Rep. Randolph wants more foreclosure details from Crist, banks

In response to Gov. Charlie Crist's press conference this morning about a temporary halt in bank foreclosures, Democratic Orlando Rep. Scott Randolph (whose wife is an ACORN honcho) issued this statement:

“I applaud Governor Crist for his ability to get the mortgage lenders to the table,” he told WKMG-TV at a recorded press response held in his office. “Unfortunately, what they have offered Floridians is not relief, but rather vague promises made by unspecified lenders. Forty-five days is not a long enough moratorium; it doesn’t include those families already in foreclosures; and today’s press conference left Floridians wondering if their bank is even included in the offer.”

Fannie Mae and Freddie Mac, holders of millions of mortgages in Florida and around the country, released statements last week that they would not initiate foreclosures until after the holidays. Yet the participating banks and lenders were not named at today’s press conference.

“Without details, nothing has really changed. It is imperative that Floridians know where they stand with their lenders,” said Randolph. “The largest mortgage holders in the country –Fannie Mae and Freddie Mac–have already agreed to stop foreclosures for the next 45 days, but it’s unknown what additional lenders agreed to follow their lead.”

In addition, Randolph said the plan was only putting a band-aid on a long-term wound to the state’s economy.

“The plan announced is only a voluntary measure by the banks, and from what was said at the press conference, it will only affect those homeowners who are entering foreclosure starting today,” said Representative Randolph. “It will leave behind thousands of families who have been threatened by foreclosure for weeks or months.”

Rep. Randolph also criticized mortgage lenders who do not respond to phone calls from homeowners in trouble. “So many families have tried reaching out to their bank for over a year. For them, today’s announcement signals only that they have 45 more days to try to get through to someone.” He indicated that by waiting, banks have allowed a foreclosure crisis to occur.

According to RealtyTrac, Florida has the nation’s third-highest state foreclosure rate, with 166,600 households statewide being impacted by foreclosure activities in October 2008. Representative Randolph says the State of Florida has the power and the duty to respond to the foreclosure crisis with a much more substantive plan.

“We need immediate action to stem the tide of foreclosures,” said Randolph. “But we also need substantive reform to ensure it doesn’t happen again.”