For Immediate Release

Contact: Steven L. Miller, Senior Editor

Phone: (307) 766-6342

E-mail: slmiller@uwyo.edu

Archived News Site www.uwyo.edu/agadmin/news/news.htm

Date: Sept. 1, 2006

Consumer mortgages to be focus of UW housing conference

            An explosion in mortgage products mixed with unscrupulous practices can make homebuyers pay a steep price for owning a piece of the American Dream, noted Allen Fishbein of the Consumer Federation of America (CFA).

            Fishbein is the keynote speaker at the upcoming 2006 Consumer Issues Conference.

            The conference, “Home on the Range,” is 8 a.m.-5:30 p.m. Thursday, Sept. 28, at the Wyoming Union and is open to the public.

            Fishbein, based in Washington, D.C., said he will focus on new challenges for consumers posed by new developments in the home finance industry.

            “This is an exceedingly important area of concern for consumer advocates as interest rates rise, housing markets across the country soften, and increasing numbers of borrowers have a harder time making their monthly payments,” he said.

            Other topics at the conference include landlord and tenant issues, overcoming barriers to housing opportunities, rights of mobile home dwellers, and what everyone should know about zoning.

            Conference information is available at http://www.uwyo.edu/consumerconference/    

            The traditional 30-year fixed-rate mortgage has been quickly replaced in many markets by adjustable rate and interest-only mortgages. While these alternative loan products offer the advantage of enabling some to buy homes, they also carry more risks. “We find many consumers are not adequately informed or aware of the additional risks,” said Fishbein, director of housing and credit policy for the CFA.

            CFA is a national non-profit association of 300 pro-consumer organizations with a combined membership of 50 million founded in 1968 to advance consumer interest through education, research and advocacy.

            Consumer protection laws on the books make homebuyers largely responsible for protecting themselves. “Perhaps that used to work for the mainstream mortgage market that existed five to 10 years ago,” said Fishbein. “It is estimated there are 240 different products in the market now. It has overwhelmed the capacity of many consumers to compare these products and make the right choice for themselves.

            “Many consumers today look at the mortgage market the way it no longer is,” he continued. “You used to have to convince a lender you were a good credit risk. Now some will give you a loan if you are (just) breathing.”

            Some consumers have received loans clearly not appropriate for them. “There are already signs of increasing homeownership pain these mortgages are causing as mortgage rates begin to rise,” noted Fishbein. “Home loans should be appropriate for the families who get them.  Given the complexity of mortgages and the array of risky loan products available today, it is difficult for even the savviest of borrowers to be certain they are getting the right loan to match their needs.  Loan brokers and lenders should have a professional responsibility to provide appropriate products for consumers.”

            Mortgage loans that go bad not only affect the borrower but the communities in which they live. “A surge in home foreclosures could end up depreciating neighborhood property values,” said Fishbein. “The societal impact of foreclosures could be quite disastrous for some communities, and public officials are not paying sufficient attention to this problem.”

            Other conference presenters include:

            * Dr. William H. Thomas of Sherburne, NY, an international authority on geriatric medicine and eldercare. He serves as president of The Center for Growing and Becoming, Inc., a not-for-profit organization dedicated to promoting and developing constructive, holistic approaches to aging and the care of elders.

            * Dee Pridgen, associate dean and professor in the UW College of Law. She has taught at the college since 1982.  Her subjects include consumer protection, contracts, antitrust, communications law, constitutional and Internet law. 

            * Alan Romero, an associate professor of law in the UW College of Law. 

            * Gay Woodhouse, in private practice in Cheyenne in Gay Woodhouse Law Office, P.C.  She is active in civil and criminal litigation.  Woodhouse was an assistant United States Attorney for five years, Chief Deputy Attorney General for three years and was appointed as the first female Attorney General in the state of Wyoming from 1998-2001. 

            * Cole Ehmke, an extension specialist with the University of Wyoming Cooperative Extension Service. His work covers personal resource management topics as well as agricultural entrepreneurship.