When the lions are eating too many zebras, you don't ask the lions to stop -- you build a fence.

That is how Rep. Mike Foley, a Democrat from Cleveland, summed up why Ohio needs a six-month moratorium on foreclosures, which would apply as long as borrowers continue to make at least half of their monthly payment. His bill also would create a $750 fee on foreclosure filings to help fund foreclosure-prevention efforts and set up new licensing standards for loan servicers.

Most Republicans objected to House Bill 3, arguing that it would do more harm than good.

But the bill passed 54-43, with three Republicans joining all Democrats in support.

Foley said the moratorium would give borrowers more time to remedy their financial situations and perhaps to work out new loan terms. It also gives more time, he said, to potentially take advantage of new federal foreclosure support.

"We are trying to put some hurdles up to make this crazy system saner," he said.

The system, he said, is "irrational and backwards," noting that loan servicers who collect mortgage payments get incentives to foreclose on a home rather than try to work out a loan modification.

Foley pointed to figures showing that servicers in Arizona, California and Florida -- where housing prices are much higher so investors stand to lose more -- are working out new loans five to 10 times more often than in Ohio.

That is why it is important that the new $750 filing fee help fund foreclosure-prevention counseling, said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio. Locally based counseling, supporters say, is often the best chance for people to keep their homes.

"If we don't have another record year of foreclosures, it will be because of loan modifications," Faith said. "The pipeline is still full of people headed to foreclosure."

Foreclosure filings were reported on 12,324 Ohio properties in April, a slight drop from 12,611 in March and nearly 5 percent lower than a year ago. The state ranked 10th in the percentage of homes receiving a foreclosure notice, according to RealtyTrac.

Under the bill, the Ohio Department of Commerce would, for the first time, license servicers and develop loan-modification standards for how they should work out terms to prevent foreclosure.

During a two-hour debate, Republicans argued that the new $750 fee was unconstitutional and the moratorium encroached on a lender's ability to enforce its contract.

"I don't know what we're thinking here," said Rep. Bill Coley, R-West Chester. "What is going to happen during that six-month period? Do you really believe people are suddenly going to find themselves in a better financial situation? Of course not."

Exempted from the moratorium and fee are all credit unions and those community banks with less than $2.5 billion in assets. Foley said those groups have generally worked to keep borrowers out of foreclosure.

The bill now goes to the Senate, where President Bill M. Harris, R-Ashland, has said he's willing to consider a moratorium. However, he has shut down nearly all legislative work outside of the state budget, making it unlikely the bill will get hearings anytime soon.

"I think the Senate can do more than one thing at a time," Foley said.

This is the second foreclosure-related bill to pass the House this month. Two weeks ago, the House passed a renter-protection bill that would allow tenants to remain in their residences for at least 30 days after a foreclosure.

Congress passed a similar bill this week, allowing renters to remain for 90 days after their properties are lost to foreclosure.

jsiegel@dispatch.com