NEWS RELEASE Legislature Allocates Funds to Foreclosure and Fraud Prevention

Oregon House Democrats


May 23, 2012

Jared Mason-Gere (503) 986-1907


Legislature Allocates Funds to Foreclosure and Fraud Prevention

Emergency Board action will help Oregon homeowners


SALEM- Lead by Oregon House Democrats, the Joint Emergency Board today took the next steps in protecting Oregon homeowners from mortgage fraud and foreclosure.   The Legislature’s interim budget committee allocated funds to the Department of Justice and the Housing and Community Services Department to ensure access to mediation, help eligible homeowners connect with wrongful foreclosure compensation and acquire loan modifications. The funds are part of a multi-state foreclosure settlement reached by state Attorneys General early in 2012.

“There’s no question the housing crisis is one of the primary causes of the economic recession, and it must be addressed if we’re going to see a full recovery that gets Oregonians back to work. This is another step taken to stand up against the big banks and ensure Oregonians are getting a fair shake,” said Rep. Tina Kotek (D-Portland), House Democratic Leader. “Families across our state are impacted by the foreclosure epidemic, which is why House Democrats have been pushing to take the steps that will help Oregonians remain in their homes.”

“We are connecting with communities around Oregon to help people facing fraud and foreclosure. Using this legal settlement money, we can help reduce the number of foreclosures and offer some stability to families across the state,” said Rep. Nancy Nathanson (D-Eugene), who carried the motion.

“Since the first announcement of the Attorney General’s settlement, we’ve been looking for the most effective and efficient way to allocate the settlement dollars that would most directly help Oregon homeowners,” said Rep. Peter Buckley (D-Ashland). “This is an important step in advancing that plan to stave off foreclosures that are wreaking havoc on the lives of middle class Oregonians.”

The Legislature previously passed a bill pushed through by House Democrats that ends the process of “dual track” foreclosures and requires banks talk face to face with homeowners to agree on terms that will allow them to avoid foreclosure.

“Today we saw another win for Oregon’s middle class homeowners,” said Kotek.