Obama Discusses Plan to Protect Homeownership, Crack Down on Predatory Lenders at...

Obama Discusses Plan to Protect Homeownership, Crack Down on Predatory Lenders at San Antonio Roundtable

AUSTIN, Texas--(Business Wire)--
In his first major stop of the Texas primary campaign, Senator
Barack Obama sat down with San Antonio-area residents this afternoon
to discuss his commitment to cracking down on lenders who take
advantage of working families. Citing the more than $185 million spent
by lenders on Washington lobbying over the last several years, Senator
Obama pointed to the mortgage crisis as yet another example of why we
need a President who will stand up to special interests on behalf of
American families.

"To give you a sense of what that kind of lobbying gets you,"
Obama told the participants, all of whom have seen first-hand the
devastating impacts of predatory lending, the "CEO of the largest
subprime lender was promised a hundred-million-dollar severance
package at a time when more than 2 million Americans were facing
foreclosure, including nearly 14,000 right here in San Antonio."

Senator Clinton's plan to freeze mortgage rates is not
sufficiently targeted to struggling families who need help and would
actually put more families at risk. In fact, one economic analyst
called her plan "disastrous."

"Senator Clinton and I don't totally agree on the best way to
solve this problem," Obama said. "She says we need to freeze the
monthly rate on existing adjustable rate mortgages for at least five
years. But here's the problem. That will reward folks who made this
problem worse and it will also reward folks who are wealthy and don't
need it - but it won't just target the struggling homeowners who need
help most. And on top of that, a blanket freeze like this will drive
rates through the roof on people who are trying to get new mortgages
to buy or refinance a home. Experts say the value of homes will fall
even more, and even more families could face foreclosure. We shouldn't
be doing things that hurt honest, hard-working folks who are just
trying to get a new mortgage. We should be cracking down on banks that
engage in reckless lending, and helping borrowers who played by the
rules in a game that was rigged against them."

Obama - who introduced a bill to fight predatory lending and
punish fraudulent lenders nearly two years ago - outlined his plan to
protect homeownership and crack down on predatory lending.

As President, Obama will:

-- Penalize predatory lenders and use those penalties to help the
families they tricked stay in their homes or refinance their
mortgages;

-- Give a tax credit to struggling homeowners that would cover 10%
of the interest on their mortgages every year;

-- Make an additional $10 billion in bonds available to help
middle class folks buy their first home or avoid foreclosure.

-- And mandate accurate loan disclosure to ensure consumers
understand their loan agreements.

To read Obama's full plan to protect homeowners and crack down on
predatory lenders, click HERE.

The following San Antonio area residents participated in today's
roundtable with Senator Obama:

Michelle McClellan, age 32, was born and raised in San Antonio and
has been on staff at Association of Community Organizations for Reform
Now (ACORN) in San Antonio for over five years, first as a community
organizer and more recently working on their statewide policy agenda.
Michelle has worked directly with predatory lending victims and has
seen the impacts foreclosures are having on neighborhoods in San
Antonio. In part because of these experiences, when she decided to
purchase her first home 3 years ago, Michelle decided to use ACRON
Housing as a mediator and counselor.

Teresa and Edward Molina, age 50 and 52, are parents to 6 foster
children, 4 of whom are under the age of 10 and live at home. They
have owned their home for 30 years and recently decided to refinance
their mortgage to make home repairs. However, the loan they refinanced
with had a teaser rate that went from about $400 a month to $800 a
month after in a few weeks. Threatened with foreclosure, they fell
victim to a foreclosure rescue scam that cost $1100. Their credit
score has fallen and as a result they have been unable to buy a
vehicle that is big enough for the whole family.

Rebecca De Zavala, age 57, is a registered nurse from San Antonio
who has been threatened with foreclosure on a home loan after falling
behind on the payments. Some years back she sought out a $25,000 loan
for home repairs but was talked into a $50,000/30 year loan that she
didn't want or need. Since then, the bank has lost her monthly
payments, accused her of failing to provide proof of homeowners
insurance and threatened her with foreclosure after she missed one
payment in the wake her son's suicide.

Obama Press Office
312-819-2423

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