Twin Cities Habitat for Humanity

Sen. Klobuchar and Rep. Ellison propose federal mortgage reform anti-predatory lending legislation

Twin Cities Habitat for Humanity will host a roundtable discussion for U.S. Senator Amy Klobuchar and U.S. Representative Keith Ellison with several local organizations that are helping homeowners who are struggling with foreclosure threats due to subprime mortgage problems, including ACORN, Community Action for Suburban Hennepin, the Minnesota Homeownership Center, and the Minnesota Housing Partnership.  The meeting will include a local family that is currently being helped by Habitat for Humanity through their Mortgage Foreclosure Prevention Program.

WHEN:
1:00 p.m.
Sunday, November 4

WHERE:
Twin Cities Habitat for Humanity
3001 4th Street SE
Minneapolis

WHY:
America is in the midst of a subprime mortgage crisis.  According to a report issued Thursday by RealtyTrac Inc., home foreclosure filings in the nation doubled in the third quarter of 2007 compared to the same period last year.  In recent years, the subprime, high-risk lending market expanded rapidly with the use (and abuse) of adjustable-rate loans issued to financially-vulnerable borrowers. 

"Everyday through our Mortgage Foreclosure Prevention Program, we see heartbreaking stories of hard-working families whose lives have been devastated by inappropriate loan products that they simply cannot afford," said Susan Haigh, president of Twin Cities Habitat for Humanity.

As interest rates increased sharply, many homeowners must struggle to make the higher payments.  At the same time, refinancing is difficult because property values have stagnated or declined.  As a result, delinquency and foreclosure rates are rising dramatically.  The subprime mortgage crisis has also created broader problems in the economy, threatening the solvency of lenders and other financial institutions.

Both Klobuchar and Ellison believe that strong national legislation is needed to stop predatory lending practices and to protect homeowners and neighborhoods from foreclosures and declining property values. 

Sen. Klobuchar serves on the Congressional Joint Economic Committee and is a cosponsor of the Borrower's Protection Act (S. 1299), which would provide protection to homeowners from predatory lending practices.

Rep. Ellison serves on the House Financial Services Committee.  This summer he introduced the Fairness for Homeowners Act of 2007 (H.R. 3081), which is modeled after landmark state legislation enacted this year in Minnesota.  Much of Ellison's bill was incorporated into the Mortgage Reform and Anti-Predatory Lending Act of 2007 (H.R. 3915) recently introduced by U.S. Rep. Barney Frank.

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