Cummings Applauds House Passage Of Wall Street Reform Bill

Cummings Applauds House Passage Of Wall Street Reform Bill

Congressman proud of legislation he championed, protecting against foreclosures.

(Washington, DC) – Congressman Elijah E. Cummings, (MD-07) today joined his colleagues in passing H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act. Cummings participated in the historic House-Senate conference which led to the adoption of the bill, and provided four critical pieces of legislation contained within the Dodd-Frank Act to protect American homeowners.

“This is the most important improvement in the regulation of Wall Street since the Great Depression,” said Cummings. “This bill will create transparency, accountability and clarity in our markets that we have never had before.

“More importantly, it will protect consumers, the folks on Main Street. That includes the people in my district who have lost their jobs, who are close to losing their homes, and who are losing hope. I am proud that some of the legislation I helped create will be passed into law, and will help those who are trying their hardest to weather this storm.”

The first, and most sweeping reform championed by Cummings is the creation of a $1 billion fund, underwritten with remaining TARP allocations, allowing “bridge loans” to homeowners who are facing foreclosure. These low-interest loans, administered by the Department of Housing and Urban Development, would allow homeowners to stay current on their mortgages during times of need.

Cummings has three other provisions in the Dodd-Frank bill. One provision requires 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. 

Another 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.

Finally, the bill includes a provision that requires the Office of the Comptroller of the Currency (OCC) to issue its mortgage modification data by state. 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.

-30-