June 2008

Dear Seniors:

Many of Massachusetts’s residents and other homeowners across the country are finding themselves increasingly susceptible to the mortgage crisis either because of changing interest rates on their own home, or changes in property values in their neighborhoods. Comprehensive lending reform legislation is essential if the playing field is to be leveled between individuals and the mortgage industry.

Given this urgent need, I am working in Congress to address these issues and am proud to have supported H.R. 5818, The Neighborhood Stabilization Act, which passed in the House with a vote of 239 to 188. The bill prescribes a voluntary program that would allow current homeowners and FHA-approved lenders to renegotiate the terms of mortgages facing foreclosure. Not only will it offer a moderate and balanced approach to helping homeowners and lenders, but it will do so while fostering healthy financial practices again in the market.

This bill could greatly benefit all homeowners. In fact, everybody ? homeowners, lenders, neighbors, indeed our entire economy ? is worse off when a foreclosure occurs instead of a prudent refinancing. And, the unfortunate truth is, that while some borrowers may have acted badly, many homeowners facing foreclosure were misled, were deceived, or were in other ways the victims of unfair lending practices.

I recently had the opportunity to invite Congressman Barney Frank to join me on my cable show, Conversations with Congressman Tierney, and talk about ideas for stemming the housing crisis in America. As you may know, Barney, who represents the Fourth District of Massachusetts, is the Chairman of the House Financial Services Committee. Through his Committee Chairmanship he has been working to shepherd housing reform bills through Congress such as the one mentioned above.

During our conversation, we discuss the origins of the problem, and ways that Congress under its New Majority, is focusing on ways to help improve matters by focusing on homeowner and community needs. Barney aptly reminds us all during the Cable Show, “every taxpayer in America pays when large numbers of foreclosures and declining home values result in higher crime and decreased local revenues for schools, fire, police, and other essential services.”

If you or someone you love is personally affected by the housing crisis and is seeking immediate assistance I encourage you to contact the HOPE line at 1-888-995-HOPE. This is a 24 hour mortgage crisis hotline to help prevent foreclosures. Also, please feel free to contact Cheryl Gresek in my Peabody office at (978) 531-1669, and she can connect you with the appropriate assistance based on the specific situation. Meanwhile, look for that Cable Show on your local cable access station! Mr. Frank has a great deal of insight to offer on the housing crisis.


Sincerely,



John F. Tierney
Member of Congress