WashingtonWatch.com - H.R. 1728, The Mortgage Reform and Anti-Predatory Lending Act

Comment by fb47 (September 21, 2009, 01:00:00)

Mon, 21 Sep 2009 00:00:00 EDT

This bill will destroy all the small independent brokers. The main problem is that the banks themselves aren't being constrained in the same way as the brokers....

Revision by webmaster (September 18, 2009, 01:00:00)

Fri, 18 Sep 2009 00:00:00 EDT

H.R. 1728 would amend the Truth in Lending Act to reform consumer mortgage practices and provide accountability for such practices, to provide certain minimum standards for consumer mortgage loans.

Detailed Summary

Mortgage Reform and Anti-Predatory Lending Act - Title I: Residential Mortgage Loan Origination Standards - (Sec. 102) Amends the Truth in Lending Act (TILA) to prescribe fiduciary standards for originators of residential mortgages, including complete and timely written disclosure of: (1) the comparative costs and benefits of each residential mortgage loan product presented by the originator; (2) the nature of the originator's relationship to the consumer, including the cost of services provided by the originator; and (3) any relevant conflicts of interest between originator and consumer.

(Sec. 103) Prohibits steering incentives in connection with mortgage loan origination.

Directs the federal banking agencies to prescribe prohibitions against specified mortgage origination practices, including steering any consumer to a residential mortgage loan that: (1) the consumer lacks a reasonable ability to repay; (2) does not provide a consumer refinancing a residential mortgage loan with a net tangible benefit; or (3) has predatory characteristics or effects (such as equity stripping, excessive fees, or abusive terms).

(Sec. 104) Sets the maximum liability of a mortgage originator to a consumer for violation of the residential mortgage loan origination requirements of this title, in addition to court costs and attorney fees, at the greater of: (1) actual damages; or (2) three times the total amount of direct and indirect compensation or gain accruing to the originator in connection with the residential mortgage loan involved.

(Sec. 106) Instructs the Secretary of Housing and Urban Development (HUD) and the Board of Governors of the Federal Reserve (Board) to issue jointly for public comment proposed regulations and model disclosure forms that provide borrowers with compatible disclosures at the time of mortgage application and at the time of closing.

(Sec. 107) Requires the Secretary to study and report to Congress on recommended regulatory requirements that would provide: (1) widespread use of shared appreciation mortgages to strengthen local housing markets; (2) new opportunities for affordable homeownership; and (3) homeowners at risk of foreclosure with the ability to refinance or modify their mortgages.

Title II: Minimum Standards for Mortgages - (Sec. 201) Amends TILA to prescribe minimum standards for residential mortgage loans, including a requirement that a residential mortgage loan creditor: (1) make a reasonable and good faith determination based upon verified and documented information that the consumer has a reasonable ability to repay the loan and its applicable taxes, insurance, and assessments; and (2) use a fully amortizing repayment schedule for purposes of determining a consumer's ability to repay a variable rate loan that defers repayment of principal or interest.

(Sec. 202) Prohibits a creditor from extending credit in connection with any residential mortgage loan that involves a refinancing of a prior existing residential mortgage loan unless the creditor reasonably and in good faith determines, at the time the loan is consummated and on the basis of information known by or obtained in good faith by the creditor, that the refinanced loan will provide a net tangible benefit to the consumer.

(Sec. 203) Authorizes any creditor with respect to any qualified residential mortgage loan, meeting specified requirements, and any assignee or securitizer of such loan, to presume that the loan has met the minimum standards of this title.

(Sec. 204) Permits civil actions for rescission of a residential mortgage loan if a creditor has committed specified abuses.

Limits the liability of good faith assignees or securitizers of a residential mortgage loan to loan rescission and to certain obligor costs. Allows such an assignee or securitizer to avoid liability if it provides a satisfactory cure for a violation within 90 days after notice of the violation from the consumer. Shields assignees and securitizers from class action suits.

(Sec. 205) Permits a consumer who has the right to mortgage loan rescission to assert such right as a defense to foreclosure.

