Strickland and Ohio’s High Foreclosure Rate – Tough on Talk but Light on Action

 

 

“The number of Ohioans losing their homes to foreclosure reached record levels in the first three months of this year, as the state's economic recovery failed to materialize.” (Columbus Dispatch, 5/20/10)

 

“During the first quarter, 24,711 foreclosures were filed throughout Ohio, 9 percent more than for the same period last year. The year-ago total also set a record at the time.” (Columbus Dispatch, 5/20/10)

 

“The [foreclosure] figures, collected by the Ohio Supreme Court and released yesterday to The Dispatch, defy forecasts that foreclosures would drop this year as the state's economy improved.” (Columbus Dispatch, 5/20/10)

 

“More than 4.6 percent of U.S. homeowners were in the foreclosure process. … In Ohio, 4.86 percent of homeowners were in foreclosure, up from 4.72 percent at the end of last year.” (Columbus Dispatch, 5/20/10)

 

“Ohio also set a record in 2009 for overall foreclosures, with 89,053 filings, a 3.8 percent increase over 2008 and the 14th consecutive annual increase.” (Associated Press, 5/20/10)

 

 

“‘Foreclosures are not only a hardship on the families fighting to save their homes, but they can have a serious impact on our economy,’ Strickland said. ‘Ohio's foreclosure rate is not only high compared to other states, but it has gradually increased and is expected to grow faster in the next two years. This problem demands a comprehensive response.’” (Gov. Ted Strickland, Press Release, 3/7/07)

 

“‘We don't have much time to lose,’ the governor of Ohio, Ted Strickland, said in an interview. The foreclosure rate has ‘escalated rather dramatically.’” (International Herald Tribune, 5/18/2007)

 

“‘What we are facing with this foreclosure issue can aptly be called a crisis that calls for an appropriate response from every level of government, beginning at the federal level and working its way down,’ Strickland said.” (Akron Beacon Journal, 9/21/07)

 

 

“Governor Ted Strickland today established the Foreclosure Prevention Task Force, a group that will provide a unified response to improve prevention methods and manage foreclosure issues in the state. ‘I am directing my administration to take action to help reduce and prevent foreclosures,’ Strickland said. ‘This Foreclosure Prevention Task Force brings together representatives from all affected entities to address this important issue.’” (Gov. Ted Strickland, Press Release, 3/7/07)

 

“‘Ohio was a hugely unregulated state when it comes to protections for people. That was corrected largely, but only after the fact. The horse was already out of the barn,’ Strickland said. ‘One reason Ohio was hurting so much as compared to other states is because we were basically a wild west when it came to lack of regulatory protections. I think that's largely been corrected, only after a lot of people had found themselves in situations where they had assumed responsibilities they just couldn't meet,’ [Strickland] said.” (Associated Press, 8/28/2007)

 

“Earlier this month, the Ohio Foreclosure Prevention Task Force issued 27 recommendations for borrowers, lenders and government emphasizing self-help, consumer services and counseling, state and local intervention and a call for lenders and loan servicers to find alternatives to foreclosure. Strickland also mentioned his administration's establishment of the Governor's Office of Urban Development and Infrastructure, which provides a direct link between state government and mayors, city council members and metropolitan planners. The new office will help state government target specific areas for job development and infrastructure improvement, Strickland said.” (Akron Beacon Journal, 9/21/2007)

 

“Ohio Governor Ted Strickland today proposed the establishment of a compact between subprime mortgage servicers and the state aimed at tackling the increasing number of foreclosures in Ohio. The proposed compact comes as part of Strickland’s response to the Ohio Foreclosure Prevention Task Force’s recommendations issued September 10. Strickland commissioned the Task Force in March 2007 to address Ohio’s foreclosure rate, which has ranked among the highest in the country.” (Gov. Ted Strickland, Press Release, 10/9/07)

 

“‘Under this compact, servicers are asked to agree to make good-faith efforts to change the culture of subprime lending in Ohio,’ Strickland said.” (Gov. Ted Strickland, Press Release, 10/9/07)

 

“Strickland called on lenders who offer subprime mortgages loans offered to borrowers with weak credit histories to be as flexible as possible in modifying loan arrangements and avoid more home foreclosures.” (Associated Press, 10/10/2007)

 

“‘We've tried to avoid throwing stones about laying blame, but it is very obvious that in many cases ... some bad loan practices have been done that have brought us to where we are,’ Strickland said. ‘We believe (the plan) is reasonable and just’ and in the best interests of the lenders.” (Columbus Dispatch, 10/10/2007)

 

“Gov. Ted Strickland got a polite, but chilly response Monday to his request that subprime lenders voluntarily enter into compacts with the state to keep more Ohioans from becoming part of the continuing mortgage foreclosure crisis. Instead, Ohio should join national efforts to achieve this goal or adopt a plan like one in Massachusetts, said a letter from the Mortgage Bankers Association and the Ohio Mortgage Bankers Association to Ohio Commerce Director Kimberly Zurz.” (Dayton Daily News, 10/23/2007)

 

“Under a plan launched by Massachusetts Gov. Deval Patrick in April, the Commissioner of the Division of Banks seeks voluntary delays from lenders on a case-by-case basis for struggling homeowners. As of Oct. 15, the program had assisted 1,100 homeowners, according to the letter to Zurz.” (Dayton Daily News, 10/23/2007)

 

“Under a plan launched by Massachusetts Gov. Deval Patrick in April, the Commissioner of the Division of Banks seeks voluntary delays from lenders on a case-bycase basis for struggling homeowners. As of Oct. 15, the program had assisted 1,100 homeowners, according to the letter to Zurz. ‘The governor will look at these suggestions but he won't support anything that will water down the commitment he is asking (mortgage) servicers to make to help keep Ohioans in their homes,’ Keith Dailey, Strickland's spokesman, said in an e-mail.” (Dayton Daily News, 10/23/2007)

 

“Strickland proposed an agreement in October that was based on recommendations made by a state task force on the mortgage crisis. Lenders did not sign the proposal, saying in some cases that it would have forced them to violate contract laws. Ohio Department of Commerce Director Kim Zurz said the original compact called for across-the-board rate freezes, something lenders found unacceptable.” (Associated Press, 4/7/08)

 

“Nine mortgage lenders who hold about 55 percent of Ohio's subprime home loans agreed Monday to abide by policies designed to help struggling homeowners avoid foreclosure. The agreement is a result of months of negotiations between the administration of Gov. Ted Strickland and subprime lenders, who had balked at an initial proposal Strickland offered last fall.” (Associated Press, 4/7/08)

 

“Strickland remains concerned about Ohio's high rate of home foreclosures. But Strickland said he is working with other state and federal officials to bring more financial assistance to homeowners or communities ravaged by foreclosures. And he continues to encourage banks to revise mortgage terms.” (The Cincinnati Enquirer, 12/24/08)