January 24, 2008 (LPAC)--The HBPA has been introduced into the Lorain, Ohio city council.

A RESOLUTION URGING A MORATORIUM ON HOME FORECLOSURES AND
CONGRESSIONAL ENACTMENT OF A HOMEOWNERS AND BANK PROTECTION ACT

WHEREAS, a financial crisis involving home mortgages, debt instruments and the United States banking system threatens economic stability; and

WHEREAS, the financial crisis threatens the integrity of federal and charterd banks such as consumer deposits and life savings are jeopardized; and

WHEREAS, financial investments and home ownerships is the fabric of economic stability and the stability of financial institutions; and

WHEREAS, historical the federal government has intervened to protection financial institutions and home ownership and to provide guarantees of social and economic stability; and

WHEREAS, the quality of life in any community can be directly related to the responsiveness of government and its ability to meet the needs and expectations of its citizens; and

WHEREAS, the residents of Lorain understand the connection and elect local leaders with certain expectations regarding the service they will provide and the role they will play in their lives; and

WHEREAS, those elected to serve the residents of Lorain accept the privilege of service with the understanding of their responsiblity and the expectation of the community; and

WHEREAS, the accountability for the city's viability, prosperity and overall well-being lies with those elected to serve local govenrment.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LORAIN, STATE OF OHIO:

SECTION 1. The council of the City of Lorain, Ohio calls upon the United States Congress to take emergency action to protect homeowners by enacting a Homeowners and Banks Protection Act specifically to:

(A) Create a federal agency to place Federal and State chartered banks under proection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages at approprite interest rates and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial pyramid schemes that have brought the banking system to the point of bankruptcy.

(B) Declare a moratorium on all home foreclosures for the duration of the trasitional period, allowing families to retain their homes;

(C) Require affordable monthly home mortgage payments, the equivalent of ``rental payments,'' to be made to designated banks for use as collateral in normal lending practices for recapitalization of the banking industry and to factor such affordable payments into new mortgages thereby deflating the housing bubble, establishing appropriate property valuation and reducing fixed mortgage interest rates;

(D) Provide an interim period during which homeowners may not be evicted from their homes and protection to banks pending the resumption of traditional banking funcitons, including serving local communities and facilitating credit for investment in productive entities; and

(E) Authorize state governors to administer the implementation of programs, including provisions for necessary federal guarantees and credits to assure successful transition.

SECTION II. This resolution serves as notice that the Council fo the City of Lorain has been, is, and shall be vigilant as guardians of the public interest of the citizens of Lorain, Ohio, in all matters to the extent legally feasible and possible.

SECTION III. That the clerk of the council of the city of Lorain is hereby directed to transmit a true and correct copy of the adopted resolution to members of the United States Senate and the House of Representatives.