November 27, 2007 (LPAC)--This resolution passed, today, unanimously in Newark, NJ's city council. It was sponsored by Councilman Ronald Rice.

After the unanimous vote, Council President Mildred Crump wanted follow-up, so this isn't another meaningless resolution passed by the city council. And, not only did Councilman Rice say it would be forwarded to NJ Congressman Payne (from that district), but that it also should be sent to the NJ senate and house, since it was being debated in the Pennsylvania assembly this Thursday.

Resolution of the City of Newark

Resolution by the Newark Municipal Council urging that the United States Congress institute a Moratorium on home mortgage foreclosures and requesting that Congress enact homeowners and bank protection legislation.

Whereas, a financial crisis involving home mortgages, debt instruments and the United States banking system threatens economic stability both within the Untied States as a whole and the city of Newark in particularly [sic], and

Whereas, the financial crisis has been fueled by aggressive mortgage brokers, unscrupulous agents and developers who provided easy access "sub-prime" adjustable rate mortgages with no money down to unqualified, high-risk borrowers, and

Whereas, historically during a national financial crisis, the federal government has intervened to protect financial institutions and home ownership and to provide guarantees of housing and economic stability, and Whereas, hundreds, if not thousands of Newark homeowners could be facing foreclosures on their homes in the near future, which would negatively impact on the economic vitality of the city and seriously jeopardize its revitalization and economic rebirth.

Now, therefore, be it resolved by the municipal council of the city of Newark, New Jersey that it does strongly urge the United States Congress to enact legislation that will provide a moratorium on existing home mortgage foreclosures by freezing mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages to appropriate interest rates and writing off speculative debt obligations of mortgage backed securities and financial derivatives.

Be it further resolved that a certified copy of this resolution be forwarded to Newark's Congressional delegation for their review and appropriate action.