HUGHES PRAISES PHILLY’S MORTGAGE FORECLOSURE RESPONSE

PHILADELPHIA, March 28 – State Sen. Vincent Hughes today lauded Philadelphia City Council and the county sheriff for taking steps to ease the region’s mortgage foreclosure crisis.

According to Hughes (D-Philadelphia/Montgomery), city council passed a resolution asking the Sheriff’s Department for a moratorium on mortgage foreclosure sales. Sheriff John D. Green responded by immediately suspending April’s foreclosure sales.

“This is a very meaningful and positive development for all those families who are struggling to make ends meet while adjusting to a tough economic climate,” Hughes said.  “Plus, sadly, the sub-prime home mortgage market was ripe for predation and many homeowners who were given loans several years ago are now having great difficulty in dealing with the terms of their mortgages.

“This will give homeowners time to get their financial houses in order and provide policymakers with a window of opportunity to deal assertively with this issue.”

Hughes, who exhorted city council to act when he testified before them in late February, praised both council and Sheriff Green for aggressively tackling the housing crisis and taking the positive steps to prevent more foreclosures.  Hughes lauded Councilman Curtis Jones Jr. and Marian Tasco for sponsoring the resolution that resulted in the suspension of foreclosure sales.

In his testimony before city council, Hughes said that nearly three-quarters of loans were traced to lenders who originated mostly or exclusively sub-prime loans.  In low- income neighborhoods, approximately 30 percent of refinanced loans were sub-prime.

Hughes said, “We need to stand up, stand firm and make real changes.  We cannot simply watch while families struggle and neighborhoods crumble.”

The state Senate earlier this month voted in favor of a package of measures designed to mitigate the effects of the housing crunch.  The measures include an upgrade in the monitoring of loans and foreclosures as well as licensure requirements for mortgage originators and those who deal directly with consumers on secondary mortgage loans.

Hughes also praised Brian A. Hudson, executive director and CEO of the Pennsylvania Housing Finance Authority, for testifying before council and being extremely proactive in responding to the instability in the sub-prime mortgage markets.

“Brian Hudson has been a leader in helping policymakers understand the details of the sub-prime mortgage markets and has focused his efforts on helping those who are struggling,” Hughes said.  “His advocacy for homeowners in this time of great crisis is reassuring.”