Mortgage Modification News:
House Passes Historic Mortgage Reform Legislation
Washington, DC - The House of Representatives today overwhelmingly approved legislation to curb abusive and predatory lending – a major factor in America’s highest home foreclosure rate in 25 years. H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009, will outlaw many of the egregious industry practices that marked the subprime lending boom. It represents a key step in the overhaul of the nation’s financial regulations.
The measure was introduced by Reps. Brad Miller (D-NC), Mel Watt (D-NC), and Barney Frank (D-MA), and approved by a vote of 300-114.
“Our economy will eventually recover and we will again have a healthy housing market, but we're in for a tough spell. This legislation will ensure that the reckless, predatory mortgage practices that started this crisis will not happen again,” said Rep. Miller.
“My joy at House passage of this important bill is tempered by my belief that we could have avoided the major credit and economic meltdown we are now experiencing had we passed this legislation when Rep. Miller and I originally proposed it 6 years ago. Unfortunately, the alarms we raised were not heeded and millions of consumers, indeed our entire economy, paid a heavy price,” said Rep. Watt.
The legislation counters the trend toward irresponsible lending by establishing a simple standard for all mortgages: lenders must make sure that borrowers have the ability to repay the home loans they are sold. The bill also requires that all mortgage refinancing loans benefit the consumer, and it bans predatory schemes that “steer” borrowers into higher cost loans. The growth of exotic, “no-documentation” loans, along with borrowers who deliberately misstated their income to qualify for a loan, were key factors in the recent subprime meltdown.
In addition, H.R. 1728 encourages a return to sound underwriting practices by prohibiting mortgage lenders from relinquishing all responsibility for the bad loans they make and sell to Wall Street. Under the measure, lenders will now be required to keep “skin in the game” and retain a 5 percent stake in any home loan they make and sell. Also, for the first time ever, the large secondary mortgage market will bear responsibility for bad loans they purchase and securitize, bringing accountability back to every level of the mortgage lending chain.
According to the Center for Responsible Lending, 2.4 million Americans risk foreclosure in 2009, and that number could rise to 8.1 million over the next four years. Mortgage lending reform is a critical part of efforts in Congress to reform America’s financial system and prevent a future crisis of this scale. If Congress had enacted these long overdue mortgage lending reforms, which Democrats have been advocating since 1999, the subprime lending meltdown could have been avoided altogether.
.
To view a summary of H.R. 1728, click here • To view a summary of H.R. 1728, click here
|
|
Making Home Affordable Plan
The Making Home Affordable Plan could provide some borrowers mortgages with interest rates as low as 2 percent and there are also incentives that may pay down principal in some cases.
There are two programs -- Home Affordable Refinance and Home Affordable Modification. ... More
Homeowner Affordability and Stability Plan ( HASP ) -
Borrower Q&A • HASP Q&A • HASP Facts • HASP Overview • HASP Summary • HASP Guidelines
|
|
Financial Services Democrats Call on Northern Trust to Repay TARP Funds
Washington, DC - House Financial Services Committee Chairman Barney Frank, along with 17 Democrats on the committee, sent a letter today to Frederick H. Waddell, the President and CEO of Northern Trust, in response to published media reports that, the company hosted a PGA golf tournament and several related parties. Democratic members of the committee “…insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events”
... More
|
|
American Recovery and Reinvestment Act
Making supplemental appropriations for job preservation and creation, infrastructure
investment, energy efficiency and science, assistance to the unemployed, and
State and local fiscal stabilization, for the fiscal year ending September 30,
2009, and for other purposes. ... More
|
|
Help For Homeowners
President Obama unveils his plan to ease the nation's home-loan crisis during an address in Arizona. It emphasizes refinancing and workouts and offers incentives to lenders. ... More
|
|
Greenspan Still Credible?
Former Fed Reserve chairman Alan Greenspan's plug for bank nationalization is a real conflict, says Paul Kedrosky, TheStreet.com... More
|
|
Inside Look - Fannie Mae and Freddie Mac Help Facing Foreclosure
Analysis and Discussion with Director of Federal Housing Finance Agency and Regulator James Lockhart (Market Pulse) ... More
|
|
Housing relief plan won't help all at risk
The Obama administration's sweeping plan to stop foreclosures is expected to help millions of Americans save their
homes from the sheriff’s auction. But as the broad outlines of the plan sift through the lending system, it’s already
clear that millions more won’t be helped.
... More
|
|
|
|
|
