For Immediate Release
May 6, 2009

Contact:
Aketa Marie Simmons
202-226-6709
REPRESENTATIVE FUDGE INTRODUCES PREDATORY MORTGAGE LENDING REFORM ACT

WASHINGTON, DC— In response to the predatory practices of some mortgage brokers and agents, Representative Marcia L. Fudge (OH-11) introduced H.R. 2108, the Predatory Mortgage Lending Practices Reduction Act of 2009, her first bill of the session.

The Act is designed to assure consumers that mortgage brokers or agents are thoroughly trained and accountable for predatory practices.  It does this by altering the law in three ways. First, the Act requires that brokers and agents issuing subprime loans undertake a rigorous certification program. Second, the legislation streamlines the process for filing complaints against unethical brokers and agents. Finally, the Act creates civil penalties for violations of federal predatory lending laws.

"There are honest, decent mortgage brokers and agents in the industry. Then there are a relatively few number of unscrupulous individuals who earn their commission through deception. The Predatory Mortgage Lending Practices Reduction Act of 2009 would help protect consumers from the latter class of lenders by ensuring that all related personnel are properly trained and held accountable," stated Rep. Fudge.

This timely bill is desperately needed in the Eleventh District of Ohio. Within the Eleventh Congressional District the Center for Responsible Lending projected 5,566 foreclosures in 2009 and 18,531 foreclosures over the next four years. Within the state of Ohio the projection is much grimmer--87,500 foreclosures in 2009. While foreclosures within the state are due to a number of factors, predatory loans in particular have caused many families to lose their homes.



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