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H.R. 1728
Tuesday, September 8, 2009
Thank you for contacting me to express your concerns about legislation to reform the mortgage industry. I appreciate the time you took to write and welcome the opportunity to respond.
On May 12, 2009, the House of Representatives passed the "Mortgage Reform and Anti-Predatory Lending Act" (H.R. 1728) by a vote of 300-114. Included in this legislation are provisions to help prevent mortgage brokers and originators from steering consumers toward mortgages with predatory or unreasonable terms. One such provision would classify individual investors providing private financing to a homebuyer more than once in a 36-month period as a mortgage originator. In doing so, this provision would require that these private financers be subject to Federal mortgage originating standards and regulation.
I strongly believe that all mortgage brokers and lenders should be licensed. To that end, I sponsored legislation, along with Senator Mel Martinez (R-FL), known as the "S.A.F.E. Mortgage Licensing Act of 2008," which was included in the Housing and Economic Recovery Act of 2008 (Public Law 110-289). This legislation requires all mortgage brokers and lenders to meet minimum national licensing standards in an effort to curb abusive lending practices.
I understand your concern that H.R. 1728 could limit the financing options available to some homebuyers facing difficulty in obtaining a conventional mortgage. However, I believe that any further legislation to prevent foreclosures and reform the housing market should protect potential homeowners from predatory lending practices. H.R. 1728 has been referred to the Senate Committee on Banking, Housing and Urban Affairs. Although I am not a member of this Committee, please know that I will keep your concerns about this bill in mind should it come before the full Senate.
Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
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On May 12, 2009, the House of Representatives passed the "Mortgage Reform and Anti-Predatory Lending Act" (H.R. 1728) by a vote of 300-114. Included in this legislation are provisions to help prevent mortgage brokers and originators from steering consumers toward mortgages with predatory or unreasonable terms. One such provision would classify individual investors providing private financing to a homebuyer more than once in a 36-month period as a mortgage originator. In doing so, this provision would require that these private financers be subject to Federal mortgage originating standards and regulation.
I strongly believe that all mortgage brokers and lenders should be licensed. To that end, I sponsored legislation, along with Senator Mel Martinez (R-FL), known as the "S.A.F.E. Mortgage Licensing Act of 2008," which was included in the Housing and Economic Recovery Act of 2008 (Public Law 110-289). This legislation requires all mortgage brokers and lenders to meet minimum national licensing standards in an effort to curb abusive lending practices.
I understand your concern that H.R. 1728 could limit the financing options available to some homebuyers facing difficulty in obtaining a conventional mortgage. However, I believe that any further legislation to prevent foreclosures and reform the housing market should protect potential homeowners from predatory lending practices. H.R. 1728 has been referred to the Senate Committee on Banking, Housing and Urban Affairs. Although I am not a member of this Committee, please know that I will keep your concerns about this bill in mind should it come before the full Senate.
Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.