[Congressional Record Volume 149, Number 145 (Thursday, October 16, 2003)]
[Extensions of Remarks]
[Page E2067]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           SAVE OUR HOMES ACT

                                 ______
                                 

                       HON. JANICE D. SCHAKOWSKY

                              of illinois

                    in the house of representatives

                       Thursday, October 16, 2003

  Ms. SCHAKOWSKY. Mr. Speaker, I am pleased to announce that today I am 
reintroducing the ``Save Our Homes Act.'' I want to thank my colleagues 
Maxine Waters, Bernard Sanders, Julia Carson, James McGovern, Peter 
DeFazio, Luis Gutierrez, Louise Slaughter, Barbara Lee, Eleanor Holmes 
Norton, Donald Payne, Major Owens, Henry Waxman, Frank Pallone, Lynn 
Woolsey, Stephanie Tubbs Jones, Madeleine Bordallo, Raul Grijalva, 
George Miller, Dennis Kucinich, Bobby Rush, Marcy Kaptur, Sheila 
Jackson-Lee, Chris Bell, Gene Green, Michael Honda, Donna Christensen, 
and Robert Brady for joining me today as original cosponsors of this 
legislation.
  The Save Our Homes Act would help protect homebuyers from 
unscrupulous lenders and brokers by creating strong new protections for 
homeowners throughout the country. The Save Our Homes Act provides a 
floor, not a ceiling for consumer protections. Strong States and local 
anti-predatory lending laws would not be preempted by this legislation. 
The Save Our Homes Act is supported by leading consumer rights 
organizations, such as the Association of Community Organizations for 
Reform Now (ACORN), National People's Action, and National Community 
Reinvestment Coalition. This is the strongest anti-predatory lending 
bill in Congress
  The Coalition for Responsible Lending estimates that homeowners lose 
$9.1 billion annually due to predatory loans. In Chicago, foreclosures 
increased by 74 percent between 1993 and 2001. Remarkably, over that 
same time period, foreclosures in the subprime market increased by 500 
percent. Half of all the foreclosures occurred within 2 years of 
origination, signaling fraudulent and abusive lending practices. Under 
the leadership of Mayor Daley and Governor Blagojevich, Illinois and 
the City of Chicago have passed tough anti-predatory lending laws. 
Nevertheless, under current Federal law, State and local governments 
cannot stop some abusive lending practices. In addition, most States do 
not have strong anti-predatory lending laws. My legislation would close 
these loopholes and ensure that all homeowners, in every State, are 
protected from predatory lenders and brokers.
  We are all united in support of homeownership. However, supporting 
homeownership is not enough; we need to make sure people are able to 
stay in their homes. That is why we need to crackdown on predatory 
lenders and brokers.
  Predatory lenders and brokers are out to make a fast buck on the 
backs of the elderly, homeowners in financial distress, low-income 
families and people of color. Predatory lenders are thieves, preying on 
consumers who are house rich, but cash poor. They don't wear ski masks 
or hold a gun to your head. They come knocking on your door with 
neckties and loan papers, charge you credit card high interest rates, 
and steal the equity, that you've built in your home.
  People living in underserved communities have a difficult time 
obtaining conventional loans. Despite all the progress that has been 
made, redlining continues to be a major problem. In 2000, HUD completed 
a study that found that borrowers in upper income African American 
neighborhoods, who would easily qualify for conventional, low rate 
loans, were twice as likely as homeowners in low-income white 
neighborhoods to receive subprime refinance loans.
  Of course, not all subprime lending is abusive and predatory. 
Responsible subprime lending expands homeownership opportunities for 
those who cannot qualify for conventional loans. However, it is clear 
that abusive practices are a major problem in the subprime industry. 
People who turn to subprime lenders are more likely to obtain abusive 
loans. That is why homeowners who are forced to turn to the subprime 
market need strong, Federal protections.
  I am looking forward to working with my colleagues to pass this 
legislation, the Save Our Homes Act, into law.

                          ____________________