Candidate Clinton To Push Foreclosure Rescue Legislation

As she cruises around the state of Iowa on the presidential campaign stump, The Des Moines Register reports that Senator Hillary Clinton (D-NY) is promoting her plans to deal with the problems in the mortgage lending industry and with homeowners facing foreclosure, including Federal legislation to address the foreclosure rescue industry. Buried deep in the article are these excerpts:

• "To deal with problems in the housing market with families facing foreclosure, subprime mortgages, unscrupulous brokers, and mortgage lending abuses Clinton said she has three new plans. [...] The “Foreclosure Rescue Fraud Act” would crack down on con artists who charge hefty fees for bogus promises that they can help people avoid losing their homes. “Spread the word,” she said. “Don’t listen to anybody who calls you on the phone or knocks on the door saying they’ve got a great way of helping you save your home.”

For more, see Clinton focuses on middle class.

In addition, a press release issued yesterday by the Hillary Clinton presidential campaign contains this blurb on Federal foreclosure rescue legislation that she reportedly intends to push if elected President:

• The Foreclosure Rescue Fraud Act. An increasing number of people are seeking the aid of “foreclosure consultants” to help them avoid losing their homes. While some of these consultants are legitimate professionals, others are con-artists taking advantage of distressed homeowners. The fraudulent consultants take money from homeowners without providing any actual service, manipulate homeowners into transferring their property deeds to them, or strip the equity from people’s houses. Hillary will pass legislation that sets national, minimal standards of conduct for foreclosure consultants. The legislation would impose criminal penalties on violators, and allows victims to sue for damages. The law would also make $100 million available to states for prosecuting foreclosure rescue fraud and assisting homeowners who have been conned by foreclosure consultants.

For more, see Hillary Clinton Press Release - Clinton Unveils Plan to Rebuild Middle Class.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).