Today, Senator George V. Voinovich (R-OH) spoke at a foreclosure prevention clinic sponsored by the Neighborhood Housing Service of Cleveland. After Sen. Voinovich spoke, counselors were made available for immediate counseling of the clients in attendance. Sen. Voinovich also shared information on the work he is doing to address the foreclosure crisis. Please see below for his remarks:
Thank you, Lou Tisler, Executive Director of Neighborhood Housing Services, for that kind introduction. I have worked with Neighborhood Housing Services for years, since my time as County Commissioner and Mayor. I know that it takes courage to seek help, and I commend each and every one of you for attending this program today.
Education is key to preserving the American Dream of homeownership. It is imperative that more people are educated about how to save their home and prevent themselves from what can be a daunting financial situation.
As a former mayor and governor, I have long been concerned about the foreclosure tornado ripping through the nation and hitting our great state the hardest. We in Cleveland have suffered the most. In fact, three houses right in my neighborhood are boarded up – the previous owners, victims of foreclosure, walked away leaving their abandoned homes to be vandalized.
It just kills me to see what is happening. I was born on Indiana Avenue off of 71st Street, and baptized at Holy Name. My parents went to Cleveland Central Catholic High School. My roots here run deep, and I have always had a soft spot in my heart for this city and its neighborhoods.
As the former Mayor of Cleveland I worked so hard for a renaissance of our neighborhoods. I saw neighborhoods revitalized with new sidewalks, painting and repairs. We even created a special tax abatement for housing construction. I am thrilled with the new housing and construction that has taken place here over the years.
But now, some of those same neighborhoods that once saw such progress are in trouble. Slavic Village is one such neighborhood with foreclosure rates so high that it is number one in the country. So I understand on a very personal level how the foreclosure crisis is ruining our neighborhoods.
This crisis can only be addressed fully if we work together – at the local, state and federal level to change this immediate and real plight hurting Ohio families and our communities. And people are stepping up to show they care. I know that Councilman Brancatelli and others in Cleveland have been working tirelessly on this issue.
I’ve been working hard in Ohio and Washington to help as well. In fact, I’ve fought for two pieces of legislation specifically aimed at the foreclosure crisis. The first, the bipartisan Mortgage Relief Act, which I introduced along with Senator Debbie Stabenow of Michigan, relieves individuals of a tax burden when part of their mortgage loan is forgiven. For example, often times a homeowner who can no longer afford their mortgage will “work out” a plan with their lender who forgives a portion of the remaining mortgage in order to keep the person in their home, because banks want money – they don’t want abandoned homes. However, in the past the IRS would count the amount of the loan being forgiven as income, and tax the homeowner on it. My Mortgage Relief Act eliminated that harmful tax. I’m proud that President Bush signed this bill into law in December of last year. So far, it’s the only bill signed into law that directly impacts this crisis.
My second bill, the FHA Modernization Act, enables those facing foreclosure to refinance for lower rates, while helping millions of low- and moderate-income families to buy a first home. While the bill has not yet become law, it has passed the House and Senate, and the differences between the separate versions are currently being worked out. Throughout this process, I have been frustrated by some of these delays, and have worked to prompt action. Recently I was assured by Chairman Dodd of the Banking Committee that progress was being made in conference and I’m hopeful the president will be able to sign the bill into law soon.
I have not and will not stop working on these issues until this crisis is over. In fact, when Congress returns in April, I plan on introducing a third bill to provide additional funds for counseling programs just like this one.
And this new bill will also include provisions to impose a two-year moratorium on prepayment penalties, simplify mortgage payment documents so that people understand clearly what their mortgage states and provide additional funding for Community Development Block Grants (CDBG) targeted to revitalizing residential areas.
Not all of the work can be done in Washington, however. I’ve also toured the state and talked to home owners, business leaders and city and state officials to better understand the problem and educate Ohioans.
While it is my job to help make sure there are programs in place to assist those in trouble and to increase awareness, it is the job of homeowners to reach out for help, just like you have done today.
I’m happy to see that those of you here have the courage to reach out for help. I know that it might not have been an easy choice, but it might be one of the most important decisions you will make in your lives. After today’s program I truly hope that you realize that there are so many resources available locally to you and that each and every one of us cares deeply about you and others like you.
One of my personal mottos has always been “Together, we can do it!” And together we can take back our communities, restore the American Dream of homeownership and end this crisis. Thank you again for the opportunity to be here.
