Boulder City Magazine® November 2008 Issue
by Jon C. Porter, Third District Congressman
Protecting Boulder City's Tourism and Economy
On Monday, October 6, Bank of America (who acquired Countrywide Financial in July of 2008) entered into a settlement with several states including Nevada, that will modify $8.4 billion in subprime, adjustable rate or pay-option mortgages originated by Countrywide.
Boulder City Magazine®
|Nevada’s Third Congressional District is now the third fastest growing in the country and has been one of the hardest hit by the sub-prime mortgage crisis. Thus far, Boulder City’s foreclosure numbers have been relatively low, but residents will soon see the effects of a faltering Southern Nevada economy if we do not work quickly and effectively to address this issue. This settlement will begin to do that, saving Southern Nevada’s economy from $219 million in wasted dollars and keeping nearly 11,000 borrowers in their homes.
The loan modification program will also work to suspend foreclosures for eligible borrowers with sub-prime and adjustable rate loans; waive up to $2.2 million dollars in borrower’s late fees; provide payment relief to borrowers who are 120 or more days delinquent or whose homes have already been foreclosed upon; and preemptively issue roughly $4.8 million dollars in payments to borrowers who will be unable to afford monthly payments in the future as a result of their subprime or adjustable rate mortgage.
Though few Boulder City residents have fallen victim to foreclosures - the impact of countless citizens losing their homes, combined with millions of wasted dollars within Southern Nevada - would have a crippling effect on tourism (Boulder City’s number one industry) and consequently, the community’s overall economic prosperity.
This settlement is one of many relief packages that will be instituted in the coming days to help our families. I understand that the Boulder City community cannot afford to struggle and I will continue to fight for sound policies, transparency and accountability to help us through this period of economic hardship.
According to Countrywide, the loan modification program will be ready by December 1, 2008. Borrowers whose first payment was due between January 1, 2004, and December 31, 2007, will be able to participate in the settlement.
Contact U.S. Congressman Jon Porter at www.house.gov/porter.
P.O. Box 61901
Boulder City, Nevada 89006
Phone (702) 294-1392 Fax (702) 294-1392
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