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 Portland but this plan would help support those in our community who may be struggling with a mortgage.

 

State tackles subprime lending problem

Portland Business Journal - September 14, 2007

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 Oregon that rising home prices have meant lower foreclosure rates than in other states," said Kulongoski. "But foreclosure rates are rising and that's a concern. We must make sure that no one loses their home because of an unfair loan product or lack of information."

Kulongoski told the Department of Consumer and Business Services , which regulates mortgage lenders, to take several steps now to help Oregon homeowners. The governor also ordered the department to create a work group -- including legislators, consumer advocates and mortgage lending industry representatives -- to look at potential legislative solutions.

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.

§                 Oregon's mortgage foreclosure laws and whether borrowers receive adequate notice of options and whether procedures are appropriate.

§                 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 Oregon law so they do not trap borrowers in an unaffordable loan.

§         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.