PRESS RELEASE

FOR IMMEDIATE RELEASE: Tuesday, January 28, 2014

Photos available for all uses

CONTACT: Justin Thompson PHONE: 617-722-2810

Justin.Thompson@mahouse.gov

Diehls Commission on Housing crisis leaves Massachusetts Developing Plan to Avoid Future Problems
BOSTON (1/23/2014) - State Representative Geoffrey Diehl (R - Whitman) announced this week that the Special Commission to Study Mortgage Finance Relief, established by a Diehl Budget amendment to the FY 12 GAA (General Appropriations Act), has completed its research and released its findings. We must ensure that the state is never again engulfed in a mortgage crisis again. Over these past three years I have worked to help dozens of people facing underwater properties and the threat of foreclosure, said Diehl. This special commission will be making important recommendations to avoid future problems. The commission was chartered to explore solutions for homeowners with negative equity but who were not delinquent on their mortgages. The commission reviewed existing programs, market history and current financial realities. Experts were brought in from Milliman, Inc. to determine the scope of the problem and identify homeowners who could not be helped by programs like HARP and HARP 2.0. Further research was conducted by the Federal Reserve Bank of Boston to determine economic impacts of potential rescue programs and State Street Global Advisors (SSgA) to analyze mortgage revenue bonds and potential risks to investors. Chaired by the Executive Director of the Massachusetts Housing Finance Agency (MassHousing), the eight person commission included the House and Senate Chairs of the Financial Services Committees Rep. Michael Costello and Senator Anthony Petruccelli; as well as Representative Diehl. The Seventh Plymouth District was hit particularly hard by this mortgage crisis. At the peak of the crisis (March 07 and Feb. 08) there were 31,516 foreclosures started in Massachusetts and with 843 foreclosures in 2008, Plymouth had the highest foreclosure rate in the Commonwealth at .44%. The economic impact to a community from just one foreclosed property can be as high as a net loss of $1 Million dollars due to decreased property values, loss of consumer purchasing power, lower tax revenues and increases in crime.

As home prices have crept back up in 2013 the housing market has been brought back slightly from the edge. The Commissions findings advised against a bail-out program for homeowners and Rep. Diehl has filed a bill to establish the Massachusetts Emergency Housing Assistance Program (MEHAP). The bill is modeled after a similar program successfully run in Pennsylvania since the 80s. MEHAP would provide mortgage insurance to homeowners who find themselves underwater and struggling with payments. Teresa Noble of Abington is a constituent of Rep. Diehl who had trouble with an underwater mortgage. We battled the big banks for three years, she said, and when I finally got in touch with Geoff- he made it happen. Thanks to him and his help we are now comfortable with our mortgage. Coupled with the information compiled by the Mortgage Commission, MEHAP could help thousands of Massachusetts homeowners weather possible economic storms in the future. Keeping with his promises to make Beacon Hill more transparent, Rep. Diehl has made the studys findings and appendices available on his website: www.GeoffDiehl.com, located under Constituent Services. If you are still having trouble making payments on your mortgage, Rep. Diehls office may be able to identify programs that can help. Please feel free to call (617) 620-6054 for questions concerning mortgage refinance or any other legislative matters.

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