Foreclosure Moratorium Meetings

CRC and supporters have held meetings with California's biggest lenders to discuss a request for a halt on foreclosures and additional ways to keep California homeowners in their homes.  CRC sent letters (Click here to read) signed by 125 community and consumer organizations to California's six leading mortgage lenders asking their CEOs to declare a moratorium on foreclosures for the next six months and meet with community-based organizations to design solutions to the growing foreclosure crisis.

To date, CRC and its members have met with top leaders at Countrywide Home Loans, Washington Mutual, Citibank and Wells Fargo to discuss solutions to the State's foreclosure crisis. CRC staff also discussed these issues in smaller meetings with HSBC and Chase. Upcoming meetings have been scheduled with Bank of America on July 11 and Merrill Lynch and First Franklin Mortgage on July 23.

At these bank meetings, in addition to the call for a moratorium, CRC members have urged;
•    Outreach and Education. Support for counseling and neighborhood organizations to do consumer outreach and education in order to help distressed homeowners avoid foreclosure by getting loan modifications to make their loans more affordable:
•    Transparency and accountability of loan servicing so communities understand and can monitor whether and how lenders will work with borrowers to avoid foreclosure;
•    Refinance loan products that can aid struggling homeowners and that should put borrowers into the best loans they deserve;
•    REO programs that give qualified nonprofit groups the first right of refusal to buy any homes that do go into foreclosure so that these homes can be community assets and a source of affordable housing in the neighborhood;
•    Better lending practices with reasonable underwriting going forward, including enhanced oversight over brokers; and
•    Effective channels of communication so that home loan counselors and legal advocates can discuss problematic and predatory loans with the servicer with an eye to fixing problems.

Currently, Merrill Lynch, Wells Fargo, and Bank of America each have separate merger applications in with the federal bank regulators. CRC is protesting each of these applications, citing concerns about the foreclosure crisis, amongst other issues.

CRC will continue to push the moratorium and related measures. CRC has met with state officials and national investor groups. CRC, members and allies are supporting legislative and regulatory proposals to ease the burden on struggling homeowners.

The number of groups endorsing the foreclosure moratorium has grown to 125, including large nonprofits, small community groups, and national allies. If you would like to sign on to the moratorium, please visit www.calreinvest.org.

Click here to read the moratorium press release.

Click on the links below to read recent media coverage on this issue:

Mortgage Fraud Is On The Rise In California
abc7news.com, CA

More homeowners struggle with mortgages they can't afford
San Jose Mercury News, CA

Groups seek foreclosure delay
Los Angeles Times, CA