The Senate “Restoring American Financial Stability Act of 2010″ failed to pass yesterday, Monday, April 26. Chances are, it will be voted on again today, and tomorrow, and until it is passed.
The Senate goal yesterday was to vote for cloture, passing the bill without debate, and needed a vote of only 60 to achieve it. They fell short of their goal with a vote of 57 to 41. Two Senators did not vote and Senator Ben Nelson (D-Neb.) was the sole Democrat or Independent to vote against cloture.
With a large majority of the Senate favoring the bill, supporters vowed to continue working to bring the bill to the floor and pass it.
The main reason for this legislation is to regulate Wall Street and the mortgage industry from unscrupulous lending practices that have hurt the public. Good intentions. We agree.
What concerns us with these bills is that we are all caught in one big net directed at mortgage regulation. You, me, your parents, your grandparents, everyone would, upon passage of this legislation, be required to become licensed mortgage lenders if we decide to sell, through owner financing, any property we own. Suddenly, if your parents own a property free and clear and decide to let you buy it from them with monthly payments, they would need licensing as mortgage lenders and you would have to qualify for the loan just like through any other lender.
Many properties, such as mobile homes or land, don’t qualify for bank financing but would now have to. Why? Because purchasing from individuals by using a note would no longer be legal. Many of today’s buyers can’t qualify for a traditional mortgage and count on seller’s financing. This would no longer be an option.
What we’ve requested is a “carve out” that would eliminate individual homeowners from the proposed new regulations.
According to an article in the Washington Post, Given the public support for tougher Wall Street rules, the unanimity that Republicans demonstrated Monday may not endure. Tougher support for Wall Street regulation will, no doubt, get this bill passed. Will we be able to get our “carve out” before it’s passed?
It’s not too late to make a difference. Please, contact your Representatives’ offices to let them know how this bill will impact single family homeowners. If you’ve already done that, please do it again. Write letters, send emails, make phone calls, make personal visits.
To find your Congressman visit http://www.house.gov and put in your zip code in the top left hand corner of the screen. To find your Senators, visit http://senate.gov/general/contact_information/senators_cfm.cfm.
This legislation is too important to ignore.
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