A new ordinance could offer struggling St. Louis City homeowners an option to help avoid foreclosure.
The program would extend a loan mediation process to any homeowner who requests it from their bank, just like the one passed two weeks ago in St. Louis County. Ignoring this request would cost a lender a $500 fine.
But, banks claim the laws violate state statutes prohibiting government intervention into the foreclosure process. They say it would mean fewer loans and increased costs.