[Congressional Record Volume 155, Number 70 (Thursday, May 7, 2009)]
[Extensions of Remarks]
[Page E1086]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

                                 ______
                                 

                               speech of

                         HON. LINDA T. SANCHEZ

                             of california

                    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:

  Ms. LINDA T. SANCHEZ of California. Mr. Chair, I offer my strong 
support for the Mortgage Reform and Anti-Predatory Lending Act.
  Abusive and predatory lending practices have wreaked havoc upon the 
American economy, bringing it to its worst state since the Great 
Depression. What started as a subprime mortgage crisis has ballooned to 
affect everyone. Millions of families have lost their homes or face the 
prospect of foreclosure, and businesses large and small are laying-off 
employees in record numbers. Unemployment figures have risen to numbers 
unseen in decades.
  Although Congress has made great strides to stabilize and rejuvenate 
the economy, we must regulate lenders so that a crisis like this will 
never happen again. We must protect innocent home buyers from 
unscrupulous mortgage lenders eager to make a quick buck. Mortgage 
lenders should not steer borrowers into higher cost loans just to 
increase their commissions. Mortgage institutions should ensure that 
borrowers can repay the loans they are sold. Creditors should retain an 
economic interest in a portion of the loans they sell, which would help 
them to be more responsible about initiating loans.
  Passing the Mortgage Reform and Anti-Predatory Lending Act is the 
right thing to do. The Mortgage Reform and Anti-Predatory Lending Act 
will outlaw many of the egregious lending practices that have 
multiplied in recent years and spark a return to more responsible 
lending methods.
  These much-needed changes are long overdue and will protect 
vulnerable home buyers. That is why I urge my colleagues to support 
this critical legislation.

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