McKenna Sees How National Mortgage Deal Helps Tri-Citians
After he was hurt on the job and went on disability , Zook, 61, said the monthly payment of $1,100 became more than his monthly income.
Then he got connected with the nonprofit Consumer Credit Counseling Service of the Tri-Cities. That’s where Yvonne Fengler, a housing counselor certified by U.S. Department of Housing and Urban Development (HUD), helped him refinance his mortgage to a lower interest rate and monthly payment.
State Attorney General Rob McKenna said services like those that helped Zook will get a boost from a $25 billion national mortgage settlement he helped negotiate with the nation’s five largest lenders.
“There are few things worse than losing your home,” McKenna said Monday in Kennewick while visiting Consumer Credit Counseling.
Washington will receive about $650 million from the settlement that was formalized Friday.
Most will go directly to families who had home loans with Bank of America, Wells Fargo and Co., JPMorgan Chase and Co., Citigroup or Ally Financial , formerly GMAC, for services such as home refinancing and principal reduction, McKenna said.
The $45 million will be used to help keep homeowners in their homes no matter what company holds their mortgage, he said.
Some of that money may help support the Washington Homeownership Information Hotline — 1-877-894-HOME — which connects borrowers who need help to nonprofits including Consumer Credit Counseling, which is part of Apprisen Financial Advocates, he said.
McKenna said his office is in the process of forming a commission of lawmakers and experts to decide which proposals from nonprofit agencies should be funded with the settlement.
“The No. 1 goal is to keep as many people still in their homes there,” McKenna said.
The Tri-Cities is not insulated from the problem of home foreclosures. “The problem is here. It is local,” said Laurie Tufford, the regional director of partnerships for Consumer Credit Counseling.