Lawmakers And Foreclosures

June 23rd, 2008

Lawmakers and foreclosures have a close connection and the victims of the present crisis are looking to the law for protection and help. In New York the state legislature has come to an agreement regarding the sub-prime mortgage crisis. It also expanded the state health care operations. Both the actions came about just when the session is about to close on 23^rd June.

Health care has been one of the main other reasons for fueling the foreclosure houses fire. The new health programme will coordinate with health related insurance programmes involving those who are engaged in small businesses, sole proprietors and the workers who are not insured as yet. So far those with less than 50 employees are not eligible fore Health New York Program. But now that requirement has been cancelled.

At the same time leaders of both the chambers agreed to allow the passage of a modified version of the proposal of Governor Paterson to address the foreclosure crisis raging in the state. But extra regulations and conditions have been worrying the banking industry. Their argument is that if the new rules are brought into effect then the banks will shy away from granting sound mortgages to customers with good credit records. At this stage the bill is going through a phase of amendment.

At a press conference Paterson elaborated that the key point is a 90-day period of grace during which the borrowers will receive warnings that have been termed “pre-foreclosure” notifications. This time is to be utilized for holding parleys between lenders and borrowers so as to look into all the possible alternatives to prevent foreclosure. In other words it will extend the foreclosure process of the state. Comparatively this 445-day stretch of foreclosure process in New York is the longest in the country.

Furthermore it will be required of the lender to register with the banking department of the state. This will enable the officials to keep a track record. Paterson insisted that the changes had seen to the interests of the lenders and would of help to them. He pointed out that right now nobody was looking up to them for loans because of the damage done to their public image in the country. The foreclosure problem has been devastating. It has to be tackled before this year runs out. The majority leader of the Senate Joseph Bruno (R-Brunswick) agreed with Paterson.