(Sec. 206) Prohibits specified practices, including: (1) certain prepayment penalties; (2) single premium credit insurance; (3) mandatory arbitration or other nonjudicial procedure (except for reverse mortgages); (4) mortgage loan terms that waive a statutory cause of action by the consumer; and (5) mortgages with negative amortization (except, again, for reverse mortgages), unless certain disclosures are made and a first-time borrower receives homeownership counseling.

Requires a creditor or mortgage originator, before loan consummation or loan refinancing, to disclose the protection provided by a state anti-deficiency law and its significance for the consumer upon the loss of that protection. (A state anti-deficiency law shields a consumer mortgagor from liability for any deficiency between a foreclosure sale price and the outstanding balance of the mortgage.)

Requires a residential mortgage loan creditor to disclose before settlement: (1) the creditor's policy regarding partial payments and their application to the mortgage; and (2) whether such payments will be placed in escrow.

(Sec. 210) Doubles civil money penalties on creditors for certain violations.

(Sec. 211) Exempts a creditor, assignee, or securitizer from liability and rescission in the case of borrower fraud or deception.

(Sec. 212) Requires a six-month notice including specified elements before a hybrid adjustable rate mortgage is reset.

(Sec. 213) Directs federal banking agencies to prescribe jointly regulations requiring creditors that make a non-qualified residential mortgage loan retain an economic interest in a material portion of the credit risk if the creditor transfers, sells, or conveys such loan to a third party.

Authorizes the agencies jointly to apply risk retention requirements to securitizers of non-qualified residential mortgages in addition to, or in substitution for, the requirements governing creditors that make such mortgages if the agencies jointly determine that applying retention requirements would: (1) help ensure high quality underwriting standards; and (2) facilitate appropriate creditor risk management practices, or otherwise serve the public interest.

(Sec. 214) Prescribes creditor disclosures for: (1) variable rate residential mortgage loans for which an escrow or impound account will be established to pay taxes, insurance and assessments; and (2) periodic statements for residential mortgage loans.

(Sec. 216) Directs the HUD Secretary to establish a grants program to enable low- and moderate-income homeowners and tenants to obtain legal assistance associated with foreclosure.

(Sec. 218) Directs the Comptroller General to study and report to Congress on the effects that enactment of this Act will have upon the availability and affordability of credit for consumers, small businesses, homebuyers, and mortgage lending, including the effect upon: (1) the mortgage market for mortgages that are not within the safe harbor provided in this Act; (2) the ability of prospective homebuyers to obtain financing; and (3) the refinance ability of homeowners facing resets or adjustments.

(Sec. 219) Authorizes state attorneys general to enforce the tenant protections set forth in this Act.

(Sec. 220) Prescribes tenant protection measures in the case of foreclosure on any dwelling or residential real property (including Section 8 tenancies).

Title III: High-Cost Mortgages - (Sec. 301) Prescribes standards for points and fees related to: (1) high-cost mortgages; (2) open-end consumer credit plans; and (3) bona fide discount points and prepayment penalties.

(Sec. 302) Repeals the allowance of prepayment penalties for certain mortgages.

Prohibits a high-cost mortgage from containing a scheduled payment that is more than twice as large (balloon payment) as the average of earlier scheduled payments.

(Sec. 303) Prescribes additional requirements for certain mortgages.

Prohibits a creditor from: (1) recommending default on an existing debt prior to and in connection with the closing of a high-cost mortgage that refinances such debt; (2) imposing late payment fees in connection with a high-cost mortgage except in compliance with specified requirements; (3) accelerating debt on a high-cost mortgage (except in certain circumstances); or (4) financing, in connection with any high-cost mortgage, either a prepayment fee or penalty payable by the consumer if the creditor is the noteholder of the note being refinanced.

Prohibits the creditor of a high-cost mortgage from implementing certain evasions, structured transactions, and reciprocal arrangements.

Prohibits a creditor from charging a consumer any fee to modify, renew, extend, or amend a high-cost mortgage, or to defer any payment due under the terms of such mortgage, unless the modification, renewal, extension, or amendment results in a lower annual percentage rate on the mortgage for the consumer, and then only if the amount of the fee is comparable to fees imposed for similar consumer credit transactions secured by a consumer's principal dwelling.

