Terri Sewell: “I thank Ranking Member Waters. Today I rise in opposition to H.R. 1210. During the financial crisis of 2008, predatory…”

“I thank Ranking Member Waters. Today I rise in opposition to H.R. 1210. During the financial crisis of 2008, predatory subprime lending was far too prevalent and underwriting standards were not adequately adhered to by lenders. In response to these practices, the Dodd-Frank Act created a new set of mortgage underwriting rules. These qualified mortgage rules are critically important to helping ensure that all American consumers are protected against harmful mortgage products and abusive lending practices. These commonsense rules now require a lender to make a good faith effort to determine that a borrower has the ability to repay a mortgage. Additionally, the final rule contains critically important and special provisions and exemptions that are available only to small lenders and to lenders that operate predominantly in rural and underserved areas, exceptions that are critically important for districts like mine. The QM rules simply state that, if banks make risky loans, like interest only, or adjustable mortgage loans, consumers can hold them accountable if those mortgages go bad. Lenders are also responsible for accurately researching and documenting borrowers' incomes and their ability to repay. Unfortunately, as currently drafted, H.R.…”