Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON – Today, the House of Representatives overwhelmingly passed a bill aimed at cracking down on predatory lending schemes in the housing market. Congressman Cardoza successfully included language in the bill establishing a federal database to track foreclosures across the country.

Congressman Cardoza’s amendment was included in the Mortgage Reform and Anti Predatory Lending Act of 2009. The legislation aims to curb abusive and predatory lending, one of the causes of the foreclosure crisis. Passed with Congressman Cardoza’s support, the bill also outlaws many of the practices that marked the subprime lending boom.

Congressman Cardoza’s amendment requires the HUD Secretary to establish and make publicly available a federal database of the number and percent of homes in foreclosure and default.  Currently no federal agency is tabbed with tracking this data. The amendment will create an official measure in determining the extent to which the housing crisis has affected areas like the Central Valley. It will also provide a powerful monitoring tool to identify and prevent housing crises in the future.

“As the foreclosure crisis has taught us, foreclosure and default rates are critical statistics for not only monitoring the nation’s economy, but also for determining which areas of the country have been hardest-hit,” said Congressman Cardoza. “This database is essential so we can respond in a timely and targeted manner in areas that need help the most.”

Congressman Cardoza successfully attached two other amendments:  ensuring adequate distribution of housing counseling funds for rural areas, and enhancing the disclosure requirements for lending.

“I have said over and over again that there isn’t a single silver bullet that solves the housing crisis overnight,” said Congressman Cardoza. “However, with today’s actions we have taken another step forward in helping us recover and ensuring a crisis of this magnitude never happens again.”