Prohibits the charging of any fee, except a processing fee, for payoff statements.

Requires a creditor, as a prerequisite to extending consumer credit under a high-cost mortgage, to receive certification from a HUD-approved counselor that the consumer has received counseling on the advisability of the mortgage.

Prohibits any creditor from knowingly or intentionally engaging in the unfair act or practice of flipping in connection with a high-cost mortgage. Defines flipping as the making of a loan or extension of credit in the form a high-cost mortgage to a consumer which refinances an existing mortgage when the new loan or extension of credit does not have reasonable, net tangible benefit to the consumer considering all of the circumstances.

Prescribes a procedure by which a high cost loan creditor or assignee that, acting in good faith, commits an unintentional violation of these prohibitions and other requirements may make timely corrections and avoid liability for the violation.

Title IV: Office of Housing Counseling - Expand and Preserve Home Ownership Through Counseling Act - (Sec. 402) Amends the Department of Housing and Urban Development Act to establish within HUD the Office of Housing Counseling, whose Director shall have primary responsibility within HUD for all activities and matters relating to both homeownership and rental housing counseling.

(Sec. 403) Amends the Housing and Urban Development Act of 1968 to require the Secretary to: (1) prescribe counseling procedures for homeownership and rental counseling; and (2) provide for certification of computer software programs for consumers to evaluate different residential mortgage loan proposals.

Requires the Director to: (1) develop and conduct national public service multimedia campaigns to promote housing counseling; and (2) used specified funds to conduct foreclosure rescue education programs. Authorizes appropriations for FY2009-FY2011.

(Sec. 404) Requires the Secretary to provide financial assistance (grants) to HUD-approved housing counseling agencies and state housing finance agencies that offer homeownership and rental counseling.

Authorizes appropriations for FY2009-FY2012 for: (1) the Office of Housing Counseling; (2) certain responsibilities of the Director; and (3) assistance to entities providing homeownership and rental counseling.

(Sec. 405) Requires an organization that receives federal assistance for counseling activities to be HUD-certified.

(Sec. 406) Directs the Secretary to: (1) study and report to Congress on the root causes of home loan defaults and foreclosures; and (2) establish on a census tract basis a default and foreclosure database on mortgage loans for one- to four-unit residential properties, and to make such information publicly available.

(Sec. 409) Directs the Secretary to develop a funds-tracking system, including accountability and transparency criteria, to ensure that grant recipients use all amounts of financial assistance in accordance with specified requirements.

(Sec. 410) Amends the Real Estate Settlement Procedures Act of 1974 (RESPA) to direct the Secretary to: (1) prepare, at least once every five years, a booklet to help federally related mortgage loan applicants of different ethnic and cultural backgrounds to understand the nature and costs of real estate settlement services; and (2) distribute to all lenders that make federally related mortgage loans both the booklets and lists of HUD-certified homeownership counselors.

(Sec. 411) Requires the Secretary to inform potential homebuyers of the availability and importance of obtaining an independent home inspection.

(Sec. 412) Allocates specified funds to the Neighborhood Reinvestment Corporation for activities to make borrowers who are delinquent on certain loans aware of the dangers of fraudulent activities associated with foreclosure.

Title V: Mortgage Servicing - (Sec. 501) Amends TILA to require a creditor in a non-credit card consumer credit transaction secured by a first lien on the principal dwelling (other than a reverse mortgage) to establish an escrow or impound account for mandatory periodic payments or premiums (including taxes, insurance, and ground rents).

Prohibits making an escrow or impound account a condition of a real property sale contract or a loan secured by a first deed of trust or mortgage on the consumer's principal dwelling unless specified circumstances exist.

Requires such escrow or impound account to remain in existence for at least five years until sufficient equity exists in the property securing the transaction so that private mortgage insurance is no longer required, or unless the underlying mortgage is terminated.

States that: (1) escrow accounts need not be established for loans secured by shares in a cooperative; and (2) insurance premiums need not be included in escrow accounts for loans secured by condominium units if the condominium association has an obligation to unit owners to maintain a master insurance policy.

