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U.S. PIRG Consumer Blog
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May 06, 2008
Banks making misleading claims about critical amendment
We have joined leading consumer community and civil rights groups in a coalition letter supporting a critical Brad Miller (D-NC) Steve LaTourette (R-OH) amendment to HR 5830, American Housing Rescue and Foreclosure Prevention Act of 2008, on the House floor. From our letter: With two million families holding subprime loans projected to lose their homes due to foreclosures initiated over the next two years, and 40 million of their neighbors projected to lose collectively $200 billion in home equity, it is important that the federal government and the States use the means at their disposal to implement prompt, effective measures to mitigate the impacts of the crisis on homeowners, their communities, and the economy generally.
Meanwhile, the American Bankers Association has sent out letter making the patently false assertion that: The Miller/LaTourette amendment, expected to be offered during floor consideration of the American Housing Rescue and Foreclosure Prevention Act of 2008, would alter long-standing authorities of the federal banking agencies to preempt state laws which conflict with federal law and which interfere with the safety and soundness and other regulation of national banks and federal thrifts. As our letter concludes: This narrowly-crafted amendment does not overturn the recent Supreme Court decision in Watters v. Wachovia or other jurisprudence. Rather, the amendment is necessary to ensure that overzealous federal regulators do not change these current understandings in the future or attempt to use federal law to preempt such laws, to the detriment of families struggling to keep their homes.
Posted by Ed Mierzwinski at May 6, 2008 03:43 PM
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