May 2009 - The Mortgage Reform and Anti Predatory Lending Act HR1728 passed on Thursday May 7, 2009. The House of Representatives passed the bill by a vote of 300 to 114 and is said to protect homeowners from questionable and predatory lending practices that were partially responsible for the record home foreclosures and financial crisis.
This Mortgage Reform and Anti Predatory Lending Act sets up rules to ensure that lenders make loans that mortgage borrowers can afford to pay back. The act also bans prepayment penalties on ARMs Adjustable Rate Mortgages that are the real culprit loans in the foreclosure mess. This bill will also hold accountable the secondary mortgage market for following the same rules. One lawmaker said, "The message is simple. Lenders can't give loans to people who can't afford them. And borrowers have to tell the truth about their finances when they apply for a loan." Not to be disagreeing with the administration of hope but isn't this just common sense?
Nancy Pelosi the Democratic House Speaker said, "The simple fact is that our laws and
enforcement efforts did not keep pace with the complexities of a global economy and a financial industry where the greed of some trumped common sense. Insisting on responsible borrowing and lending and ensuring that borrowers enter into mortgages they can repay or refinance will help families protect their most valuable asset - their home - and guard against another financial and housing market meltdown." I would have to ask Nancy why she didn't do something about it, she was a lawmaker at the time and there were many economists warning the government about this.
Many San Diego home owners and potential home buyers know the facts about the San Diego housing market and its foreclosure mess. This act, although very important for protecting potential home buyers when getting a mortgage comes in way too late. The damage is already done. I think if anyone dropped the ball it was the U.S. Government and there lack of proper legislation to protect home buyers and the greed that's within the system itself. Isn't that what we elect them for? It's very interesting to see where all of the elected officials got their campaign contributions, the banks and companies now getting all of our future tax dollars in the form of a so called bailout? What a joke.
Mike and Dawn Lewis - Realtors in San Diego CA - The Lewis Team at Keller Williams
All Information is believed to be correct but not guaranteed