55D - RESO HOMEOWNERSHIP PRESERVATION

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2/26/08LES RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING EFFORTS TO ADDRESS HOMEOWNERSHIP PRESERVATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The impact of subprime mortgage lending has impacted homeowners throughout the United States, making the preservation of homeownership highly significant. B. The City of Santa Ana has taken a leadership role in Orange County to assure that our residents are able to access all available information and resources to enable them to make informed decisions regarding their home and subprime or adjustable rate home mortgage. C. Efforts underway to preserve homeownership in Santa Ana will also benefit from a package of initiatives introduced by the federal administration which includes the following: 1. Modernization of the Federal Housing Administration (FHA) to allow greater numbers of households to access FHA mortgage insurance. 2. Reform of the Internal Revenue Code to exclude the forgiveness of mortgage debt as taxable income and to allow cities and states to issue tax-exempt mortgage bonds to allow the refinancing of existing loans. 3. Appropriation of $180,000,000 to support mortgage counseling for households at risk of losing their homes due to subprime mortgage loans. 4. Reform of government sponsored enterprises such as Fannie Mae and Freddie Mac to increase conforming loan limits and allow these institutions to provide further liquidity in the mortgage markets. D. Additionally, the private sector and lending industry have identified a package of homeownership preservation initiatives promoted by U.S. Treasury Secretary Paulson and the American Securitization Forum. These voluntary efforts provide additional options for borrowers with Resolution No. 2008-XXX 55D-3 Page 1 of 3