Rep. Kihuen Offers Amendment to Combat Mortgage Fraud, Protect Homeowners

Press Release

At a full committee markup of the controversial Financial Choice Act, Rep. Ruben J. Kihuen offered an amendment that would reduce the bureaucratic process for the Consumer Financial Protection Bureau to pursue an enforcement action against a fraudulent mortgage servicer. The amendment was introduced late Tuesday evening and debate continued into Wednesday morning before it was put to a vote. A statement from Rep. Kihuen follows:

"The financial crisis hit Nevada families hard. In 2010 Nevada saw one out of every eleven home owners receiving at least one foreclosure notice. Stories of families who had worked hard only to lose their homes due to unscrupulous lending practices became commonplace. Families like theEstradas from Clark County worked to save enough money and fought for a slice of the American Dream -- a home across the street from a good school where their kids could get a good education. But when their mortgage payments jumped and they couldn't make their payments, they lost their home. I too was one of those who lost a home -- I know what it feels like for these families.
"This bill overall would undo countless provisions designed to prevent just the kind of ordeal faced by the Estradas, and those whose houses were foreclosed upon due to outright fraud. That is why I have offered an amendment allowing the Consumer Financial Protection Bureau (CFPB) to stop fraudulent foreclosure practices without the red tape. Rather than hamstring the CFPB, my amendment would simplify the bureaucratic process working to ensure families like the Estradas are protected. No one deserves to be thrown out of their home because a mortgage service is committing fraud."

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