HARRISBURG, May 13, 2008 - - State Sen. Jim Ferlo (D-Pittsburgh) today announced that the Senate Urban Affairs and Housing Committee passed three bills that would take significant steps towards promoting new and rehabilitating housing development and  protecting homeowners and combating foreclosures.

“I am very proud to support this legislation,” Ferlo said. “In view of the nation’s uncertain economy, it is essential that Pennsylvania make strides towards protecting our residents from predatory lenders.”
           
The package of legislation (Senate Bills 1400, 1401, and 1402) would:

• Senate Bill 1400 would create the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program to fund projects providing assistance and development of low-income housing.
  
  
• Senate Bill 1401 would create the Home Mortgage Foreclosure Prevention Program, which would enable eligible homeowners to remove themselves from unaffordable mortgage situations by refinancing with a new mortgage financed by the Pennsylvania Housing Finance Agency (PHFA).  It would also authorize PHFA to give grants of up to $2,500 to assist homeowners with refinancing costs.
  
  
• Senate Bill 1402 would reimburse the PHFA for losses incurred by its predatory mortgage abatement programs.  These programs assist homeowners under risk of foreclosure with adjustable rate mortgages or mortgages that exceed the current value of their homes.

“It is imperative that the legislature takes immediate action on these three bills,” Ferlo said.  “We need to reverse the current trend of mortgage foreclosures and this is a great way to start.”

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