LANSING - State Representative Mary Valentine (D-Norton Shores) today urged Congress to pass the comprehensive Foreclosure Prevention Act, saying quick federal action is needed to help solve the foreclosure crisis that is devastating working families and communities in Muskegon County and throughout Michigan.
"A coordinated effort of state and federal action is needed to prevent the foreclosure crisis from worsening as we work to create good-paying jobs and help struggling homeowners by stimulating our economy." Valentine said. "My colleagues in the state House and I have acted on measures to protect homeowners, and I will continue to fight for our working families."
The Foreclosure Prevention Act of 2008, which Congress is currently considering, assists both homeowners and communities hit by the foreclosure crisis. The plan increases funding to expand foreclosure prevention counseling programs, broadens local governments' capacity to buy and redevelop properties so they can sell or rent them, and allows bankruptcy judges to change the terms of mortgages facing foreclosure.
Valentine has tackled the foreclosure crisis head-on, last year unveiling the Michigan Home Loan Protection Act, which cracked down on predatory mortgage lending and strengthened consumer protection. She recently supported plans to increase oversight of loan officers and to allow the Michigan State Housing Development Authority (MSHDA) to refinance adjustable-rate mortgages (ARMs) into more manageable fixed rate loans, without the use of taxpayer money. The state House on Thursday adopted Valentine's resolution urging Congress to act quickly on the plan.
"Foreclosures aren't just devastating to the family being losing their home - the loss to the community is enormous," Valentine said. "Abandoned homes discourage tourists and keep new businesses from setting up shop. Congress must act now to help local communities combat the foreclosure epidemic and keep Michigan's working families in their homes."