Written Testimony of Robert J. Haynes, President, Massachusetts AFL-CIO to the Joint Committee on the Judiciary

Date: October 15, 2009

Bills: “An Act to Establish a Temporary Moratorium on Foreclosures” (HB1510/SB1751);

“An Act to Protect Tenants in Foreclosed Properties from Evictions” (HB1232/SB1609);

“An Act to Amend the Foreclosure Statute to Require Judicial Foreclosure” (HB1729/SB1778)

My name is Robert Haynes, and I am privileged to be the President of the Massachusetts AFL-CIO, representing approximately 400,000 working families from over 750 local unions. Please accept this written testimony in support three bills which can turn the foreclosure crisis around in Massachusetts. This Commonwealth and our government must step up and step in to correct the injustices and unfair treatment of homeowners caused by the unregulated system.

“An Act to Establish a Temporary Moratorium on Foreclosures” (HB1510/SB1751), “An Act to Protect Tenants in Foreclosed Properties from Evictions” (HB1232/SB1609), and “An Act to Amend the Foreclosure Statute to Require Judicial Foreclosure” (HB1729/SB1778) will significantly level the playing field for homeowners and tenants within Massachusetts. We support this legislation to help stem the tide that is washing people out of their homes due to unscrupulous business practices and corporate greed run amuck.

“An Act to Establish a Temporary Moratorium on Foreclosures in the Commonwealth” would allow mortgage holders 180 days to modify the terms of their mortgages and possibly keep their homes. “An Act to Protect Tenants in Foreclosed Properties from Evictions” is an addition to chapter 186 that prevents foreclosed owners from evicting their tenant or former owner-occupant, except for just cause. “An Act to Amend the Foreclosure Statute to Require Judicial Foreclosure” ensures the right to a day in court so that possible foreclosed property owners have the opportunity to make a case for keeping their homes. Each of these bills is a fair and reasonable way to rectify the manipulation of working families by profit-driven banks and lenders who, through predatory lending and other misleading, unethical means, have exploited hard working citizens of the Commonwealth and left them on the brink of homelessness, or worse, homeless and bankrupt.

Let people in foreclosed buildings pay rent and remain in their apartments. Allow a six month moratorium on subprime foreclosures that are presumptively unfair and keeps homeowners in their homes while more comprehensive solutions to this crisis are established on the state and federal levels. And finally, give the homeowners in the state a chance to go before a judge before foreclosure. These are modest bills that do not ask much but give these victims a chance to get back on their feet and stay in their homes. The very banks and institutions that caused this mess have been given that chance and have been rescued, in fact, by our hard-earned tax dollars. It is only right that the legislature use its authority to force these same banks and institutions to be a little more flexible when their clients are facing foreclosure as a result of the deplorable business practices of the banks and lenders who created this housing crisis.

The Massachusetts AFL-CIO supports HB1510/SB1751, HB1232/SB1609, and HB1729/SB1778 to address the housing crisis facing millions of working families. We urge you to report these bills out favorably and as expeditiously as possible. Thank You.