Requires: (1) escrow accounts to be established in a federally insured depository institution; and (2) each creditor to pay interest on the amount held in such accounts as required by state or federal law.

Requires specified disclosures to the consumer about a mandatory escrow or impound account before consummation of the credit transaction giving rise to such account.

(Sec. 502) Requires creditors to provide specified disclosures to consumers who waive escrow services.

(Sec. 503) Amends RESPA to prohibit the servicer of a federally related mortgage from engaging in certain practices, including obtaining force-placed hazard insurance unless there is a reasonable basis to believe the borrower has failed to comply with the loan contract requirements. (Force-placed hazard insurance is coverage obtained by the servicer when the borrower has failed to comply with hazard insurance requirements under the terms of the mortgage).

Prescribes notice and borrower non-response requirements for permitting loan servicers to obtain force-placed insurance.

Doubles the penalties for loan servicer noncompliance with RESPA disclosure requirements.

Reduces from 20 to five days the time limit within which loan servicers are required to respond to borrower inquiries.

Requires any remaining escrow balance that is within the control of the loan servicer at the time the loan is paid off to be: (1) promptly returned to the borrower within 20 business days; or (2) credited to a similar account for a new mortgage loan to the borrower with the same lender.

(Sec. 504) Amends TILA to prohibit a loan servicer, except in a specified circumstance, from failing to credit a payment to the consumer's account as of the date of receipt.

Requires a creditor or servicer of a home loan to send an accurate payoff balance no later than seven business days after receipt of a written request for it.

Requires repayment disclosures regarding a first mortgage- or lien-secured consumer credit transaction to take into account the amount of monthly escrow payments, including: (1) the taxable assessed value of the real property securing the transaction after consummation of the transaction; (2) the value of any improvements on the property or to be constructed on it; and (3) the replacement costs of the property for hazard insurance in the initial year after the transaction.

Title VI: Appraisal Activities - (Sec. 601) Amends TILA to set forth property appraisal requirements for a creditor who extends subprime mortgage credit to a consumer, including: (1) a written appraisal performed by a qualified appraiser who conducts a physical property visit of the interior of the mortgaged property; (2) a free copy of such appraisal to the applicant before the transaction closing date; and (3) a statement by the creditor at the time of the initial mortgage application that the appraisal is for its sole use, and that the applicant, at its own expense, may choose to have a separate appraisal.

Requires a creditor to obtain a second appraisal from a different qualified appraiser if the purpose of a subprime mortgage is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price lower than the current sale price of the property.

(Sec. 602) Declares unfair and deceptive certain practices relating to consumer credit transaction secured by the consumer's principal dwelling.

Includes among unfair and deceptive practices any appraisal of a property offered as security in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person conducting or involved in the appraisal.

Includes, in addition, among such practices: (1) mischaracterizing, or suborning mischaracterization of the appraised value of the property securing the extension of the credit; (2) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the transaction; and (3) withholding or threatening to withhold timely payment for an appraisal report or for appraisal services rendered.

Prohibits any certified or licensed appraiser or appraisal management company from having an interest, financial or otherwise, in the property or transaction involving the appraisal.

Requires designated federal agencies to prescribe implementing regulations jointly. Subjects unfair and deceptive practices to civil penalties.

(Sec. 603) Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to provide the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FIEC) with a consumer protection mandate.

Directs the Subcommittee to monitor the efforts of, and requirements established by, states and federal financial institutions regulatory agencies to protect consumers from improper appraisal practices and from predations of unlicensed appraisers in consumer credit transactions secured by a consumer's principal dwelling.

Requires the Subcommittee to detail in its annual report to Congress: (1) the results of all audits of state appraiser regulatory agencies; and (2) an accounting of disapproved actions and warnings taken in the previous year, including the conditions causing the disapproval and the actions taken to achieve compliance.

Requires meetings of the Subcommittee to be open to the public.

Requires: (1) all property appraisals performed within a state to be prepared by appraisers licensed or certified within the state where the property is located; and (2) all appraisal reviews to be performed by an appraiser licensed or certified by a state appraisal board.

