2008-05-20_Agenda - Laserfiche WebLink

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GOVERNOR PAWLENTY ANNOLTNC�S AI�I�ITIQNAL ACTIONS TO ASSIST H�... Page 3 of 3 Today's announcement continues efforis by the Pawienty Administration to address foreclosures and predatory lending praciices in the staie: • Earlier lhis month, Governor Pawlenty announced a$4.3 million {ederal grant, the second-4argest such grant made to any state, 10 expand foreclosure preveniion counseling in ihe state. With lhis funding, 37 additional counselors are being added to the statewide counseling network, for a total of 76 counselors. Ii is estimated that this will result in 7,500 foreclosures being prevented this year. • Alsv this month, Go�ernor Pawlenty announced that Marquette Financial Companies provi.ded a$50a,000 grant ro Minnesota Wousing for foreclosure prevention deferred loans in lhe Twin Cities metropolitan area. These loans will he offered ro homeowners who, with a modest amount oi additional assistance, will be ahle to bring delinquent loans to current status o�er 1he long term. • Minnesota mortgage laws were strengthened !n 2007, significantly increasing the net worth requirements for mortgage originatars operating as Minnesota corporations, requiring trainir�g for laan officers, and making mortgage fraud. a specific critne in Min�esoia. Minnesola law also now requires originators iv verify a barrower's ability to repay a loan and prohibiss negatively amorlizing loans, chuming, subprime prepayment penalties, and partial payment quotes. ihese are among t�e toughest such laws in the nation." • The Pawlenty AdministreCion requested, and the legislaiure agreed, to add additional invesYigaiars ai ihe Department of Commerce. The department assigned three additional investig.ators to respond to the increasing volume of cases and complexity of housing and lending fraud. For FY07 and lhe fir�t half of FY 08, the Minnesota Department of Gommerce has iaken 22D enivrcement actions and imposed $678,850 in civi! penalties in real esiate or mongage related cases. • Minnesota's ongoi�g commilment io foreclosure pre�eniion includes a braad partnership that pro�ides [unding for a statewide network ot counselors and state funding tor ioredosure prevention faans oi up to $5,500. Governor Pawlenty has proposed this year to increase the maximum size of ihese loans to $1�,000 each. T�ese e�forts receiveci an appropriatian of �1.7 million in FY 2QD8-09. • In 2007, Minnesota Housing made its largest single funding award ever of $11 million dollars to fund an efforl in Minneapolis io acquire, rehabililate, and re-market fareclosed and olher vacani and boarded. properties. A simi�ar award of $500,000 was provided ior a similar piloi program in SainY Paul. • In 2007, the Minnesota Departmeni o5 Commerce, wiih Che support af the Minnesota Association of Realtors, transferred $500,000 io Minn.esota Housing irom the Real Estate Educaiion, Research and Recovery Fund which is iunded by real estate license fees. Minnesota Nousing awarded: fhe grants to the Minnesota Home Ownership Center and the Minneapolis Urban League for an early iniervention foreclosure initialive for at-risk hom.eowners in targeted areas. • In November 2007, Governor Pawlenty announced state £unding ior early intervention efforts and foreclosure prevention counseling. ihe Minnesota Hausing award Co the Greater Minnesota Housing Fund of $1 million was part of a response ia a predicted 3-5 year siivalion. Another $8D0,400 in private, philanEhropic and local funds were also committed to the effort. The funding doubled the number of foreclosure preveMion counselors from 1 S to 37 statewide and effectively tripled th:e number of households thai can be served. The Minnesota Department of Commerce also reminds borrowers to beware of predatory lending practices. Homeowners who choose to reiinance their mortgage should deal with a Minnesota licensed mortgage origtnasor; check ihe departmenf's websile at tivww.commer�e.state.rnn.us to check ihe licensing staius. Also, call She Minnesota Depaftment o� Cnmmerce at (651) 296-2488 or 1-800-fi57-3602 io report suspected mortgage fraud. To contact a foreclosure prevention cour�selor, call the Home Ownership Center at (651) 658-9336 or (866) 462- 6466. 7hey wilt identify a counselor in a specific area of the state. ihe web site is www.hocmnmo�. Back Printer Friendfv Pa4e CopyrighY 20D6 O�ce o( Governor Tim Pawlenty Home � Coniact � Site. M� �$ite_Policies http:/lwww.governor.state.mn.us/mediacenter/pressreleases/PROD00$821.htm1 4/15/2008