Sen. Tupac A. Hunter: Fight Foreclosures, Save the Dream

by: Tupac Hunter

Wed Feb 27, 2008 at 16:31:17 PM EST

As the Democratic Vice-Chairman of the Senate Banking and Financial Institutions Committee, I recently helped usher the bills implementing the Save the Dream initiative through the committee process.

One of the main goals of the Save the Dream campaign is to establish an Adjustable Rate Mortgage (ARM) Refinance Program that will help homeowners switch to a lower-interest, fixed-rate loan. These ARM's have been one of the major factors contributing to our state's foreclosure crisis, which is why I am proud to have sponsored Senate Bill 948 to make sure homeowners in this state can transition into a stable, long-term mortgage that they can actually afford.

In order to qualify for these new loan products, homeowners must meet the same income and sales requirements as other MSHDA programs. While homeowners will still be responsible for paying off the full value of their refinanced mortgages, these programs will be aggressively priced below market rates, benefiting the most at-risk families.

I have been working diligently with my colleagues Sen. Buzz Thomas (D-Detroit), and Sen. Hansen Clarke (D-Detroit) along with many other Democratic Senators in combating this housing crisis for more than a year. Each of us has introduced legislation that will protect consumers from fraudulent lenders, improve financial literacy and restore professionalism to both the lending and the appraisal process. Governor Granholm has shown a willingness to sign these bills as fast as we can pass them, so the sooner we act the better.

I appreciate the cooperation of Sen. Richardville (R-Monroe) and my colleagues on the Banking and Financial Institutions Committee as we lead a bipartisan effort to stem the tide of foreclosures. Protecting the American dream of home ownership is critical to the future of our state. The tasks of revitalizing Michigan's economy and creating jobs will be even more challenging if we do not take aggressive action to protect the families by helping to keep them in their homes.

To learn more about MSHDA's Save the Dream campaign, log onto http://www.michigan.gov/mshda and click on the "Save the Dream" link. The site includes tips on how homeowners can avoid foreclosure, answers general questions about the process, provides links on who to contact for advice, and offers advice on managing credit.  Also, current as well as prospective homeowners can contact MSHDA toll-free at 866-946-7432.

In the video below, you can watch a brief clip of Sen. Hunter discussing this legislation:

State Senator Tupac A. Hunter (D-Detroit) represents the 5th District which comprises northwest Detroit (in part), Dearborn Heights, and Inkster.  He serves as the Assistant Democratic Leader and the Ranking Democrat on the Banking and Financial Institutions Committee.

(Cross-posted on Call of the Senate Democrats)