HomeMy WebLinkAboutReso 98-2007RISOLUTION NO. 98-2007
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION REQUESTING THAT SUBPRIME
MORTGAGE LENDERS AND SERVICERS FOR
PROPERTIES IN TH[E CITY OF SOUTH SAN FRANCISCO
WORK WITH AFFECTED HOMEOWNERS TO REDUCE
FORECLOSURES RELATED TO SUBPRIME MORTGAGES
WHEREAS, there has been a dramatic increase in the number of foreclosures throughout
the country, including in South San :Francisco, San Mateo County and throughout California; and
WHEREAS, in data supplied by the Association of Community Organizations for Reform
Now (Acorn) that was obtained from the Realty Trak information service, in San Mateo County
in April 2007, mortgage companies filed 264 foreclosure filings against homeowners who were
behind on their mortgage compared to 42 notices in April of 2006; and
WHEREAS, that data also indicated that South San Francisco had 33 foreclosure filings
in the month of April 2007; and
WHEREAS, various research reports have shown a strong correlation between the
increase in foreclosures and the increase in subprime mortgages; and
WHEREAS, subprime loans have had a higher impact in lower income neighborhoods
and among first time homebuyers; and
WHEREAS, time is needed to identify issues and approaches that can positively resolve
the crisis that so many South San Francisco homeowners face as a result of the increase in
foreclosures; and
WHEREAS, the City Council of the City of South San Francisco acknowledges that the
City has no formal role in oversight or regulation of either the mortgage loan or the banking
industries, which are tightly regulated by the federal and state governments.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San
Francisco that the lending community is a critical partner in efforts by the public and private
sectors to address the mortgage foreclosure increase, and that therefore:
1. Subprime mortgage :lenders and servicers for properties in South San Francisco
are encouraged to voluntarily agree to a three-month moratorium on foreclosures.
2. During such time, subprime mortgage lenders and servicers are further
encouraged to work with affected homeowners to develop long-term solutions,
including but not limited to loan modifications, in order to address the foreclosure
problems strongly related to subprime loans.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South Sa:n Francisco at a City Council meeting held on the 26th day
of September, 2007 by the following vote:
AYES: Councilmembers Mark N. Addiego, Joseph A. Fernekes and Karyl Matsumoto,
Vice Mayor Pedro Gonzalez and Mayor Richard A. Garbarino
NOES: None
ABSTAIN:
ABSENT:
;r
ATTEST:
Interim Ci lerk