May '09 Nevada Government - Dina Titus column

Titus Supports Credit Cardholders’ Bill of Rights

Votes to Protect Consumers from Unfair Practices

Congresswoman Dina Titus of Nevada’s Third District supported bipartisan legislation today to provide tough new protections for consumers facing excessive credit card fees, sky-high interest rates, and unfair, incomprehensible agreements that credit card companies review at will. H.R. 627, the Credit Cardholders’ Bill of Rights Act, passed in the House by a vote of 357 to 70.

“For too long, consumers have been subjected to the whims of credit card companies and their unfair rate hikes that have left Nevadans paying sky-high interest rates,” Congresswoman Titus said. “This legislation levels the playing field between credit card companies and consumers by applying commonsense regulations and giving cardholders the information and rights they need to make smart financial decisions.”

The Credit Cardholders’ Bill of Rights bans retroactive interest rate hikes on existing balances, double-cycle billing so card companies cannot charge interest on debt consumers have already paid on time, and due-date gimmicks. It would also increase the advance notice of impending rate hikes, requiring 45 days notice for all interest rate increases. The legislation is supported by a number of consumer organizations, public interest groups, and small business associations, including the National Federation of Independent Business, Center for Responsible Lending, and U.S. PIRG.

Processing of Applications for GI Bill Benefits to Begin Today

Congresswoman Dina Titus of Nevada’s Third District urged veterans eligible for education benefits under the GI Bill for the 21st Century to apply through the Department of Veterans Affairs online beginning today, Friday, May 1. Members of the military who served on active duty for at least 90 days since September 11, 2001, including activated reservists and members of the National Guard, can receive up to four years of education benefits that include stipends for housing and books. Veterans who served on active duty for at least three years are eligible for the maximum benefit. Veterans will have up to 15 years after they leave active duty to use their education benefits.

Information and instructions on how to apply are available at https://www.gibill.va.gov and the online form can be found at http://www.vba.va.gov/pubs/forms/VBA-22-1990-ARE.pdf. Payments will be processed beginning August 1.

“It is our solemn duty to care for the brave men and women who have served our country with honor and dignity,” Congresswoman Titus said. “With the GI Bill for the

21st Century, we will honor that duty by providing a quality education that will ensure our veterans have the knowledge and training they need to compete in today’s economy. Moving forward, this Congress will build on these efforts as we continue to make the needs of our nation’s veterans a top priority.”

Under the GI Bill that was signed into law on June 30, 2008:

* Service members, including those returning from Iraq or Afghanistan, can receive up to 36 months of education benefits, including stipends for housing and books.

* Veterans would have up to 15 years after they leave active duty to use their education benefits.

* Veterans would have the ability to use their benefits for program fees, tuition, books and housing.

* Veterans would be able to use the Yellow Ribbon G.I. Education Enhancement Program, in which the federal government will match, dollar for dollar, any voluntary additional contributions to veterans from institutions whose tuition is more expensive than the maximum educational assistance provided under the Post-9/11 G.I. Bill.

* Benefits are applicable for apprenticeships, vocational schools, and other non-traditional post-secondary educational settings.

Titus Offers Amendment to Increase Transparency in Home Loans

Effort Part of Broader Bill to Protect Consumers and Avoid Future Foreclosure Crisis

Congresswoman Dina Titus of Nevada’s Third District offered an amendment today with Congressman Dennis Cardoza of California to H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act. The amendment increases transparency and aims to reduce future foreclosures by requiring that consumers receive side-by-side information on the costs and benefits of different mortgage options. Below are Titus’ remarks on House floor as delivered.

“Mr. Chairman, I rise today with an amendment that is offered along with my friend from California, Mr. Cardoza, to H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act.

“As currently written, H.R. 1728 requires mortgage originators to diligently work to present the consumer with a range of mortgage products for which the consumer likely qualifies. These products must be appropriate to the consumer’s existing circumstances. The originator must disclose the comparative costs and benefits of these options.

“Our amendment simply specifies how this new disclosure must be made. The amendment requires that the costs and benefits of each option are presented side by side in a simple fashion like this chart and that the disclosures for each product have equal prominence. It would further require that this disclosure be made in writing, the understanding of which will be acknowledged by the signature of the mortgage originator and consumer.

“This amendment would add further transparency to the process of securing a residential mortgage loan and ensure that information is presented to consumers in a way that will give them the ability to easily and clearly compare all of the options that are available to them. By requiring the disclosure to be presented in writing, and requiring the signature of the mortgage originator and consumer on the document, we will ensure that the importance of this information is highlighted for the consumer.

“The Las Vegas area is ground zero of the home foreclosure crisis. It is projected that just this year there will be nearly 75,000 homes lost to foreclosure in my state. The vast majority of these are in Southern Nevada and in my district. It is more than likely that many of these foreclosures could have been avoided from the start if the important rules, such as those set forth in this bill, had been implemented earlier. I believe that this amendment will help facilitate discussion on what is good for a family, and together with the underlying bill, with its elimination of incentive payments and anti-steering provisions, will help curb predatory lending and prevent future foreclosures in Nevada and across the country.”