Number
151204
Version
Substitute 1
Reference
141900, 150721
Sponsor
ALD. MURPHY AND WADE
Sections
200-22.6 rp
200-33-46.5 rp
Title
A substitute ordinance relating to the registration of residential mortgage loans in default.
Analysis
This ordinance repeals all code provisions relating to the City’s registration of residential loans-in-default program, scheduled to become effective January 1, 2016.
Body
Whereas, Common Council File Number 141900, passed on June 23, 2015, established a residential mortgage loans-in-default registry to become effective on January 1, 2016, to provide opportunities for homeowners at risk of mortgage loan foreclosure to connect with agencies and not-for-profit organizations to help them negotiate repayment plans and loan modifications with their lending institutions or mortgage servicers to bring their loans into compliance in order to avoid mortgage foreclosure and to retain home ownership; and
Whereas, The ordinance created by this file was intended to be temporary, and included a sunset clause ending the program after 3 years on January 1, 2019, unless reauthorized by the Common Council; and
Whereas, Since passage of this file, the City entered into an agreement with Nationstar Mortgage, and expects to negotiate similar agreements with other major mortgage servicers like Ocwen Financial Corporation, which call for servicers to have face-to-face meetings with borrowers in default to arrange repayment plans and loan modifications to help these borrowers bring their mortgages into compliance so they can avoid foreclosure and retain home ownership; and
Whereas, Even without City agreements with servicers, servicers like Nationstar and Ocwen have been participating in borrower outreach efforts to promote loan modification and foreclosure avoidance; and
Whereas, The City has also met with Fannie Mae since passage of this file, and believes Fannie Mae’s mortgage servicing guidelines, which require, among other things, f...
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