Expanding American Homeownership Act of 2007
Floor Speech
EXPANDING AMERICAN HOMEOWNERSHIP ACT OF 2007 -- (House of Representatives - September 18, 2007)
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Mr. AL GREEN of Texas. I want to thank you and the chairman of the full committee for this brilliant and well thought-out legislation. I absolutely support it. I am convinced that this bill, had it been in place, would have helped many borrowers to avoid the subprime market and many of those who also went into the predatory lending areas, because it would provide reasonable rates without prepayment penalties.
But this bill also has the Affordable Housing Fund, and I support it wholeheartedly. There is no question that there is a need to build, preserve, and renovate, rehabilitate affordable housing in this country. This bill gives us the means by which it can be done.
I also would like to point out that the bill has an amendment that we introduced to deal with the mortgage brokers.
[Time: 12:15]
This bill requires mortgage brokers and correspondent lenders to safeguard and account for a borrower's money. It is actually codified into law. It would require them to follow reasonable and lawful instructions of the borrower and to act with reasonable skill, care, and diligence in handling the money of borrowers and the business of borrowers. It allows the Secretary of HUD to deny a violator the privilege of originating loans. It's a good amendment. I beg that my colleagues would support it.
Finally, I want to talk about the alternative credit amendment that was added that we introduced, which is a pilot program to establish an automated process using alternative credit such as rent, utilities, phone bills.
Many persons are credit worthy, but they don't have the traditional credit necessary to purchase a home. This bill will establish an alternative system so that they too may enter the marketplace and purchase a home.
After 4 years, the GAO is to give Congress a report on the bill. I support all of what is in this bill, and I beg that my colleagues do so as well.
Again, I commend the Chair and the ranking members for what they have done as well.
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