Governor Granholm’s “Save the Dream” Legislation Will Help Families Threatened by Mortgage Foreclosure
Radio Address highlights programs that will help at-risk homeowners
LANSING – In her weekly radio address, Governor Jennifer M. Granholm today said she will sign legislation next week that will help preserve home ownership for thousands of Michigan families threatened by mortgage foreclosure.
“Hardly a day goes by that we’re not confronted by more bad news about the mortgage crisis and the impact that it’s having on the lives of families and the nation’s economy,” Granholm said. “These new laws will give existing homeowners new refinancing options through the Michigan State Housing Development Authority.”
The governor highlighted two programs she proposed last fall that are targeted at existing homeowners who may be facing foreclosure:
• an Adjustable Rate Mortgage (ARM) assist program that will help qualifying homeowners who have an adjustable rate mortgage convert their mortgage to a 30-year, fixed-rate, conventional loan; and,
• the Rescue Refinance program that will help at-risk homeowners who have missed one or more payments by giving them the opportunity to get into a more affordable 30-year, fixed-rate, conventional loan.
“We’ve also put into place a unique program dedicated to providing information on helping families “save the dream,” Granholm added. “Helping Michigan families in danger of losing their homes is not only our priority, it is our duty.”
The governor’s weekly radio address is released each Friday morning and may be heard on broadcast stations across the state. The address is available on the governor’s Web site at ( www.michigan.gov/gov ) for download, together with a clip of the quote above. The radio address is also available as a podcast on the Web site, as well as on iTunes and via RSS feed for general distribution to personal MP3 players and home computers. Links to the audio files and text of today's address follow.
GOVERNOR JENNIFER M. GRANHOLM
Radio Address – Save the Dream, March 28, 2008
Full: http://www.michigan.gov/documents/gov/Gov138_Full_229558_7.mp3
Edited: http://www.michigan.gov/documents/gov/Gov138_Edit_229562_7.mp3
Quote: http://www.michigan.gov/documents/gov/Gov138_Quote_229564_7.mp3
This is Governor Jennifer Granholm. Hardly a day goes by that we’re not confronted by more bad news about the mortgage crisis and the impact that it’s having on the lives of families and the nation’s economy as a whole. While the crisis has led to the downfall of some on Wall Street, it is also affecting Main Street with too many citizens facing the unthinkable: the loss of their home.
That’s why last fall, I proposed the Save the Dream legislation to help preserve home ownership for thousands of Michigan families threatened by foreclosure, and I’m pleased to report that thanks to bipartisan support in the Legislature, those bills have been sent to my desk, and I’ll sign them into law next week.
These new laws will give existing homeowners new refinancing options through the Michigan State Housing Development Authority.
First, we’ll be able to offer an Adjustable Rate Mortgage (ARM) Assist program for qualifying homeowners who’ve got an adjustable rate mortgage. Homeowners will be able to convert their mortgage to a 30-year, fixed-rate, conventional loan.
A second program – the Rescue Refinance program – will help at-risk homeowners who’ve missed one or more payments by giving them the opportunity to get into a more affordable 30-year, fixed-rate, conventional loan. Both of these programs are targeted at existing homeowners who may be facing foreclosure.
Signing this legislation into law is just the latest in our effort to help Save the Dream of homeownership. In January, I met with representatives of the nation’s leading mortgage servicers who, at our request, are taking steps to protect homeowners who are facing possible foreclosure.
They’ve agreed to hold down interest rates for many homeowners with adjustable rate mortgages who are making their payments on time and, in some cases, freezing the loan rate for up to five years; and they’ve agreed to offer advance notice to homeowners with sub-prime mortgages before their rates are scheduled to increase, so they can help homeowners avoid foreclosure.
These mortgage servicers are also committed to working with us to identify methods to help control neighborhood blight, which results from so many of these foreclosures.
We’ve put into place a unique program dedicated to providing information on helping families save the dream. If you or someone you know is facing the possibility of home foreclosure, you can access more information by calling toll-free: 1-866-946-7432; again, that’s 866-946-7432, or by visiting: www.michigan.gov/savethedream .
Helping Michigan families in danger of losing their homes is not only our priority, it is our duty…
Thank you for listening.
# # #
