SR1049 96TH GENERAL ASSEMBLY

SR1049 LRB096 24369 AJO 44047 r

SENATE RESOLUTION

WHEREAS, Over 4.8 million homes have been foreclosed in the United States since 2008, with over 194,000 in the State of Illinois alone; and

WHEREAS, The skyrocketing rate of residential mortgage foreclosures in this State has caused an economic emergency that adversely affects the people of Illinois, our communities, and the State's economy as a whole; and

WHEREAS, In the Chicago metropolitan area alone, reports indicate that from 2008 to 2009 there was a 33% increase in mortgage foreclosures and a total of 119,662 foreclosures; and

WHEREAS, Many homeowners cannot afford legal counsel during the foreclosure process and there are very few options for pro-bono legal assistance, leaving these homeowners with the burden of navigating the legal system without any professional guidance; and

WHEREAS, Federal homeowners assistance programs, most notably the Home Affordable Modification Program, have failed to adequately address the crisis by not securing adequate loan modifications for the vast majority of citizens in desperate need of such intervention; and

WHEREAS, Almost 29% of Chicago area mortgages were "underwater", meaning that more is owed on the mortgage loan than the property is worth, during the second quarter of 2010, according to an article in the Chicago Tribune; and

WHEREAS, The failure of the Home Affordable Modification Program is ultimately the failure of the U.S. Department of the Treasury, as the program's implementation falls under the oversight of that department; and

WHEREAS, The stated mission of the United States Department of Housing and Urban Development is to create strong, sustainable, inclusive communities and quality affordable homes for all; and

WHEREAS, Seemingly ubiquitous reports of sloppy paperwork and lax record-keeping by mortgage lenders reveal that many homeowners have failed to receive a proper accounting during the foreclosure process, when in the meantime, mortgage lenders continue to push the foreclosure process in courts around the country and in this State; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the United States Congress to implement a nationwide mortgage foreclosure moratorium until the efficacy of existing federal mortgage foreclosure programs can be demonstrably reformed to alleviate the suffering of affected homeowners and communities; and be it further

RESOLVED, That the Home Affordable Modification Program be transferred to the control of the United States Department of Housing and Urban Development; and be it further

RESOLVED, That a suitable copy of this resolution be presented to President Barack Obama, the Secretary for Housing and Urban Development, and each member of the Illinois congressional delegation.