages, most often to private equity firms, hedge funds, and other Wall Street entities; and
WHEREAS, certain non-profits have raised the necessary capital to compete in this market, purchasing pools of delinquent mortgages for the purpose of saving homes from foreclosure and creating affordable housing; and
WHEREAS, several non-profits have a track record of success, and have the capital to expand, but need help getting current note holders to sell enough of their delinquent mortgages.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, 0NEW JERSEY, THAT:
The Mayor and/or his designee, the Deputy Mayor/ Director of the Department of Economic and Housing Development of the City of Newark is urged to support this effort by using the City of Newark's position and authority to help prevail upon major owners/managers of delinquent mortgages - including a number of big banks, Fannie Mae, Freddie Mac and HUD - to sell them to one or more non-profits.
The City of Newark independently, and/or in collaboration with other cities, meet with these financial entities with the goal of encouraging them to sell more delinquent mortgages to non-profits organizations.
STATEMENT
This resolution urges the Administration of the City of Newark to communicate with the major owners of delinquent loans in an effort to establish a program to encourage them to sell delinquent mortgages to non-profits for purpose of principal reduction on behalf of struggling homeowners