[Congressional Record Volume 165, Number 99 (Thursday, June 13, 2019)]
[Senate]
[Page S3470]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                S. 1749

  Ms. SINEMA. Mr. President, I rise today regarding the U.S. Senate's 
passage of S. 1749, the Protecting Affordable Mortgages for Veterans 
Act, by unanimous consent. The Protecting Affordable Mortgages for 
Veterans Act aims to preserve access to affordable VA mortgages for the 
millions of veterans and brave men and women in uniform in Arizona and 
around the country.
  Last year, Congress passed S. 2155, the Economic Growth, Regulatory 
Relief, and Consumer Protection Act, a bipartisan regulatory relief 
package for community financial institutions. Among other issues, this 
package sought to crack down on ``mortgage churning,'' a predatory 
practice wherein lenders push veterans over and over to repeatedly 
refinance their home, even when there is no clear benefit to doing so. 
With each refinance, the lenders take a fee. Veterans, on the other 
hand, enter into a cycle of debt where fees and interest rates cost 
more than the initial mortgage payments.
  To stop these predatory lenders and the practice of churning, S. 2155 
put into place new requirements that must be met in order for a 
refinanced loan to obtain VA guaranty and securitization from Ginnie 
Mae, the U.S. Government corporation that helps lenders make more 
affordable mortgages to veterans, first-time home buyers, and low-
income borrowers.
  Unfortunately, these new requirements were inconsistent with Ginnie 
Mae loan seasoning requirements. With implementation of reform, the new 
rules left approximately 2,500 VA-guaranteed loans ineligible for 
Ginnie Mae pooling, a move which seriously constrained lending.
  The unintended consequence of this measure put VA home loans out of 
reach and threatened to drive up future borrowing costs. The Protecting 
Affordable Mortgages for Veterans Act would correct this issue and 
maintain liquidity in the veteran home loan market so that veterans and 
their families can secure the safe, affordable housing they deserve.
  When they return home, veterans who defend our freedom with dignity 
and honor should receive the thanks of a grateful nation and 
opportunities to succeed as they transition to civilian life. That 
means delivering quality care at the VA, improving job and education 
opportunities, and ensuring affordable housing is within reach for 
Americans who made the ultimate sacrifice for our country. Acclimating 
to civilian life is challenging enough without the threat of being 
scammed by predatory lenders.
  I want to thank my colleague from North Carolina, Senator Tillis, for 
working with me over the last several weeks to craft this bill. I also 
want to thank Chairman Crapo, Ranking Member Brown, Chairman Isakson, 
and Ranking Member Tester for their steadfast support in moving this 
fix expeditiously. Even in an era of divided government and historic 
gridlock, we are getting things done for Arizona.
  Now that this legislation has passed the U.S. Senate, I urge my 
colleagues in the House to quickly pass S. 1749 so it can be signed 
into law. Let's keep working together, Democrats and Republicans, to 
stand up for our veterans.
  Thank you.

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