The 3rd meeting of the Interim Joint Committee on Banking and Insurance was held on Tuesday, September 23, 2008, at 10:00 AM, in Room 149 of the Capitol Annex. Representative Tommy Thompson, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative Tommy Thompson, Co-Chair; Senators Julian M. Carroll, Julie Denton, Dorsey Ridley, Dick Roeding, Dan Seum, and Tim Shaughnessy; Representatives Johnny Bell, James R. Comer Jr., Will Coursey, Ron Crimm, Ted Edmonds, Tim Firkins, Danny Ford, Jeff Greer, Mike Harmon, Dennis Horlander, Dennis Keene, John Tilley, Ken Upchurch, Ron Weston, and Susan Westrom.
Guests: Scott Brown, Director, Department of Financial Services, Debra Crocker, Staff Attorney, and Sara Boswell, Executive Counsel, Administrative Office of the Courts and Richard McQuady, Interim Chief Executive Officer, Kentucky Housing Corporation.
LRC Staff: Rhonda Franklin, Chad Collins, and Jamie Griffin.
The minutes of the August 25, 2008, meeting were approved.
Scott Brown, Director, Department of Financial Services, Administrative Office of the Courts (AOC), recognized Debra Crocker, Staff Attorney and Sara Boswell, Executive Counsel, also with the Administrative Office of the Courts. Mr. Brown stated that the Administrative Office of the Courts has had oversight of the Master Commissioner foreclosure sales since 2004. He stated that the total sales reflect figures derived from the number of judicial sales fees collected. Each time an Order Referring to Master Commissioner or Order Referring to Special Master Commissioner is filed, the Circuit Clerk collects a $100 fee. The numbers reflect the equivalent of that fee. He stated that foreclosure sales in Kentucky were as follows: 2005 foreclosure sales 10,100; 2006 foreclosure sales 14,000; 2007 foreclosure sales 15,900 and 2008 year-to-date foreclosure sales 8,500.
Representative Ron Crimm stated that the report certainly indicates a serious problem.
Representative Tommy Thompson asked how long the foreclosure sale process is from start to finish.
Debra Crocker stated that depends on the individual Master Commissioner.
Richard McQuady, Interim Chief Executive Officer, Kentucky Housing Corporation (KHC), discussed the establishment and progress of the Kentucky Homeownership Protection Center. Mr. McQuady introduced Brenda Walker, Senior Director of the Kentucky Home Ownership Protection Center. Mr. McQuady provided the committee with a report outlining the foreclosure process as well as the number of contacts, initial mortgage position, and current status of the homeowner’s who have contacted the Kentucky Homeownership Protection Center. He stated that to date the Home Ownership Protection Center (HPC) has received 618 contacts and has referred or completed 407. He stated that the HPC has a 48 hour turnaround on client cases made by web (www.ProtectMyKyHome.org) or call center request (800-633-8896). He stated that the HPC helps clients understand the foreclosure process, helps manage finances and attempts to protect the client investment. He stated that funding is being provided to ensure there are HPC counselors throughout the state from Kentucky Housing Corporation’s budget. He also presented a report detailing the number of foreclosures by county and the total number of households in each county.
Representative Danny Ford asked if only guidance was given to clients and no financial assistance.
Mr. McQuady stated that only guidance and assistance with lenders is given to clients. He stated that they have no funds budgeted for financial assistance. He stated they have limited funds for marketing and they are trying very hard to make citizens aware of the Home Ownership Protection Center. He stated that there is a similar program available throught the Louisville Metro government by dialing 211.
Representative Tommy Thompson stated that the next Interim Joint Committee on Banking and Insurance meeting will be held on October 29, 2008, at 10:00 a.m., in Room 149 of the Capitol Annex. He stated that the committee will be discussing the 2009 Kentucky Employees Health Plan.
The meeting adjourned.