Heinrich Votes to Restore Accountability in the Housing and Financial Markets

Press Release

Mortgage Reform and Anti-Predatory Lending Act Passes House

Today, U.S. Representative Martin Heinrich voted in favor of H.R. 1748, the Mortgage Reform and Anti-Predatory Lending Act, which passed by a bipartisan vote of 300-114. The measure would deter predatory and irresponsible mortgage loan practices that played a major role in the current financial and economic crisis by expanding the scope of federal authority in criminal prosecutions involving fraud.

"New Mexicans should be able to trust that when they go to buy a home, everyone involved is playing by a fair set of rules," said Rep. Heinrich. "This bill restores the integrity of mortgage lending industry by reaffirming the basic principles of sound lending, responsibility, and consumer protection."

H.R. 1748 would ensure that mortgage lenders make loans that benefit the consumer, prohibit lenders from steering borrowers into higher cost loans, and prevent borrowers from deliberately misstating their income to qualify for a loan. For the first time, this bill would hold accountable all of those who originate, sell and buy loans, including those on Wall Street who buy up and bundle mortgages for profit.

This legislation would reform our financial system and demand accountability by establishing standards for all home loans. Institutions would be required to ensure that borrowers can repay the loans they are sold. It would also require that all mortgage refinancing loans benefit the consumer and encourage the market to move back toward fully documented loans.

"When a family's home is at stake, there is no excuse for fraud," said Rep. Heinrich.

Congress has made crucial efforts to restore accountability in the housing and financial markets to rebuild our economy in a way that's consistent with our values of fairness and honesty. Yesterday, the Fraud Enforcement and Recovery Act of 2009, which strengthens and expands the federal government's ability to effectively crack down on mortgage and financial institution fraud, passed the U.S. House with the support of Rep. Heinrich. Last week, Rep. Heinrich voted for the Credit Cardholder's Bill of Rights Act which is aimed at ending the unfair practices of the credit card industry and protecting consumers from the abusive tactics that continue to drive so many Americans deeper and deeper into debt.

"I will continue to work towards building a solid economic foundation for New Mexicans that rewards hard work and responsibility," said Rep. Heinrich.

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