Friday, January 11, 2008

This is Governor Jennifer Granholm.  Home ownership is the American dream. It's the very foundation of our communities.  It's having that special place where you can raise a family.  Owning a house means owning a special place that belongs to you - a special place that's home. 

But as you know, our nation is facing a severe housing crisis. It's throwing the stock market and the U.S. economy into turmoil. And few are feeling the pain more than we are.

Here in Michigan, we know when families are driven from their homes, communities are destroyed and ALL of us lose.  And, that's why we're working to save the dream.

That's why this week, I met with representatives of the nation's leading mortgage servicers to find solutions that'll protect consumers and homeowners.  In our meeting, the mortgage servicers agreed to take a number of actions to protect homeowners facing possible foreclosure.  Among other things:

" they'll hold down interest rates for some homeowners with adjustable rate mortgages who are making their payments on time - in some cases freezing the loan rate for up to five years; 

" they'll offer advance notice to homeowners with subprime mortgages before their rates are scheduled to increase, so they can help homeowners avoid foreclosure.

In addition, these mortgage servicers are committed to working with us to identify methods to help control neighborhood blight, which results from so many foreclosures.

There are also some steps we are working on in state government to deal with this housing crisis.

We're ready to add 34 new state regulators to keep watch over the mortgage industry and protect consumers, including 19 examiners and additional enforcement staff to ensure that consumers are being protected in the mortgage lending process. 

Last fall, I proposed - and the state House approved - a plan to give people facing foreclosure new refinancing options through the Michigan State Housing Development Authority. As this crisis continues to take its toll on Michigan families, I urge the Senate to move quickly and finalize this vital legislation to give options for families facing foreclosure; we want them to save the dream.

We've put in place a special program devoted to providing information on helping families save the dream. You can access that information by calling toll-free: 1-866-946-7432, that's 866-946-7432, or by visiting: www.michigan.gov/savethedream

Finally, to help people from getting into financial trouble in the first place, I have renewed my call for a ban on predatory lending practices in Michigan - a ban that is, again, awaiting legislative approval.

We will act, and we will act now to protect our neighbors and communities. We know our future and our Michigan way of life depend on it.

This is Governor Jennifer Granholm.  Thank you for listening.