David Sloane, AARP Senior Vice President, issued the following response to the U.S. Senate’s passage of the “Foreclosure Prevention Act of 2008”:

“AARP is disappointed the legislation failed to include needed provisions that would help prevent foreclosures. While we appreciate the inclusion of the reverse mortgage provisions of the FHA Modernization Act, we hope this bill is the down payment on a broader overall effort to protect millions of American families from the crashing housing market.

“AARP has been working with Congressional leadership to modernize the Federal Housing Administration and expand access to government-backed reverse mortgages, while limiting the high fees charged. We are grateful for the broad bipartisan support on these provisions that will help older homeowners tap into the equity in their homes in order to pay for necessities like long-term care needs, home repairs, and emergencies.

“However, we are now looking to leaders in the House of Representatives, as well as further efforts in the Senate, to provide help that would allow millions of families prevent foreclosure on their homes. We will work with leaders in both chambers on a broader bipartisan package that will include common sense solutions, like extending bankruptcy protections – already available on yachts and vacation homes – to also include a family’s primary home. These protections are needed to help homeowners remain in their homes while they work out payment schedules.

“Congress showed us earlier this year that it can overcome partisan obstacles to directly help Americans feeling the pressure of the tightening economy. We are hopeful they can come together again to help families stay in their homes and protect their financial security.”

By AARP