WASHINGTON, DC -- Today, Congresswoman Stephanie Tubbs Jones sent a letter to the Committee on Financial Services requesting a field hearing to address the current foreclosure crisis in Ohio.
"Cuyahoga County currently has the most foreclosures in Ohio, which leads the nation," stated Rep. Tubbs Jones. "New cases are expected to top 14,000 this year. This can be attributed to the lending practices of non-bank lending institutions. It is my hope that the Committee on Financial Services will schedule a hearing in the 11th Congressional District for the purpose of hearing from local leaders, policy experts, victims of foreclosures, housing advocates, and representatives from the consumer lending industry on this very serious and urgent issue."
Congresswoman Tubbs Jones introduced the Predatory Lending Practice Reduction Act which calls for federal certification of mortgage brokers and agents and stiffer penalties for violation of federal law. Additionally, it will authorize funding for Community development Corporations to provide training and education.
A copy of the letter is below.
June 14, 2006
Representative Michael Oxley Representative Barney Frank
Chairman Ranking Member
Committee on Financial Services Committee on Financial Services
2129 Rayburn House Office Building B-301C Rayburn House Office Bldg.
Washington, DC 20515 Washington, DC 20515
Dear Chairman Oxley and Ranking Member Frank:
I am writing to request a Congressional Field Hearing in my district to highlight the impact of the national non-bank lending community on the foreclosure crisis.
As you may know, predatory lending practices strip billions in wealth from low-income consumers and communities in the U.S. each year. It is estimated that borrowers lose $9.1 billion annually due to predatory mortgages. A Mortgage Bankers Association survey conducted at the end of the 4th Quarter 2005 revealed that 3.22% of all loans in the State of Ohio were in foreclosure, which is the highest in the country. In addition, prime loans are being foreclosed at a rate of 1.48% while sub-prime loans are being foreclosed at a shocking rate of 9.99%.
Ohio has been continuously ranked first in rates of foreclosure, with the County of Cuyahoga having the highest rate in the country. This can be attributed to the lending practices of non-bank lending institutions. It is my hope that the Committee on Financial Services will schedule a hearing in the 11th Congressional District for the purpose of hearing from local leaders, policy experts, victims of foreclosures, housing advocates, and
representatives from the consumer lending industry on this very serious and urgent issue.
Thank you for your consideration of this request.
Sincerely,
/s
Stephanie Tubbs Jones
Member of Congress
Source: Office of Congresswoman Stephanie Tubbs Jones
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CONTACT: Nicole Y. Williams of the Office of Congresswoman Stephanie
Tubbs Jones, +1-202-225-7032
Web site: http://www.house.gov/tubbsjones
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