HomeMy WebLinkAboutResolutions - 2012.08.31 - 205344:9c
GO)/ It4C&11-1-1yRAY MISCELLANEOUS RESOLUTION # 12221
BY: (Nommissioner David Woodward, District #18 - -
IN RE: BOARD OF COMMISSIONERS — RESOLUTION IN SUPPORT OF HOME
AFFORDABLE REFINANCE PROGRAM 3.0
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS today there are an unprecedented number of homes across America that
have negative equity, also known as being underwater, in which the home value is
lower than what is owed as the outstanding balance on the mortgage; and
WHEREAS it is estimated that 42% of home loans in Oakland County are underwater,
making it a county in the highest ten percent within United States, according to Zillow
Real Estate Network; and
WHEREAS based on this estimate, 155,000 housing units are underwater; and
WHEREAS as announced in March 2009, the Home Affordable Refinance Program
(HARP) is a federal government program designed to help five (5) million underwater or
near-underwater homeowners refinance into a fixed loan with a lower monthly payment;
and
WHEREAS in October 2011, President Obama announced an overhaul to the HARP
program with the intent of reaching more underwater homeowners. The expanded
HARP program - is referred to as HARP 2.0; and
WHEREAS as of May 2012, more than 1.3 million borrowers had been helped by the
foreclosure-prevention program; and
WHEREAS in order to qualify for HARP 2.0 your mortgage must be backed by Fannie
Mae or Freddie Mac; and
WHEREAS there are many other homeowners whose homes are underwater and who
are experiencing the misfortune of being locked out of taking advantage of
unprecedented low interest rates; and
WHEREAS HARP 3.0 has been proposed as a means of helping those homeowners
who do not have loans backed by Fannie Mae or Freddie Mac; and
WHEREAS HARP 3.0 proposes to:
1. Expand and improve the Home Affordable Refinance Program.
2. Providing homeowners with incentives to take shorter-term loans, which will help
them rebuild equity faster.
3. Take the refinancing idea in the previous HARP program and make it available
for borrowers who don't have mortgages backed by government-sponsored
enterprises or loans insured by the Federal Housing Administration; and
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ers9n, we movOjthe adoption of the foregojng resolution.
Commissioner David Woodward
District #18----
mmissi h e r
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WHEREAS if the average homeowner is allowed to refinance, he could save $3,000 a
year; and
WHEREAS an estimated 60,000 housing units in Oakland County are underwater and
do not have a Fannie Mae or Freddie Mac backed mortgage; and
WHEREAS if only half of these homeowners could refinance their mortgages, the
aggregate effect would be a savings of $90 million annually, which could be saved, or
spent in the local economy; and
WHEREAS HARP 3.0 can only occur if Congress acts on bills supporting the expansion
of the program; and
WHEREAS more is needed to stabilize the housing market and improve the economy in
the country, and HARP 3.0 can help thousands of families in Oakland County.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby endorses HARP 3.0 and urges swift action by Congress to
expand the availability of the Home Affordable Refinance Program to help more
homeowners, whose mortgages are underwater, take advantage of low mortgage
interest rates.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners urges
all Michigan leaders to make the adoption of HARP 3.0 in Congress a top priority in the
remaining months of 2012.
BE IT FURTHER RESOLVED that the Oakland County Clerk/Register of Deeds is
requested to forward copies of this adopted resolution to President Barack Obama,
Senator Carl Levin, Senator Debbie Stabenow, the Michigan Congressional Delegation,
the U.S. Department of Housing and Urban Development, the Oakland County
delegation to the Michigan Legislature, the Michigan Association of Counties, the
National Association of Counties, the Clerks for Oakland County's cities, villages and
townships, and Oakianci County's legislative lobbyists.
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Resolution #12227 September 5, 2012
The Chairperson referred the resolution to the General Government Committee. There were no
objections.