Congressman Cohen Votes for Anti-Predatory Lending Legislation

“I am pleased to be a cosponsor of this legislation, which creates a Nationwide Mortgage Licensing System for residential mortgage loan originators and establishes a minimum standard requiring that borrowers have a reasonable ability to repay a loan,” stated Rep. Cohen. “The bill will also expand and enhance consumer protections for ‘high-cost loans’ as well as include protections for renters of foreclosed homes. Finally, the bill establishes an Office of Housing Counseling through the Department of Housing and Urban Development.”

“This legislation will greatly benefit the city of Memphis. According to First American LoanPerformance, a leading research and data provider to the mortgage industry, the Memphis metro area has the second highest percentage of subprime mortgage loans in the United States, with such mortgages constituting 24 percent of all mortgages in the area.

“Working families across our nation facing the dread of foreclosure need not be burdened with the added fear of falling prey to a fraudulent lender. This bill ensures borrowers have access to viable tools to help them rise out of mortgage debt and will help to improve the vitality of the overall housing market.”

On Sept 18, Congressman Cohen also voted in favor of H.R. 1852, The Expanding American Homeownership Act of 2007. This comprehensive legislation would enable the Federal Housing Administration to serve more subprime borrowers at affordable rates and terms through the authorization of lower down payments and increased single and multi-family loan limits. The measure passed the House by a vote of 348 - 72.

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Contact:

Marilyn Dillihay, Press Secretary, Congressman Cohen (202) 225-3265/ (202) 368-9275
Charlie Gerber, Communications Assistant, (202) 225-3265 / (202) 320-2817