Lt. Governor John Carney Announces Task Force To Look At Impending Mortgage Foreclosure Crisis

$50,000 To Be Allocated To Continue Education Efforts

Lt. Governor John Carney announced today the formation of the Foreclosure Task Force to look at the growing problem of mortgage foreclosures in Delaware. The Task Force is made up of members from the public, private and non-profit sectors and brings unique expertise to address a problem that is expected to grow to unprecedented proportions over the next two years.

"The current problem and the impending crisis have been well documented," the Lt. Governor said. "We know what we're going to face and we need to get to work on developing ways to help those people who are facing a very difficult situation."

The Office of the Lt. Governor and the Office of the State Bank Commissioner have identified $50,000 in funding through the Department of State to continue outreach and education efforts by the Office of the State Bank Commissioner.

"The best way to help people right now is to make sure they know their current situation and how that might change in the next few months or the next year," said Carney. "If we can educate people to assess their situation and address it before it's too late, there are options for them to consider."

The 12-person Task Force includes the following members: Lt. Governor Carney, Secretary of State Windsor, Delaware State Housing Authority Director Saundra Johnson, Delaware Office of Management and Budget Jennifer Davis, Rep. Helene Keeley, Sen. Gary Simpson, Banking Commissioner Robert Glen, Susan Frank of Fannie Mae, Roland Ridgeway of the Delaware Federation of Housing Counselors, Rashmi Rangan of the Delaware Community Reinvestment Action Council, Keith W. Schuck Chairman of the Delaware Bankers Association and President of Chase Bank USA, and Ken Smith of the Delaware Housing Coalition.

"I'm grateful to all the members who are willing to give their time to address foreclosures in Delaware," the Lt. Governor said. "Deputy Bank Commissioner Gerry Kelly in particular has brought this issue front and center and sounded the alarm. I'm going to suggest to this Task Force that it consider the data and forecasts that Gerry has collected, along with the recommendations he's made, as discussion points. The foreclosure study that was funded by the General Assembly and completed last spring is also full of valuable information. And while those are great starting points, I hope the members are open to all suggestions and ideas. The main goal is to find the best ways to address this problem."

The Lt. Governor also praised the budget appropriation efforts of Task Force member Rep. Helene Keeley, which resulted in funding for the Delaware Mortgage Assistance Program (DEMAP). The program gives assistance to homeowners who, through no fault of their own, are in danger of losing their homes to foreclosure. Anyone interested in finding out more about the DEMAP program should contact the Delaware State Housing Authority at (800) 363-8808.

A schedule of Task Force meetings will be set shortly.