While Colorado has thankfully fallen off the top 10 list in home foreclosures this month, there is still necessary relief to provide. Today, U.S. Rep. Ed Perlmutter (CO-07), voted with a majority of House members in support of HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007. The bill responds to the subprime mortgage crisis by instituting much needed reform to prevent these bad loans from being made in the first place. Perlmutter, is the sole member of the Colorado Delegation on House Financial Services Committee, where the bill originated.
“Unfortunately, many people in Colorado , including people and communities within the 7th Congressional District, are facing high foreclosure rates and problems with their mortgages,” said Perlmutter. “This bill establishes a simple federal standard for all home loans: institutions must ensure borrowers can repay the loans they are sold.”
Over the past few years of the real estate boom, many lending institutions moved away from commonsense basics and provided more risky, exotic mortgages to people who may not be able to afford the loans. This bill helps to correct those problems and institutes reforms in the types of loans being made.
“Unfortunately, over the next couple of years, we are likely to see many people in Colorado and throughout the nation, experiencing problems with their mortgages,” said Perlmutter. “I encourage anyone who finds themselves in a difficult situation with their mortgage to immediately contact their lender to see if there is a way to restructure their loan into a more appropriate and manageable situation. Waiting months or years, will make the situation much, much worse.”
Perlmutter continued, “I am pleased we were able to work through this bill in committee to craft some practical solutions that will help consumers and our economy avoid these problems in the future.”
