Consumer Law

Governor Tim Pawlenty loves the homeless so much he wants more of them

By Sam Glover

The Minnesota legislature put the Subprime Borrower Relief Act on Governor Pawlenty’s desk last week. The Act would have put Minnesota home foreclosures on hold for a year to give homeowners a chance to sell, refinance, or negotiate a workout plan with their lenders.

It was, in all respects, a reasonable and fair compromise that would have benefited everyone but the mortgage servicers.

But with a flourish of his pen, veto-happy Governor Pawlenty put a stop to all that nonsense. So much for the plan to end homelessness.

The Wall Street Journal Article follows, freed from the subscriber wall:

Minnesota Foreclosure Bill Is Vetoed
May 30, 2008; Page A3

Minnesota Gov. Tim Pawlenty vetoed a bill that would have deferred some foreclosure sales in the state for up to a year.

Gov. Pawlenty, a Republican, is seen as a potential running mate for John McCain. The measure — intended to give borrowers extra time to try to renegotiate their mortgages — was promoted by members of the state’s Democrat-Farmer-Labor Party, which dominates the legislature.

In his veto message, Gov. Pawlenty wrote, “If Minnesota creates a statutory right for individuals to remain in their homes beyond our already extensive foreclosure laws, mortgage providers will factor this additional business risk into mortgage agreements and Minnesota mortgages will be more expensive.”

Supporters of the legislation argued that credit costs shouldn’t rise generally because the bill targeted subprime and negative amortization mortgages that no longer are offered. Advocates also said lenders raised similar fears about Minnesota’s farmer-lender mediation program that proved to be unfounded.

The governor said he signed 11 bills during the legislative session that addressed foreclosures, including measures that require lenders to provide contact information to housing counselors and give additional rights to renters.

URL for this article:
http://online.wsj.com/article/SB121212166330032225.html

Full post as published by Caveat Emptor on May 30, 2008 (boomark / email).