House Vote: Consumer Mortgage Protections
Summary: Removes a provision that creates consumer protections for high-cost mortgages
Result: Amendment Rejected
A vote against the amendment was counted as a + vote (in line with LCCR's position)
View individual member votes on this bill by state:
Bill Name: Mortgage Reform and Anti-Predatory Lending Act of 2007
Bill Number: H.R. 3915
Issue: Housing/Lending
Date: 11/15/07
Roll Call No. 1116
During consideration of H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, Rep. Patrick McHenry, R. N.C., offered an amendment to strike Title III of the bill.
Title III creates new strong consumer protections for mortgages that include especially high levels of points and fees, interest rates, or prepayment penalties. It would prohibit balloon fees, excessive late charges, and some other abusive charges.
LCCR opposed the McHenry amendment.
While LCCR had a number of concerns about H.R. 3915, because portions of it contain weak enforcement provisions and it preempts stronger laws in a number of states, Title III of the bill is clearly a significant step forward in reducing abusive lending practices.
It is fashioned after consumer protections under North Carolina law, which have been demonstrated to reduce fee gouging and equity stripping while still preserving access to responsible subprime loans.
Eliminating Title III from the bill would leave borrowers – especially racial and ethnic minorities, who are more likely to be steered into high-cost loans – more vulnerable to predatory lending tactics.
Result: The House rejected the McHenry amendment (168-245).
