Here’s a recap of noteworthy agenda items and policy issues facing Los Angeles City Councilmembers on Wednesday, February 15, 2011.
Los Angeles City Councilmembers heard discussion on the Mandatory Mortgage Modification Mediation Program (motion). The program would provide homeowners facing foreclosure the opportunity to have a meeting with their lender and consulting from an impartial, trained mediator.
Councilmembers Bill Rosendahl and Dennis Zine requested the Los Angeles Housing Department and other City staff to report back on:
a. How effective a similar mediation program has been in Springfield, Massachusetts.
b. What options the City of Los Angeles has to enact its own mediation program.
c. If the City has any way to force binding mediation between borrowers and lenders.
d. If a mediation program is the most effective use of resources to positively reduce the number of foreclosures.
Also on Wednesday, Rosendahl and Councilman Richard Alarcon introduced a verbal motion, which requests a list in the Responsible Banking Ordinance (RBO) the names of banks that are participating in mortgage modification programs, as well as the ones that are not.
The City Council also discussed the Reverse Mortgage Refinancing / Low-Income Seniors motion. Councilmembers Rosendahl and Zine requested LAHD and other City staff to report back on:
a. What options the City of Los Angeles has to model a program off of Springfield, Massachusetts reverse mortgage counseling program.
b. If any non-profit organizations in Los Angeles have the resources, expertise and willingness to provide reverse mortgage counseling.
c. If a mortgage counselor could potentially serve in the capacity of a watchdog or advocate for the homeowner.
Read what happened during Tuesday’s council meeting.