For Immediate Release
March 5, 2009
Contact:
Aketa Marie Simmons
202-226-6709
United States House of Representatives Passes Legislation to Reduce Foreclosures
WASHINGTON, DC – Today the United State House of Representatives passed the Helping Families Save Their Homes Act in an effort to reduce the mounting number of foreclosures in the nation. Rep. Marcia Fudge (D-OH) was one of the 246 members of Congress who voted to pass the legislation.
The Helping Families Save Their Homes Act is a bill that takes a key step in moving forward President Obama’s comprehensive Homeowner Affordability and Stability Plan. It includes incentives that encourage lenders to negotiate affordable mortgages for homeowners who are underwater or at risk of foreclosure as well as those nearing bankruptcy.
The bill protects lenders from lawsuits for reasonable loan modifications, and fortifies the Federal Housing Administration’s Hope for Homeowners program designed to spur the refinancing of mortgages, by reducing current fees that have discouraged lenders from voluntarily participating and offering new incentives for lenders to negotiate loan modifications with borrowers at risk of foreclosure.
This bill levels the playing field and allows homeowners to appeal to bankruptcy judges, only as a last resort, to modify the loan terms of their existing mortgages, just as investors in vacation homes, real estate speculators, and corporations have been able to do for years. This common-sense, practical approach will not cost taxpayers a dime, could reduce foreclosures by 20 percent, and is a key component of President Obama’s housing package.
Concerning the legislation, Rep. Fudge made the following statement:
"The Helping Families Save Their Homes Act is designed to keep individuals in their homes. This bill is about fairness. Whether you own one property or several you deserve to have the same benefit of the law. Currently if you own numerous homes you may ask a judge for loan modification, but if you just own one home you have no such recourse. It only makes sense to give every person an opportunity to save their home.
"Also, this bill provides incentives to lenders to renegotiate mortgages. This bill encourages lenders to deal fairly and directly with homeowners, appealing to the court is offered as a tactic of last resort in this legislation.
"This bill is timely and desperately needed in the 11th District of Ohio. In the 11th Congressional District the Center for Responsible Lending projected 5,566 foreclosures in 2009 and 18,531 foreclosures over the next four years. Within the state of Ohio the projection is much grimmer-- 87,500 foreclosures in 2009. I had an opportunity to vote for relief and I choose to do so.
"The Helping Families Save Their Homes Act is a solid bill that makes it easier for lenders and homeowners to come to the negotiating table without requiring a single, new taxpayer dollar."
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