Governor Gregoire Forms Task Force to Protect Washingtonians from National Mortgage Instability

For Immediate Release: September 17, 2007

Strong Washington economy presents opportunity to evaluate national trend and work to minimize potential impact to the state

OLYMPIA � Governor Chris Gregoire today announced that she has formed the Task Force for Homeowner Security to evaluate instability in the national subprime mortgage market and ensure that the impact of this national trend is minimized in Washington.

While the Washington economy is strong and the state is not yet seeing foreclosures and defaults at the same rate as other states, Governor Gregoire is concerned for Washingtonians who may be at risk of losing their homes due to the unstable lending market.

�My concern is for Washingtonians who see what is happening on the national market and are worrying they may lose their own home or won�t be able to purchase a house,� said Governor Gregoire. �Because we are not yet seeing high rates of foreclosures and defaults, I convened this group of knowledgeable and compassionate people to work on solutions before this national problem hits Washington as hard.�

Governor Gregoire has directed the group to provide evaluation and recommendations for action to her on:

  • The extent of the problem and impact in Washington for current and new homebuyers;
  • Ways to facilitate sensible refinancing options from responsible lenders for homeowners in default or at risk of default;
  • Consumer education to those in foreclosure or at risk of foreclosure;
  • Consumer education to potential new home buyers; and
  • Reforms to Washington lending practices, as needed.


Governor Gregoire has appointed Carol Nelson, Everett, chief executive officer of Cascade Bank, to chair the task force.

Other members of the task force are:

  • Dwayne Aberle, president and chief executive officer of Security State Bank
  • Michaela Albon, senior vice president and general counsel for home loans at Washington Mutual
  • Tom Echols, regional director of government affairs for HSBC � North America
  • Kim Herman, executive director of the Washington Housing Finance Commission
  • Scott Jarvis, director of the Washington Department of Financial Institutions (DFI)
  • James Kelly, president of the Urban League of Metropolitan Seattle
  • Tricia McKay, executive director of the Medina Foundation
  • Richard Mitchell, general counsel for the Office of the Governor
  • Sharon Nelson, chair of the Consumers Union
  • Gary Oakland, president and chief executive officer of the Boeing Employees Credit Union
  • Aiko Schaefer, director of the Statewide Poverty Action Network
  • Adam Stein, mortgage broker commissioner for American Brokerage, LLC


The task force is scheduled to deliver recommendations to Governor Gregoire no later than December 31, 2007.

�We are constantly searching for ways to improve our education and enforcement programs to assist and protect mortgage consumers. This is an opportunity to make sure we are doing all we can do for Washingtonians,� said Scott Jarvis, director of DFI. �I am pleased to offer the committee the full support of DFI.�

�I am pleased to serve the citizens of Washington as the chairperson of this important effort. This is one of the most serious issues facing the financial industry and we must be proactive if we want to minimize the potential impact to our customers and neighbors in Washington,� said Carol Nelson, chair of the committee.

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