Senator Clinton weighs in
By admin | May 21, 2007
Swift action against irresponsible lending practices is requested by Senator Hilary Clinton. Senator Clinton has called on Chairman Ben Bernanke to make move quickly to correct problems in the subprime lending industry which have contributed to the current problems in the housing market and growing number of foreclosures.
“Your optimistic forecast about the effect of the current housing market struggles should be encouraging,” Senator Clinton wrote to Chairman Bernanke. “Nevertheless, it remains clear that reasonable measures that will restore stability to the entire housing market and strengthen the American people’s confidence in what is oftentimes their most significant investment are still necessary.”
She revisited her initiative to help those with a subprime loan.
• Face-to-face financial counseling to be made available to more borrowers before they take out mortgages, and to homeowners at risk of foreclosure;
• Limiting the length of time for which prepayment penalties apply, and prohibiting prepayment penalties on mortgages with rates above a certain level;
• Strengthening the Truth in Lending Act and existing federal regulations to ensure that there is plain-talk, no-fine-print disclosure.
She has also reintroduced the 21st Century Housing Act which would help those drawn to the subprime industry to obtain a loan through the FHA.
Topics: Uncategorized |
