WASHINGTON, Nov. 15 /PRNewswire-USNewswire/ -- Today, Congresswoman Stephanie Tubbs Jones expressed her support for the Mortgage Reform and Anti-Predatory Lending Act of 2007. The bill seeks to reform mortgage practices in three areas. First, the bill will establish a federal duty of care, prohibit steering, and call for licensing and registration of mortgage originators, including brokers and bank loan officers. Second, the new legislation will set a minimum standard for all mortgages which states that borrowers must have a reasonable ability to repay. Third, the legislation attaches limited liability to secondary market securitizers who package and sell interest in home mortgage loans outside of these standards. Additionally, the bill expands and enhances consumer protections for "high-cost loans" under the Home Ownership and Equity Protection Act and includes important protections for renters of foreclosed homes. She released this statement:
"For the past 8 years I have introduced the Predatory Lending Practices Reduction Act which seeks to establish a mortgage licensing system for mortgage brokers," said Rep. Tubbs Jones. "It also provides grants to nonprofit community development corporations to educate and train borrowers and community groups regarding illegal and inappropriate predatory lending practices.
"I am pleased that H.R. 3915 incorporates language from my bill, the Predatory Lending Practices Reduction Act, establishing a Nationwide Mortgage Licensing System and Registry to license and register individual mortgage brokers, and register bank employees that originate mortgages. I believe that brokers should be prohibited from being the original provider of loans without first obtaining, and subsequently maintaining, registration within the National Mortgage Licensing System and Registry (NMLSR).
"This legislation has been warranted for a very long time. I have been preaching about this issue since I came to Congress as a Member of the Financial Services Committee. We are facing a national housing crisis and without this legislation, the problem will only get much worse.
"I commend Chairman Frank and Financial Services Committee on their hard work and commitment to this issue. I am glad to see this bill on the floor today and I urge my colleagues to join me in supporting this meaningful and necessary legislation."
Rep. Tubbs Jones is a co-sponsor of the Mortgage Reform and Anti-Predatory Lending Act of 2007. To view her statement on the House Floor, please visit http://tubbsjones.house.gov/?sectionid=27&;sectiontree=23,27.
Office of Congresswoman Stephanie Tubbs Jones
