Wayne Allard: “homeownership has long been the American dream, and over the last decade record numbers of families have been able to…”

“homeownership has long been the American dream, and over the last decade record numbers of families have been able to achieve the dream of homeownership. Unfortunately, too many homeowners now find themselves in mortgages they can't afford. Many of them knowingly or unknowingly took out exotic mortgages that made wildly unrealistic assumptions about the housing market; namely, that housing values would continue to dramatically increase. As we all now know, home price growth was unsustainable. Unfortunately, too many families are now facing the possibility of foreclosure. Just as ownership brings many benefits to families and neighborhoods, foreclosures have dramatic negative consequences for both individual homeowners and the economy as a whole. We have seen a rapid increase in the number of foreclosures, and many experts predict that the number will continue to climb in the near future. Obviously, this creates great hardships for the families facing this possibility. Accordingly, Congress is currently considering various proposals to help prevent foreclosures. As part of any proposal, though, I think we must be careful not to reward irresponsible behavior. Borrowers have a responsibility to understand the terms of their loan, and lenders have a responsibility to provide them with clear, accurate information in order to help them understand the terms.”