“Banks and credit unions continue to work individually with their borrowers to continue to ensure they can avoid foreclosure,” Rep. Daniel Bonham, a Republican from The Dalles, said when promoting the surrogate. . “The share of overdue and delinquent mortgages continues to decline as the economy improves.”
According to the Mortgage Bankers Association, he said, Oregon’s foreclosure rate was 4.96%, which places it 48th among the 50 states and in Washington, DC.
“If federal financial aid is disbursed correctly, a moratorium on foreclosures beyond June 30 will not be necessary,” Bonham said. “We will move away from disputes over foreclosures and towards real solutions that are finally available to us.”
He and half a dozen Republicans also opposed the main bill on the grounds that it was an unconstitutional breach of contracts. Some of them compared it to attempts by the legislature to change Oregon’s public pension system, which the Oregon Supreme Court ruled cannot be changed retroactively.
Holvey said the bill does not allow borrowers to waive mortgage payments. He said that if the bill is unconstitutional, so are federal programs to prevent foreclosures.
“The risk of not passing this bill is a risk to Oregonians, not a risk to a lender’s constitutional rights on Wall Street,” he said. “We have not compromised their ability to collect what is owed to them. It is just a matter of timing in relation to the foreclosure process.”