Gubernatorial candidate Brian Moran made the news Friday with the announcement of his Homeowners’ Bill of Rights. UPDATE: If you see a white space below, the video is down. You can view it here.
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The entire press release is below the fold.
Moran Proposes Homeowners’ Bill of Rights
~ Bold Reform to Protect the American Dream ~
~ Plan Compliments Pres. Obama’s Federal Action ~
LOUDOUN – Today, standing in the driveway of a foreclosed home in suburban Loudoun County, Brian Moran proposed a “Homeowners’ Bill of Rights” to help homeowners stay in their homes and out of foreclosure, stop deceptive loans, and protect neighborhood home values. Moran is the first candidate for Governor to propose a plan to protect homeowners. There were 5,000 foreclosure fillings in Virginia last month alone. Moran’s proposal works in concert with the recent proposal from President Obama.
“Virginia’s families are getting squeezed. Our next Governor needs to keep fighting for the family dinner table, not the corporate board room,” Moran said. “The Bush Administration and politicians like them have spent all their time focused on Wall Street. I’m extending a lifeline to Main Street. This Homeowners’ Bill of Rights will help more Virginians live their American dream.”
THE HOMEOWNERS’ BILL OF RIGHTS (HOBR)
- Ban the worst practices of deceptive lenders. The proposal bans predatory mortgage lending, where lenders trick homeowners into refinancing; stops deceptive mortgages, which strip people of home equity; prevents mortgage brokers and lenders from taking advantage of homebuyers; and prohibits pushing families into bad mortgages when the borrower qualifies for one that is less expensive. Virginia will join 25 states that have banned negative amortizing mortgages.
- 90-day foreclosure delays. The plan expands default protection for delinquent homeowners to a 90-day period so people can catch up on payments. It will also freeze the foreclosure process for military families until 90 days after they return from deployment.
- Expand education for borrowers. The HOBR will ensure that people know the dangers of subprime loans before agreeing to them, require mortgage servicers to send notice and information on alternatives, educate senior citizens about financial scams, and strengthen penalties for those that prey on our most vulnerable citizens. We will deploy a foreclosure prevention program with a hotline, website and other information sources to reduce foreclosures.
- Protect neighbors and renters. Under this plan, Virginia would require that the owners of foreclosed homes (often banks) maintain properties to reduce blight and prevent other home values from declining unnecessarily. HOBR will also provide relief to renters by requiring 60-day notice upon the foreclosure of a rental building so renters can have adequate time to find new places to live.
“We can’t wait and expect the crisis homeowners are facing to go away,” Moran said. “Urgent action is needed now because the family dinner table is in jeopardy, literally. I’m going to fight hard to enact this Bill of Rights on day one as Governor.”
Moran’s plan compliments the initiative announced by President Barack Obama this week. President Obama’s plan focuses on providing much-needed new funding to stabilize home ownership and loan modifications for those on the verge of foreclosure. Moran’s plan focuses on regulatory reform, homeowner protection and expanded education programs.
“Brian Moran is building a sustainable plan for Virginia’s homebuyers and homeowners that is so practical and comprehensive that it just may work,” Rev. C. Douglas Smith from the Virginia Interfaith Center for Public Policy said. “We should all thank Brian for helping Virginia see some very practical ways of keeping our families stable and our neighborhoods together.”
FORECLOSURE FACTS
Statewide
- There were 5,000 foreclosure fillings in Virginia in January, 2009 alone.
- Virginia ranked 25th in foreclosures in 2007 but has jumped to 11th in 2008.
- By the end of 2008, more than 25,000 homes had been foreclosed.
- The second biggest surge of foreclosures nationally was in Woodbridge (next to the Marine Corps Base in Quantico), which spiked 414%. Foreclosures in Norfolk increased 155% and foreclosures in the cities surrounding Norfolk Naval Base tripled.
- Nationally, foreclosures in towns where soldiers live are increasing at a pace almost four times the national average.
- Predominantly African-American neighborhoods had foreclosure rates that were three and a half times greater than predominantly white neighborhoods in Hampton Roads and five times greater than predominantly white neighborhoods in Richmond.
The full Bill of Rights is available at http://brianmoran.com/assets/2009/2/20/Home_Owners_Bill_of_Rights.pdf
VIVIAN J. PAIGE | All Politics is Local 
At first glance this policy isn’t too bad and doesn’t reward irrational behavior. But then I read it again and it seems like alot of nanny state behavior some pretty shortsighted policy.
1. I agree but ultimately and on principle its up to the consumer to educate themselves instead of relying on the government to think for them.
2. What is this going to accomplish exactly. If you don’t have the money now. Are you really going to magically find cash in three months?
3. Ok but see 1 again. People need to educate themselves and be personally responsible.
4. Agree thats the best one IMHO
I like the fact that it doesn’t allow mortgage negotiations which is a moral hazards of rewarding poor behavior. I am sure many of us would have liked to have payed a lower interest rate and lower payments on our mortgage and then be bailed out by the government and given a traditional loan.
He just wants world peace. Who could blame him for trying.