Many of the problems dealing with foreclosures stem from Washington or Wall Street, with lenders allowing people to buy homes that they can't afford. This is one of the main reasons for the increasing foreclosure rates. To add to the problem, a few people in the industry, such as real estate agents, mortgage brokers and appraisers, have done things that are not always legal or ethical. For years there have been many dishonest people creating deals that put hard working people in over their heads. We created the Predatory Lending Act to combat these problems. We need to keep pursing the individual violators that choose illegal actions and end this dishonesty through tougher penalties. This legislative session I also want to draw attention to ways we can help the public become more aware of how to keep their homes when put in financial peril. I am currently working on legislation to be set up through foreclosure courts to ensure lenders are making a diligent effort to contact homeowners. The legislation also states that lenders should provide homeowners the opportunity to have a mediation meeting, with a disinterested third party, to find ways to keep their home. As Ranking Minority Member of the Financial Institutions Committee, I have filed House Bill 1645 and 1646 in order to help decrease the number of Hoosier foreclosures. The following are highlights of those two bills: House Bill 1645 - Mortgage companies have to properly notify homeowners about the possible foreclosure. - Mortgage companies have to show records that they did what they could to not only notify, but help homeowners in preventing foreclosures through remediation. - Prohibits any person from engaging in real estate or mortgage transactions without a permit or license required by law. - Attorney General decides who is at fault in the foreclosure. House Bill 1646 - Requires mortgage loan originators and principal managers to be licensed, rather than registered, by the securities commissioner. - Requires licensed mortgage loan operators, principal managers and individuals associated with licensed loan brokers to submit fingerprints to the commissioner every three years for use in criminal history background checks. - Requires mortgage loan operators or principal applicants to take a written examination. - Requires licensee to renew his or her license annually, instead of biannually. - Increases the criminal penalty for violation of the loan broker statue from a Class D to a Class C felony. Both of these bills were designed to help protect homeowners and Hoosier families. We need stricter rules for mortgage companies and loan officers, along with tougher penalties for those that choose to break the rules in order to be more efficient. Legitimate brokers in our community have already contacted me in favor of more strict licensing regulations with hopes of weeding out any bad seeds; I believe these bills will do exactly that. If you have any questions or comments concerning these issues, please contact me. I enjoy hearing from constituents to find better ways to serve you. You can contact me by phone at 1-800-382-9841 or email to h58@iga.in.gov. I would also like to take the time to encourage you to sign up for my electronic newsletter and fill out my legislative survey, both found at http://www.in.gov/legislative/house_republicans/homepages/r58/. -30-
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