HR 3915: A FRANK Discussion (11/8/2007)
As expected, the House Financial Services Committee passed HR3915
out of committee to the full House of Representatives with a favorable vote of
45 to 19.
The vote, which came early Tuesday evening will need approval of the full House
and then would need to be passed by the Senate and signed by the president before
which is strongly opposed by some segments of the lending community, sets minimum
standards for loans including a reasonable assumption that the borrower will
be able to repay the loan. It also mandates a mechanism for licensing mortgage
brokers who are not appropriately regulated by the states or by agencies such
as the Comptroller of the Currency. The bill also proposes liabilities for those
who securitize potentially risky loans.
While the bill seeks to correct some of the longstanding practices that its
sponsors feel have contributed to the current subprime situation, there is nothing
in HR 3915 to address either fiscally or legislatively the current fallout from
The bill, if it does pass both houses of Congress, will undoubtedly see many
changes before it is sent to the president for his signature.
If you oppose HR3915 you can use the following template, contributed by one of our readers, as a starting point for a letter to your state representative.
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