Projo Biz Blog

Leaders who deal daily with the Rhode Island housing industry reacted this afternoon -- mostly with approval -- to President Obama's plan to address the foreclosure crisis nation wide.

Those who commented, generally favored the plan, though not everyone agreed on all parts of it.

"The problem's finally getting the attention that it needs," said Brenda J. Clement, executive director, Housing Action Coalition of Rhode Island. "It's a step in the right direction. I don't think we're completely there yet."

"I have reservations about the bankruptcy action," said Frederick W. Reinhardt, chief lending officer at Navigant Credit Union, which has a strong presence in Central Falls and Pawtucket, two the three Rhode Island cities hit hardest by the foreclosure crisis. Obama proposed allowing bankruptcy judge to rewrite mortgages to keep owners in their home. "It may cool lending or force banks to tighten their underwriting standards knowing that some of their rights might be compromised."

"This is going to help an awful lot of people," said Susan C. Arnold, chief executive officer of the Rhode Island Association of Realtors. "The pain isn't going to end until we get to the root cause of the problem. It started with housing, and it won't end until housing is addressed, so we're very glad he's looking at that part of the equation."

"This is a very good middle of the road plan," said Richard H. Godfrey, executive director of Rhode Island Housing, the state's housing agency. "It doesn't help everybody, but it does help a slice. The question is: Will lenders actually participate?"

"I'm really impressed with the comprehensiveness of his approach," said Carrie M. Marsh, executive director of Community Works Rhode Island, an affordable housing and community organization that focuses on the southern sections of Providence. "It seems to be a fairly efficient mechanism he's created to get the resources back to the homeowner."

"I think it's an excellent plan. I'm very pleased with it," said David N. Cicilline, mayor of Providence, on of the three Rhode Island cities hit hardest by the foreclosure crisis. "It will really address the core of one of the causes of this economic crisis."

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