May 8, 2008
State Legislators Urge Congressional Support for the Miller-LaTourette Amendment to Protect America's Distressed Homeowners
FHA Housing Stabilization and Homeownership Retention Act upholds states' efforts
to stem the tide of foreclosures, prevent abusive lending practices.
WASHINGTON - In an alert sent today to Congress, the National Conference of State Legislatures urges the members of the House of Representatives to support the Brad Miller – Steven LaTourette Amendment to H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act of 2008.
The Miller-LaTourette Amendment re-affirms state efforts to prevent abusive foreclosures practices by clarifying that H.R. 5830, the National Bank Act and the Home Owner’s Loan Act do not pre-empt state laws regulating the foreclosure of residential real property or the treatment of foreclosed property.
"As the Congress considers possible solutions to stem the worsening homeownership and subprime mortgage crisis and to stimulate our nation's economic well being, now is the not time for Congress to allow the federal banking agencies to reward the financial services industry for its role in the housing crisis by pre-empting state efforts to protect distressed homeowners from abusive foreclosure practices," said William T. Pound, NCSL executive director.
Just this year alone, state legislators in more than 30 states have or are considering legislation to curtail abusive foreclosure practices. They take this action because they are concerned about preserving communities in their districts and states and in protecting constituents who face difficult financial situations from being forced out of their homes without proper and legal processes in place.
The local nature of homeownership, real estate and consumer protection necessitates direct state authority. NCSL believes that the nation as a whole is weakened by pre-emptive federal actions to limit the flexibility of state legislatures to deal with local economic problems, such as the ability to protect homeowners from abusive foreclosure practices.
"NCSL supports the Miller-LaTourette Amendment and urges Congress to vote to support this amendment to prevent the pre-emption of state authority to protect against abusive foreclosure practices," Pound said.
It also is important to note that the Miller-LaTourette Amendment will not affect the applicability of any other type of state law to any federal depository institution or to any agent or subsidiary of the depository institution.
NCSL is the bipartisan organization that serves the legislators and staff of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
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