Homebuyers Assistance Act
Floor Speech
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Mr. ELLISON. Madam Speaker, I thank the ranking member of the
committee for her hard work on this.
I urge Members to vote ``no,'' and the reason why is that we have
been considering and considering and trying to implement Dodd-Frank for
such a long time. Every step of the way we have seen delay. Every step
of the way we have seen things that just couldn't happen now for all
these good reasons. But the fact of the matter is that what brought us
to Dodd-Frank were serious abuses in the financial industry, and this
bill and all the rules associated need to be implemented.
Now, the Know Before You Owe rule is a huge victory for home buyers.
It is a good thing for home buyers to know exactly what is going on
before they execute on a home loan. Anyone who has bought a home
remembers the anxiety of wondering if they are going to have enough
cash to close, to cover all the expenses. They also remember feeling
bewildered by all of the various fees of $100 or $200, all these
surprises. Home buyers need access to clear disclosures in plenty of
time to comparison shop and challenge junk fees.
The bill we consider today would remove the legal right of homeowners
to seek legal redress if they do not receive accurate disclosures until
February 2016. The consumer protections are already in place now. We
shouldn't postpone them.
If we really want to ``assist'' home buyers--and this bill is
ironically called the Homebuyer Assistance Act--don't postpone what is
already in the law today. Home buyers should get a clear home estimate
when they apply for the loan. Home buyers should get their actual
closing costs 3 days prior to settlement. And if a home buyer is
mistreated in the closing process, the home buyer should retain the
right to go to court and seek a remedy.
I remain concerned that home buyers are overcharged at closing. Not
all; I am not one of those who paints with a broad brush. I believe
many of our folks in the industry are excellent, but there are enough
exceptions to that to concern all of us.
I strongly oppose a lot of lenders, mortgage brokers, builders who
receive a financial benefit for a referral. Affiliated business
arrangements and reverse competition are not good for home buyers.
Consumers need information to protect themselves from overcharges and
kickback schemes.
Please stand up for home buyers and vote ``no'' on H.R. 3192.
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