Senator Nelson responds to my letter

[Wm. Hattaway]

Concerning HVCC

Dear Mr. Hattaway:

Thank you for contacting me regarding Senator Dole’s amendment to H.R. 3221, the Housing and Economic Recovery Act.

This amendment would require the new regulator for Government-sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac to set up appraisal standards for mortgages purchased by the two companies. It is an attempt to resolve a dispute over how to set appraisal standards for the GSEs. During floor debate on H.R. 3221, Senator Dole withdrew her amendment.

This housing crisis illustrates the lack of regulation on an industry that ran amok. From predatory lenders to land speculators to Wall Street investment banks creating risky investments, we need to address all aspects of this crisis. In Congress, we're working on a number of different approaches to get to the heart of this problem, and make changes to ensure that it doesn't happen again.
I appreciate your informed policy suggestions. As we continue to work on legislation aimed at curbing foreclosures, cracking down on predatory lending, and regulating the mortgage industry, I'll keep your concerns in mind. Please don't hesitate to contact me in the future.

 

[Wendy]

Hummmm.....written by a staffer?

 

[Lax1]

Here's the reply I received:

Thank you for contacting me regarding home foreclosures.

This housing crisis illustrates the lack of regulation on an industry that ran amok. From predatory lenders to land speculators to bogus appraisals to Wall Street investment banks creating risky investments, we need to address all aspects of this crisis. In Congress, we're working on a number of different approaches to get to the heart of this problem, and make changes to ensure that it doesn't happen again.

In the meantime, we're working to provide ways to help homeowners avoid losing their homes to foreclosure, especially in cases where they were victims of fraudulent or misleading lending practices. In April, the Senate passed, and I supported, the Foreclosure Prevention Act, which would increase foreclosure counseling funds, allow State housing finance agencies to issue bonds to help with refinancing, create new foreclosure protections for veterans, and overhaul the Federal Housing Administration (FHA). It also aims to prevent future foreclosures by simplifying language on mortgage documents.

I've also cosponsored measures aimed at curbing fraud and abusive lending practices by increasing mortgage broker and independent appraisal licensing and regulation standards. These measures provide ways to weed out bad actors from the mortgage and appraisal business, prevent fraudulent activity, and give consumers more confidence that they are dealing with fair and equitable brokers throughout the mortgage process.

I appreciate your interest in this critical issue. As we continue to work on legislation aimed at curbing foreclosures, cracking down on predatory lending, and regulating the mortgage industry, I'll keep your concerns in mind. Please don't hesitate to contact me in the future.