Posted by CM on September 6, 2009
HR 1728: The Mortgage Reform and Anti-Predatory Lending Act, Click Here for the full text in PDF.
On April 28, 2009, Ms. Maureen McGrath of the National Advocacy Against Mortgage Servicing Fraud provided a written statement to the U.S. Congress to lend her organization’s support to HR 1728.
The following are some key points regarding fraud from her written statement in her own words.
- The first fraud by an institution is offering a loan when they know the homeowner does not have the means to ever repay the loan.
- The first fraud can also be offering a loan when the LTV (loan-to-value ratio) is upside down because the collateral cannot bear the price of the principal of the loan.
- The second fraud is committed when a BPO (broker’s price option) is ordered rather than an appraisal.
- An appraisal becomes fraudulent when an appraiser is coerced into “hitting the mark.”
Ms. McGrath further advocates oversight and regulation of the appraisal process because no uniform, nationwide oversight guidelines exist now. Read her full statement here.
I have advocated for a Mortgage Bill of Rights, but this bill is what we need instead. It is comprehensive and worth the time to look over it. Lets lend our support to this bill. On May 7, 2009 the bill passed the House with 300 votes. It is now awaiting Senate approval. I will keep a tracker of this bill on the right side bar.
Written Statement of Maureen McGrath on behalf of National Advocacy Against Mortgage Servicing Fraud. Submitted to the House Committee on Financial Services Hearing on HR 1728, The Mortgage Reform and Anti-Predatory Lending Act. 4/28/09.