Mortgage Reform and Anti-Predatory Lending Act of 2007

Floor Speech

SPEECH OF HON. BETTY McCOLLUM OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES THURSDAY, NOVEMBER 15, 2007

The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 3915) to amend the Truth in Lending Act to reform consumer mortgage practices and provide accountability for such practices, to establish licensing and registration requirements for residential mortgage originators, to provide certain minimum standards for consumer mortgage loans, and for other purposes:

* Ms. McCOLLUM of Minnesota. Mr. Chairman, I rise today in strong support of the Mortgage Reform and Anti-Predatory Lending Act and applaud Chairman BARNEY FRANK for his work to end predatory lending and strengthen consumer protections.

* The United States is currently facing a subprime mortgage crisis. Right now, nearly 1,200 homes are vacant in Saint Paul due to foreclosures. These foreclosures harm the vitality of our neighborhoods. Further, foreclosures mean a loss of property tax revenue, placing a burden on local and State governments. The social and financial costs of this serious problem affect everyone.

* H.R. 3915 is an important step to protect American families from predatory lenders by requiring lenders to ensure that borrowers have a reasonable ability to repay and establishing a licensing system for mortgage brokers and bank loan officers. This legislation requires lenders to disclose more about loans such as, the maximum amount a consumer could pay on a variable rate mortgage and the amount of charges included in the mortgage. It also bans financial incentives for subprime loans and holds lenders in the secondary mortgage market accountable for home loans by allowing consumers to seek redress directly from the firms that ``securitize'' mortgages.

* The pre-loan counseling in this bill will protect families from predatory lending in the future. This legislation also establishes an Office of Housing Counseling, which will certify computer programs so consumers can evaluate home mortgage loan proposals, and it will also provide technical and financial support for States and local governments educating consumers about buying a home.

* Predatory lending harms our families, our neighborhoods, and our communities. We must do more to ensure that all individuals and families have safe and stable housing. I urge my colleagues to join me in voting for the Mortgage Reform and Anti-Predatory Lending Act.

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