FOR IMMEDIATE RELEASE         
Oct. 25, 2007
Contact: Abigail McDonough
202-225-6511       

WASHINGTON - Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, has received widespread support for his recently introduced H.R. 3837, Escrow, Appraisal, and Mortgage Servicing Improvements Act.  The bill's reforms are part of a complete solution to abusive and deceptive lending practices.

A number of appraisal associations, regulatory agencies, mortgage originators, and consumer groups voiced their approval of this bill through statements at yesterday's Financial Services Committee hearing.  These groups included the Appraisal Institute, the Center for Responsible Lending, the National Alliance of Independent Mortgage Bankers, the National Association of Mortgage Brokers, the National Association of Realtors, the National Credit Union Administration, and the National Community Reinvestment Coalition.  These varying groups portray the need and desire across the board to encourage and pass this bill.  The hearing addressed legislative proposals on reforming mortgage practices.

"I am proud of the support that the bill has received after its introduction only a week ago.  The number of groups that have quickly signaled their support demonstrates the real need to reform many current mortgage practices.  The complex issues of abusive and deceptive lending practices require a comprehensive solution, and the appraisal, regulatory, mortgage originator, and consumer groups that provided positive feedback on my bill shows that this legislation is a worthy step in the right direction," stated Congressman Kanjorski.

Prevailing problems in the current mortgage marketplace demonstrate the need to enact legislation to improve lending standards and enhance lender accountability.  The bill offers a comprehensive, balanced, and progressive set of solutions to solve these complex, abusive, and deceptive mortgage lending practices.  The bill would respond to these needs to enhance consumer protections by improving mortgage servicing, protecting appraiser independence, ensuring better appraisal quality and regulatory oversight, and requiring escrows for mortgages to borrowers who might experience difficulty with repayment.

Congressman Kanjorski, who is the second most senior Member of the House Financial Services Committee, will work with his colleagues on the Committee to incorporate the escrow, appraisal, and mortgage servicing reforms provided in H.R. 3837 into a comprehensive legislative package designed to combat abusive and deceptive lending practices in the subprime marketplace.  Congressman Barney Frank (D-MA), Chairman of the House Financial Services Committee, joined as an original co-sponsor of the bill.  Consideration of the legislative proposals by the House Financial Services Committee is expected in the coming weeks.

 
Supplement with Quotations of Support for Congressman's Kanjorski's Escrow, Appraisal, and Mortgage Servicing Improvements Act