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11/29/07 Kanjorski Identifies Principles to Protect Swindled Homebuyers From Foreclosure |
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FOR IMMEDIATE RELEASE
Nov. 29, 2007
Contact: Abigail McDonough
202-225-6511
KANJORSKI IDENTIFIES PRINCIPLES TO PROTECT SWINDLED HOMEBUYERS FROM EXPERIENCING FORECLOSURE
HARRISBURG - Congressman Paul E. Kanjorski (PA-11) today outlined his recommended principles to help decrease the effects of abusive and deceptive lending practices and protect innocent homeowners from foreclosures. The Congressman included these proposals in a written statement that he delivered to the Pennsylvania House of Representatives' Committee on Intergovernmental Affairs. The Committee held a hearing today on the federal response to recent developments in the mortgage marketplace.
"We need to approach the current mortgage situation with an open mind and have the flexibility to consider the most practical and pragmatic policy solutions to address the existing and pending foreclosure problems," stated Congressman Kanjorski. "As a leader in Washington on the House Financial Services Committee, I have developed three principles to help guide any decisions aimed to assist deceived homeowners to remain in their homes."
Congressman Kanjorski's principles seek to assist innocent mortgage buyers who were deceived by predatory lenders and also prevent larger economic disruptions. They include:
- Limit the use of tax dollars
The government should avoid using tax dollars to assist lenders who made bad loans or relied on weak underwriting standards. Unless absolutely necessary, taxpayers who made sensible decisions should not have to pay for those who acted irresponsibly.
- Rely on the private sector rather than the government
As much as possible, market-based approaches which rely on minimal government involvement should be applied to address foreclosure prevention efforts.
- Replicate effective local solutions at a national level
Identify initiatives that worked to address past foreclosure problems and apply them on a national scope.
In addition to decreasing the number of foreclosures, the Congressman's statement addresses the need to protect the economy and financial institutions from systemic risk and maintain opportunities for buyers to own homes. Experts currently estimate that between 500,000 and 2 million families will lose their homes as a result of irresponsible mortgage lending.
Click here to read a copy of the written statement from the Congressman Kanjorski to the Pennsylvania House of Representatives' Committee on Intergovernmental Affairs.
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