* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: Councilmember Henry
A RESOLUTION ENTITLED
A RESOLUTION OF THE MAYOR AND CITY COUNCIL concerning
title
Foreclosure Prevention - Partnerships with Nonprofits and Financial Institutions
FOR the purpose of supporting the effort to get delinquent mortgages into the hands of nonprofits for the purpose of saving homes from foreclosure and creating affordable housing; and committing the City of Baltimore to meet with financial entities with the goal of encouraging them to sell more delinquent mortgages to qualified non-profits that have the funding and infrastructure to purchase, service, and hold the mortgages, and a track record doing so.
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Recitals
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.
WHEREAS, According to the State�s Department of Housing & Community Development,�as recently as in the fourth quarter of 2014, the number of foreclosure events reached 13,959, the�highest level since 2010.
WHEREAS, Thousands of homeowners in our city are caught-up in predatory mortgages that will become unaffordable in the coming years.
WHEREAS, Foreclosures have a negative social and economic impact on the affected families, neighborhoods, and our city as a whole, while disproportionately harming communities of color.
WHEREAS, HUD, Fannie Mae and Freddie Mac, and some of the larger private banks, are selling off pools of delinquent mortgages, most often to private equity firms, hedge funds, and other Wall Street entities.
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.
WHEREAS, at least 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.
SECTION 1. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Mayor and City Council of Baltimore will support the effort to get delinquent mortgages into the hands of nonprofits for the purpose of saving homes from foreclosure and creating affordable housing by using our position and authority to help prevail upon major owners and 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.
SECTION 2. AND BE IT FURTHER RESOLVED, That the City of Baltimore�will itself, or in collaboration with other cities, meet with these financial entities with the goal of encouraging them to sell more delinquent mortgages to qualified non-profits that have the funding and infrastructure to purchase, service, and hold the mortgages, and a track record doing so.�
SECTION 3. AND BE IT FURTHER RESOLVED, That this Resolution takes effect on the 30th day after the date it is enacted.
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