Kanjorski: Release of Monroe County Foreclosure Study Is a Step Forward in Providing Relief

WASHINGTON -- Congressman Paul E. Kanjorski (PA-11) today congratulated Pennsylvania Banking Secretary William Schenck on the release of the state's official study concerning the troubling pattern of foreclosures and mortgage problems in the Poconos. Congressman Kanjorski, who represents Monroe County in the U.S. House of Representatives, has previously taken a leadership role in working with interested parties to address these matters.

"Far too many homeowners in the Poconos in recent years have unfortunately faced foreclosure, run into difficulties with their mortgages, and encountered problems in buying a home," Congressman Kanjorski said. "These problems are real. They are also occurring at a disproportionate rate compared to the rest of Pennsylvania."

Congressman Kanjorski added, "The comprehensive study released today by the state identifies the origins of the problems in Monroe County's housing markets. When coupled with the broad action plan developed by the state that provides access to enhanced mediation services, a toll-free hotline, and consumer counseling assistance, this report represents a genuine step forward in the ongoing process of trying to help affected homeowners in Monroe County. I commend Secretary Schenck for providing real leadership on these important matters."

At Tuesday's press conference at East Stroudsburg University, Secretary Schenck released an analysis of the Poconos housing markets conducted by the Reinvestment Fund and announced a comprehensive action plan designed to address the problems identified in the report. Secretary Schenck, selected by Governor Ed Rendell to head the Banking Department, has reinvigorated the state's efforts to respond to the reported problems in Monroe County.

"It is important that we find solutions to the obstacles faced by honest, hardworking people who have come to Northeastern Pennsylvania to achieve the American Dream of owning a home," observed Congressman Kanjorski after reviewing the report and the accompanying action plan. "We must not only take steps at the state level to address the foreclosure problems in the Poconos, but we must also work at the federal level to prevent similar situations elsewhere in the future."

Congressman Kanjorski has been working in Washington for several years to address the foreclosure problems in Monroe County. Congressman Kanjorski's early leadership in addressing this problem produced quick action by Fannie Mae and Freddie Mac to help some of the affected homeowners. Because Congressman Kanjorski serves as the leading Democrat on the House Financial Services Capital Markets Subcommittee, he was also recently able to convince his colleagues to convene a June hearing in Monroe County to examine these matters.

The June hearing in Monroe County is one of several being held by the House Financial Services Committee to investigate abuses in mortgage lending and the need to update federal laws to protect homeowners against such practices. Congressman Kanjorski is now working with his colleagues to develop bipartisan legislation to improve consumer mortgage protections and better regulate lending practices.

"The reported problems in the Poconos housing markets deserve national attention because they are national in scope. The study released today by the state should help further our efforts in Washington to develop legislation to increase homebuyer and homeowner protections," noted Congressman Kanjorski.

Congressman Kanjorski additionally expressed hope that the state report on foreclosures in Monroe County will renew interest in the Bush Administration to investigate these matters. Although Congressman Kanjorski on several occasions has contacted officials at the Department of Housing and Urban Development and in the Federal Bureau of Investigation to request their examination of the alleged problems in Monroe County, these entities have so far taken little action in these matters according to their public responses.

Congressman Kanjorski concluded, "Since the initial disclosure in 2001 of a disturbing pattern of home foreclosures and mortgage problems in Monroe County, allegations of abusive business practices have continued to grow. We have also regularly heard about the broken dreams of Poconos homeowners. While today's announcement is not the end of our efforts to help these families, it is hopefully the beginning of the end of our endeavors to resolve this long-standing problem and provide the real relief that affected homeowners deserve."

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