HOUSE CONCURRENT RESOLUTION NO. 9
(By Delegate Beach)
Urging Congress to implement the Homeowners and Bank Protection
Act.
Whereas, The onrushing financial crisis engulfing home
mortgages, debt instruments of all types and the banking system of
the United States threatens to set off an economic depression worse
than the 1930's; and
Whereas, Millions of American citizens are threatened with
foreclosure and loss of their homes over the upcoming months,
according to studies released by Realty Trac and Moody's
Economy.com; and
Whereas, This financial crisis is now threatening the integrity
of both state and federally chartered banks, as typified by the run
on deposits of Countrywide Financial in California during the month
of August 2008; and
Whereas, A banking collapse would wipe out the life savings of
American citizens, and drastically undermine the economic stability
of our states and cities; and
Whereas, This crisis is such that it requires emergency action
that only the United States Congress has the capability to enact. Congress must move quickly to keep people in their homes and avert
social upheaval; and
Whereas, Congressional action must include the following:
(1) Congress must establish a federal agency to place the
federal and state chartered banks under protection, freezing all
existing home mortgages for a period of months or years which would
be required to adjust the values to fair prices and restructure
existing mortgages for a period of months or years which would be
required to adjust the values to fair prices, and restructure
existing mortgages at appropriate interest rates. Further, this
action would also write off all of the speculative debt obligations
of mortgage backed securities, derivatives, and other forms of
Ponzi Schemes that have brought the banking system to the point of
bankruptcy, and
(2) During the transitional period, all individual homeowner
foreclosures shall be frozen, allowing American families to retain
their homes. Monthly payments, the equivalent of rental payments,
shall be made to designated banks, which can use the funds as
collateral for normal lending practices, thus recapitalizing the
banking systems. Ultimately, these affordable monthly payments
will be factored into new mortgages reflecting the deflating of the
housing bubble, and the establishment of appropriate property
valuations, and reduced fixed mortgage interest rates. This
adjustment will take several years to achieve, in the interim period no homeowner shall be evicted from his or her property, and
the federal and state chartered banks shall be protected so they
can resume their traditional functions, serving local communities,
and facilitating credit for investment in productive industries,
agriculture, infrastructure, and other prudent financing needs, and
(3) State Governors shall assume the administrative
responsibilities for implementing the program, including the
"rental" assessments to designated banks, with the federal
government providing the necessary credits and guarantees to assure
the successful transition; and
Whereas, In a similar financial crisis in the 1930's, President
Franklin D. Roosevelt intervened to protect banks and homeowners,
for example, in April, 1933, he introduced legislation as a
"declaration of national policy...that the broad interests of the
Nation require that special safeguards should be thrown around home
ownership as a guarantee of social and economic stability...";
therefor, be it
Resolved by the Legislature of West Virginia:
That we hereby endorse the Homeowners and Bank Protection Act
of 2007; and, be it
Further Resolved, That a copy of this resolution shall be
forwarded to members of the West Virginia Delegation to Congress
and also be delivered to the President of the United States for
immediate implementation.
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