Cummings Applauds Passage Of Wall Street Reform Bill
Congressman proud of legislation he championed, protecting against foreclosures.
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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.
“Here we have a program intended to help everyday, hard-working Americans; the same folks who live in all of our districts,” said Cummings, in a speech to the Conference committee. “Four times in the last 15 months, I’ve had foreclosure prevention seminars in my District. On the average, about 1000 people come out. They are Black, they are White, they are Hispanic… and they are in tears.
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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.
H.R. 4173 still must be signed into law by President Obama.
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