San Francisco Bay Area Residents Go To Vallejo’s Foreclosure Prevention Clinic
Since this clinic was confidential in nature, we will not be publishing any photos.
PRESS RELEASE
Draws 250 Homeowners and Their Future under Obama
Vallejo, CA – Responding to the urgent cry for help of homeowners threatened with the loss of their homes, Mabuhay Alliance and the National Federation of Filipino American Associations (NaFFAA), two state and nationwide community organizations conducted the first foreclosure prevention clinic in Solano County last December 13, 2008.
The principal sponsor of the clinic was JP Morgan Chase, which after meeting with Mabuhay Alliance, NaFFAA, and other community groups, recently developed one of the nation’s most far reaching foreclosure prevention and loan modification programs. JP Morgan has just acquired Washington Mutual.
The clinic was held at the Solano Community College (Vallejo Center) and was attended by more than 250 homeowners facing foreclosure. Also attending the clinic and endorsing it were several government officials, including Vallejo Mayor Osby Davis and Suisun Mayor Pete Sanchez.
Mayor Davis, impressed with the purpose and the turnout, requested that Mabuhay Alliance and NaFFAA coordinate another clinic soon after President-elect Barack Obama takes office. Both organizations will meet with the mayor next month to plan the clinic. It is expected that all the major banks and officials of the new Obama administration will observe the next clinic.
Mabuhay Alliance and NaFFAA predicted that if President-elect Obama follows some of the suggestions developed at the clinic, the vast majority of homeowners facing foreclosure this Christmas will have a more prosperous and secure Christmas in 2009 in their own homes. Some of the suggestions, which JP Morgan Chase may follow or advocate are:
* A foreclosure moratorium until loans are fully and adequately modified in accordance with the FDIC/IndyMac proposal;
* Hedge fund investor pools that hold up to 80% of mortgages should be compelled to follow the JP Morgan/IndyMac approach of lowering interest rates, forgiving principal, and ensuring that no more than 31% of income should be allocated to mortgage related payments;
* Support the US Treasury’s proposal to create new homeownership opportunities free from predatory lenders. The Treasury suggestion which Mabuhay Alliance and NaFFAA fully support is to create government guaranteed 30 year fixed rate mortgages at 4.5%;
* Ensure that moderate-income homeowners are treated like wealthy homeowners under the tax system. The method suggested is to guarantee a $5,000 a year tax credit for every homeowner.
Mabuhay Alliance and NaFFAA, along with the Greenlining Institute, plan to meet with the new Obama administration officials and the major banks in February to ensure that the goal of seeing “every family in its own home next Christmas” is achieved.
Other corporations and agencies that attended the clinic were Wells Fargo, US Bancorp, IndyMac, Washington Mutual, United Way and the FDIC. James Buckingham a real estate attorney in Benicia, CA volunteered to provide free legal advice for distressed owners at the clinic. He noted he would further provide his services on a sliding scale for homeowners of moderate means.
DOCUMENTATION
The involvement of NaFFAA in the City of Vallejo’s Foreclosure Prevention Clinic started with an agreement among Greg Macabenta, NaFFAA National Chair, Faith Bautista, Mabuhay Alliance’s Executive Director, and Robert Gnaizda, General Counsel and Policy Director (as well as co-founder) for the Greenlining Institute to help beleaguered homeowners in Northern California. Since the City of Vallejo was the first American city to declare the “housing foreclosure crisis, supporting local, state, and federal efforts to address the crisis and urging lending institutions and loan servicers to take certain remedial actions,” Mabuhay Alliance’s first foreclosure prevention clinic in collaboration with NaFFAA Region 8 and United Way Bay Area was also held in the City of Vallejo last December 13, 2008.
Local volunteer counselors, recruited by NaFFAA, were trained by team members of Mabuhay Alliance last November 17-18, 2008. There were many lessons learned during this first collaboration which are expected to benefit the future NaFFAA-collaborated workshops in the 12 regions. The roll-out of other foreclosure prevention clinics nationwide will start in 2009.
NaFFAA Region 8 has also acquired the resolutions from Solano County and the City of Vallejo as well as the statement from local Filipino American community leaders in Solano County regarding how they took action on the housing foreclosure crisis. The Filipino American community in Solano County, led by community leaders such as Reverend Doctor Tony Ubalde, Francis Neri, Lynn Mamaril, and Eloise Escano Scott (who was instrumental in gathering over 600 signatures) were tenacious in getting their local government officials to address the crisis and declare a moratorium. Other NaFFAA regions who haven’t started working at the local legislative level regarding obtaining such resolutions will find these documents helpful.
FLIER
