Ellison Boosts Anti-Predatory Lending Legislation, Includes Renters' Rights Provisi
Press Release
Congressman Keith Ellison (D-Minneapolis) joined a majority of his House colleagues in passing H.R. 1728, Mortgage Reform and Anti-Predatory Lending Act.
"The mortgage lending industry has been subject to insufficient regulation and little oversight for far too long," Ellison stated. "The reforms in this landmark legislation would address the predatory mortgage practices that are root causes of our current financial crisis," said Ellison.
H.R. 1728 establishes statutory standards for all lenders while placing additional limits on those making high-cost mortgages. It bars originators of mortgages from steering consumers to loans that they cannot reasonably be expected to repay. The bill also forces lenders to retain some liability for mortgages that they originate. Finally, it includes provisions that would establish minimum protections for renters in foreclosed properties.
"I have been fighting for renter rights since coming to Congress. I am very pleased that this comprehensive mortgage reform bill includes renter protections included in legislation that I authored," Ellison stated. A University of Minnesota study indicates that 61% of all foreclosures over the past two years in Minneapolis have been in renter-occupied residences.
Earlier this year, Ellison introduced, H.R. 1247, the Protecting Tenants at Foreclosure Act of 2009. The bill would create a uniform federal standard to protect tenants in foreclosed properties. In particular, it would provide tenants with a minimum 90 day notice prior to eviction. It would also allow tenants in properties that have been purchased for use as investment properties to stay in the unit until the end of the lease. The mortgage reform legislation passed today by the House incorporates much of Congressman Ellison's bill.
"The current foreclosure crisis, caused in large part by abusive and predatory lending practices, is expected to drive nearly ten million American families out of their homes in the next four years. Ultimately, protecting vulnerable homeowners from predatory lende
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