“We believe certain counties in Texas are headed for record foreclosures and decreased property values unless strong actions is taken.”
EL PASO, Oct. 16, Senator Shapleigh requested in a letter that Gov. Rick Perry call a special session on the Texas families expected to be impacted by a “tsunami of mortgage foreclosures,” due to pervasive, high-risk predatory lending practices in the state.
“Since 2003, we have asked Perry, Dewhurst, Abbott, even Greenspan, to deal with significant subprime and predatory lending abuse in Texas, all to no avail,” said Senator Shapleigh.
As reported in national news, including the New York Times and Wall Street Journal, our state and nation are experiencing a dramatic increase in foreclosures. Today, seven of the top 10 subprime cities are in Texas.
“We believe certain counties in Texas are headed for record foreclosures and decreased property values unless strong actions is taken,” Senator Shapleigh added.
Senator Shapleigh asked Perry to call a special session to: (1) create a regulatory framework to encourage lender workouts; (2) fund relief for hard hit Texas families in the key counties; (3) enact laws to require counseling on high risk loans; and (4) evaluate the effect on state revenues and the budget.
“Again, I ask that you lead our great state to action and take immediate steps to help Texas prepare for and respond to the ongoing mortgage crisis,” Senator Shapleigh concluded in his letter.
For more information, visit http://www.shapleigh.org