[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. YVETTE D. CLARKE

                              of new york

                    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. CLARKE. Mr. Chair, today I rise in strong support of H.R. 1728 
The Mortgage Reform and Anti-Predatory Lending Act of 2009. This bill 
will finally put a stop to the abusive and predatory lending practices 
that have contributed to our nation's highest home foreclosure rate in 
25 years. In recent years, some homeowners were deceived and some 
homeowners received more expensive loans than they could afford. In 
response, this bill would ensure that mortgage lenders make loans that 
benefit the consumer--and would bar lenders from steering borrowers 
into higher cost loans. Moreover, it will prohibit lenders from 
offering ``reasonable sounding mortgages,'' only to hide huge fees, 
rising interest rates and junk insurance in the fine print. No longer 
will lenders be able to ``get rich'' at the borrower's expense. The 
Mortgage Reform and Anti-Predatory Lending Act prescribes a simple 
standard for all home loans: institutions must ensure that borrowers 
can repay the loans they are sold, before they sign on the dotted line. 
Under this measure, lenders and the secondary mortgage market who don't 
comply with these standards would be held liable by consumers for 
rescission of the loan and the consumer's costs for rescission, 
including attorney's fees. This would encourage the market to move back 
toward making fixed-rate, fully documented loans.
  Although increased regulation of the lending market is crucial to the 
resurgence of our housing market and economy--the main reason why I 
stand today is because of this bill promises to bridge the financial 
information gap. For many people, especially in my district of Central 
Brooklyn, homeownership allows them to live independently and in 
relative comfort, while slowly accruing wealth simply by staying in one 
place. But predatory lending and mortgage fraud undermines a low-income 
homeowner's grasp on economic security, leaving the most vulnerable of 
our society with insurmountable debt. Thereby, continuing the cycle of 
poverty.
  In the case of the 11th Congressional District, most foreclosure 
victims live in low and moderate income working class communities, 
where conventional financial services are not available. Corrupt 
lenders prey on these people, offering loans they know the borrower 
can't afford. Good lending advice should always be available to all. 
The Mortgage Reform and Anti-Predatory Lending Act directs the 
Secretary of Housing and Urban Development to establish a grant program 
to provide legal assistance to low income homeowners and tenants 
concerning home ownership preservation, foreclosure prevention, and 
tenancy associated with home foreclosure. These grants would be given 
out to qualifying state and local governments and nonprofit 
organizations offering homeownership or rental counseling. This would 
help level the playing field for those most susceptible to the corrupt 
dealings of predatory lenders.
  Addressing the mortgage foreclosure crisis is one of my top 
priorities. This is why, the day after I was sworn into office, this 
year, I proudly voted for the Systematic Foreclosure Prevention Act 
which directed the FDIC to create a program that would provide 
incentives to loan servicers for mortgage medication. Additionally, 
earlier this year--I introduced my own legislation, H.R. 1848, the 
Foreclosure Prevention Act--that authorizes an appropriation of $100 
million dollars to Neighbor Works America for foreclosure mitigation 
activities and mortgage counseling. I am very pleased that the 
principals of my bill were adopted into the Mortgage Reform and Anti-
Predatory Lending Act.
  Lastly, I am proud that we are doing what must be done to rebuild our 
economy in a way that is fair and consistent with our values. Again, I 
stand in strong support of H.R. 1728, and pledge to continue my fight 
for common sense reform and consumer protections.

                          ____________________