Democratic Legislators in Iowa Unveil Foreclosure Prevention Measure

March 6th, 2009 | Tags: Foreclosure Notice

Some Democratic Legislators in Iowa have come together to unveil foreclosure prevention measures that will provide protection to the borrowers. It comes at a time when the nation is reeling from the foreclosure attack.

Rep. Phyllis Thede (Democrat) said, “Mortgage foreclosures are at an all-time high. Middle-class families are being squeezed by a sluggish national economy.”The cry taken up by Thede was echoed by Rep. Larry Marek (Democrat) and Rep. Paul Shomshor (Democrat) as they outlined the steps being thought of. Mortgage brokers would now face stiffer regulations. Those facing foreclosure would have to be informed of a hotline that would provide them with counseling. The foreclosure of military reservists being called up for active duty would be banned. Rep Larry Marek said, “With thousands of Iowans called to active duty and serving overseas, we need to expand foreclosure protections so no family loses their home while a member is serving our country.”

Tom Miller the Attorney General has few more suggestions regarding rules binding mortgage brokers. The package being introduced has taken into consideration all these angles of approach.

Primarily the mortgage brokers would be prevented from leading astray the borrowers with their smart sales talk. In its place legal conditions would operate that would be beneficial to the borrower. Moreover the brokers would be prevented from pocketing any undisclosed compensation for brokering the deals.

Shomshor admitted that it would not cure each and every foreclosure ill but its approach was based on commonsense and that will keep many genuine borrows from being foreclosed upon and getting evicted.

The providing of information to the borrower about the hotline would help them get the requisite information that might see them through the troubled waters. Many of them do not know that help is available. Foreclosure prevention for military reserve personnel would be applicable for those who were deployed in active service. It would not be of help when they returned home.

Those who supported these measures lauded it for being initial steps being taken in the right direction. Shomshor argued that considering the increasing important role of mortgage brokers it was high time their operations came under some controls. He said, “If we are going to prevent foreclosures in the future, it\’s essential to hold mortgage brokers and bankers accountable while making certain they provide complete transparency to their customers,” Shomshor said. “Iowans purchasing a home deserve nothing less than accurate information and full disclosure from their banker or mortgage broker.”