PA Guv Urges Homeowners to Brace for Resets

With interest rates on millions of adjustable-rate mortgages predicted to reset in Pennsylvania and nationally over the next two years, Pennsylvania Gov. Edward G. Rendell is urging homeowners with these types of loans to prepare for possibly significant increases in their monthly payments."Many working families are facing tough situations as their monthly payments increase," Mr. Rendell said. "Homeowners with adjustable-rate mortgages should contact their lenders to confirm when, and by how much, their payments will increase." The Pennsylvania Banking Department wants to change the regulations to require mortgage originators to qualify borrowers under the fully indexed rate and amortized repayment schedule. "This would help to protect consumers from being put into loans they can't afford to pay back," he said. "There also needs to be clearer disclosures to help borrowers better understand their loans." Consumers can learn more about Pennsylvania's Homeowner's Emergency Mortgage Assistance Program by calling a toll-free help line, 800-PA-BANKS, or visiting the banking department's website at http://www.banking.state.pa.us.