OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Rep. Johnson Votes to Protect Homeowners from Predatory Lending

Press Release

Date: Nov. 15, 2007
Location: Washington, DC
Issues: Finance and Banking Housing and Property


Rep. Johnson Votes to Protect Homeowners from Predatory Lending

4th District Ranks High in Subprime Loans, Foreclosures

WASHINGTON -- Congressman Hank Johnson, representing a District where 35% of mortgage loans are subprime and 17% end in foreclosure, today voted for H.R. 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007. As a former DeKalb County Commissioner, he passed the first predatory lending law in the State of Georgia. This past summer the Congressman hosted a Town Hall meeting in the District on foreclosures.

"Subprime lending has devastated communities throughout my District and Atlanta. We have more of these loans than the national average and in DeKalb County, nearly 1000 families enter foreclosure every month," said Rep. Johnson speaking on the Floor today. "And it means that my constituents who hold onto their homes will still lose nearly $200 million in home equity because foreclosures decrease the value of surrounding homes. Unfortunately, all indicators point to foreclosures continuing to rise well into 2008."

The bill passed with bipartisan support 291-197. Congressman Johnson voted in favor of amendments to strengthen the bill and punish predatory lenders. The bill requires lenders and mortgage brokers to confirm a borrowers ability to repay a loan; ensures that borrowers are given complete disclosure about their loans; prohibits lenders from steering borrowers into more expensive mortgages; and requires the licensing or registering of mortgage bankers and bank loan officers.

"The sad truth is that many foreclosures are not the result of a down turn in the housing market or because people don't pay their bills on time," he said. "My constituents have been victims of widespread mortgage fraud and predatory lending. With this legislation, we in Congress can do something to stop them. With stronger enforcement mechanisms, this bill will help my constituents keep their hard-earned roofs over their heads."


Source
arrow_upward