Predatory lending practices have been discussed and written about in numerous ways during the past few months. Legislation was introduced in this session ( for the second time) to make major changes in the terms and practices for many loans. It is called the Homeowner Protection Act, or HB 1229. It is supported by AARP, IACED, and HOM among many other organizations. This bill is the culmination of more than 2 years work to get stronger protections for homeowners who re-finance their homes using sub-prime loans and for those who choose sub-prime lenders to make the initial purchase of a new home.

Late on March 3^rd, the bill was still in Senate conference committee. If it is voted on and passes (as is expected) then it would become law. The bill had passed out of the House of Representatives earlier this session with a vote of 96-0. On the date of this writing, March 4^th, the short session of the state legislature continued to be in stall pattern with the result that HB 1229 on predatory lending is stalled in the Senate. [editor’s note: HB 1229 was enacted by the state legislature] If passed, this bill will provide Indiana homeowners fairly strong protections against many predatory lending practices which increase the chance of default and frequently lead directly to foreclosure. Watch for an update on this legislation next month.

In a slightly different but related area of housing: many of you have expressed concern about the increasing number of foreclosures in your newer construction neighborhoods. Increased foreclosures (whether in a newer or more established area) have a major impact on all residents: those who leave as well as the ones who are left behind. Real estate values decline and homeowners associations are left with unpaid dues and must contend with vacant properties as well. Fewer homeowners mean the budgets are being stretched. There IS something you can do. An informed board can make a significant difference. Contact Ms. Wilkins and request the Foreclosure Intervention Report which is free and available via email. It will provide some concrete intervention tools which you may use in designing a program which meets the needs of your neighborhood.

TRAINING OPPORTUNITY: Homeowner Association boards can learn how to be more effective by taking advantage of the training offered through the Indianapolis Neighborhood Resource Center. These free classes are scheduled throughout the year. Contact Kathryn Rietmann at (317) 920-0330 for details.

DID YOU KNOW? Marion County had 6,794 foreclosures during the calendar year of 2003, an increase of more than 200% of the 1999 total of 2750. This information was provided by the sheriff’s office on 2/09/04.

If there is a particular subject you would like to see explored, please contact Ms. Wilkins via email: mildredwilkins@homeownershipmatters.com.