U.S. Rep. Kendrick B. Meek Introduces Mortgage Credit Repair Act

WASHINGTON, DC – Congressman Kendrick B. Meek (D-FL) introduced legislation today to help consumers with bad credit scores as a result of being taken advantage of by predatory lenders in the subprime and adjustable rate mortgage industry restore their credit rating.

This legislation is limited to consumers who can prove that between January 1, 2004 through March 31, 2009, negative items on their credit score resulting in a debt to income ratio of over 36% was a direct result of a bad mortgage. Lenders typically are unlikely to give a loan to a person who has a recurring debt ratio of over 36%, unless it is a highly qualified borrower.

“The passage of today’s financial rescue package brought a level of reassurance to the financial and credit markets,” said Congressman Kendrick Meek. “The most economically vulnerable in our communities who are being foreclosed out of their homes and have seen their credit ratings suffer deserve needed relief too.”

The bill seeks to help those who were caught by a poor market, unscrupulous lenders, and bad timing, but who otherwise are creditworthy individuals.

“If we are going to prop up the industry, then those who were victims of this financial meltdown should not be left on the outside looking in because negative actors in the industry helped destroy their credit,” said Congressman Meek.

U.S. Rep. Kendrick B. Meek represents the 17^th Congressional District of Florida which includes parts of Miami-Dade and Broward Counties. He serves as the lone Floridian sitting on the House Committee on Ways and Means, and also sits on the House Armed Services Committee.

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