[Congressional Record Volume 153, Number 110 (Wednesday, July 11, 2007)]
[Extensions of Remarks]
[Page E1487]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           SUPPORTING HOME OWNERSHIP AND RESPONSIBLE LENDING

                                 ______
                                 

                               speech of

                       HON. STEPHANIE TUBBS JONES

                                of ohio

                    in the house of representatives

                         Tuesday, July 10, 2007

  Mrs. JONES of Ohio. Madam Speaker, I rise today in support of H. Res. 
526, supporting home ownership and responsible lending.
  A recent study released by the Center of Responsible Lending reveals 
2.2 million subprime home loans made in recent years have already 
failed or will end in foreclosure this year at a cost of 164 billion to 
consumers.
  Despite low interest rates and a favorable economic environment 
during the past several years, the subprime market has experienced 
record high foreclosure rates. In 2006 alone there were more than 1.2 
million foreclosures, a 42 percent increase from 2005. I am sad to 
report that my home state of Ohio has one of the highest foreclosure 
rates in the nation.
  As you may know a number of factors drive sub prime foreclosures, 
including adjustable rate mortgages with steep built-in rate and 
payment increases, prepayment penalties, limited income documentation, 
and no escrow for taxes and insurance. Often individuals who are 
eligible for prime rates are steered into accepting high-cost subprime 
mortgage rates without fully understanding the risks of the mortgage 
products they choose. People are being manipulated by aggressive 
mortgage brokers and lending firms into taking subprime rates. It is 
our responsibility to keep them from being exploited.
  Unfortunately many of these individuals are African Americans in 
urban areas, targeted by lending firms with these high-cost loans. In 
the last several years, poor neighborhoods with large minority 
populations like Cleveland, Chicago, Philadelphia and Atlanta have 
experienced a sharp rise in foreclosures, in some cases more than 
doubling over the past decade. In Cuyahoga County alone, where 
Cleveland is located, the foreclosure rate is 17 percent, 12 percent 
higher than the national average.
  Madam Speaker, we must put an end to these practices that are hurting 
consumers and prohibiting them from achieving the American dream of 
home ownership. I urge my colleagues to support my Predatory Mortgage 
Lending Practices Reduction Act, H.R. 2061 and H. Res. 546 so we may 
prevent predatory lending and ensure the fiscal security of the 
American people.

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