News Column

LIUNA Says 'Foreclosure Prevention Act' Helps Those Who Spurred the Crisis

April 15, 2008


Construction Jobs

The Laborers' International Union of North America (LIUNA) today in an announcement questioned the viability of the U.S. Senate's Foreclosure Prevention Act. The organization claims the act, as currently written, "fails to adequately help struggling homeowners," and, perhaps more disturbingly, functions as a "$25 billion taxpayer-funded handout for corporate homebuilders and those on Wall Street who helped cause the mortgage and housing crisis."

The organization cites more than 350,000 lost construction jobs and the high home foreclosure levels-- punctuated by today's news of record foreclosure levels in March--as reasons that the provisions in the act are insufficient.

While LIUNA acknowledged that some of the act's provisions are aimed at homeowners, its issued statement issued noted that the bill, "failed to include important measures to help struggling homeowners, such as a provision which would allow bankruptcy judges to modify mortgage terms in order to achieve and affordable payment."

Terence M. O'Sullivan, LIUNA's general president, opined that, "Corporate homebuilders won in the Senate and struggling homeowners and working people lost." He and his organization are calling on the House of Representatives to correct those oversights, and promised that LIUNA will, "keep fighting on this issue until the Foreclosure Prevention Act lives up to its name."

Source: (c) 2008. All rights reserved.

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