Wall Street Journal: Foreclosure bill puts Pawlenty in a pickle

Rupert Murdoch’s Wall Street Journal sees Gov. Tim Pawlenty landing himself in the hot seat when it comes time to veto the Minnesota Subprime Borrower Relief Act. Pawlenty has spoken against the proposal and stated that he would not sign the bill, effectively vetoing it.

The article author, Amy Merrick, writes that “if the governor takes a higher profile in the presidential election, amid a widespread housing crisis, a veto of the deferment plan could be portrayed as insensitive to homeowners.”

Critics of the legislation, Pawlenty included, believe the bill would cause the cost of credit to increase. DFL leaders say a late compromise put the legislation in line with the governor’s goals.

“This legislation now allows lenders to choose whether to negotiate with a home owner or to allow the deferral to go forward. This legislation strikes a fair balance between the rights of legitimate lenders and the need to help home owners who were victims of predatory lenders,” said Senate Majority Leader Larry Pogemiller, DFL-Minneapolis.

Pawlenty has until Monday, June 2, to sign the legislation.