Rep. Calvert Votes for Mortgage Reform and Anti-Predatory Lending Act

Press Release

REP. CALVERT VOTES FOR MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

Washington, DC. November 15, 2007 - Today Congressman Ken Calvert (R-Corona) voted in favor of H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007.

"The mortgage crisis continues to impact our nation's economy and has especially impacted the Inland Empire," said. Rep. Calvert. "The bill passed by the House today takes an important step in reforming the mortgage origination process in a manner that helps to protect middle-class and low-income home-buyers. While we should not have a bailout, we should protect consumers and, through FHA programs, help those who wish to work themselves out of a tight spot."

The bi-partisan H.R. 3915 provides new regulations and licensing requirements on mortgage loan originators. In addition, it requires originators of loans to make a reasonable determination that the consumer has the ability to repay the loan or that a refinanced loan will provide a net tangible benefit for the consumer.

This bill also expands the scope of the Home Ownership and Equity Protection Act of 1994 (HOPEA) to cover more types of loans, to lower the "thresholds" so that loans with requirements, to add additional charges to the "points and fees" calculation used for the threshold, and to impose additional obligations on covered loans.

The Wall Street Journal Online recently reported that "Among the nation's 100 largest metropolitan areas, Stockton, Calif.; Detroit; and Riverside-San Bernardino, Calif., posted the highest third-quarter foreclosure rates…Riverside-San Bernardino had one for every 43 households. Riverside-San Bernardino also had the most foreclosure filings overall -- 31,661." ("California, Ohio, Florida Lead in Foreclosure Rates," 11-14-07)

"Home ownership is a central part of the American dream and all Americans should be able to experience the proud feeling of owning a home," said Rep. Calvert. "It is important that we establish a fair and transparent process for those families who are seeking a mortgage to own and live in a home."

In September, Rep. Calvert attended a Foreclosure Workshop organized by HUD and the Fair Housing Council of Riverside County. The event provided anyone experiencing problems making their mortgage payments with access to mortgage counseling assistance.

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