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WASHINGTON, D.C. – Today Congresswoman Lois Capps commended the Cabrillo Economic Development Corporation and NeighborWorks®’ for their efforts to protect homeowners in Ventura County and prevent further foreclosures. Capps also reiterated her commitment to addressing the sub-prime loan crisis and noted that the Democratic-led Congress is working on legislation to help homeowners hold on to their homes and prevent predatory lending tactics.
“I want to commend the Cabrillo Economic Development Corporation and NeighborWorks® for their efforts in Ventura County to address this growing crisis,” said Capps. “Similarly, I am working with my colleagues in Congress to develop legislation to address this sub-prime loan crisis by helping to ensure that homeowners don’t lose their homes and to crack down on despicable predatory lending practices. Just this week we held hearings on this issue and I am confident that we will soon pass legislation to address this problem.
“We all understand that we must act quickly to prevent this situation from harming additional homeowners. The Cabrillo Economic Development Corporation and NeighborWorks® are an important part of this effort. Solving this crisis requires a comprehensive approach to prevent, mitigate, and help to resolve the problems of struggling homeowners.
“As we have seen, homeowner difficulties have been concentrated in sub-prime loans, which are marketed primarily to borrowers with limited credit options. Many people are surprised when they learn that that their monthly payments will spike significantly, and even more surprised when they learn that their financial information was misrepresented by unscrupulous and abusive lending practices.
“The devastating impact that these foreclosures have on individuals, families, and whole communities underscores why Congress must act immediately to ensure that: all Americans are protected against predatory lenders; consumers receive a simple, understandable, and meaningful disclosure of their loan terms; and there is strong oversight of the mortgage industry so that consumers have access to the best terms and loans for which they are qualified.
“Homeownership will always be an essential part of the American Dream. We must continue to work together to make sure that this dream is not undermined by deceitful lending practices and a disregard for hardworking homeowners.”
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Pictured above: (center) Congresswoman Capps meets with Central Coast firefighters to discuss emergency preparedness.
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