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THE SENATE |
S.C.R. NO. |
171 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
REQUESTING A REPORT ON THE FEASIBILITY OF ESTABLISHING A FORECLOSURE MITIGATION COUNSELING PROGRAM TO ASSIST HAWAII'S HOMEOWNERS.
WHEREAS, according to RealtyTrac reports, Hawaii experienced a 286.4 percent increase in foreclosures from January 2009 to January 2010 and a 241 percent increase in foreclosure auction notice filings, which is an early step homeowners take to save their homes from foreclosure; and
WHEREAS, in addition, Hawaii had an average mortgage debt per borrower of $137,599 in the fourth quarter of 2009, which is the third-highest average in the nation; and
WHEREAS, the National Foreclosure Mitigation Counseling Program was created by the Consolidated Appropriations Act of 2008 (P.L. 110-161) in December 2007 to address the subprime foreclosure crisis, and NeighborWorks America, the entity administering this program, has received additional appropriations by Congress to continue to provide counseling to troubled homeowners at risk of foreclosure; and
WHEREAS, under the National Foreclosure Mitigation Counseling Program, Hawaii nonprofits including Consumer Credit Counseling Service of Hawaii, Hale Mahaolu, Hawaii HomeOwnership Center, Hawaiian Community Assets, and Legal Aid Society of Hawaii are currently providing foreclosure mitigation counseling services statewide and have assisted well over 1,000 homeowners statewide; and
WHEREAS, the Legislature finds that should a similar economic and housing crisis situation occur in the future, after the National Foreclosure Mitigation Counseling Program funding ceases, Hawaii's homeowners would benefit from counseling on their options to avoid foreclosure, and how to work with their lenders or loan servicers on mortgage refinancing, loan modification, or other restructuring of their mortgage debt; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the House of Representatives concurring, that the Legislative Reference Bureau is requested to conduct a study to determine the feasibility of providing homeowners with a means to hold foreclosure in abeyance while undergoing foreclosure mitigation counseling, and allow the homeowners time to work with their lenders or loan servicers on mortgage refinancing, loan modification, or repayment before foreclosure can commence; and
BE IT FURTHER RESOLVED that the feasibility study include findings and recommendations on issues including but not limited to the following:
(1) The feasibility of establishing a state program modeled after the National Foreclosure Mitigation Counseling Program;
(2) The appropriate state entity to administer such a program;
(3) The feasibility of creating a foreclosure mitigation counseling special fund to finance foreclosure mitigation counseling by non-profit counselors trained to assist distressed homeowners in Hawaii;
(4) The source of funding for a foreclosure mitigation counseling special fund; and
(5) Whether a more comprehensive approach which includes pre-purchase homebuyer education should be offered; and
BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to report its findings and recommendations, including proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2011; and
BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Director of the Legislative Reference Bureau.
LRB; Foreclosure Mitigation Counseling