My Vote to Bring Much Needed Reforms to the Home Mortgage Industry

Statement

My Vote to Bring Much Needed Reforms to the Home Mortgage Industry

Yesterday, I joined with majority of my colleagues in voting to pass H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009. The Act addresses the kinds of predatory and irresponsible mortgage loan practices that played a major role in the current housing, financial and economic meltdown. The legislation also prohibits borrowers from deliberately misstating their income to qualify for a loan.

To help restore integrity to the mortgage lending industry, this bipartisan bill will require the mortgage industry to follow basic principles of sound lending, responsibility, and consumer protection, ensuring that:

* borrowers can repay the loans they are sold;

* mortgage lenders make loans that benefit the consumer and prohibit them from steering borrowers into higher cost loans;

* all mortgage refinancing provides a net tangible benefit to the consumer;

* the secondary mortgage market, for the first time ever, is responsible for complying with these common sense standards when they buy loans and turn them into securities;

* there are incentives for the mortgage market to move back toward making safe, fully documented loans; and

* tenants renting homes that are foreclosed on would receive notification and time to relocate.

These common sense reforms will bring new accountability and transparency to the mortgage industry to ensure that lenders and borrowers accept responsibility for their actions. The bill now heads to the United States Senate for action.

Sincerely,

Zoe

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