Councilmember Licata left office on January 1, 2016.
This website is for archival purposes only, and is no longer updated.


Resolution 31495 Moves to the Full Council Monday

1 Comment (Leave Comment)

Yesterday, the Seattle City Council Housing, Human Services, Health, and Culture committee voted 5-0 to move Resolution 31495 on to the Full Council on Monday, December 16. 

Next, the City Council will form a City of Seattle Interdepartmental Team (IDT) to explore whether principal reduction and other foreclosur12-12-13e prevention programs can help low- income homeowners.  By March 15, 2014, the IDT will report to the City Council Finance Committee and the Housing Committee on the financial and legal implications of specifically the three principal reduction programs proposed in the Hockett Report and a recommendation on what approach the City should take to help low-income homeowners in order to support and revitalize communities impacted by the foreclosure crisis.

Principal Reduction is when the mortgage is rewritten to reflect the actual value of a home.  The Hockett Report was commissioned by the Council last March after passage of Resolution 31434.   It was received in late September and its conclusion is that programs that accomplish mortgage principal reduction for homes that are “underwater” (when more money is owed on a home than the home is worth) are better strategies to pursue than traditional mortgage prevention programs that either provide limited monetary assistance or lower monthly payments.  The mortgage debt overhang of underwater homes is one of the primary drags on economic recovery and is valued at an estimated $1 trillion more than our nation’s homes were worth.  Principal Reduction may aide in our economic recovery by returning some of the money that is going to the banks back in people’s hands to put back into the economy through increased consumer spending.

Following the IDT’s March recommendation, by June the IDT will report to the City Council on the characteristics of low-income homeowner mortgages that a program should target, including an estimate of the number of loans and the average benefit to borrowers and the attendant economic benefit to the community. Also by June there will be a strategic plan proposed for the development of the program and a list of the potential partners to fund the program.

This is important work for the City to take on. 2012 estimates of homeowners who were underwater on their mortgages ranged from 24,000 to 42,000 with homeowners owing on average $65,900 to $131,800 more on their mortgage than their homes are worth.  Seattle zip codes, 98104, 98106, 98121, 98148, 98168, and 98178 have underwater home mortgage loan concentrations of 43%, 38%, 39%, 42%, 44%, and 40%, respectively.This is higher than the national average of 20 – 25%

If you are interested in more background, you may want to read what I’ve written on this issue in the past.

Share Button


RSS feed for comments on this post |

Comment from Pina Orsillo Belgrano
Time December 13, 2013 at 9:43 am

Mr. Licata, Thank you for all your support!

I am another FACE behind this PLAGUE at the meeting!

Educated, studied 5 languages, former business owner etc.
Member of WA CAN & SAFE. I have had meetings with Attorney General Ferguson, Mr. Zwicker and 37th Representative Pettigrew district who are all supportive of this cause.

In short my story is familiar to what brought us in this situation. Suffering Hardships such as Single parent, Medical impairment, loss of income, unemployment and forced to work at minimum wage jobs to support my family.

Long drawn out battles with CHASE unethical behavior since 2008, destroyed credit, SALE, RESALE Tactics by the bank to discourage us from pursuing what is FAIR.. to Freddie Mac, Vericrest Financial, now Caliber Homes, useless Mediation with their legal Rep. RCO Routh Crabtree Olsen who had the audacity to show up with not my current file, leading to pay for a another mediation and still unsure of outcome.

Each time cornered to accept “CHASE NEXT BEST DEAL” & each time being set up for FAILURE!!

This is not the American Dream I signed up for at the age of 16 and find myself homeless at that of 58 asking for Refuge to the Italian Goverment, a Goverment whom I have never PAID TAXES TO!

Principal Reduction & or Eminent Domain is the only answer!!

Sincerely, Pina Orsillo Belgrano

Leave a comment

You need to login to post comments!