[Congressional Record Volume 155, Number 70 (Thursday, May 7, 2009)]
[Extensions of Remarks]
[Page E1085]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

                                 ______
                                 

                               speech of

                         HON. CHRIS VAN HOLLEN

                              of maryland

                    in the house of representatives

                         Wednesday, May 6, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 1728) to 
     amend the Truth in Lending Act to reform consumer mortgage 
     practices and provide accountability for such practices, to 
     provide certain minimum standards for consumer mortgage 
     loans, and for other purposes:

  Mr. VAN HOLLEN. Mr. Chair, I rise today in support of H.R. 1728, the 
Mortgage Reform and Anti-Predatory Lending Act.
  This country is in the midst of a foreclosure crisis. After 
experiencing the effects of the first wave of foreclosures last year, 
we are now hearing warnings of a second, more harmful wave of subprime 
and predatory loan inspired foreclosures in the year ahead.
  While everyone pays when a home is foreclosed upon, the people hit 
hardest are the elderly--who are easily deceived, the poor--who have 
few options, and people of color--who are often not informed fully 
about all their options. For decades, predatory lenders have targeted 
American borrowers of color with subprime and predatory loans. In a 
2005 Federal Reserve study, it was shown that African Americans were 
3.2 times more likely to receive a higher cost, subprime loan than 
Whites. Latinos were 2.7 times more likely.
  This bill targets the harmful practice of unfairly issuing subprime 
loans or using predatory lending to take advantage of borrowers.
  While the legislation is not perfect, it does have some key 
provisions that are desperately needed.
  Among its many useful provisions, H.R. 1728 establishes an ability-
to-repay standard whereby the lender must determine that the borrower 
has a reasonable ability to repay the loan, present a net tangible 
benefit to homeowners seeking to refinance, and ensure that the loan 
cannot have any predatory characteristics.
  H.R. 1728 also establishes a safe harbor for qualified, 30 year fixed 
loans. Doing so will help shift the incentives away from exotic 
mortgages.
  And, the bill establishes protections for tenants who can be made 
homeless if their landlord fails to pay the mortgage. This bill gives 
tenants the right to remain in their homes until the end of their 
lease. If they do not have a lease or if the property is purchased, 
then tenants must be given 90-day notice to vacate.
  These are important and necessary protections for homeowners and 
renters. I encourage my colleagues to join me today in voting for H.R. 
1728, the Mortgage Reform and Anti-Predatory Lending Act.

                          ____________________