Mortgage Reform and Anti-Predatory Lending Act of 2009 passes House 300-114

Washington, DC – Congresswoman Eddie Bernice Johnson today voted in favor of H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009, bipartisan legislation that will bring common sense reform to mortgage lending practices and provide consumers with stronger protections.  The bill passed the House by a vote of 300-114.

“In the United States, a family receives a foreclosure notice every 13 seconds,” Congresswoman Johnson said.  “Predatory and irresponsible mortgage loan practices played a major role in the foreclosure crisis.  The Mortgage Reform and Anti-Predatory Lending Act will bring much-needed reforms to mortgage lending, helping to put our economy back on a stable foundation.  It will ensure that the only mortgages that borrowers receive are ones that they can afford.”

The Mortgage Reform and Anti-Predatory Lending Act establishes a federal standard for all home loans—institutions must ensure that borrowers have a “reasonable ability to repay” mortgages, based on income, credit history, indebtedness and other factors.  It also prohibits financial incentives for subprime loans that encourage lenders to steer borrowers into more costly loans.

The legislation also:
• Brings accountability to the secondary market for home loans;
• Holds creditors responsible for the loans they originate;
• Imposes penalties for irresponsible lending;
• Creates stronger consumer protections for high-cost mortgages;
• Requires additional disclosures for consumers regarding mortgage loans;
• Protects tenants who rent homes that go into foreclosure;
• Creates an Office of Housing Counseling within the U.S. Department of Housing and Urban Development; and
• Provides for legal assistance to homeowners and tenants facing foreclosure

###

U.S. Representative Eddie Bernice Johnson is the highest-ranking Texan on the House Committee on Transportation & Infrastructure and a senior member of the Science Committee. She represents the 30th Congressional District of Texas, which, includes Downtown Dallas, Fair Park, Oak Lawn, Old East Dallas, Pleasant Grove, & South Oak Cliff; all of Balch Springs, DeSoto, Hutchins, Lancaster & Wilmer and parts of Cedar Hill, Duncanville, Ferris, Glenn Heights and Ovilla.