The Left

The Good Mayor

Gayle McLaughlin
Gayle McLaughlin
Gayle McLaughlin, 1952, is a California politician. She is a member of the Green Party and, since 2006, the mayor of Richmond, California. McLaughlin was elected on November 7, 2006 by a 242-vote margin over incumbent mayor Irma A. Anderson. | Photo: | Gayle Mclaughlin, Mayor, California, Green Party,

Common Sense Solution to Underwater Homes

Mayor Gayle McLaughlin, representing Richmond, California has recently teamed up with a private business, Mortgage Resolution Partners, to implement an innovative troubled mortgage buyback program to help stem off the myriad of problems coming from the 2008 Great Depression and the housing market collapse.

Richmond, California was hit very hard during that collapse, and instead of letting the problem linger, while it destroys the financial lives of thousands of innocent American citizens and families; the city is going into action by buying back underwater properties from transnational banks, who have yet to work with the American homeowner.

By buying back the mortgages at the current market value, and passing that repurchased mortgage back to the homeowners, Mayor McLaughlin solves a problem our government is unwilling to solve; not to mention the tremendous long term financial benefit such a plan will have for the city, and the citizens of Richmond for decades to come. Such a simple solution, and one that could have been implemented on 1st mortgages that were underwater throughout America, for less than $700 billion; instead our government has already spent $2.5 trillion on saving transnational banks and corporations.

If the banks refuse Mayor McLaughlin's offer to purchase the mortgage for fair market value, she will use the power of eminent domain, and seize the property back from these transnational banks/corporations, seeking to harm the American way of life.

Using that power bestowed upon her as Mayor of Richmond, California, she will be setting a new standard that focuses on fixing Main Street and not uncooking the fraudulent accounts on Wall Street with public resources - a most welcomed change.

The people of Richmond, California are well served with Mayor McLaughlin in office, they did a fabulous job of voting in someone interested in representing their needs, creating positive change that trumps any current solutions out there ' well done Richmond.

I asked Mayor McLaughlin some questions about the program and she was kind enough to answer, here are her responses.

Claude Morton: Where did the idea for your buyback (of troubled homes/foreclosed homes) program come from?

Mayor McLaughlin: A professor from Cornell University.

Claude Morton: Was it an internal idea to implement it or did a group bring it to you?

Mayor McLaughlin: Mortgage Resolution Partners (MRP) brought the program to us, and we have an agreement with MRP for the funding and technical assistance.

Claude Morton: Have you shared this idea with other Mayors?

Mayor McLaughlin: Yes, mayors of other cities are very interested and some have already started moving forward. Richmond is in the lead but cities of El Monte and La Puente (in California), Seattle, North Las Vegas, Newark, New York City and others are also coming on board with this program.

Claude Morton: Have you shared this idea with our Federal Government? If yes, how has the response been?

Mayor McLaughlin: The FHFA is the only federal agency that has responded to this, and sadly they are supporting the mortgage industry.

Claude Morton: Do you think this common-sense approach could work on the Federal level?

Mayor McLaughlin: If they had the political will'.but thus far, they have not.

Claude Morton: In addition to saving your communities, social and family networks, property prices, and preventing further crime, will the city plan on profiting from the interest stream this program will surely generate, or do the benefits offset the costs?

Mayor McLaughlin: The City is simply reducing the mortgage (in-line with the value of the home) for the homeowners, and placing a refinanced mortgage back in the hands of the homeowners. So we do not expect an interest stream. MRP is providing all the funding for purchasing the mortgages and any legal costs incurred will also be paid by MRP. Not one tax dollar will be used for this program. The program will provide a small amount of revenue for the City's administrative costs that we will place in our affordable community housing programs.

Comment on Disqus

Comment on Facebook

Updated Apr 22, 2017 6:00 AM EDT | More details

AND Magazine AND MAGAZINE

©2017 AND Magazine, LLC
5 Columbus Circle, 8th Floor
New York, New York 10019 USA

This material may not be published, broadcast, rewritten, or redistributed without express written permission from AND Magazine corporate offices. All rights reserved.