Number
100748
Version
Original
Reference
Sponsor
Ald. Murphy, HINES, BAUMAN, Hamilton and coggs
Title
Resolution supporting a nationwide moratorium on home foreclosures.
Analysis
This resolution requests that banks and other lenders voluntarily set a nationwide moratorium on home foreclosures, and calls upon the U.S. Congress to require banks and other lenders to establish moratoriums on foreclosures for lenders who fail to voluntarily set their own moratoriums.
Body
Whereas, The Bank of America, the nation’s largest bank in terms of assets, voluntarily set a nationwide moratorium on its foreclosures, beginning on October 9, 2010, in recognition of serious documentation irregularities in these legal actions; and
Whereas, J.P. Morgan Chase & Company and Ally Financial, Inc. (parent of GMAC Mortgage), in the week preceding Bank of America’s announcement, postponed foreclosures in 23 states where court approval is required for home foreclosures; and
Whereas, Attorneys general in 6 states, including Illinois and Florida, are investigating improper foreclosure practices, and Ohio has turned over possible notary abuse in foreclosure actions to federal prosecutors for investigation; and
Whereas, The State of Ohio has filed suit accusing Ally Financial, Inc. and its GMAC Mortgage Division of fraud in approving scores of foreclosures; and
Whereas, Because of these gross irregularities, Milwaukee residents and citizens across the country risk losing their homes through unlawful foreclosures; and
Whereas, Foreclosures have wreaked havoc on the personal lives of countless Milwaukee residents and destabilized the local economy, and it is unconscionable to stand by and allow possibly unlawful foreclosures to exacerbate an already miserable situation; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that banks and other lenders are requested to voluntarily set a nationwide moratorium on foreclosures giving all parties time to review their foreclosure practices to make sure these practices conform to applicable foreclosure law and procedure, are just and fully respect the property rights of debtors losing their homes; and, be it
Further Resolved, That if banks and other lenders fail to promptly establish a voluntary moratorium on their foreclosure actions to determine if their foreclosure practices conform fully with applicable law and procedure, the U.S. Congress is called upon to require banks and other lenders to establish foreclosure moratoriums nationwide to ensure the legal rights of all property owners are guarded and protected; and, be it
Further Resolved, That the City Clerk shall send copies of this resolution to Milwaukee’s U.S. Congressional delegation.
Requester
Drafter
LRB #122577
ANC
10/11/10