Gov.
Blagojevich Applauds Homeowner Protection Legislation Introduced in
Senate
New
Measure Creates 60-Day Moratorium on Foreclosure If Families Seek
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[April 04, 2008]
SPRINGFIELD -- The Homeowner Protection
Act announced by Gov. Rod R. Blagojevich last week was introduced
Wednesday by Sen. Jacqueline Collins, D-Chicago. The measure is part
of a comprehensive Homeowners Assistance Initiative launched by the
governor in February and will provide homeowners struggling to make
their monthly mortgage payments an early warning of trouble and
additional time to fix their financial problems.
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Joined by Dean Martinez, secretary of the Illinois Department of
Financial and Professional Regulation, which regulates mortgage
lenders and servicers, the lawmaker discussed the legislation
outlined by Blagojevich last week that gives struggling homeowners
new legal protections including a grace period of up to 60 days
during which their lender could not attempt to foreclose on the
home. The act is being introduced as an amendment to Senate Bill
1998, which was recently approved by the Senate Licensed Activities
Committee.
"We have to stay vigilant and do what we can to protect
struggling families," Blagojevich said. "This legislation will make
sure homeowners are notified when they're in trouble and have time
to work with counselors on repayment options before they can be sent
to foreclosure. Often, borrowers just need a little more time and a
little more information to find a workable solution and keep their
home. I appreciate Senator Collins and Senator Rutherford working
with me to give struggling families in Illinois help to stay in
their homes."
![](http://archives.lincolndailynews.com/2007/Dec/22/images/ads/current/dale_meier-bch091007.png)
"Too many families are facing foreclosure because they didn't
know where to turn for help when paying their bills first became a
struggle," said Collins. "The Homeowner Protection Act gives
families an opportunity to deal with their financial situation
before they are at risk of losing their homes."
The measure requires lenders and loan servicers to notify
homeowners at the first sign of trouble -- when a mortgage is 30
days delinquent. Once notified that their loans are delinquent,
homeowners have 30 days to seek mortgage counseling services to get
their loans back on track.
If a borrower enters counseling, he or she would get an
additional 30-day moratorium on foreclosure in order to work out a
payment plan or refinance option. Once a payment plan or refinance
is agreed to, all three parties involved in the process -- the
homeowner, the lender or servicer, and the housing counselor must
sign a written agreement outlining the terms of the new arrangement.
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![](http://archives.lincolndailynews.com/2008/Jan/02/images/ads/current/ccaonline%20broadband%20ad%20021207.png)
![](http://archives.lincolndailynews.com/2008/Apr/04/images/ads/current/business_directory_button.png) |
![](http://archives.lincolndailynews.com/2008/Apr/04/images/ads/current/budget-building-supplies-lda-032908.png) "At homeowner outreach events across the state, we hear from
families who did not know where to turn for financial assistance,"
said Martinez. "This measure will provide homeowners the tools and
knowledge they need to save their homes from foreclosure, before it
is too late."
The legislation also expands current reporting requirements for
loan servicers so that they will report to the state on a monthly
basis the specific, proactive steps they are taking to identify and
assist distressed homeowners. Requiring servicers to report this
information will encourage them to play a more active role in
addressing the nation's mortgage crisis and will better enable
policymakers to identify possible solutions.
Finally, the measure allows Illinois to join 38 other states in a
multistate automated licensing system that allows the tracking of
mortgage professionals' disciplinary and license status if they
choose to relocate. While Illinois does criminal and credit
background checks of loan originators before granting licenses, this
program ensures that regulators will know of any administrative
discipline administered in another state before an Illinois license
is granted. The system will also allow license discipline
information to be shared throughout the licensed professional's
career.
![](http://archives.lincolndailynews.com/2008/Apr/04/images/ads/current/pest_control_bch033108.png)
The introduction of the Homeowner
Protection Act is part of the governor's Homeowner Assistance
Initiative, which also:
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Provides access to
a new $310 million Homeowner Assistance Pool to help families
refinance existing mortgages and get into more affordable,
stable loans.
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Establishes a
statewide counseling network to help people (or borrowers)
understand their options and negotiate with their lenders.
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Provides consumers
protection by making it easier for homeowners to report
fraudulent and deceptive practices that result in unwarranted
financial strain and foreclosures.
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Urges all Illinois lenders to become
part of the solution by joining in the national Project Lifeline
initiative and agreeing to contact their borrowers who are up to
90 days behind on mortgage payments, but not yet scheduled for
foreclosure, and offer to work with them to negotiate new loans
that keep them in their homes; participating in the new
Homeowner Assistance Pool; and participating in Homeowner
Outreach Days.
[Text from file received from
the
Illinois Office of
Communication and Information] |