What the Governor’s Talking about
Today
Thursday, October 14,
2010
Governor Begins Jobs
Investment
The governor today kicked off her investment mission to
The American Chamber in
The governor also met with executives from Valeo which
opened its
Key
messages:
Governor to Nation’s
Top Lenders: Suspend Michigan
Foreclosures
The governor yesterday called on the nation’s top
lending institutions that service mortgages in
“Given recent revelations by major lenders about
possibly fraudulent foreclosure filings, I am calling on the nation’s largest
lenders doing business in Michigan to immediately suspend all foreclosures, all
sales of properties previously foreclosed upon, and all evictions of persons
residing in homes foreclosed upon, pending an investigation by state officials,”
the governor said. “I am also calling on Ally Financial, Bank of
America, Citigroup, JPMorgan Chase, PNC, and Wells Fargo to step up to the plate
and fully participate in
In recent weeks, major lenders including Ally Financial,
JPMorgan Chase and Bank of America have acknowledged that certain employees,
known as “robosigners,” had engaged in possibly fraudulent practices that may
have been in violation of
Repeatedly, the governor has also called for the
nation’s top lenders to participate in
The governor acknowledged JPMorgan Chase’s participation
in one of three Hardest Hit programs — providing payment assistance to currently
unemployed homeowners — but called on JPMorgan Chase to participate in the other
two Hardest Hit programs. Those two Hardest Hit programs provide emergency
rescue funds of up to $5,000 for homeowners who have fallen behind due to an
involuntary inability to pay, such as a medical disability, and provide funds
for principal reductions for homeowners who can no longer afford mortgage
payments due to a reduced household income.
“These disconcerting revelations deserve your immediate
attention,” the governor wrote in her letter to the banks. “Accordingly, I
look forward to your response by November 1, 2010.”
A letter was sent to Bank of America yesterday
acknowledging its nationwide suspension of certain foreclosures, and urging the
bank to continue its suspension until investigations are completed.
Letters demanding the immediate suspension of all foreclosures, foreclosure sale
proceedings and evictions from foreclosed homes went out yesterday to Ally
Financial, Citigroup, JPMorgan Chase, PNC and Wells Fargo.
The letters sent by the governor calling for an
immediate suspension of foreclosures can be found at: http://www.michigan.gov/documents/gov/All_Lenders_335256_7.pdf
For more information about the Helping Hardest Hit
Homeowners Fund, visit: http://www.michigan.gov/HardestHit
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