Letter from Cong. John Tanner~District#8-Tennessee

Dear Mr. Jones:

Thank you for contacting our office to voice your concerns on the recent turmoil in the American housing market. Your input is valued and appreciated. Over the past year, millions of Americans, including thousands of families in Tennessee have been engulfed in the overall housing market downturn. Many families are directly facing foreclosure on their homes, while others are confronted with drastic increases on their monthly mortgage payments. I have always advocated for personal financial responsibility, however it is evident that thousands of people were victimized by over zealous lending institutions offering home loans that they knew individuals could not realistically repay.The 110th Congress has taken steps to address the issues surrounding predatory lending practices. Last November, I supported H.R. 3915, the Mortgage Reform and Anti-Predatory Act, legislation requiring national compliance with federal standards on disclosure requirements for banks and/or credit unions when they are offering home loans. Furthermore, the House and Senate are in continued negotiations on a comprehensive housing bill that would refinance up to $300 billion worth of home loans facing foreclosure.The House Financial Services Committee has drafted a legislative proposal allowing the Federal Housing Administration (FHA) to guarantee loans that are being foreclosed or are facing significant mortgage resets after the lender agrees to write down a percentage of the original loan that the borrower can reasonably repay. I am also encouraged by the willingness of Congress to reduce the liability of the federal government on these loans through including language that discourages "purposely defaulting" by examining the debt to income ratios of the prospective individuals who this program is targeted for. In the coming weeks, I am confident a form of the legislation discussed above will be considered on the House floor.The proposals that are currently being discussed on the jurisdictional committee level need to first ensure American families can remain in their homes. Secondly, Congress has a responsibility not to over-exert itself in the private marketplace with over interference in the mortgage banking industry. Please rest assured that I will keep your thoughts in mind as this issue develops in the near future.

Sincerely, John Tanner(D), M. C. District#8-Tennessee

Editorial : Congressman Tanner got this right/Correct !