Yesterday, the House passed, by a 300-114 vote, H.R. 1728, “Mortgage Reform and Anti-Predatory Lending Act of 2009.” In part, H.R. 1728 would prohibit certain abusive and predatory lending practices that marked the subprime crisis. This action comes one day after the Senate passed its own mortgage reform legislation, S. 896, “Helping Families Save Their Homes Act.”
There were 14 amendments debated prior to the vote, including:
- A Frank (D-MA) amendment, which was adopted, that would, in part, (i) expand the prohibitions on loan originators from steering consumers towards loans that the consumer lacks the ability to repay; (ii) require the federal banking agencies to include model disclosure forms for creditors with any new regulations; (iii) require landlords to notify tenants if their property becomes subject to foreclosure; (iv) prohibit third parties from charging borrowers to renew, extend, or modify a high-cost mortgage; and (v) require creditors to disclose to consumers their policy toward acceptance of partial mortgage payments.
- A Titus (D-NV) amendment, which was adopted, that would require that a mortgage loan originator present the consumer with the comparative costs and benefits of each mortgage offered, with equal prominence in writing.
- A Hensarling (R-TX) amendment, which was defeated, that would have struck provisions that allow rescission actions against mortgage originators and securitizers.
- A Weiner (D-NY) amendment, which was adopted, that would require the GSE’s to take actions to revise fee schedules, occupancy and presale guidelines, and other underwriting standards in order to ensure the availability of mortgage credit for condominium and cooperative housing. It would also allow the agencies to consider the relative health of the local housing market when revising standards.
No companion bill has been introduced in the Senate.