Mcnerney Amendments Included In Important Mortgage Reform Legislation
Press Release
MCNERNEY AMENDMENTS INCLUDED IN IMPORTANT MORTGAGE REFORM LEGISLATION
Today, the House passed two amendments authored by Congressman Jerry McNerney (CA-11) and included in important mortgage reform and anti-predatory lending legislation. H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act, passed the House by a vote of 300-114. Congressman McNerney's amendments were incorporated into the bill's final language.
"The area that I represent has been particularly hard hit by the foreclosure crisis," said Rep. McNerney. "These two amendments are commonsense additions to an important piece of mortgage reform and anti-predatory lending legislation."
The first amendment authored by Congressman McNerney empowers the Secretary of Housing and Urban Development to give priority consideration to areas with high foreclosure rates when allocating funds to HUD-approved counseling agencies.
The second amendment ensures that mortgage lenders include contact information for HUD-approved counseling agencies on each billing statement.
"I've held a number of foreclosure workshops with counselors from HUD-approved agencies," continued Rep. McNerney. "I know how important they are as a source of un-biased information for borrowers. These amendments will help ensure that the areas hardest hit by foreclosures are prioritized for resources and that borrowers have easily accessible information on how to contact a HUD-approved housing counselor."
These two amendments add to the other important provisions included in H.R. 1728, which takes steps to reform the mortgage lending process and prevent predatory lending. The bill includes the following reforms:
* Requires lenders to ensure a borrower's ability to repay based on income, credit history, and indebtedness;
* Prohibits financial incentives that encourage lenders to steer borrowers into more costly, subprime loans;
* Brings accountability to the secondary market for home loans;
* Holds creditors responsible for the loans they originate;
* Imposes penalties for irresponsible lending;
* Requires additional disclosures for consumers regarding mortgage loans;
* Protects tenants who rent homes that go into foreclosure;
* Creates an Office of Housing Counseling to increase availability of homeownership and rental housing counseling.
Source