Fixing the Housing Crisis

Our communities have been hit hard by the foreclosure crisis. Local newspapers are still filled with pages of foreclosure notices. As I travel through our communities, I consistently hear stories of people struggling to make ends meet and frustrated that big bank bureaucracy prevents them from negotiating responsible ways to stay in their homes.

When the housing crisis hit Minnesota, we worked diligently to protect families from predatory lenders and stem the tide of foreclosures. I helped families stay in their homes with the Minnesota Subprime Borrower Relief Act. When the AARP told me seniors were vulnerable to manipulation by unscrupulous lenders, I reached out to one of the most conservative members of the Senate and we worked together put protections in place to prevent unscrupulous lenders from taking advantage of seniors.

Much more needs to be done to address this issue in Congress. Though the lending industry is better scrutinized – despite Congressman Cravaack’s opposition – as a result of Wall Street Reform, that is only a beginning. Improving homeowner-lender mediation and cutting red tape so that responsible homeowners who want to work with banks are able to stay in their homes are important steps to stave off a second wave of the housing crisis.