Washington D.C. Office
713 Hart Senate Office Building
Washington, D.C. 20510
(202) 224-2854
(202) 228-4260 fax
(202 228-1404 TDD
Email our office

Chicago Office
John C. Kluczynski Federal Office Building
230 South Dearborn St.
Suite 3900 (39th floor)
Chicago, Illinois 60604
(312) 886-3506
(312) 886-3514 fax
Toll free: (866) 445-2520
(for IL residents only)

Springfield Office
607 East Adams Street
Springfield, Illinois 62701
(217) 492-5089
(217) 492-5099 fax

Marion Office
701 North Court Street
Marion, Illinois 62959
(618) 997-2402
(618) 997-2850 fax

Moline Office
1911 52nd Avenue
Moline, Illinois 61265
(309)736-1217
(309)736-1233 fax

Obama Reintroduces Legislation on Mortgage Fraud

Wednesday, April 25, 2007

Reuters

WASHINGTON - Illinois Senator Barack Obama introduced legislation Wednesday that would set a national standard for mortgage fraud and outline penalties for fraudsters.

In a statement, the Illinois Democrat and presidential hopeful said the legislation was needed as the housing market is shaken by failed mortgages among subprime borrowers with damaged credit.

"As the number of foreclosures skyrockets and the housing market becomes more vulnerable, we must establish stiff penalties to deter fraud and protect consumers against abusive lending practices," Obama said.

Obama introduced a version of the same bill in the last Congress in February 2006 but it made no headway in the Republican-controlled legislature.

The new legislation, co-sponsored by fellow Illinois Democrat Sen. Richard Durbin, would target anyone who uses false information to secure a property or sell a mortgage product.

It would require brokers, attorneys, lenders and other agents to report suspected fraud to the Secretary of the Treasury. Another feature would offer $25 million in mortgage fraud counseling to prospective and current homebuyers.