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[Page S3470]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
S. 1749
Ms. SINEMA. Mr. President, I rise today regarding the U.S. Senate's
passage of S. 1749, the Protecting Affordable Mortgages for Veterans
Act, by unanimous consent. The Protecting Affordable Mortgages for
Veterans Act aims to preserve access to affordable VA mortgages for the
millions of veterans and brave men and women in uniform in Arizona and
around the country.
Last year, Congress passed S. 2155, the Economic Growth, Regulatory
Relief, and Consumer Protection Act, a bipartisan regulatory relief
package for community financial institutions. Among other issues, this
package sought to crack down on ``mortgage churning,'' a predatory
practice wherein lenders push veterans over and over to repeatedly
refinance their home, even when there is no clear benefit to doing so.
With each refinance, the lenders take a fee. Veterans, on the other
hand, enter into a cycle of debt where fees and interest rates cost
more than the initial mortgage payments.
To stop these predatory lenders and the practice of churning, S. 2155
put into place new requirements that must be met in order for a
refinanced loan to obtain VA guaranty and securitization from Ginnie
Mae, the U.S. Government corporation that helps lenders make more
affordable mortgages to veterans, first-time home buyers, and low-
income borrowers.
Unfortunately, these new requirements were inconsistent with Ginnie
Mae loan seasoning requirements. With implementation of reform, the new
rules left approximately 2,500 VA-guaranteed loans ineligible for
Ginnie Mae pooling, a move which seriously constrained lending.
The unintended consequence of this measure put VA home loans out of
reach and threatened to drive up future borrowing costs. The Protecting
Affordable Mortgages for Veterans Act would correct this issue and
maintain liquidity in the veteran home loan market so that veterans and
their families can secure the safe, affordable housing they deserve.
When they return home, veterans who defend our freedom with dignity
and honor should receive the thanks of a grateful nation and
opportunities to succeed as they transition to civilian life. That
means delivering quality care at the VA, improving job and education
opportunities, and ensuring affordable housing is within reach for
Americans who made the ultimate sacrifice for our country. Acclimating
to civilian life is challenging enough without the threat of being
scammed by predatory lenders.
I want to thank my colleague from North Carolina, Senator Tillis, for
working with me over the last several weeks to craft this bill. I also
want to thank Chairman Crapo, Ranking Member Brown, Chairman Isakson,
and Ranking Member Tester for their steadfast support in moving this
fix expeditiously. Even in an era of divided government and historic
gridlock, we are getting things done for Arizona.
Now that this legislation has passed the U.S. Senate, I urge my
colleagues in the House to quickly pass S. 1749 so it can be signed
into law. Let's keep working together, Democrats and Republicans, to
stand up for our veterans.
Thank you.
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