Banks Should Follow Chase and Declare Moratorium on Foreclosures

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October 3rd, 2010 9:52 PM

Banks Should Follow Chase and Declare Moratorium on Foreclosures

By James Park / AFL-CIO

The rest of the banking industry should follow JPMorgan Chase’s example and declare a nationwide moratorium on home foreclosures, AFL-CIO Executive Vice President Arlene Holt Baker said today. Chase has announced it is temporarily halting the processing of home foreclosures.

In rallies and town hall meetings across the country, union members have demanded that the banks pursue alternatives to foreclosure such as modifying homeowners’ mortgages to more affordable levels. In July, Holt Baker and Atlanta-North Georgia AFL-CIO President Charlie Flemming were part of a panel in Atlanta that listened to area residents about to lose their homes explain the Big Banks’ role in the foreclosure crisis. After the hearing. Holt Baker and others met with Wells Fargo Wachovia officials and urged them to declare a moratorium on foreclosures.

Last Friday, UAW President Bob King and several faith leaders announced their intention to withdraw hundreds of millions of dollars from JPMorgan Chase, among other reasons, over its refusal to declare a moratorium on foreclosures in Michigan.

In a statement, Holt Baker says:

Millions of working families are on the precipice of losing their homes, and we must stop the avalanche of foreclosures if we are going to save our communities from further economic harm.

The AFL-CIO is working with the Neighborhood Assistance Corporation of America (NACA) to help union members keep their homes. NACA, a nonprofit organization that provides assistance to homeowners facing foreclosure, will host two “Save-the-Dream” workshops—one in Los Angeles, which began today and runs through Oct.4 at the LA Convention Center, and another in Sacramento, Calif., Oct. 8–12 at the Cal Expo Pavilion. Counselors and lenders will be on hand to provide assistance to individuals, including union members, who cannot afford their mortgages.

These workshops will run 24 hours a day. You can get more information and register for the workshops here or call 1-888-499-6222.

Says Holt Baker:

Unemployment is the leading cause of foreclosure, and millions of homeowners have lost their jobs because of the financial crisis and economic recession. Foreclosures hurt the property values of neighborhoods, the credit ratings of homeowners, and the possibility of an economic recovery. The same banks that caused the financial crisis must now do the right thing and stop home foreclosures.

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