Gov. Gregoire announces $28 million in federal funds to address foreclosures

For Immediate Release: October 1, 2008

OLYMPIA � Gov. Chris Gregoire today announced the state�s receipt of more than $28 million from the U.S. Department of Housing and Urban Development (HUD) to help neighborhoods hard hit by recent credit instability.

�The financial turmoil on Wall Street and the national mortgage crisis have hurt Washingtonians. This funding provides a welcome supplement to our own efforts to provide relief to citizens who are most vulnerable to the national economic downturn,� Gregoire said. �I will move as quickly as possible to put this money to work in our communities.�

Washington could have qualified to receive as much as $80 million from HUD based upon the state�s population. However, the state received a lesser amount because of Washington state�s low foreclosure rate, due in part to programs introduced by the governor that protect consumers and police bad lenders.

�The Department of Financial Institutions (DFI) is working hard to keep consumers safe � particularly from businesses targeting consumers with predatory lending practices,� said DFI Director Scott Jarvis. �In addition, the state�s homeownership counseling program, which DFI oversees, has helped more than 1,500 Washington residents in their pursuit of either becoming a homeowner or avoiding foreclosure on the home they already own.�

The HUD funds will help supplement programs the governor has put in place since 2005 to assist homeowners. These programs include:

� Reforming mortgage lending: The governor�s task force on homeowner security last year recommended and the Legislature enacted new lending regulations, consumer protections and requirements for disclosure to consumers. Gregoire enacted legislation to stop unscrupulous lenders from preying on distressed homeowners. The governor also approved funding for homeowner counseling services that have helped more than 1,500 homeowners facing foreclosure or looking to buy homes.

� Policing bad lenders: Washington continues to aggressively police bad actors who harm consumers � from Countrywide Financial, whose license the state revoked this summer, to the securities dealers the state recently fined for misleading investors.

Through HUD�s Neighborhood Stabilization program, nearly $4 billion has been distributed across the country. This initiative targets emergency assistance to state and local officials to acquire and redevelop foreclosed properties that might otherwise become abandoned in communities.



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