Independent Bank Corporation Decides To Suspend Home Foreclosures

Independent Bank Corporation, a Michigan based community bank, is suspending all foreclosures for Independent Bank owner occupied loans for the next three weeks, while it awaits the announcement of further details regarding the federal government's proposed plans for assisting homeowners.

By None

Independent Bank Corporation, a Michigan-based community bank, is suspending all foreclosures for Independent Bank owner-occupied loans for the next three weeks, while it awaits the announcement of further details regarding the federal government’s proposed plans for assisting homeowners. The Obama administration is currently working on efforts to allocate $50 billion towards foreclosure prevention and establish national standards for modifying home loans.

Independent Bank’s foreclosure moratorium applies to all first mortgage, owner-occupied loans held in the bank’s portfolio. Although Independent Bank services mortgages that are backed by government-sponsored entities Fannie Mae and Freddie Mac, it cannot make changes to those loans without their consent. Both Fannie Mae and Freddie Mac recently announced they have halted evictions from foreclosed properties until next month. Independent Bank was recently recognized by Fannie Mae for its efforts in successfully pursuing loan workouts and modifications during 2008.

Independent Bank Corporation announced the receipt of $72 million in the fourth quarter 2008 as a result of its participation in the US Treasury Capital Purchase Program (CPP). The receipt of those funds has enabled the Company to continue to actively pursue loan modifications and work-outs in lieu of foreclosure for mortgage loan customers experiencing financial difficulty, and to seek new lending opportunities. Independent Bank’s loan volume in the sixty days since its receipt of the CPP capital totals $176.0 million that includes $53.9 million of commercial loans, $117.7 million of mortgage loans and $4.4 million of consumer installment loans.

“We recognize the impact this challenging economic environment has had on our customers,” says Michael M. Magee, president and CEO of Independent Bank Corporation. “Our decision to suspend foreclosures is just one of the many ways that Independent Bank continues to work with customers to help them save their homes during these difficult times.”

D.C.

«