Schakowsky Issues Statement on Consumer Financial Protection Bureau Mortgage Rule

Washington, D.C. (January 10, 2013) — Congresswoman Jan Schakowsky released the following statement regarding the Consumer Financial Protection Bureau's new rule to protect borrowers from abusive mortgage practices:

"Today, the Consumer Financial Protection Bureau (CFPB) issued a new rule to protect consumers from irresponsible mortgage lending. The Ability-to-Repay rule, which was required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, goes a long way to protect homeowners from the toxic loans that crippled our economy and have so far resulted in over four million foreclosures.

"Irresponsible lending practices left thousands of families in the 9th Congressional District stuck with mortgages which they were unable to repay. The new rule is designed to ensure that future homeowners don't face a similar crisis. It will require lenders to assess borrowers' financial ability to meet mortgage payments, eliminate teaser rates, and take other steps so that obviously bad loans are never originated. It is the type of common-sense, consumer-focused protection that American consumers deserve.

"I applaud CFPB Director Richard Cordray and his staff for their diligent work to finalize this rule, and for their continued efforts to protect consumers and the American economy."

A summary of the Ability-to-repay rule can be found here: http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-summary.pdf