Fix Mortgages for Families and Stabilize the Economy!

by: Consumers Union
recipient: U.S. Congress

The mortgage market crisis is affecting all homeowners in the U.S. -- and the future of their families -- even if their own mortgage situation is stable. As more homes go into foreclosure, nearby property values plummet, community tax bases decline and local services suffer.

Congress is considering legislation on the mortgage crisis in the coming weeks. The bill should:

Encourage lenders to restructure loans so people can avoid foreclosure.
End lending practices that prevent people from refinancing or steer families into high cost loans when they qualify for better ones.
Require lenders to base their lending on a borrower's ability to repay the loan.
Make sure whatever federal rules are adopted allow states and local communities to develop additional solutions.

If we can keep families in their homes, the housing market benefits and everyone wins. Sign the petition and tell your lawmakers they need to help the families who are in trouble to stabilize the economy for everyone.

read petition letter ▾

Dear Congress:

The mortgage market crisis affects my home's value and the future of my family, even if my own mortgage situation is stable. The potential effects on the economy as a whole should make it a top priority for you.

It is time for Congress to take action to stem the tide of mortgage foreclosures and rein in the abusive, subprime lending practices that are producing disastrous effects upon the entire economy.

Congress should take up and pass a package that takes meaningful steps to provide relief to distressed homeowners. The mortgage crisis cannot be solved by tax breaks and corporate bailouts. Until real families get real relief, more homes will go into foreclosure, hurting all of us in the process.

First, Congress should give the Federal Housing Administration the authority and funding to guarantee subprime loans at risk of default. This encourages loan restructuring for homes "under water," protects our economic base and keeps families in their homes. Voluntary efforts announced by lenders to date clearly are not working and not enough. Millions of families continue to face loss of their homes every day.

Second, Congress should require those who service loans to consider all available and reasonable alternatives before going to foreclosure. Other loss mitigation measures can be more beneficial to lenders and borrowers, and produce fewer adverse impacts on our neighborhoods and the economy as a whole.

Third, to minimize the impact of the recent mortgage crisis on our neighborhoods, Congress should provide resources to rebuild neighborhoods. This means cleaning up vacant lots and rehabilitating foreclosed homes.

Fourth, and importantly, government resources and short term crisis mitigation efforts will be wasted if Congress does not take steps to prevent abusive and predatory lending practices that contributed to this crisis. Congress must strengthen laws to protect consumers against from unfair lending practices. Among other reforms, prepayment penalties should be banned and brokers should be prohibited from steering consumers into high-cost loans when they qualify for more favorable terms. And, importantly, underwriting standards should be based on the consumer's reasonable ability to repay the loan.

Finally, whatever Congress does, it should not prevent the states from taking steps to protect their own homeowners.

These are just a few steps that Congress should take now to deal with the current crisis and deter dangerous lending practices to prevent crises from occurring. Please cosponsor and support legislation that includes these important provisions.

[Your Comments]

Sincerely,

[Your Name]
[Your Address]

Sign Petition

See more petitions:

You have JavaScript disabled. Without it, our site might not function properly.

First, Congress should give the Federal Housing Administration the authority and funding to guarantee subprime loans at risk of default. This encourages loan restructuring for homes "under water," protects our economic base and keeps families in their homes. Voluntary efforts announced by lenders to date clearly are not working and not enough. Millions of families continue to face loss of their homes every day. Second, Congress should require those who service loans to consider all available and reasonable alternatives before going to foreclosure. Other loss mitigation measures can be more beneficial to lenders and borrowers, and produce fewer adverse impacts on our neighborhoods and the economy as a whole. Third, to minimize the impact of the recent mortgage crisis on our neighborhoods, Congress should provide resources to rebuild neighborhoods. This means cleaning up vacant lots and rehabilitating foreclosed homes. Fourth, and importantly, government resources and short term crisis mitigation efforts will be wasted if Congress does not take steps to prevent abusive and predatory lending practices that contributed to this crisis. Congress must strengthen laws to protect consumers against from unfair lending practices. Among other reforms, prepayment penalties should be banned and brokers should be prohibited from steering consumers into high-cost loans when they qualify for more favorable terms. And, importantly, underwriting standards should be based on the consumer's reasonable ability to repay the loan. Finally, whatever Congress does, it should not prevent the states from taking steps to protect their own homeowners. These are just a few steps that Congress should take now to deal with the current crisis and deter dangerous lending practices to prevent crises from occurring. Please cosponsor and support legislation that includes these important provisions. [Your Comments] Sincerely, [Your Name] [Your Address]

By signing, you accept Care2's Terms of Service.
You can unsub at any time here.

Having problems signing this? Let us know.

Care2

Fix Mortgages for Families and Stabilize the Economy!