State representative candidate presents plan to curb mortgage foreclosure crisis

The announcement comes as state officials announced that 360 mortgage lenders in Indiana failed to comply with a 2007 state law designed to increase safeguards and help prevent foreclosures.

For the past decade, Indiana has ranked above the national average in the number of mortgage foreclosures. A recent study by the Center for Responsible Lending projected that over 48,000 homes in Indiana will be foreclosed this year alone.

"Hoosiers are struggling to cope with high gas and food prices, rising healthcare costs and continuing job losses. As a result, thousands of families are failing to keep up with their mortgage payments and are losing their homes," Marshall said. "Our neighborhoods are becoming overrun with homes that have been boarded up and left empty. We can no longer stand by and watch as whole sections of our communities get auctioned off at sheriff's sales and become hotbeds for criminal activity."

Marshall believes any solution will require a strong partnership between lenders, homeowners, state government and the full cooperation of all facets of the mortgage industry. His plan is comprised of four legislative proposals:

1. Require lenders to review whether borrowers can repay their loans and include taxes and insurance in subprime mortgage payments

"By requiring lenders to review whether borrowers will be able to repay their loans and making sure taxes and insurance are included in subprime mortgage payments, we can do a better job of preventing people from getting into loans they cannot afford," says Marshall. "We need to join states like Illinois and Ohio and require lenders to assess a borrower's ability to make payments before issuing a mortgage loan and prevent further attempts of predatory lending."

2. Review and consolidate current state programs designed to prevent mortgage foreclosure

"A review of the various state programs overseeing the prevention of mortgage foreclosures will help expose any overlapping and streamline our efforts to prevent foreclosures," Marshall said. "If we can get everyone on the same page and consolidate these programs under one agency, it will strengthen the state's ability to fight mortgage fraud and better assist and protect our families."

3. Evaluate the impact of the Housing Rescue and Foreclosure Prevention Act recently passed by Congress

"The full impact of this bill has yet to be seen," acknowledged Marshall. "Once we determine how effective it is, then we can properly evaluate if there are any gaps and holes that need to be filled with a state rescue fund."

4. Banning pre-payment penalties on all subprime loans.

"The steep fees associated with paying off or refinancing early on these loans are trapping home owners in bad loans and making foreclosures more likely," Marshall continued. "Subprime borrowers need to have the option to refinance without the absurd penalties they are currently facing."

According to the Center for Responsible Lending, Indiana homes have seen their property values drop by nearly $1 billion due to foreclosure.

"It is in everyone's best interest that we address this problem," Marshall said. "The State of Indiana needs to step up its efforts to reduce the numbers of home foreclosures. If elected, I will aggressively seek to pass these proposals to help protect homeowners and home values in our neighborhoods."

Marshall is a teacher and former girl's basketball coach at North Knox High School. He received his bachelor's degree from the University of Indianapolis in 1979 and his master's degree in education from Indiana State University in 1985. Marshall and his wife, Janette, have two daughters: Karli Riane and Alexa Marie. They are members of the Community United Methodist Church in Vincennes.

House District 45 includes all of Sullivan County and sections of Daviess, Greene, Knox, and Vigo counties.

He faces Republican incumbent Bruce Borders (R-Jasonville) in the November General Election.