WASHINGTON, Nov. 15 /PRNewswire-USNewswire/ -- Today the US House of Representatives will vote on the H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007. As introduced this morning, H.R. 3915 offers additional consumer protections against unfair and deceptive practices, it falls short of addressing the rampant and irresponsible lending abuses that have already exposed more than two million working families to possible foreclosure.
In particular, the bill fails to purge deceptive fee practices by mortgage brokers, inadequately holds Wall Street accountable for its investment practices, and preempts more responsible state laws that protect victims of predatory lending.
"The lack of Wall Street accountability is particularly troublesome," said NCRC President & CEO John Taylor. "While Wall Street has piled up billions of dollars in earnings and bonuses on defective or negligent mortgage products, the taxpayers are increasingly paying for their mistakes. Homeowners across the country have lost billions of dollars in home equity due to falling house prices. According to the Joint Economic Committee, predatory lending will result in a loss of nearly $1 billion dollars of real estate related taxes. Consumers will need either to pay more in taxes to compensate for that loss, or face diminished community services," Taylor stated.
The inappropriate and unacceptable lending practices that are the subject of H.R. 3915, have flourished for more than a decade. It is disappointing that having waited so long a period of time for Congress to act that the fruits of their work will limit fraud and abuse, rather than purge it from the market. Once again, working families are left out in the cold.
The magnitude of the crisis demands a strong legislative response. During the last several weeks, Chairman Barney Frank and a bipartisan group of Representatives crafted a bill that included a number of vital protections against abusive lending. But the bill has been weakened in significant ways such that the critical protections the bill purports to offer cannot be effectively enforced by the language of the bill. As such, NCRC cannot support the bill.
The National Community Reinvestment Coalition is an association of more than 600 community-based institutions that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families.
National Community Reinvestment Coalition
