Mortgage Reform And Anti-Predatory Lending Act

Floor Speech

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Ms. TITUS. Mr. Chairman, I yield myself such time as I may consume.

Mr. Chairman, I rise today with an amendment that's offered along with my friend from California (Mr. Cardoza) to H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act.

As currently written, H.R. 1728 requires mortgage originators to diligently work to present the consumer with a range of mortgage products for which the consumer likely qualifies. These products must be appropriate to the consumer's existing circumstances. The originator must disclose the comparative costs and benefits of these options.

Our amendment simply specifies how this new disclosure must be made. The amendment requires that the costs and benefits of each option are presented side by side in a simple fashion like this chart, side by side, and that the disclosures for each product have equal prominence. It would further require that this disclosure be made in writing, the understanding of which will be acknowledged by the signature of the mortgage originator and the consumer.

This amendment would add further transparency to the process of securing a residential mortgage loan and ensure that information is presented to consumers in a way that will give them the ability to easily and clearly compare all the options that are available to them. By requiring the disclosure to be presented in writing and requiring the signature of both the originator and the consumer on the document, we will ensure that the importance of this information is highlighted for the consumer.

The Las Vegas area is ground zero of the home foreclosure crisis. It is projected that just this year there will be nearly 75,000 homes lost to foreclosure in my State. The vast majority of these are in southern Nevada and in my district. It is more than likely that many of these foreclosures could have been avoided from the start if important rules such as those set forth in this bill had been implemented earlier. I believe that this amendment will help facilitate discussions about what's good for a family and, together with the underlying bill with its elimination of incentive payments and antisteering provisions, will help curb predatory lending and prevent future foreclosures in Nevada and across the country.

I would like to thank Chairman Frank, Mr. Watt, and Mr. Miller for their dedication and persistence on this important piece of legislation and Chairwoman Slaughter for accepting our amendment as part of the order.

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