Published: April 2009

Groups seek stronger mortgage reform bill

Coalition: mortgage

Consumer Action signed on to Congressional testimony that opposes current mortgage reform legislation (HR 1728). The bill would provide some needed protections to predatory lending, but would also replace stronger state laws with weaker federal protections.

Consumer Action, along with nine other national consumer groups and dozens of state organizations, signed on to National Consumer Law Center (NCLC) testimony that opposes the predatory lending bill HR 1728. Consumer and legal groups argue that the bill would undermine state consumer protection laws that homeowners rely on to sue those who 'hold' their home loans, in order to prevent foreclosure. HR 1728, as it's currently written, would replace stronger state laws with a weaker federal law that would exempt those that financed predatory mortgages from responsibility for their actions. NCLC says that HR 1728 which is designed to rein in predatory lending would do more harm than good.

“The bill is complex, convoluted and simply will not accomplish its main goal – to fundamentally change the way mortgages are made in this country,” said Margot Saunders, a lawyer for the National Consumer Law Center. Saunders testified at the hearing on behalf of the ten national organizations and 40 state and local legal services and public interest organizations that also oppose the bill, HR 1728.

Lead Organization

National Consumer Law Center (NCLC)

Other Organizations

AFL-CIO, Communications Workers of America, Consumer Action, National Association of Consumer Advocates, National Fair Housing Coalition, Public Citizen, U.S. Public Interest Research Group and Woodstock Institute.

More Information

National Consumer Law Center (NCLC)

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