Requires the Subcommittee to monitor state requirements for the registration and supervision of an appraisal management company.

Directs the Subcommittee to maintain a national registry of appraisal management companies that either are: (1) registered with and subject to supervision of a state appraiser certifying and licensing agency; or (2) operating subsidiaries of a federally regulated financial institution.

Requires the Appraiser Qualifications Board of the Appraisal Foundation to establish minimum qualifications a state must apply in the registration of appraisal management companies, including specified requirements.

Requires the appropriate federal financial institution regulatory agency to develop regulations affecting the operations of any appraisal management company that is a subsidiary owned and controlled by a federally regulated financial institution.

Sets forth: (1) registration limitations; (2) additional state agency reporting requirements; and (3) revised registry fees.

Authorizes the Subcommittee to award grants to state appraiser certifying and licensing agencies in order to support their compliance with this Act.

Authorizes the Subcommittee to: (1) remove a state licensed or certified appraiser or a registered appraisal management company from a national registry on an interim basis pending state agency action on licensing, certification, registration, and disciplinary proceedings; (2) impose sanctions against a state agency that fails to have an effective appraiser regulatory program; and (3) impose interim actions and suspensions against a state agency as an alternative to, or in advance of, derecognition of a state agency.

Requires a state appraiser certifying or licensing agency to issue a reciprocal certification or license for an individual with a valid certification or license from another state in compliance with this Act whose licensure standards meet or exceed those of the first state.

Requires the Subcommittee to monitor each state appraiser certifying and licensing agency to determine whether: (1) its policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence; and (2) such state maintains effective regulations, and policies regarding maintaining appraiser independence.

Requires the Subcommittee, one year after enactment of this Act, to establish and operate an Appraisal Complaint National Hotline, including a toll-free telephone number and an email address, if none exists by that time.

Directs the Subcommittee to promulgate regulations to implement quality control standards governing automated valuation models (computerized models used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumer's principal dwelling).

Prohibits broker price opinions from being used as the primary basis to evaluate property for loan origination in connection with a residential mortgage loan secured by such property.

Amends the Federal Financial Institutions Examination Council Act of 1978 to require that at all times at least one member of the Appraisal Subcommittee have demonstrated knowledge and competence through licensure, certification, or professional designation within the appraisal profession.

(Sec. 604) Directs the Comptroller General to study and report to Congress on possible improvements in the appraisal process generally, and specifically on the consistency in and the effectiveness of, and possible improvements in, state compliance efforts and programs.

(Sec. 605) Amends the Equal Credit Opportunity Act (ECOA) to revise requirements that creditors provide loan applicants a copy of the appraisal report used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential real property. Repeals the condition that the loan applicant request the copy. Requires a creditor to furnish the applicant a copy of all written appraisals and valuations within three days after the closing of the loan.

(Sec. 606) Amends RESPA to require the standard real estate settlement form to disclose, in the case of an appraisal coordinated by an appraisal management company, the fee paid directly by the company to the appraiser as well as the company's administration fee.

Title VII: Sense of Congress Regarding the Importance of Government Sponsored Enterprises Reform - (Sec. 701) Expresses the sense of Congress that efforts to enhance the terms of residential mortgage credit and practices by protection, limitation, and regulation would be incomplete without enactment of meaningful structural reforms of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Title VIII: Reports - (Sec. 801) Directs the Comptroller General to study and report to Congress on certain interagency efforts to crackdown on mortgage foreclosure rescue scams and loan modification fraud.

Title IX: Multifamily Mortgage Resolution - (Sec. 901) Directs the Secretary of the Treasury, in order to ensure the protection of current and future tenants of at-risk multifamily properties, to develop a program to stabilize multifamily properties that are either delinquent, at risk of default or disinvestment, or in foreclosure.

Title X: Study of Effect of Drywall Presence on Foreclosures - ( Sec. 1001) Directs HUD to study and report to Congress regarding the effect upon residential mortgage loan foreclosures of: (1) the presence of drywall imported from China between 2004 and the end of 2007; and (2) the availability of property insurance for residential structures in which such drywall is present.

