The State has a Plan to Assist Oregonians with Subprime Lending Problems!
By Kate Baldus
I found this interesting article about plans to help Oregonians before they face foreclosure. We are lucky to not be facing a serious foreclosure rate here in
State tackles subprime lending problem
Gov. Ted Kulongoski on Friday announced plans to help Oregonians who may be facing mortgage foreclosure due to the recent tightening in the subprime lending market.
"We have been fortunate in
Kulongoski told the Department of Consumer and Business Services , which regulates mortgage lenders, to take several steps now to help
The department will:
§ Connect Oregonians with free pre-foreclosure counseling.
§ Work with the lending industry and other government agencies to identify refinancing options for those facing foreclosure.
§ Increase enforcement against misleading advertising aimed at inducing borrowers to refinance.
The work group will look at:
§ So-called "mortgage rescue" schemes. As interest rates increase, more borrowers will find themselves with unaffordable loans. Any refinance or buyouts offered by companies should be legitimate and a net benefit to the borrower.
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§ How subprime loans are underwritten. Just like traditional loans, nontraditional loans should be based on the borrower's actual ability to pay.
§ Prepayment penalties and whether prepayment penalties should be limited by
§ Loan qualification and whether there are systems in place to ensure that all borrowers are offered the best possible loan under the best possible terms for which they qualify.