Tompkins governments, Hinchey draw attention to drilling’s impact on mortgages

Ithaca — Mortgage rules governing gas drilling are in question following reports in The New York Times and by the Tompkins County Council of Governments’ Task Force on Drilling.

The reports have led Congressman Maurice Hinchey, D-22nd, to send letters to the Federal Housing Finance Agency and the NYS Department of Environmental Conservation, asking they initiate an examination of how mortgage rules on gas drilling will affect more than 1 million gas leases signed between shale gas drilling companies and property owners.

Some banks have policies of not offering mortgages on properties with gas leases. As a result, some landowners have had difficulty selling or refinancing their homes.

The Tompkins County Council of Governments’ Task Force on Drilling asked state officials in May to implement requirements as part of gas drilling regulations to prevent unintended negative consequences on the realestate market and county assessment rolls.

A subcommittee of the task force reported that lenders are reluctant to approve residential mortgages on the increasing number of properties where leases do not conform with regulations of thesecondary mortgage market.

Hinchey said this week that the problem can be attributed to rushing into drilling.

“Many homeowners who signed leases now have questions about their mortgages and their ability to refinance or resell their homes, because important information was not brought to their attention by drilling companies pushing to them to lease their land,” Hinchey said.

Hinchey said he has asked federal and state regulators for clarification on mortgage rules and an examination of leases that were already signed to determine the extent of mortgage violations that may have occurred.

New guidelines will help homeowners and local banks protect their own financial interests, he said.