DORI MONSON

Community bank offers to forgive home loan debt for customers impacted by Oso mudslide

Apr 2, 2014, 1:30 PM | Updated: 1:50 pm

A now-barren hillside overlooks the valley below at the scene of a deadly mudslide, Wednesday, Apri...

A now-barren hillside overlooks the valley below at the scene of a deadly mudslide, Wednesday, April 2, 2014, in Oso, Wash. (AP Photo/Elaine Thompson)

(AP Photo/Elaine Thompson)

Bellevue, Wash., Fire Dept. Lt. Richard Burke, left, reaches across to shake hands with Benton County assistant fire chief Jack Coats as the two overlook the scene of a deadly mudslide Wednesday, April 2, 2014, in Oso, Wash. Officials have so far confirmed the deaths of 29 people, although only 22 have been officially identified in information released Wednesday morning by the Snohomish County medical examiner's office. (AP Photo/Elaine Thompson) An excavator clears a drainage channel at the scene of a deadly mudslide, torn loose from the hillside at upper right, Wednesday, April 2, 2014, in Oso, Wash. The March 22 mudslide has killed at least 29 and another 13 are unaccounted for. (AP Photo/Elaine Thompson) A bird stands atop on debris at the site of March's fatal mudslide near Oso, Wash., on Tuesday, April 1, 2014. (AP Photo/The Herald, Mark Mulligan) 
            A woman rides an all-terrain vehicle past a pile of drywall removed from the home of Don and Elaine Young, near Darrington, Wash., very near the site of the deadly mudslide that hit the community of Oso, Wash. on March 22, 2014. The home was damaged by floodwaters after the slide backed up the Stillaguamish River. (AP Photo/Ted S. Warren) An excavator dislodges and stacks logs buried in deep mud at the scene of a deadly mudslide Wednesday, April 2, 2014, in Oso, Wash. Officials have so far confirmed the deaths of 29 people, although only 22 have been officially identified in information released Wednesday morning by the Snohomish County medical examiner's office. (AP Photo/Elaine Thompson) This satellite image provided by Skybox Imaging and captured by SkySat-1 on Tuesday, April 1, 2014 at 12:19 p.m. PDT shows the area of the mudslide in Oso, Wash.(AP Photo/Skybox Imaging) A now-barren hillside overlooks the valley below at the scene of a deadly mudslide, Wednesday, April 2, 2014, in Oso, Wash. Officials have so far confirmed the deaths of 29 people, although only 22 have been officially identified in information released Wednesday morning by the Snohomish County medical examiner's office. (AP Photo/Elaine Thompson)

About 40 homes were destroyed in the Oso landslide and many who lost their houses probably still owe payments on their home loans.

Lyn Peters of the state Department of Financial Institutions says mortgages are legally binding contracts, even if the homes are gone. But one community bank says if insurance won’t help their customers impacted by the slide, they’re willing to forgive their debt.

“What Coastal has said is we’re going to step up if insurance does not cover your loss, you’ve got a loan with Coastal, and you’re directly affected by this mudslide, we will relieve you of that debt,” Eric Sprink, CEO of Everett-based Coastal Community Bank, tells KIRO Radio’s Dori Monson.

The bank has locations in Arlington and Darrington, along with eight other branches in the region, and says they believe it’s their duty as part of the community to assist their customers.

“We think it’s the right thing to do. We do not see it as an act of charity or overly kindness. It’s just the right thing to do. The community needs to rebuild. The community needs to get back on its footings.”

While Sprink has heard some larger banks are offering a period of reprieve on mortgage payments, he doesn’t know if that’s enough.

“Three months of waiving payments, I don’t know if that will really help,” says Sprink. “It’s not really addressing the main topic of, hey what is going to happen to the mortgage on the house. That is the, in some cases, $100,000, $200,000, $300,000 question. That needs to be addressed.”

It will of course be a monetary loss for the bank, but Sprink says the bank is healthy enough to handle it and they see this as a good way to use their reserves.

“Every month, every quarter, every year we put money aside for loan-loss reserves for debt that’s unable to be paid back,” says Sprink. “We’ll have to re-reserve for that, but we believe we’re in a position to help these folks and it is the right thing to do.”

Sprink believes not only the individual homeowners will benefit, but so will the rest of the region.

“The community will win. Coastal Community Bank will benefit from that. Snohomish County will benefit from that. So it’s just that collective effort that I hope my other banking brethren look at as well – to say hey a healthy micro economy up there is good for all, so we want to do our part.”

Monson says it’s a wonderful thing that Coastal Community Bank has chosen to do for its customers impacted by the slide.

“I think it’s extraordinary in this time, when companies do this sort of thing,” says Monson. “But I think you’re just showing a shining light to everybody in your industry with this gesture, and I do hope it puts a little bit of pressure on the other banks because it’s a great gesture on your guys’ part.”

The Associated Press contributed to this report.

Related:
29 killed in Oso mudslide; respect paid as more of the missing are discovered
WSU offers reprieve for students affected by Oso mudslide

Dori Monson Show

Dori Monson

Dori Monson stage show...

MyNorthwest Staff

Watch: Dori Monson’s ‘What are the Odds?’ stage show

In 2019, Dori Monson hosted a stage show - 'What are the Odds?' - which introduced you to the people who helped shape his improbable career.

1 year ago

Dori Monson welcomes the Moose back to KIRO. Follow @http://twitter.com/Mynorthwest...

MyNorthwest Staff

A collection of the all-time best Dori Monson stories

With the passing of Dori Monson, a collection of some of his top stories to remember all the hard work Dori brought to Seattle.

1 year ago

Alaska, fishing...

KIRO Newsradio staff

Listen: Friends, colleagues offer tribute to KIRO Newsradio’s Dori Monson

All day Monday, KIRO Newsradio's John Curley talked to friends, news makers, and more in tribute to Dori Monson.

1 year ago

Dori Monson Shorecrest...

Dori Monson Show

How to support charities reflecting Dori Monson’s values, passions

In tribute to Dori Monson, learn more about how you can support these three charities which best reflect his values, passions, and advocacy.

1 year ago

From left, Producer Nicole Thompson and KIRO host Dori Monson. (Courtesy of the Monson family)...

MyNorthwest Staff

Broadcasters, politicians, coworkers and friends remember Dori Monson

Dori Monson, a longtime KIRO Newsradio host, passed away Saturday. He is remembered by public figures, broadcasters, coworkers, and listeners.

1 year ago

Dori Monson...

MyNorthwest Staff

Longtime KIRO Newsradio host Dori Monson dies at age 61

We are deeply saddened to announce Dori Monson's sudden passing on Saturday, December 31, 2022, at a Seattle hospital.

1 year ago

Community bank offers to forgive home loan debt for customers impacted by Oso mudslide