Sincerely,

David G. Reichert
Member of Congress

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

P . S . – I have an e-mail newsletter available to anyone interested in updates on issues and events from the U.S. Congress or the Seattle area.  To subscribe, visit my website at www.house.gov/mcdermott and click on "Newsletter Signup."

Bill 3915 is progressing towards a vote in Congress after passing through the House Finance Committee.   If Barney has his way, mortgages will be changed drastically and not all for the better.  Consumers will have financial freedoms taken away.  Apparently some of our elected officials don’t feel consumers can handle the responsibility of owning and financing a home.  They’re correct on a small scale; yet they are going to punish the masses (consumers and lenders alike).   

When I think of the people who I have helped buy homes or restructure their mortgage who would not be able to have a mortgage based on this proposed legislation, it sickens me.   Last year, I helped a woman who’s husband had lost his battle to cancer.  She was relocating back to Seattle to be closer to family and did not have a job.  We were able to do a "no job" loan based on her credit and down payment.   This type of program may not exist if Barney Frank gets his way.

If you are a successful home owner who may have used subprime or alternative financing (stated income, interest only, etc.); speak up or lose your financial freedom.   If you could only use The Bank of Barney Frank, you would not own a home without private financing and you may have troubles (fewer options) refinancing.   Don’t worry though, Barney will do what he can to make sure you can use the money to gamble on line instead of using it for something as dangerous as a mortgage. 

Regarding legalizing on-line gambling, Mr. Frank states

"…adults who work for their money, in the comfort of their homes, should be allowed to engage in a form of recreation which they enjoy and which has no conceivable negative impact on anybody else…"   

How can suffering gambling losses or supporting people with addictions to gambling be "suitable" to Mr. Frank? Argh!

If you are opposed to having this bill pass, I encourage you to take action and contact your representative in Congress and let them know how you feel.   You can copy and paste the letter below and forward it via email to your congress person.

<<YOUR STATE REPRESENTATIVE>>

Dear President George W. Bush, U.S. Senator Jon Kyl, U.S. Senator John McCain, U.S. Rep. Harry E Mitchell:

We want to express our opposition to H.R. Bill 3915. We believe it is burdensome to the independent mortgage broker, anti-competitive, and in the name of consumer protection, it will actually harm consumers. In an already tough lending and real estate environment, this bill will put additional unneeded pressure on real estate prices and cause unforeseen harm to homeowners, mortgage professionals and real estate professionals everywhere. It will also limit the choices consumers have in finding a residential mortgage loan to strictly large financial institutions.

Sincerely,

<<YOUR NAME>>
<<YOUR ADDRESS>>

Click to access Section%20by%20Section.pdf

We endorse the NO on H.R. 3915 Petition to U.S. Senator Jon Kyl, U. S. Senator John McCain, President George W. Bush, U. S. Rep Harry E Mitchell.

Read the NO on H.R. 3915 Petition

104,000 Total Signatures as of 11/7/2007
http://www.petitiononline.com/mod_perl/signed.cgi?HR3915

I’m have my office TV on C-SPAN hoping to catch HR 3915 being presented to the House Finance Committee.   Apparently there have all ready been modifications made since I last posted about this bill.

Summary of Amendments

NAMB’s Call to Action

Hat Tip to Ray Gallegos