“Mortgage foreclosures are at an all time high because middle class families are being squeezed by the sluggish national economy,” said State Representative Phyllis Thede of Davenport. “Our plan will ensure that Iowans can get the support they need before they lose their home in foreclosure proceedings. It will also link Iowans to federal foreclosure assistance.”
“With thousands of Iowans called to active duty and serving overseas, we need to expand foreclosure protections so no family loses their home while a member is serving our country,” said State Representative Larry Marek of Washington County.
The foreclosure protection package outlined today has three major components:
- Mortgage Broker and Banker Accountability – prohibits brokers or bankers from misleading borrowers or making false statements, charging fees for loans that don’t materialize, or accepting any undisclosed compensation for their services (House File 375, House Study Bill 185)
- Requires information about the Iowa Mortgage Foreclosure Hotline be given by lenders to homeowners at the first step of the foreclosure process (To Be Filed)
- Prohibit home foreclosures on military reserve members or their family while serving on active duty (House File 251)
“If we are going to prevent foreclosures in the future, it’s essential to hold mortgage brokers and bankers accountable while making certain they provide complete transparency to their customers,” said State Representative Paul Shomshor of Council Bluffs. “Iowans purchasing a home deserve nothing less than accurate information and full disclosure from their banker or mortgage broker.”