Last-Second Bill to Help Big Banks Nears Passage
Thursday, June 10, 2010
One bill that ought not survive the final day of the General Assembly's session is H-8154A.
This bill, sponsored by Rep. Donald Lally, is a direct frontal assault on Providence's attempt - through city ordinance and recently upheld by the courts - to provide a safety valve for homeowners who are facing foreclosure by establishing a mandatory mediation process between the homeowner and mortgage holder.
According to the bill's text, "This act would... prevent towns and cities from regulating or seeking to impose any requirement, duty or obligation affecting the rights of any mortgagee or any person who acquires title or the occupants of the property subject to such mortgage."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThis pre-emption clause would effectively prevent cities and towns from dealing with the foreclosure crisis and would weaken the rights of homeowners in this watered down bill.
Put simply, this state law would overturn Providence's efforts to help struggling homeowners.
The bill cleared a House committee last night and is headed to the House floor for a vote today.
At a time of still-record-high foreclosures in Providence and across Rhode Island, legislation like this ought to be rejected.
