December 28, 2007 (LPAC)--On Wednesday, Dec 26, 2007, the East Orange, New Jersey City Council passed ``a resolution urging a moratorium on home foreclosures and Congressional enactment of a Homeowners and Bank Protection Act.''

Although passed earlier, several council members objected to some language, and it was sent back for revision. Here is the full text, with the above heading, which, introduced by Councilman Ted Green, was read in its entirety, and passed unanimously. Their quote from FDR in 1933 and their emphasis on their role as responsible elected officials makes this resolution notable.

    WHEREAS, the onrushing financial crisis involving home mortgages, debt instruments of all types and the banking system of the United States threatens to set off an economic collapse worse than the Great Depression of the 1930's, and

    WHEREAS, under similar circumstances in the 1930's, President Franklin D. Roosevelt successfully intervened to protect banks and homeowners, addressing Congress with a ``declaration of national policy'' on April 13, 1933, which stated ``that the broad interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability, and that to protect homeowners from inequitable enforced liquidation in a time of general distress is a proper concern of the Government.''

    WHEREAS, the financial crisis threatens the integrity of Federal and chartered banks such that consumer deposits and life savings are jeopardized; and....

    WHEREAS, millions of Americans, and thousands of New Jersey residents are facing foreclosures on their homes, and

    WHEREAS, historically the Federal Government has intervened to protect financial institutions and home ownership and to provide guarantees of social and economic stability; ....

    NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Council of the City of East Orange call upon the United States Congress and President of the United States to take emergency action to protect homeowners by enacting a Homeowners and Bank Protection Act specifically to:

    1) Establish a federal agency to place Federal and State chartered banks under protection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages at appropriate interest rates and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial instruments that have brought the banking system to the point of near collapse;

    2) Declare a moratorium on all home foreclosures for the duration of the transitional period, allowing families to retain their homes;

    3) Require affordable monthly home mortgage payments and to factor such affordable payments into new mortgages thereby deflating the housing bubble, establishing appropriate property valuation and reducing fixed mortgage interest rates;

    4) Provide an interim period during which homeowners may not be evicted from their homes and protection to banks pending the resumption of traditional banking functions, including serving local communities and facilitating credit for investment in productive entities; and

    5) Authorize state governors to administer the implementation of programs, including provisions for rental assessments payable to specific banks and with provisions for necessary federal guarantees and credits to assure successful transition.

    BE IT FURTHER RESOLVED, that a duly authenticated copy of this resolution be served upon our State Legislative delegation, Congressional delegation, Governor Corzine and President George W. Bush as notice that the Municipal Government of the City of East Orange has been, is, and shall be vigilant as guardians of the public interest of the citizens of East Orange in all matters to the extent legally feasible and possible."