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FOR IMMEDIATE RELEASE |
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CONTACT: Victoria L. Stanish |
State
Rep. Jesse White |
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White introduces legislation to help homeowners avoid foreclosure
HARRISBURG, April 19 – State Rep. Jesse White, D-Washington/Allegheny/Beaver, is introducing legislation that would extend the stay on mortgage foreclosures when homeowners appeal the denial of assistance through the state’s Homeowner Emergency Mortgage Assistance Program.
HEMAP is administered by the Pennsylvania Housing Finance Agency and can make mortgage payments on behalf of a homeowner on a temporary basis until he or she can return to work or secure new employment. Under current law, if PHFA denies an application for HEMAP assistance, the lender may proceed with the foreclosure process.
White’s legislation (H.B. 1083) would require lenders to put a hold on any foreclosure proceedings until the homeowner has appealed the PHFA rejection and has again been denied assistance.
“Too many homeowners are losing out on the American dream because of unfair loans that don’t give them a fighting chance to keep up with their mortgage payments,” White said. “We need to make the process more even-handed to help protect consumers.”
The state Department of Banking recently conducted a report in which it found that foreclosures in the state have increased significantly, often due to “subprime lending" and other abusive loan practices. These loans are targeted at people with poor or limited credit histories and generally carry a higher rate of interest than regular loans to compensate for the increased credit risk.
The department has made several recommendations for legislative and policy changes, including the measure in White’s bill.
“Although state government can’t help with various reasons for mortgage foreclosures, like a loss of job, divorce or medical bills, we can certainly work to protect consumers from abusive lending and reduce the number of foreclosures that occur,” White said.
The bill is currently under consideration by the House Commerce Committee.
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