GRANHOLM - National Governors Association Urges Federal Government to Take Swift Action to Help Homeowners, Communities

WASHINGTON, D.C. - Governor Jennifer M. Granholm and Governor Mike Rounds of South Dakota today sent a letter on behalf of the nation's governors to President Bush and the leaders of the U.S. Senate and House of Representatives, requesting that the federal government take swift, aggressive action to help distressed homeowners and communities across the country that are reeling from the national foreclosure crisis.

"Families and communities across the country are suffering from skyrocketing mortgage payments, declines in home values, and neighborhoods stricken with blight from abandoned and foreclosed properties," said Granholm. "Congress and the Administration must act quickly to prevent foreclosures and work with state and local governments that already have developed tools to keep families in their homes."

The bipartisan letter from the National Governors Association detailed several principles that governors believe should be included in any federal housing legislation, including funding that states can use to transform foreclosed and abandoned properties into affordable housing for purchase or rent. Governors also called for a voluntary mortgage refinance program backed by insurance from the Federal Housing Administration (FHA).

"Governors are pleased that Congress and the Administration are designing and executing solutions to restore public confidence in the housing and credit markets," the governors wrote. "We look forward to working with the federal government to stabilize neighborhoods, protect the equity of homeowners, and help set the economy onto a path of sustained growth and strength."

The letter also noted that states have been the first responders to the subprime mortgage crisis. Granholm serves as Chair of NGA's Economic Development and Commerce Committee and led efforts to provide bipartisan perspective from the state leaders as Congress writes this critical legislation.

On Wednesday, Governor Granholm signed into law the "Save the Dream" legislation, which creates two new refinancing options to protect home ownership. Operated and funded by the Michigan State Housing Development Authority (MSHDA), these new refinance programs will help borrowers with adjustable rate mortgages and those who have fallen behind on their monthly mortgage payments refinance into safer, more secure long-term, fixed-rate mortgages.

For more details on the Save the Dream refinance programs and other services, a visit to www.michigan.gov/mshdawill take seekers to MSHDA's home page and the Save the Dream icon where up-to-date information about the loans, services, and MSHDA-approved lenders and certified counselors is available. There is also a consumer hotline that helps callers find a counselor locally. That toll-free number is 1-866-946-7432.