Michigan Legislators introduce a Resolution for the Homeowners and Bank Protection Act

[whistle]

It looks like the fight for the Homeowners and Bank Protection Act** is accelerating. Michigan State Representative LaMar Lemmons, with 21 co-sponsors, introduced a resolution, to memorialize the Congress of the United States to create the Homeowners and Bank Protection Act, into the Michigan State Legislator.The co-sponsors were:

Terry Brown, Pam Byrnes, Marsha Cheeks, Ed Clemente, Bob Constan, George Cushingberry, Robert Dean, Marie Donigan, Barbara Farrah, Lee Gonzales, Richard Hammel, Hoon-Yung Hopgood, Bert Johnson, Robert Jones, Gabe Leland, James Marleau, Michael Sak, Steve Tobocman, Aldo Vagnozzi, Mary Valentine, Rebekah Warren

Rep. Lemmons offered the following resolution:

House Resolution No. 190.

A resolution to memorialize the Congress of the United States to create the Homeowners and Bank Protection Act.
Whereas, The onrushing financial crisis engulfing home mortgages and the banking system of the United States threatens to set off an economic depression. Millions of American citizens are threatened with foreclosure and loss of their homes due to a financial crisis that threatens the integrity of both state and federally chartered banks. Such a banking collapse would wipe out the life savings of American citizens and undermine the economic stability of our nation; and

Whereas, The Congress of the United States should move quickly to keep people in their homes and avert economic catastrophe. Congress should establish a federal agency to place the federal and state chartered banks under protection, freeze all existing home mortgages for a period of months to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Also, the Congress should write off all speculative debt obligations of mortgage-backed securities and other schemes that have brought the banking system to the point of bankruptcy; and

Whereas, During the transitional period, all foreclosures should be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, should be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking system. These payments will be factored into new mortgages, reflecting the deflating of the housing bubble and the establishment of appropriate property valuations and reduced interest rates; and

Whereas, State governments should assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks. The federal government should provide the necessary credits and guarantees to assure the successful transition; now, therefore, be it

Resolved by the House of Representatives, That we memorialize the Congress of the United States to create the Homeowners and Bank Protection Act; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.

-- September 28, 2007


**NOTE: These are the essential features of the Homeowners and Bank Protection Act of 2007:

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 how ever many months or years are required to adjust the values to fair prices, restructure existing mortgages at appropriate interest rates, and write off all of the cancerous 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.

2. During this transitional period, all foreclosures shall be frozen, allowing American families to retain their homes. Monthly payments, the effective equivalent of rental payments, shall be made to designated banks, which can then use the funds as collateral for normal lending practices, thus recapitalizing the banking system. 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. It is to be expected that this process of shakeout of the housing market will take several years to achieve. In this 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 the traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.

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.

-- END --

This will allow home owner families to remain in their homes until they are able to adjust financially and will also begin to repair the massive economic damage caused by the past policies of the former Federal Reserve Chairman Sir Alan Greenspan who will go down in history as the idiot who blew up the world financially by allowing the housing bubble and hedge fund speculators to loot and pillage millions of homeowners out of their life savings.