My letter from Congressman Jim McDermott

Dear Rhonda:

Thank you for contacting me about mortgage reform and the subprime lending crisis. I appreciate hearing from you on this important matter.

As you know, across the country, hundreds of thousands of borrowers, many of whom were irresponsibly issued subprime, adjustable-rate loans, are facing possible home foreclosure and millions more are struggling to make their home mortgage payments.  This foreclosure crisis, and the failure of various state regulations to prevent the problem, indicates the need for greater federal oversight of the mortgage industry and its practices.

Accordingly, the U.S. House of Representatives recently passed HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007.  I voted for this legislation, which institutes a number of important steps to stop lending abuse, including creating a nationwide licensing registry for mortgage brokers and establishing minimum standards of credit worthiness for home loans.  I believe this bill makes significant progress in protecting consumers, stabilizing mortgage volatility, and preventing predatory home lending. 

I appreciate you sharing with me your thoughts on Title III of HR 3915 , and the need to preserve mortgage financing options for borrowers. As you probably know by now, the anticipat ed amendments by Rep. Gary Miller that you mention ed were not offered. I understand that the National Association of Mortgage Brokers (NAMB) still has concerns with Title III as passed by the House. NAMB endorsed HR 3915 and supports the overall legislation, and has vowed to continue to work with Congress as the bill heads to the Senate and to a possible conference committee. As this process unfolds, I will keep your thoughtful remarks in mind.

As this issue is debated in the U.S. Senate and heads to a possible conference committee, I will keep your comments in mind.  Thank you for writing me. 

Sincerely,

Jim McDermott

Member of Congress

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