Title XI: Guidelines for Purchase of Condominium and Cooperative Housing Mortgages - (Sec. 1101) Directs Fannie Mae and Freddie Mac to establish and revise, consistent with appropriate levels of credit risk, underwriting standards for the purchase of condominium and cooperative housing.

Status of the Legislation

Latest Major Action: 5/12/2009: Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Points in Favor

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Points Against

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Comment by Decue (September 5, 2009, 01:00:00)

Sat, 05 Sep 2009 00:00:00 EDT

Yammer, I'm with you...it's beyond me why the brokers are not shouting about this. As for the wholesale lenders ... I'm sure the banks ( the few that still remain in wholesale) are for this and not against.. this way they can and will take advantage on their retail side. As for the NAMB...they are not worth the air they breath....it's sad but true....

Comment by Yammer in AZ (August 14, 2009, 01:00:00)

Fri, 14 Aug 2009 00:00:00 EDT

Can someone help me understand this.... If HR #1728 (the bill that will do away with YSP paid to brokers) has passed the house and is on it's way to the senate. If it passes, that means we (brokers) will be limited to 1 point on all loans --- TOTAL. I will have to shut my doors, as will many/most brokers. Why don't I see anyone fighting this? Why aren't our wholesale lenders concerned about their customers (us) getting run out of business? Why aren't our NAMB and local trade org's fighting this? I believe everyone is in a state of disbelief. I called 5 of my lender reps today to ask what their companies were doing about this bill that will destroy their customers. None of them even knew what the status of the bill was, let alone if their companies had any opinion on the matter. Anyone seen Titanic lately?...

Comment by ESG (August 12, 2009, 01:00:00)

Wed, 12 Aug 2009 00:00:00 EDT

Can anyone point me to a link that shows the exact language in the Bill that references YSP? I have not been able to find where it is stated that lender compensation to the broker will be eliminated. Thanks!...

Comment by Tom H (August 9, 2009, 01:00:00)

Sun, 09 Aug 2009 00:00:00 EDT

I have a house I need to sell. I have a second rental that I would like to do a rent to own deal for. If this passes, I am up the creek, since no one that looked at either house can qualify. Congress is full of knaves and idiots....

Comment by Dale G (August 1, 2009, 01:00:00)

Sat, 01 Aug 2009 00:00:00 EDT

This is poorly written bill. They are in too much of hurry to do something that they are not thinking through the implications of what has been thrown together. It was poorly thought through legislation that caused this mess in the first place, "Fair Housing". We need to put the breaks on this and get it reworked. I note it has been in Senate committee for some time. I hope that means it is getting fixed. Otherwise, the real estate investment industry is doomed. Let us let the market correct itself and get the "King" out of our business....

Comment by susan0101 (July 21, 2009, 01:00:00)

Tue, 21 Jul 2009 00:00:00 EDT

This is not only bad for the mortgage industry but for those private parties who choose to house the people - landlords. This would cause limits on the number of homes that could have 'mortgages' and not private money loans, etc. Does the government think that by limiting that they will still be able to have individuals provide economical housing for those who choose to rent and not own their own homes? If not these individuals - then who?? The government? That really does hurt the free enterprise society....

Comment by PFSJ (July 13, 2009, 01:00:00)

Mon, 13 Jul 2009 00:00:00 EDT

This bill is deceiving! HR 1728, which has already passed in Congress, will effectively keep you from: * Selling properties with owner-carryback or wrap-around mortgages * Selling properties using land contracts or contracts for deed * Selling properties using lease/option * And, possibly, borrowing private money to buy properties The bill as written basically REMOVES YOUR ABILITY TO SELL HOUSES and carry back payments. It is a completely unacceptable infringement on private property rights. When I own a piece of property and find a ready, willing, and able purchaser, I should be able to control the sale of that property within the existing laws of my state, which already regulate the interest rate that I am able to charge and some of the terms of the sale. The government should not tell us that we need special licensing to sell our own properties Read section 101(3)(e) Please help stop this Bill! The motivation is good...the legislation is bad!!...

