| WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL), a leading advocate of
strong standards to protect consumers from predatory lenders, today joined
housing advocates from across the country to oppose the Responsible Lending
Act. The bill was introduced by U.S. Representative Robert Ney (R-OH),
Chairman of the Housing and Community Opportunity Subcommittee.
“It
is no surprise that housing leaders and consumer advocates are rallying
against this so-called Responsible Lending Act. We believe that any
legislation must include zero tolerance for predatory lenders, guaranteed
protection for homeowners, and maximum penalties for those who prey on
homeowners. This bill fails on all fronts,” Schakowsky said.
Schakowsky
added, “The so-called Responsible Lending Act will undo strong local and
state anti-predatory lending laws and will roll back hard fought victories
for consumers by leaders like Mayor Daley of Chicago.”
Schakowsky
is planning to reintroduce The Save Our Homes Act. Her bill would
set minimum federal standards to attack predatory practices in the mortgage
industry such as high interest rates, single premium insurance products,
loan flipping and churning, unilateral call provisions, and loans made
without regard to the borrower’s ability to pay. Schakowsky’s bill,
however, would not preempt stronger state and local consumer protection
laws. |
