Everybody needs a roof overhead. What better way, then, to save people who are losing their homes than to let those willing to keep paying down their mortgages stay in the house?

Cong. Paul E. Kanjorski, D-11, and chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, has introduced a bill that would do just that.

February 10, 2009

Everybody needs a roof overhead. What better way, then, to save people who are losing their homes than to let those willing to keep paying down their mortgages stay in the house?

Cong. Paul E. Kanjorski, D-11, and chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, has introduced a bill that would do just that.

This legislation has been sorely needed in the Poconos for years, where allegations of predatory lending and shady home sales practices brought about new state laws designed to protect consumers. Despite new measures on licensing and a number of civil suits against suspect developers, lenders and appraisals, Monroe County's foreclosure rate has been among the highest in Pennsylvania since early this decade. The 1,500 home foreclosures filed in 2008 set a new record high here.

Pike County's foreclosures have soared, too, rising by 20 percent in 2008 over 2007 with a record-setting 668 foreclosed homes last year.

Kanjorski's bill H.R. would let mortgage servicers modify home loans without worrying about possible legal action from disgruntled investors. HR 788 would help homeowners here in the Poconos and across the country to stay in their homes by paying renegotiated monthly payments.

Lenders don't really want vacant real estate on their hands even in good economic times. The downturn, which many experts believe was driven by flawed real estate lending practices, has flattened the real estate market. The market is poor at best for empty foreclosed houses. The best course is to try to keep buyers in their houses, preserving their investment and helping to maintain property values in their neighborhoods and communities.

H.R. 788 would let borrowers arrange more affordable mortgages and avoid foreclosure. Lenders would benefit from modifying faulty loans because the legislation would protect them from potential lawsuits. More investors in mortgage-backed securities would benefit through fewer expected mortgage defaults.

H.R. 788 passed the Financial Services Committee on a voice vote. The bill deserves consideration by the full House and should be passed into law without delay. Struggling homeowners and the struggling economy both will benefit.