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Cummings Begins Work On Wall Street Reform Conference
Congressman will work to protect Americans from future economic disaster.
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“I am proud to be working on such a critical piece of legislation,” said Cummings. “It is crucial to this nation that we get this right. Our responsibility is to those whose retirement savings were destroyed by this economic downturn; it is to those who have been thrown out of their homes; and it is to those who want to invest in the United States, and who demand a clean, transparent, accountable marketplace.
“Congress investigated every aspect of the economic collapse. Now we will take the steps needed to protect our economy for the future of our children and for generations yet unborn. I look forward to working with my colleagues in the House, on both sides of the aisle, as well as my friends in the Senate on this essential bill.”
Along with his work in the Conference, Congressman Cummings championed four pieces of important legislation in the House version of the Wall Street reform bill that he hopes will be retained.
The first provides $3 billion from TARP to be used to create “bridge loans” for Americans who have lost their jobs and are in danger of foreclosure. The proposed loans would be temporary, low-interest loans, facilitated through The Department of Housing and Urban Development for foreclosure assistance for the unemployed. The legislation is partially as a result of a letter Congressman Cummings sent to HUD Secretary Shaun Donovan in November of last year.
Cummings’ letter to Donovan read, in part, “…We must find a way to assist those who have fallen victim to circumstances beyond their control. There are untapped viable policy options, and I wholeheartedly encourage you to not close the door on any mechanism that may allow an economic recovery for all Americans.”
Second, is a provision requiring lenders to notify borrowers of all consequences of refinancing or purchasing a home equity loan, including the responsibility they may bear for any losses incurred in the event of a foreclosure.
Third, a provision would require creditors to disclose their policy regarding the acceptance of partial payments for a residential mortgage loan. It would also require creditors to disclose how the payments will be applied to the residential mortgage and if the payments will be placed in escrow.
Fourth, a provision that requires the Office of the Comptroller of the Currency (OCC) to issue its mortgage modification data by state. This language follows up on an amendment that Cummings worked to get included in Section 104 of the Helping Families Save Their Homes Act (PL 111-22), requiring OCC and the Director of the Office of Thrift Supervision to issue mandatory mortgage modification data collection and reporting requirements for the banks they regulate.
Although the OCC’s Mortgage Metrics Report is significant in providing greater transparency and accountability in the loan servicing area, its utility is severely limited by the fact that key data elements, such as the terms for mortgage loan modifications, are not provided on a state-by-state basis.
The Conference will begin Thursday afternoon at 2:15, with the likely election of Congressman Barney Frank as Chair.
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