Comment by alm (July 10, 2009, 01:00:00)

Fri, 10 Jul 2009 00:00:00 EDT

A third party told me that this bill also wanted to limit 1 owner finance sale every 3 years....can some guide to to where I can find this, thanks. al...

Comment by Jim C (June 26, 2009, 01:00:00)

Fri, 26 Jun 2009 00:00:00 EDT

Fire safety laws are pretty well enforced. Our problems relate to predatory lenders and how they setup loans to fail, make profits when the loans fail as designed and leave the victim in financial ruin. Also a problem is that these lenders freely lie in court about the victims communication with the lender and only set off the borrower further. We need preventive measures to reduce the suicides prompted by hopelessness and the other destabilizing health related problems related to stress. If you cannot lend fairly, do not loan with conditions which are obviously poor for world economies and displaced homeowners. Amish is response to....

Comment by Jim C (June 26, 2009, 01:00:00)

Fri, 26 Jun 2009 00:00:00 EDT

Hozdaddy, How about making affordable loans instead of toxic loans which are set up in complex lending schemes to those who are versed well in sports and everyday events and know little about financial predatory schemes. Myself, I did not realize that a percentage up or down for interest with ARMS actually can be increased payments in 40% or more rises. Not too many people make 40% returns yearly or every half year to keep up with payment increases. Of course banksters and MBA knew this ahead of time....

Comment by AmishRakeFight (June 25, 2009, 01:00:00)

Thu, 25 Jun 2009 00:00:00 EDT

Jim C ..... please set yourself on fire.. Immediately...

Comment by hozdaddy (June 25, 2009, 01:00:00)

Thu, 25 Jun 2009 00:00:00 EDT

this bill is another attempt to dumb down the population. How about reading what you're signing. If you don't understand it, maybe you shouldn't be involved or maybe you should spend $350 to have a lawyer explain it to you. For every predatory lender, there was a greedy home buyer who had no business getting a loan....

Comment by Hozdaddy (June 23, 2009, 01:00:00)

Tue, 23 Jun 2009 00:00:00 EDT

it will put a crimp in the housing market recovery by limiting seller carry back financing to once every 3 years. With bad credit and no bank loans, buyers will not have active investors providing seller financing. Besides, seller financing is not a mortgage, it is defined as an installment sale by the IRS. This bill should not pass. If it does, don't expect a housing recovery....

Comment by Nolan Sweeney (June 23, 2009, 01:00:00)

Tue, 23 Jun 2009 00:00:00 EDT

This Bill is an assault on property rights. I understand that predatory lending is an evil process, however the bill takes away property rights by limiting the ways you are able to sell your house. It gives more power to the banks who were the ones that caused this mess and hurts the responsible real estate investors and sellers that utilize owner/seller financing as a tool. This tool is so great because it allows the buyer to work directly with the seller to construct a deal that is a win-win for both parties. This is because the buyer is more in tune with the sellers wants and needs. Do you think banks are in tune with the sellers needs? NO! This bill will only further hurt the economy, give power to the wrong people, and further chip away our property rights. Wake up people! Fight for your rights! Make the people that were responsible pay for their mistakes but DO NOT allow the government to take away your inalienable rights!...

Comment by reality (June 23, 2009, 01:00:00)

Tue, 23 Jun 2009 00:00:00 EDT

Folks, give up on Jim C. Spend your valuable time convincing your congressmen to defeat this mess....

Comment by Jim C (June 23, 2009, 01:00:00)

Tue, 23 Jun 2009 00:00:00 EDT

Bringing forth the bad elements that this legislation has is a good thing. Many people who have been set into loans with very damaging terms. People who were told by brokers that they could refinance in six months and slipping in a pre-payment penalty 2 year rider have to be held criminally accountable. Setting a minimal standard for lending related to affordability for long term contracts is important. If preventive measures were in place and enforced earlier we would not have such a financial collapse from bad lending. Banks should not be put ahead of owner/buyer private dealings but should still be prevented from being able to dupe others as the nonprime lenders have which led to our world financial collapse. As with fire prevention and structural safety in homes needs regulations in order to be observed, financial standards need to be observed to prevent lenders from giving sure to...

