Published: May 2015

Advocates oppose effort to suspend lender liability under new mortgage rules

Coalition advocates wrote to the House of Representatives asking them to oppose H.R. 2213. The bill suspends homebuyer rights by absolving lenders from accountability for five months after new mortgage disclosure rules take effect this summer, and lets lenders off the hook even when a homeowner has been harmed. This means that homeowners who receive misleading mortgage cost disclosures during that period would have no recourse. Moreover, the legislation sets a dangerous precedent by suspending liability where legal rules apply.

Introduced by Reps. Steve Pearce (R-NM) and Brad Sherman (D-CA), H.R. 2213 would provide lenders with a temporary safe harbor from enforcement of the Integrated Disclosure Rule. Consumer Action joined housing coalition advocates in opposing the unnecessary legislation that would hinder homeowners on the rare occasion that they seek legal recourse against a lender. This legisaltion would remove lenders' key incentives to complying with new mortgage disclosure rules and leave consumers without the ability to protect themselves.

Lead Organization

National Consumer Law Center (NCLC)

Other Organizations

Alliance for a Just Society | Americans for Financial Reform | California Reinvestment Coalition | Community Legal Services, Inc. (Philadelphia, PA) (on behalf of its low-income clients) | Connecticut Fair Housing Center | Consumer Action | Consumer Federation of America | Consumers Union | Corporation for Enterprise Development (CFED) | Empire Justice Center | Housing and Economic Rights Advocates | MFY Legal Services, Inc. | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low-income clients) | National Council of La Raza National Fair Housing Alliance | New Economy Project | New York Legal Assistance Group | North Carolina Justice Center Public Justice Center | U.S. PIRG

More Information

For more information, please visit NCLC's website.

Download PDF

Advocates oppose effort to suspend lender liability under new mortgage rules   (HR2213oppositionletterfinal.pdf)

 
 

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