Congressman Cohen Votes for Anti-Predatory Lending Legislation

Press Release

Congressman Cohen Votes for Anti-Predatory Lending Legislation

Last week, Congressman Steve Cohen voted for H.R. 3915, the Mortgage Reform Anti-Predatory Lending Act. This legislation passed the U.S. House of Representatives by a vote of 291 to 197. The Senate recently announced that it would place the legislation on its calendar for when they reconvene after the Thanksgiving Holiday recess.

Congressman Cohen stated: "This Thanksgiving as we gather in our homes with our friends and families, let us not forget the hardships that our fellow citizens face with the mortgage crisis. Home ownership is an aspiration for all Americans, and I am dedicated to ensuring that this dream remains achievable and is not derailed by predatory lenders. In the Memphis metro area, 24 percent of all mortgages are subprime. That is the second highest level in the country according First American LoanPerformance, a leading research and data provider to the mortgage industry. This legislation will greatly benefit Memphians who are saddled with unmanageable mortgage payments that threaten to take away their homes."

"I am pleased to be a cosponsor of this legislation, which creates a Nationwide Mortgage Licensing System for residential mortgage loan originators and establishes a minimum standard requiring that borrowers have a reasonable ability to repay a loan," explained Congressman Cohen. "The bill will also expand and enhance consumer protections for ‘high-cost loans' as well as include protections for renters of foreclosed homes. Finally, the bill establishes an Office of Housing Counseling through the Department of Housing and Urban Development."

"Working families across our nation facing the dread of foreclosure need not be burdened with the added fear of falling prey to a fraudulent lender. This bill ensures borrowers have access to viable tools to help them rise out of mortgage debt and will help to improve the vitality of the overall housing market."

On Sept 18, Congressman Cohen also voted in favor of H.R. 1852, The Expanding American Homeownership Act of 2007. This comprehensive legislation would enable the Federal Housing Administration to serve more subprime borrowers at affordable rates and terms through the authorization of lower down payments and increased single and multi-family loan limits. The measure passed the House by a vote of 348 - 72.

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