Congressman proud of legislation he championed, protecting against foreclosures.

(Washington, DC) – Congressman Elijah E. Cummings (MD-07) today watched as President Barack Obama signed H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the historic reform bill that will fundamentally change the way Wall Street and Big Banking are able to put Americans’ money at risk.

Cummings participated in the historic House-Senate conference which led to the adoption of the bill in the House and Senate. Cummings’ efforts also provided four critical pieces of legislation contained within the Dodd-Frank Act to protect American homeowners.

The first, and most sweeping reform championed by Cummings is the creation of a $1 billion fund, underwritten with remaining TARP allocations, allowing “bridge loans” to homeowners who are facing foreclosure. These low-interest loans, administered by the Department of Housing and Urban Development, would allow homeowners to stay current on their mortgages during times of need.

“Between passing healthcare reform earlier, and the incredible work we’ve done on Wall Street reform, this has truly been a historic session of Congress,” said Cummings. “Today the President signed a law that included a program I helped create, that is intended to help everyday, hard-working Americans; the same folks who live in all of our districts. Four times in the last 15 months, I’ve had foreclosure prevention seminars in my District. On the average, about 1000 people come out to get help with saving their homes.

“America has gained a large amount of its reputation by the fact that we come to the rescue of those who are going through difficulties. That’s our moral authority. These are Americans who are looking for a bridge. A lot of these people are saying, ‘If I can just get this bridge, I know the economy is going to come back; just help me get through this.’ That is what this is all about, trying to give Americans a bridge.”

Cummings has three other provisions in the Dodd-Frank bill. One provision requires lenders to notify borrowers of all consequences of refinancing or purchasing a home equity loan, including the responsibility they may bear for any losses incurred in the event of a foreclosure.

Another provision would require creditors to disclose their policy regarding the acceptance of partial payments for a residential mortgage loan. It would also require creditors to disclose how the payments will be applied to the residential mortgage and if the payments will be placed in escrow.

Finally, the bill includes a provision that requires the Office of the Comptroller of the Currency (OCC) to issue its mortgage modification data by state. Although the OCC’s Mortgage Metrics Report is significant in providing greater transparency and accountability in the loan servicing area, its utility is severely limited by the fact that key data elements, such as the terms for mortgage loan modifications, are not provided on a state-by-state basis.