Ranking Member Spencer Bachus (AL) today commented on actions by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) to investigate fraud in the mortgage lending industry.
Ranking Member Bachus said, “For far too long unscrupulous brokers and lenders have thrived because of the lack of adequate oversight and enforcement. The efforts by the DOJ and the FBI through ‘Operation Malicious Mortgage’ are needed to help protect Americans as they navigate the home financing process.
“Last July, I introduced a bill that will create a licensing and registration system for mortgage originators. This system will enhance the protection of consumers by increasing accountability in the mortgage origination process and aiding regulators in weeding out bad actors. Congress must create a national licensing and registration system.”
Ranking Member Bachus introduced H.R. 3012, the Fair Mortgage Practices Act, on July 12, 2007. The provisions in the legislation were included in the subprime lending legislation passed by the House of Representatives last November (H.R. 3915). Additionally, Senators Dianne Feinstein and Mel Martinez have introduced the SAFE Mortgage Licensing Act, based on H.R. 3012, which has been included in the housing legislation currently under Senate consideration.
# # #
