House Accepts Turner Amendment to Help Potential Victims of Predatory Lending

Press Release

House Accepts Turner Amendment to Help Potential Victims of Predatory Lending

An amendment to the FY 2008 Transportation, Housing and Urban Development, and Related Agencies Appropriations Act (THUD) offered by Rep. Michael R. Turner, (R-Centerville) seeks to help families who are potential victims of lending practices that could lead to foreclosure. The amendment to THUD increases the amount of funds available for HUD approved housing counselors by $6.7 million.

A recent Bloomberg News article stated: U.S. foreclosure filings surged 90% in May from a year earlier as more homeowners fell behind on their monthly mortgages." Headlines across the country show the growing concerns of financial markets regarding predatory and sub-prime lending practices that have resulted in a record number of foreclosures.

Rep. Turner's amendment passed on a voice vote.

Congressman Turner said, "As a former mayor, I have seen the detrimental impact that predatory lending has on families and communities. A University of Dayton study demonstrates how mortgage foreclosures are affecting urban areas in Ohio: Many foreclosed homes sit vacant and boarded up for long periods of time. These properties are blights on our neighborhoods and become a threat to public health and safety. They result in falling property values, increased crime, lead to an eroded local tax base, and impair a city's ability to provide important services. It is my hope that through the increased funding in my amendment housing counseling agencies such as St. Mary's Development Corporation will increase vital counseling services to families in need. These services will give families assistance they need to protect themselves from predatory lending practices."

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