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Providing for Further Consideration of H.R. 1728, Mortgage Reform and Anti-Predatory Lending Act

Floor Speech

Date: May 7, 2009
Location: Washington, DC
Issues: Finance and Banking Housing and Property


PROVIDING FOR FURTHER CONSIDERATION OF H.R. 1728, MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT -- (House of Representatives - May 07, 2009)

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Ms. MATSUI. I thank the gentleman from California for yielding me time.

Madam Speaker, I rise today in support of the rule and the underlying legislation, the Mortgage Reform and Anti-Predatory Lending Act of 2009.

The subprime housing crisis is the root cause of the current economic recession. It has led to the collapse of our financial system, increasing unemployment, and a housing and credit crisis. Even more so, it has had a devastating effect on our families, our neighbors and our communities.

My home district of Sacramento ranks among the hardest-hit areas in the country. I have heard countless stories from my constituents who have been victims of predatory lending and were steered into high-cost bad loans.

Now, many of these homeowners are seeking assistance and modifying their loans to more affordable loan terms. Yet many of these individuals are now being tripped by scam artists posing as so-called foreclosure consultants.

As such, I have an amendment that has been included in the manager's amendment, and I thank the chairman very much for including this. This amendment directs the GAO to conduct a study of current government efforts to combat fraudulent foreclosure rescue and loan modification scams and to educate consumers of these scams.

I will also soon be introducing legislation to direct the FTC to use its authority to initiate a rulemaking process relating to unfair or deceptive practices and foreclosure rescue. Madam Speaker, these harmful activities must end. This bill is a step in the right direction.

The bill establishes standards for home loans, while holding lenders and brokers accountable. It also prevents lenders and brokers from steering future homeowners to high cost, subprime loans just to make a quick extra buck.

Madam Speaker, Congress needs to be a partner with the communities in which we serve. We must continue to work together to find a comprehensive strategy that will protect our homeowners.

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