Continuing with his commitment to protect West Virginians from fraudulent mortgage and loan practices, U.S. Representative Nick J. Rahall, II (D-W.Va.) today voted to pass the Mortgage Reform and Anti-Predatory Lending Act of 2009.

“For too long, the people of West Virginia and our Nation have been taken advantage of when looking to fulfill one of the most basic of American dreams, homeownership,” said Rahall. “It is clear that the regulations on the mortgage and lending industry are not working for people but instead for those selling bad loans.”

This legislation will help restore the integrity of the mortgage lending industry by requiring lenders to ensure a borrower’s ability to repay; prohibiting unfair lending practices; bringing accountability to the secondary market for home loans; holding creditors responsible for the loans they originate; imposing penalties for irresponsible lending; expanding stronger consumer protections for high-cost mortgages; requiring additional disclosures for consumers regarding mortgage loans; protecting tenants who rent homes that go into foreclosure; creating the Office of Housing Counseling; and, by requiring legal assistance to homeowners and tenants facing foreclosure.

“In these tough economic times, we cannot allow a few lenders to take advantage of consumers,” said Rahall. “This legislation is a healthy first step towards cleaning up the mess.”