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WHEREAS in 2006, "RealtyTrac", the recommended online source for property foreclosure information, stated that in a nation-wide analysis, U.S. home foreclosures had increased 38% percent since the previous quarter and 72% from the first quarter of 2005; and
WHEREAS in a 2006 U.S. Foreclosure Market Report, Pennsylvania was ranked 19th out of all 50 States with 38,333 total foreclosures, 12,204 of which occurred within the Pittsburgh area; and
WHEREAS the majority of these foreclosures have taken place in City neighborhoods that have been deeply affected by blight and are high in their concentration of minority residents; and
WHEREAS specifically, communities such as the Northside, the Hill District, Homewood, and Beltzhoover have been disproportionately affected by increasing rates of home foreclosures, with many sources pointing towards subprime and predatory lending as the cause of this predicament; and
WHEREAS as was reported by the Local Initiatives Support Corporation (LISC), "40% of African American renters whose income is under $40,000 do not have any banking relationship at all," thereby proving how and why individuals can be taken victim by predatory lenders and their unsound financial schemes; and
WHEREAS on October 2, 2007, a bi-partisan House Bill, namely, Pennsylvania House Resolution 418, was introduced with the intent to urge the U.S. Congress to take immediate and thorough action in order to prevent the further disregard for homeowners and the legitimate banking industry by creating, introducing, and enacting a "Homeowners and Bank Protection Act"; and
WHEREAS this act would create a transitional period during which time a newly established Federal agency would freeze all home mortgages, while simultaneously adjusting mortgage values to fair prices and dismantling the corrupt mechanisms that have given rise to such aforementioned predatory lending practices; and
WHEREAS in addition to the above measures, such an Act would also place a moratorium on all home foreclosures during the transitional period, thereby allowing State Governors the opportunity to redefine, reshape, and enhance the fiscal well-being of their particular jurisdictions.
NOW THEREFORE BE IT RESOLVED that the Council of the City of Pittsburgh does hereby wish to lend its voice of support to PA House Resolution 418, as this Council wishes to see the eventual passage of a federal Homeowners and Banks Protection Act.
AND BE IT FURTHER RESOLVED that the Council of the City of Pittsburgh supports PA House Resolution 418 and the passage of a federal Homeowners and Banks Protection Act as such pieces of legislation will most certainly benefit the quality of life that is presently enjoyed by the residents of the City of Pittsburgh.