Stabenow: New Law Will Hold Fraudulent Mortgage Lenders Accountable
WASHINGTON, DC - May 20, 2009 - (RealEstateRama) — U.S. Senator Debbie Stabenow (D-MI) today commended President Obama for signing the Fraud Enforcement and Recovery Act of 2009 into law. The new law will impose smart regulations on private mortgage brokers and lenders to prevent the same corporate frauds that helped lead to the collapse of our economy. It will also provide a blueprint to increase resources for law enforcement agencies, so they can effectively prosecute those responsible for engaging in fraudulent mortgage activity. The legislation passed the Senate in late April.“Holding irresponsible brokers and bankers accountable for their actions is a strong and clear signal to those who would contemplate risking our country’s financial future for personal gain,” said Stabenow. “These focused, targeted regulations will help prevent the practices that damaged the foundations of our economy. I am pleased President Obama has signed this bipartisan legislation into law. It is truly a victory for consumers and our economy as a whole.”
Provisions in the law:
• Imposes smart regulations on private mortgage brokers and lenders by amending the definition of a “financial institution” to include a “mortgage lending business.” This will ensure these companies are held fully accountable under federal fraud laws.
• Lays the ground work to allow the Department of Justice and the FBI to hire 410 new prosecutors and agents, as well as double the number of mortgage fraud task forces throughout the country.
• Makes sure taxpayer money that is currently being made available to banks will not be used fraudulently or illegally. Funds distributed through TARP or the economic recovery package will be subject to the same federal oversight.
• Creates a Financial Markets Commission charged with fully investigating the near collapse of the banking system and housing market in order to learn how to prevent a repeat of this crisis. The ten member committee will be comprised of six Democratic members and 4 Republican members, and will be charged with examining the international and domestic origins of the financial crisis.
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Its good to see some progress being made on the legislative front in terms of mortgage lending. Seems they were asleep at the wheel, or on the take for the past few yrs.
If anyone reading this was wondering what the lending laws in their state look like- you can check here- it was the only site I could find all 50 states:
http://www.bankapedia.com/mortgage-encyclopedia/state-mortgage-laws