Rep. Felix bill extending
foreclosure protections passes House

STATE HOUSE – A bill sponsored by Rep. Leonela Felix that would help homeowners facing foreclosure passed the House today. The legislation preserves the process established by the 2013 Foreclosure Mediation Act.

“I know how devastating foreclosures can be for families and communities firsthand. When I was a kid, my mom got seriously sick and had to stop working for a while. She fell behind on payments and the bank refused to work with her,” said Representative Felix (D-Dist. 61, Pawtucket). “If we had had this program back then, we could have gotten on a payment plan we could afford and stayed in our home. This program has given other families security we didn’t have. It works and we should keep it going.”

Before 2013, the foreclosure processes in Rhode Island had relatively few restrictions. The Foreclosure Mediation Act requires lenders to advise owner-occupant mortgagors of the availability of a “mortgage mediation process” before the lender could proceed to foreclosure. If a homeowner requests mediation, the lender is required to participate in good faith and cannot proceed to foreclosure until a mediation coordinator issues a certificate affirming that the lender has complied with the law.

Advocates say the law is working. According to RI Housing, over 1,500 homeowners have participated in foreclosure mediation conferences over the past ten years. About 46% of completed mediations have resulted in the homeowner avoiding foreclosure through a loan modification, reinstatement or acceptable repayment plan.

The program was originally slated to end in 2018, but that year lawmakers passed a five-year extension. It is now set to expire on July 1, 2023. Representative Felix’s legislation (2023-H 5761A) would extend the program until July 1, 2026.

The bill now heads to the Senate, where Sen. Dawn Euer (D-Dist. 13, Newport, Jamestown) has introduced legislation (S-2023 0163) to remove the sunset entirely and make the program permanent.

“To a lender, a mortgage might just be a line on a spreadsheet. But to a homeowner, it’s so much more than that,” said Senator Euer. “These additional protections help people get back on their feet, stay in their homes and keep paying their bills. That’s better for everyone.”

During the COVID-19 pandemic, the federal government put in place a number of protections for homeowners who were struggling with their mortgage payments. Those protections have now largely expired. That, advocates say, makes extending state-level protections even more urgent.

“For almost a decade, the foreclosure mediation law has been helping struggling homeowners avoid foreclosure and remain in their homes,” said Carol Ventura, Executive Director of RIHousing. “RIHousing is proud to play a part in implementing this important law, and thanks Senator Euer and Representative Felix for promoting legislation to ensure that these important protections will continue to be available to Rhode Island homeowners.”

 

Former President Trump says he has been indicted over what he calls the "boxes hoax." In a post on his Truth Social platform, Trump said that he has been summoned to appear at the federal courthouse in Miami on Tuesday. Prosecutors decided to indict Trump for his alleged mishandling of classified documents and obstruction of the government's attempt to retrieve the documents after a months-long investigation by special counsel Jack Smith.       Donald Trump Junior is reacting to news of former President Trump's indictment over the handling of sensitive documents. In a tweet Thursday, Trump's oldest son said "We're living in a 3rd world Banana Republic." He added that "the only way to stop what the corrupt Biden DOJ" is doing is to put Trump back in the White House.       Forecasters say the wildfire smoke blanketing the Northeast may start lifting tonight. Air quality alerts have been posted across the region after smoke from Canadian wildfires created hazardous breathing conditions. Meteorologists say the smoke has settled over the Northeast because a stationary low pressure system has been steering a persistent wind southward into the U.S.       More than twenty teenagers are hurt after a deck collapsed at a park in Southeast Texas. The collapse happened this afternoon at Stahlman Park in Surfside Beach during a summer camp event. Officials said 21 victims between the ages of 14 and 18 were taken to the hospital.       Half of American adults say they disapprove of affirmative action. A Pew Research Center survey shows that half of Americans don't think colleges and universities should take prospective students' racial and ethnic backgrounds into consideration. A Supreme Court decision is expected this month on the issue, based on two cases involving Harvard and the University of North Carolina.       The Florida Panthers are looking to get on the board tonight against the Golden Knights in the Stanley Cup Final. Game Three of the best of seven series is taking place in Sunrise. Florida is down two-oh after losing the first two matchups in Las Vegas.