Protecting Home Loan Protection Act a Priority in 2009

By: State: New Mexico

As the mortgage lending crisis has led to a record number of foreclosures in other states, New Mexico has remained among the states with the least amount of severe foreclosures largely due to the Home Loan Protection Act, which went into effect in 2004.

Lawmakers are expected to revisit the Act, at the request of the lending industry, during the upcoming Legislative Session set to start Jan. 20, 2009. One of AARP New Mexico's priorities will be to ensure the Act, dubbed one of the best laws in the country, remains intact.

"Ever since its implementation, mortgage lenders have attempted to dilute provisions within the law implying that it was negatively impacting their ability to make loans," said Mike Donnelly, AARP New Mexico State Associate Director. "AARP refutes that contention and statistics from the state Regulation and Licensing Department support our position that the availability of loans has not been negatively impacted."

During several meetings over the summer, mortgage industry representatives have indicated that it is their intention to reopen the law during the 2009 legislative session.

"Making sure the Home Loan Protection Act will remain a viable protection for consumers against predatory mortgages will be a priority for AARP during the session," Donnelly said.

In 2006, the Center for Responsible Lending credited New Mexico with being a leading state when it comes to protecting its people from predatory mortgage lending practices stating the Act is one of the best in the nation and caused predatory loans to drop by 38.5 percent in New Mexico.

Two other priorities for AARP during the upcoming session will be fighting against eligibility changes and benefit cuts to Medicaid and obtaining an increase in funding for Low-Income Home Energy Assistance Program or LIHEAP.

"Five years ago AARP joined the New Mexico Medicaid Coalition as Medicaid was facing a possibility of a cut in benefits that would've impacted tens of thousands of seniors," Donnelly said.

"In 2009, due to the obvious economic currents, Medicaid is once again on the verge of facing eligibility changes or benefit cuts unless a major campaign achieves increases in funding instead."

Donnelly said it imperative that Medicaid receive such increases as medical costs, enrollment, and the wait to obtain home and community based services are increasing.

Home heating/cooling costs are also increasing. Last year LIHEAP served 66,000 New Mexico families but more help is needed.

"Again the current economic climate coupled with increase in overall energy prices are adding further turmoil to seniors living on fixed incomes who are already paying up to 25 percent of their budget on utilities," Donnelly said.

This year the state Human Services Department has indicated that it will have more money to distribute through LIHEAP but many more people are eligible for the fund than currently take advantage of it.

To apply for LIHEAP funding call the New Mexico Human Services Department at 1-800-283-4465 or visit www.hsd.state.nm.us/isd/liheap.html Applications can also be filed at your local Human Services Department Office.