One measure would have required a lender to consider a borrower's ability to repay the mortgage, and established identifiable high-risk indicators. Those borrowers exhibiting certain high-risk indicators would need to obtain counseling from an independent party such as a community credit counselor. The other bill would have prohibited a home improvement contractor from taking a security interest in a person's home, beyond a mechanic's lien, to secure payment of a home improvement loan. These counseling requirements would provide a disincentive to predatory lenders. Counties and cities with low-cost loan programs for home improvements must conduct more outreach.
Many services remain wasted resources because of the public's lack of information.
More organizations should sponsor education efforts. Many victims say that if they had more information or knew of where they could receive free counseling, they would not have entered into contracts that led to the loss of their home. Education efforts should be conducted at churches, women's clubs, senior's groups, service clubs and community organizations in neighborhoods where elderly have built significant equity.