| Minnesota lawmakers propose bill to help mortgage crisis (KSTP) |
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Minnesota lawmakers are stepping up to fight the sub-prime mortgage meltdown, which is leading to millions of home foreclosures. Sen. Amy Klobuchar and Rep. Keith Ellison met with local organizations to discuss national legislation against predatory lending practices Sunday. "There is a role for government here and we should have had better regulation, particularly for mortgage originators and now we're seeing that a little bit of government regulation is probably a good thing," said Sen. Klobuchar. In Hennepin County alone, city officials predict foreclosures will skyrocket by 60 percent in 2007. Kai and Yvette Gray find it hard to admit to the mistakes they have made when it comes to mortgage choices. "It's been a very scary experience," said Yvette Griffea-Gray. The Gray's almost lost their home to foreclosure due to a high adjustable rate mortgage. "She told us, up one or two hundred dollars. [It] went up seven hundred dollars," said Kai Gray. In 2008, the Gray's were told a payment would originally cost $1,500. It soon ballooned to $3,300; much more than two schoolteachers could afford. "Yeah this has been a tough year. A lot of tears, a lot of praying," said Yvette. The Gray's have worked with Habitat for Humanity to effort a loan remodification. Homeowners across the state and the nation may not have to be in the mortgage crisis at all. A proposed congressional bill announced at a Minneapolis news conference Sunday, would regulate mortgage brokers. The bill would create fair dealing standards and prohibit brokers from steering homebuyers into a mortgage they can't afford.
Mortgage Foreclosure Prevention Tips: Mortgage Foreclosure Prevention Program People who live outside of Minneapolis can call the Minnesota Home Ownership Center at 651-659-9336. Here are some helpful hints: Click here to view the newscast online.
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