Projo 7 to 7 News Blog

Congressman Jim Langevin has asked Rhode Island lenders to "temporarily suspend" new foreclosure proceedings in the state while President Obama's administration and Congress finalize their plan to stem the foreclosure crisis.

Rep. Langevin said in the letter that many Rhode Island families "may soon face losing their homes" and will have trouble finding new ones -- "further perpetuating the cycle of instability in the housing market." He noted that the Mortgage Bankers Association ranks Rhode Island 10th in the nation for foreclosures.

Langevin urged lenders to hold off initiating new foreclosures in light of President Obama's announcement today of a $75 billion foreclosure prevention program that includes a home loan modification program to help at-risk borrowers refinance into viable mortgages.

The letter was sent to more than a dozen local banks and credit unions and the Rhode Island Mortgage Bankers Association.

James H. Hahn, a Providence lawyer and secretary of the Rhode Island Mortgage Bankers Association, said that the "vast majority'' of his organization's members "would not have these mortgages on their books'' even if they had originated the loans because most of them get sold.

Most of the loans in foreclosure in Rhode Island are held by giant, out-of-state mortgage companies such as Deutsche Bank National and Wells Fargo Bank, according to property sale records.

Extra: Interactive map: Find fourth-quarter mortgage defaults by R.I. zip code

 Tags  Langevin Rhode Island

Comments

BH said:

So what's the lesson here? Buy a house you can't afford and don't worry about it, because the government will make it all better?

Link | February 18, 2009 6:34 PM
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