NEW PROGRAM TO HELP OWNERS KEEP, REPAIR THEIR HOMES IN L.A.Byline: Rick Orlov Staff Writer Community groups joined with government officials Thursday in launching a comprehensive program to help residents who face the loss of their homes because of predatory lending practices. Fannie Mae Fannie Mae: see Federal National Mortgage Association. , the federal government-sponsored mortgage corporation, will set up a revolving $5 million fund to help homeowners undergo loan refinancing and credit counseling Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education. under the program. Fannie Mae also will create an account to provide a three-for-one match so qualifying homeowners can make repairs to their houses without having to refinance. ``Predatory lenders turn the American dream American dream also American Dream n. An American ideal of a happy and successful life to which all may aspire: of homeownership into a nightmare of foreclosure and financial ruin,'' Mayor James Hahn For the Iowa politician, see . James Kenneth "Jim" Hahn (born July 3, 1950) is an American politician from the Democratic Party. He was the Deputy City Attorney (1975-1979), City Controller (1981-1985), City Attorney (1985-2001) and Mayor of Los Angeles, California said at a news conference. ``When predatory lenders kick people out of their homes, families and neighborhoods are destabilized, putting public safety and our economy at risk.'' Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. is one of the few cities in the nation with a law on the books regarding predatory lending - usually marked by loans that have high interest rates, large monthly payments and a balloon payment The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at at the end. The city ordinance, passed in 2002, protects homeowners from losing their homes and all their equity as a result of unfair or unscrupulous loans. Assemblyman Mark Ridley-Thomas Mark Ridley-Thomas (born 1954) is currently a California State Senate where he chairs the Business, Professions and Economic Development Committee]]. He represents the 26th district which includes the communities of Vermont Knolls, Jefferson Park, Leimert Park, Hancock Park, Korean , D-Los Angeles, who authored the law when he was on the City Council, said he believes more needs to be done. ``It is usually the elderly and the working poor who are victims,'' Ridley-Thomas said. ``We cannot allow this to stand.'' Ridley-Thomas has been trying to get state legislation passed - to expand upon a state law that protects consumers against the most egregious abuses - but says he has run into strong opposition from the insurance industry and financial institutions. Part of the problem has been in determining what is a predatory loan and what companies are involved. ``I think what we need to do is put a spotlight on these companies,'' said Sister Diane Donoghue of the Esperanza Community Housing Corp. ``The only way to get them to change their practices is to make sure people know what they are doing.'' Councilwoman Wendy Greuel Wendy Greuel is President Pro Tempore of the Los Angeles City Council representing the 2nd District. Greuel was elected in 2002 to fill the remainder of the term of Councilman Joel Wachs. She was elected in her own right in 2003 and reelected in 2007. said helping people remain in their homes improves neighborhood stability and leads to better education of children and higher-quality jobs. Rick Orlov, (213) 978-0390 rick.orlov(at)dailynews.com THE DETAILS For information about the Fannie Mae program to help victims of predatory lending, homeowners can call: (800) 477-5977. CAPTION(S): box Box: THE DETAILS (see text) |
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