Comment by Jim C (June 23, 2009, 01:00:00)

Tue, 23 Jun 2009 00:00:00 EDT

Being given sure to fail loans and collecting moneys from the default insurance and also later the foreclosure. Then with their intention from deficiency judgments against those it duped....

Comment by Jim C (June 22, 2009, 01:00:00)

Mon, 22 Jun 2009 00:00:00 EDT

No I am not a plant for some organization supporting this legislation. I am a homeowner and also aware of many other homeowners who were damaged by predatory lending and loan steering. Brokers had their financial interest in mind and did little to give the future homeowner the best loan that they could obtain and at the best terms. People who could qualify for better terms should have been set into these loans instead of terms where the broker made profit but the homeowner could not afford. I work in the electronics industry related to high technology and nothing to do with making loans. I do realize that minimum standards need set for the worst possible loan marketed. Better lending terms will not be prohibited so free market does not work. A regulated market for worst possible lending terms is something that is no different than fire safety, building codes or other regulations set to protect Americans. Making things less likely to catch on flames or less likely to collapse....

Comment by Mike L (June 18, 2009, 01:00:00)

Thu, 18 Jun 2009 00:00:00 EDT

An individual owner of a property did not put anyone into a "liar" loan. An individual owner of property in America has ALWAYS enjoyed the right to sell his home, to anyone he sees fit, WITHOUT having the federal government or any bank involved. This bill SPECIFICALLY infringes on an American citizens property rights. Jim C, is obviously a plant in this thread. Jim C, I'm sure, since he refuses to identify anything about himself, especially his job, is working for the Banking lobby who is responsible for cramming this through the house, and who has the most to gain. Jim C fails to acknowledge the glaring faults in this bill, like the amendment which let’s the government seize your rental property. Check it out here: http://www.mynewplace.com/blog/2009/05/20/hr-1728-mortgage-reform-and-anti-predatory-lending-act/ - Hmm... this bill removes consumer choice, infringes on American Citizens rights as homeowners, and gives a government agency the right to sieze your property....

Comment by Mike L (June 18, 2009, 01:00:00)

Thu, 18 Jun 2009 00:00:00 EDT

Here's the info on the amendment that let's HUD sieze your property: "According to the NMHC, Representative Nydia Velazquez (D-NY) successfully proposed an amendment that would allow HUD and the Treasury Department to determine if a multifamily property were “at risk" and in such cases where this classification was levied, the two agencies would foreclose on the properties and then sell them to an entity which would then convert the properties into affordable housing. This sounds a bit like giving HUD an eminent domain authority; HUD could identify a rental property as “at risk" based on indefinite criteria and then the agency itself would employ the use of that property under a given municipalities public housing administration." Yeah, this bill is about "predatory lending", SURE it is.......

Comment by Jim C (June 17, 2009, 01:00:00)

Wed, 17 Jun 2009 00:00:00 EDT

The heavy degree of greedy dealings that offset people's financial stability is truly not capitalism or American dream. Like any other entity, it needs to be regulated to keep the thieves from sinking Americans and world financial systems. This bill needs passed to allow the honest and fair to make it in business while not being detoured to be policing their industry since some have no sense of fair play and have no honest intentions....

Comment by Jakeblue3 (June 15, 2009, 01:00:00)

Mon, 15 Jun 2009 00:00:00 EDT

What happened to free enterprise? What happened to capitalism? What happened to property owners selling their property on private contracts? What happened to small businesses engaging in mortgage brokerage? What happened to alternatives to mortgages beyond the bank criteria? What's happening to America? This bill has GOT TO BE DEFEATED!...

Comment by Philup On Deez (June 14, 2009, 01:00:00)

Sun, 14 Jun 2009 00:00:00 EDT

Ex & Former Lender If u guys r so informed "professional" then y r u no longer doing it oh yeah that's right it was ur greedy incentives that srewed us in the 1st place & broke up millions of families caused hundreds to commit suicide. ur just mad & against this bill because it would hold all who are accountable for wrongdoing already done. hush little baby don't u cry daddy's going 2 open up washington's eye & when he sees what u've been doing, I bet u it's gonna be u they're screwing!...