Monday, November 5, 2007

This is Important: Action Needed Now

With a 67% increase in the foreclosure rate from 2005 to 2006, Georgia has certainly felt the weight of the crash of the sub-prime lending market. As creditors aggressively marketed sub-prime loans, especially in minority communities, for many, the American Dream was transformed into the American Nightmare.

Now, Georgia's congressional delegation has an opportunity to do something to help protect consumers. HR 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007 is currently in committee, but word is, a vote could be just around the corner. Surely, we can count on our elected leaders to support this important legislation. Certainly, none of our Democratic members-not Barrow, Marshall or Bishop-would carry an amendment for the lending industry to gut key, common-sense, consumer protections in the bill-like the requirement that creditors be required to determine, based on verified, documented information, that a consumer has a reasonable ability to repay the loan. Surely not.

But, stranger things have happened. After all, Marshall managed to be the lone Democrat opposing even the revised version of SCHIP. So, please drop your congressman an email, TONIGHT, and tell him to vote "yes" on HR 3915 and to leave the key consumer protections in place. This is critical and time-sensitive. The Center for Responsible Lending makes acting easy.

1 comment:

mike volpe said...

It actually makes perfect sense that a John Edwards supporter would support this bill.

Let's see, if Yield Spread Premium is eliminated on sub prime loans, and points and fees are no longer financed, then what does that mean in a practical manner. You probably don't know do you. If you don't that is too bad, because the practical effect is that sub prime will be eliminated as a niche. That means the poor folks that you claim to represent will need to put 20% down before they buy a property.

How does this bill sound now?

Here is my full analysis...