Congresswoman Doris Matsui Hails Passage of Mortgage Reform Bill
FOR IMMEDIATE RELEASE
Thurs., Nov. 15, 2007
CONTACT: Lauren Smith
(202) 225-7163
Legislation Takes Measures to Address Housing Market Crisis
Washington, D.C. --Today, Rep. Doris Matsui (CA-05) announced that the Mortgage Reform and Anti-Predatory Lending Act of 2007 (H.R. 3915) passed the U.S. House of Representatives. The bipartisan bill takes a strong step forward in responding to the subprime mortgage crisis. It will halt the granting of bad loans and strengthen consumer protection measures.
"The subprime crisis has created a very real threat for Sacramentan families, weakening our economy and harming the security of our community. Today's legislation marks another step in addressing this issue, and stopping American citizens from being victimized by bad financial practices," said Rep. Matsui.
H.R. 3915 will:
- Prohibit unfair lending practices that encourage lenders to steer borrowers to loans they cannot afford.
- Mandate that mortgage brokers and bank employees be licensed and registered, and meet standards through written tests. It creates the Nationwide Mortgage Licensing System and Registry (NMLSR) to compile this information.
- Create an Office of Housing Counseling within the Department of Housing and Urban Development to boost counseling to potential borrowers.
- Provide stronger consumer protection on high-cost mortgages. Under this bill, practices that increase the risk of foreclosure and excessive fees would be prohibited.
"Homeownership is a key part of the American dream, and one that we must protect. With ample counseling and oversight of the lending industry, we can make sure that lenders are given good, responsible avenues to achieving that dream," said Rep. Matsui.
"As the Representative for the Sacramento region, I am committed to being a strong partner in preserving the economic strength and stability of our community. By establishing standards for the mortgage industry, we are addressing the very real and imminent needs of the people who live and work in Sacramento," said Rep. Matsui.
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