THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

INTRODUCED BY THOMAS, BARBIN, V. BROWN, BROWNLEE, D. COSTA, DAVIS, DAVIDSON, GEORGE, JOSEPHS, KIRKLAND, KORTZ, KOTIK, MYERS, M. O'BRIEN, PASHINSKI, PAYTON, PRESTON, WATERS, WHEATLEY AND McGEEHAN, APRIL 3, 2012

REFERRED TO COMMITTEE ON APPROPRIATIONS, APRIL 3, 2012  

A RESOLUTION

Urging the Office of Attorney General to use the $69 million

being allocated to that office from the national mortgage

settlement for housing initiatives.

WHEREAS, Forty-eight states, including Pennsylvania, have

been involved in litigation relating to unfair lending practices

exposed after the housing bubble burst; and 

WHEREAS, On February 9, 2012, a $25 billion joint Federal-

state settlement agreement with the nation's five largest

mortgage servicers, Ally/GMAC, Bank of America, Citi, J.P.

Morgan Chase and Wells Fargo, was reached over "robo-signing"

and other foreclosure and mortgage servicing abuses; and

WHEREAS, Of the $25 billion settlement, the Commonwealth is

expected to receive an estimated $264 million, which will be

allocated in the following way: $93 million for loan

modifications and direct relief; $21 million for cash payments

to homeowners who suffered foreclosure due to fraudulent

mortgage practices occurring between January 1, 2008, and

December 31, 2011; $81 million to refinance loans for

homeowners; and $69 million to the Office of Attorney General;

and

WHEREAS, The moneys received by the Commonwealth under the

settlement agreement will provide critical relief to

Pennsylvania residents who were victims of abusive foreclosure

practices and provide future protections for homeowners to

correct many of the problems that contributed to the mortgage

and foreclosure crisis across the country; and

WHEREAS, The settlement agreement holds mortgage servicers

accountable for past mortgage servicing and foreclosure abuses

and provides relief to homeowners; and 

WHEREAS, The settlement agreement also creates an important

set of mortgage servicing standards intended to protect

homeowners and an independent monitor who will report to the

Attorney General to ensure compliance by mortgage servicers;

provides the ability for the government to pursue a number of

claims that are preserved under the settlement; and preserves

the right of borrowers and investors, such as pension funds, to

pursue individual, institutional or class action cases,

regardless of the terms of the settlement agreement; and

WHEREAS, The $69 million received by the Office of Attorney

General should be used for housing initiatives in the following

manner: $25 million to reinstate and fund the Homeowners

Emergency Mortgage Assistance Program; $10 million to fund the

Pennsylvania Housing Affordability and Rehabilitation

Enhancement Program; $27.1 million for housing and development

assistance and $6.9 million for investigation expense

reimbursement to the Office of Attorney General; therefore be it

RESOLVED, That the House of Representatives urge the Office

of Attorney General to use the funds being allocated to that

office from the national mortgage settlement for education and

housing initiatives.