CARNEY CONTINUES REFORM FIGHT TO PROTECT CONSUMERS

By THE OFFICE OF CONGRESSMAN CHRIS CARNEY (D-10)

Washington, D.C.—Today, Congressman Carney voted to stop the irresponsible mortgage loan practices that brought about the current housing crisis. Carney worked with a broad bipartisan majority in the House (300-114) to pass H.R. 1728, the Mortgage Reform and Predatory Lending Act of 2009. The measure will ensure that mortgage lenders make loans that benefit consumers by prohibiting them from misstating a client’s income in order to qualify them for a higher cost loan and imposing penalties for lenders who employ such practices.

“Today, we continued the fight to protect consumers and hold abusive and predatory lenders accountable. This bill is another common-sense solution that brings much needed reform to the mortgage industry. These types of reforms could have prevented the current housing crisis,” said Carney. “By passing the Mortgage Reform and Predatory Lending Act of 2009, we are assuring consumers of greater protection from the irresponsible subprime lending that victimized so many homebuyers. I am committed to measures like this that help rebuild the economy, protect American consumers, and prevent a future economic crisis,” he added.

The Mortgage Reform and Predatory Lending Act of 2009 helps to restore integrity to the mortgage lending industry by imposing a multitude of reforms. These include:

Requiring lenders to ensure a borrower’s ability to repay.
Prohibits unfair lending practices.
Brings accountability to the secondary market for home loans.
Holds creditors responsible for the loans they originate.
Imposes penalties for irresponsible lending.
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 the office of Housing Counseling.
Offers legal assistance to homeowners and tenants facing foreclosure.

The Mortgage Reform and Predatory Lending Act builds upon the other consumer protection legislation that Congressman Carney recently helped pass, including the Credit Cardholders’ Bill of Rights and the Fraud Enforcement and Recovery Act. The Credit Cardholders’ Bill of Rights ends the unfair practices of the credit card industry and protects consumers from the abusive tactics that continue to drive so many Americans deeper and deeper into debt. The Davis/Carney amendment to the Credit Card Bill of Rights limits the ability of credit card companies to increase interest rates, require 45 days notice of a pending interest rate increase, and require more disclosure of rates, fees, and penalties to consumers.

“In these tough economic times it is critically important that we do everything we can to protect responsible credit card users,” said Congressman Carney. “The people who work hard and play by the rules deserve fair treatment from their credit card companies. The Davis/Carney amendment gives Americans the information and rights they need to make decisions about their financial lives,” continued Carney. “Under current law, people who are disciplined with their credit cards and may only use them in case of an emergency can have their card canceled without notice. That cancellation negatively affects their credit score and that is unfair. My amendment is a common sense solution that protects the consumer from this unfair practice.”
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