Connecticut
Flaws in Mortgage Bill
The Hartford Courant’s Editorial on the subprime lending bill being debated at the Connecticut Legislature. Read it here.
Connecticut Needs Fair Lending and Foreclosure Prevention Protections
Connecticut foreclosures are on the rise. There were 7,747 foreclosure filings in Connecticut in the third quarter of 2007. This represents a 920% increase over the third quarter of 2006, and analysts predict foreclosures will only increase. This high rate of foreclosures will affect individuals as well as whole neighborhoods, damaging property values and stability. For more information, click here to read a Factsheet on the Subprime-Foreclosure Crisis in Connecticut.
The Center unveils details of its antipredatory lending legislation:
SB 423 - The CT Fair Housing Center has released its “Foreclosure Prevention and Responsible Lending” bill. This legislation seeks to accomplish three goals in order to protect borrowers from predatory lending: 1) to regulate mortgage products that increase the risk of foreclosure; 2) to ban abusive practices; and 3) to create accountability for mortgage brokers, lenders, and assignees (entities that buy the original loan). Click here to see the text of the bill. Summary of SB 423.
The Center’s bill protects homeowners - The Center’s legislation is unlike other proposed bills in that it lowers loan coats and give homeowners legal claim rights. Importantly, SB 423 aims to rectify some of Connecticut’s most abusive predatory lending practices, including: 1) regulating mortgage products that increase the risk of foreclosure, 2) baning abusive practices, such as churning and balloon payments, and 3) creating accountability for mortgage brokers, lenders, and assignees. Click here to read more about how Center’s bill aims to protect Connecticut homeowners.
The Center’s bill helps the housing market and future buyers - Across the nation, subprime lending has caused a net loss of home-ownership, and 24% of subprime mortgages are past due or in foreclosure. Studies have shown, however, that effective legislation and state-wide regulations can stop this negative trend. The Center’s antipredatory lending legislation will improve access to credit and boost home-ownership. For more information on how regulatory legislation, like that proposed by the Center, can help buyers, click here.
SUPPORT OUR BILL!
Compare to other state legislation:
See Governor Rell’s proposal to solve subprime lending: SB 21
See a proposal made by the Banking Committee co-chairs to solve subprime lending: HB 5577
Read the press coverage on the Center’s legislation:
The Connecticut Post, February 14, 2008
The New Britain Herald, February 14, 2008
The New Haven Register, February 14, 2008
The Hartford Courant, February 14, 2008
www.ctnewsjunkie.com, February 14, 2008
