Congressman Lincoln Davis Votes to Protect Consumers From Sub-prime, Predatory Lending November 15, 2007

WASHINGTON, D.C. -- Today, Congressman Lincoln Davis voted for H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007. The bill responds to the sub-prime mortgage crisis and takes initiative to prevent these loans from ever being made. This legislation will help ensure that consumers get mortgages they can repay, strengthen protections for consumers against predatory lending, and empowers consumers to take action against irresponsible lenders.

The Mortgage Reform Bill changes the requirements that lenders must meet to establish consumer friendly practices for lending. This legislation requires that lenders ensure a borrower's ability to repay their loan, and prohibits certain other unfair lending practices. The bill also provides for the establishment of a Nationwide Mortgage Licensing System and Registry to protect against unscrupulous lenders like those who were responsible for the current mortgage crisis.

"Tennesseans working to fulfill the American dream of home ownership have enough to worry about without having to fear that their lender might be selling them a bill of goods," said Congressman Davis. "This bill brings some accountability to lending as we know it, and will protect more families from losing their home to unnecessary foreclosure."

Today's vote comes on the heels of H.R. 3648, the "Mortgage Forgiveness Debt Relief Act of 2007," which passed the House in October and permanently excludes debt forgiven from mortgage foreclosure or renegotiation from tax liability.