Senate Democrats
Family Security
HOUSING SECURITY
This recession was induced by the collapse of the housing market. Now more than ever, we must help families who are already having difficulty paying rent or meeting mortgage payments stay in their homes.
We’re seeing homeowners in our largest metro areas now upside-down in their mortgages at higher rates than the national average – with one in five homes sold for a loss last year. The latest filings by Realty Trac indicate that the foreclosure filing rate in Washington is up by 72 percent in 2008. Home foreclosures have pushed many owner and renter families into the rental market, driving up rents by increasing demand for housing -- despite falling prices.
We must bring stability back into the housing market, and people's lives.
Because everyone has a right to a safe, secure place to live — especially during difficult economic times – Senate Democrats will move forward with legislation to:
Expand the capacity of the Housing Finance Commission to issue bonds for the construction of up to 12,000 new single-family homes or apartment units. This puts affordable roofs over heads and creates jobs at the same time. (Senate Bill 5452)
"When three-fourths of lower-income households pay over a third of their income in rent, we need to get affordable housing construction going again. The Commission can help do this if we broaden their capacity to issue bonds. This is a 'housing construction and ownership' stimulus without impacts to the budget."
Sen. Claudia Kauffman, D-Kent
Give homeowners protections to stay in their homes and keep them off the short-sale market. Senate Bill 5810 gives more options, clarity and time for families facing foreclosure to work with lenders, and protects them against lenders who won’t take reasonable steps to work with them.
Prohibit mortgage brokers from receiving special fees called yield spread premiums, which are paid for by borrowers through their residential mortgage. Yield spread premiums, often unknown to the borrower until after their home loan has closed, are cash fees collected by brokers from the lending institution. The fees are based on the difference between the market rate the borrower is qualified to receive from the lender and the higher rate originated by the broker. (Senate Bill 5858)
"These hidden fees are the industry’s dirty little secret that most borrowers don’t know they’re being charged for. It’s time to put an end to the under the table kickbacks and be up front about the fees being charged." - Sen. Rodney Tom, D-Medina
Increase the amount of time renters have to find a new home when they are forced to vacate their home when evicted without cause on their part. (Senate Bill 5549)
“This is a huge problem as more renters are being forced to leave their homes as owners are forced to sell their properties or are facing foreclosure. Giving renters extended notice to vacate will make transitions between homes easier on families.” - Sen. Jeanne Kohl-Welles, D-Seattle
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