Congressman Paul Hodes Votes for Anti-Mortgage Fraud Legislation
Press Release
Today, the House of Representatives passed the bipartisan Mortgage Reform and Anti-Predatory Lending Act of 2009, which helps to stop the kinds of predatory and irresponsible mortgage loan practices that played a significant role in the current economic meltdown and prevents borrowers from deliberately misstating their income to qualify for a loan.
The Mortgage Reform and Predatory Lending Act helps to restore integrity to the mortgage lending industry and will make sure that the industry follows basic principles of sound lending, responsibility, and consumer protection.
"The mortgage crisis helped lead us to this unprecedented economic recession," Congressman Paul Hodes said. "This proposal is another example of the common sense reforms that I have worked to pass in order to rebuild our economy on a sound footing and keep families in their homes."
In the House Financial Services Committee, Congressman Hodes passed an amendment to the bill that will give state Attorneys General more authority to prosecute mortgage fraud.
"As a former prosecutor that went after white collar criminals, I know we need to give our state Attorneys General all the tools they need to go after those who prey on New Hampshire families," Hodes added.
Background
H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009, passed the House with a vote of 300-114. The bill makes the following reforms:
Requires lenders to ensure a borrower's ability to repay.
Prohibits unfair lending practices.
Brings accountability to the secondary market for home loans.
Holds creditors responsible for the loans they originate.
Imposes penalties for irresponsible lending.
Stronger consumer protections for high-cost mortgages.
Requires additional disclosures for consumers regarding mortgage loans.
Protects tenants who rent homes that go into foreclosure.
Creates the Office of Housing Counseling.
Offers legal assistance to homeowners and tenants facing foreclosure.
Source