[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[House]
[Page 10137]
[From the U.S. Government Publishing Office, www.gpo.gov]




       OUT IN THE COLD: OHIOANS HIT HARDEST BY HOME FORECLOSURES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Ohio (Mr. Wilson) is recognized for 5 minutes.
  Mr. WILSON of Ohio. Mr. Speaker, being from Ohio and speaking on this 
issue is really quite easy because Ohio leads the Nation in predatory 
lending and in foreclosures, an unfortunate statistic that we are not 
proud of.
  As a new Member of Congress and one that has worked very hard in the 
Ohio House and the Ohio Senate to pass legislation against predatory 
lending, I feel it a real calling to be one who speaks up strongly here 
in the Congress on the same type of issue that people are being taken 
advantage of in a big way.
  So, Mr. Speaker, Ohio's working families are paying the price, and in 
many cases, they are paying with their homes. In fact, Ohio leads the 
Nation, as I said, in foreclosures.
  In my district, Mr. Speaker, in southeastern Ohio, from the suburbs 
of Youngstown to the small rural communities along the West Virginia 
and the Kentucky borders, predatory lenders are targeting honest 
Ohioans who only want one thing: they want a chance to purchase a home 
of their own and live the American Dream.
  For millions who struggle with bad credit, these subprime and 
adjustable rate mortgages seem like the perfect opportunity to correct 
their problems. But in reality, when it sets in, it is the worst 
solution that they could choose.
  Rates begin to skyrocket, late fees pile up, and before long it is 
too late. Too many families are losing their homes to foreclosure. Too 
many families are being left out in the cold.
  The numbers are alarming. These subprime loans account for 63 percent 
of Ohio's foreclosures.
  Mr. Speaker, this is a problem that has spread far beyond Ohio to our 
major cities all across America. In fact, two-thirds of the subprime 
loans are used in non-urban areas as well.
  Today's working families are being challenged in so many ways. While 
wages stay flat or decline, we have seen people's gas prices and health 
care costs continue to soar. It's time that our working families 
finally get the relief they deserve, and taking on predatory lenders 
has to be a part of the solution.
  As a member of the Senate, as I said, I joined colleagues to work on 
Ohio's predatory lending laws. I work on this important issue here in 
Washington also, because I believe it's an important one for the people 
of this country.
  One of the things I did was to take a first step in introducing House 
Resolution 1723. It's a bill that I introduced that targets FHA home 
loans. It clearly outlines unacceptable practices that could be used in 
an attempt to influence an appraisal on a home. It also puts in place a 
blind draw, a system that would randomly select the appraiser, rather 
than having loan companies have favorites that they use to make 
unrealistic appraisals.
  Ensuring that homes are appraised fairly is an important piece of the 
puzzle. Many borrowers cannot refinance or sell to avoid defaulting 
because their property is not worth what they owe on the home. Too 
often, the original mortgage is based on the inflated appraisal, and 
H.R. 1723 will keep that from happening when it comes to FHA loans.
  Families across the Nation are now feeling the kind of pain that we 
in Ohio have suffered; 2.2 million subprime home loans made in recent 
years have already failed, or will in foreclosure. These foreclosures 
will cost homeowners as much as $164 million, and that figure only 
begins to describe the cost to the families.
  Our sons and daughters, our mothers and fathers, are losing their 
homes, and in the process they are losing their hold on the American 
dream. Our working families deserve real relief, not just empty words.
  I urge this Congress to take a strong stand on predatory lending. We 
must make sure that Americans' dream of home ownership does not turn 
into a nightmare for even more families.

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