Chairman Hughes, Vice Chairman Eklund, Ranking Member Yuko, and members of the Senate Financial Institutions Committee: Thank you for allowing me to provide written proponent testimony on behalf of HB 303, otherwise known as D.O.L.L.A.R. Deed (Deed Over, Lender Leaseback, Agreed Refinance). On behalf of the Ohio Credit Union League, I want to commend both Representatives Dever and McColley for their efforts in trying to help keep hard-working Ohioans in their homes. The legislation is an innovative approach that gives both a lender and borrower the opportunity to work out an agreement that serves the interest of both parties, as well as benefits communities across Ohio.
The Ohio Credit Union League is a state trade association representing the vast majority of Ohio’s 317 credit unions whose membership totals over 3 million Ohioans. They provide affordable loans, including first mortgages, to their members to further the American dream of homeownership.The aggregate total of first mortgages held by Ohio credit unions is over $5 billion. Keeping these members in their homes and avoiding foreclosure is a positive outcome, and the D.O.L.L.A.R. Deed program is an additional method credit unions may use to accomplish this. The legislation also fallsinline with the credit union philosophy of “people helping people.”
Some major tenets of the legislation that are viewed as positive by the League include, but are not limited to:
-The bill is permissive; those who do not wish to participate will not be forced to do so.
-The conditions of the lease will be set by the parties and based on statute.
-Upon default, the lender may evict the borrower as if the borrower was a normal tenant.
Chairman Hughes, thank you and the rest of the committee for your thoughtful consideration of this legislation. The Ohio Credit Union League is committed to working with all interested parties as the bill moves through the legislative process.
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