Lets Support Legislation to Reform Mortgage Lending
April 22, 2009 11:59 AM
Congress will hold a hearing tomorrow on legislation to reform mortgage lending. The Mortgage Reform and Anti-Predatory Lending Act of 2009 (H.R. 1728) deserves our support! This bill is an important component of mortgage finance reform. Along with bankruptcy reform legislation, it will prevent the future destruction of the savings, investments and home equity of American homeowners. The Act would:
- Prohibit the tying of mortgage broker fees to the interest rate or terms of the loan. Mortgage brokers would no longer get additional fees if they could get you to pay more than the normal rate.
- Impose a "duty of care" standard. Loan officers would be subject to prosecution if they pushed terms and rates that are inappropriate to the applicants income and ability to repay, or promoted refinancing packages that wouldn't pass a "net tangible benefit" test showing that the new mortgage has better terms or other benefits than their current mortgage.
- Lenders would have to offer a non-prepayment version of all loan types. Homeowners could cancel the mortgage, get a full refund of all payments and fees, and compensation for legal fees if the lender did not comply with this law.
Let's all urge our U.S. Representative and Senators to support this bill! You can contact them through the American Homeowners website.
Leave a comment