Rep. Valentine offered the following resolution:
House Resolution No. 306.
A resolution to memorialize the Congress of the United States to pass and the President to sign the Foreclosure Prevention Act of 2008.
Whereas, Our nation is currently experiencing the worst mortgage crisis since the Great Depression. In addition to record rates of foreclosure in many areas of the country, housing values are declining significantly. The wave of foreclosures, largely the result of subprime loans and a variety of predatory lending practices, has triggered a level of concern that is felt in virtually every household in America; and
Whereas, The cascading impact of houses that are lost to foreclosure for failure to pay the mortgage is becoming increasingly evident in many locations. The impact of the foreclosures over the past year is so great that it is estimated by some that as many as one homeowner in ten now owes more on their house's mortgage than the house is worth. All homes, even those without a mortgage, lose value quickly as houses stand empty. For many neighborhoods, the prospect of vacancy is accompanied by justifiable concerns over safety; and
Whereas, Congress is considering the Foreclosure Prevention Act of 2008 as a means of bringing a swift response to reverse the destructive trend of people walking away from homes because of loans they cannot possibly pay. This legislation offers a range of provisions, including allocations for foreclosure prevention counseling, expanding the capacity of governmental entities to redevelop properties, allowing housing finance agencies to help home buyers and issue refinancing bonds for owners with subprime loans, and empowering bankruptcy judges to change the terms of loans facing foreclosure. The bankruptcy adjustment provision would be consistent with the power bankruptcy judges already have for other kinds of debts, including those for vacation homes and rental properties; and
Whereas, Clearly, the severity of the mortgage foreclosure crisis demands vigorous and swift action. Less comprehensive approaches and voluntary programs alone are not enough; now, therefore, be it
Resolved by the House of Representatives, That we memorialize the Congress of the United States to pass and the President to sign the Foreclosure Prevention Act of 2008; and be it further
Resolved, That copies of this resolution be transmitted to the Office of the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.