Archive for the ‘Home’ Category

Rep. Donna Rowland (R-34) opposes safe and energy efficient home construction

Wednesday, June 10th, 2009

Rep. Donna Rowland (R-34) tried to exclude Rutherford County from a bipartisan bill that would create statewide building construction safety standards and promote energy efficiency savings for working families.

Several rural counties in Tennessee have no home construction safety standards for one-family and two-family dwellings. The bill would protect residents from builders who place families at risk to maximize their own profits.

Rep. Rowland said establishing basic safety and energy efficiency standards in Rutherford County to protect the lives of homeowners and save them money on energy costs would present an unnecessary burden on home builders. After hearing Rep. Rowland’s argument today on behalf of her major donors, Rep. Rowland’s House constituents voted against her amendment, and it failed.

Rep. Kent Coleman (D-49) and Rep. Curt Cobb (D-62) are co-sponsors of the bill. Here is what the bill would do to protect working families and save them money:

Beginning July 1, 2010, this amendment applies the statewide building construction safety standards established by the state fire marshal to one-family and two-family dwellings, unless the local government has adopted the International Residential Code for such dwellings. Under present law, one-family and two-family dwellings are exempt from the statewide standards. The full text of this amendment establishes a process for appointment of deputy building inspectors to conduct safety standards compliance inspections of one-family and two-family dwellings.

Also, beginning July 1, 2010, this amendment requires that the statewide building construction safety standards must include energy efficiency standards. This amendment prohibits the state fire marshal from including in the standards a mandatory requirement that one-family and two-family dwellings have sprinklers; provided, however, that local governments will be authorized to adopt more stringent standards for such dwellings.

Protecting future home owners

Thursday, May 7th, 2009

From the Office of Congressman Bart Gordon:

To date, the current economic crisis has resulted in 22,000 Tennesseans losing their homes to foreclosure.  To protect future homeowners and prevent a similar economic downturn from unfolding again, the House passed bipartisan legislation today that will hold mortgage lenders accountable if they use predatory loan practices.

“To have your home taken away is one of the hardest things to go through,” said Congressman Bart Gordon, who supported the passage of the bill.  “This legislation will not only protect homeowners, but it will also provide lenders with good standards to evaluate potential homeowners and their ability to fulfill their loan obligations.”

As of March, more than 61,000 homes were purchased in Tennessee with a subprime loan – loans made to borrowers with poor credit history or who provided only limited documentation of their income or assets.  Subprime loan holders are most likely to default and lose their homes.

The House-passed bill, the Mortgage Reform and Anti-Predatory Lending Act,” would bar originators of mortgages from steering consumers to loans they cannot reasonably be expected to repay and prohibits lenders from paying mortgage brokers for getting consumers into loans with above-market interest rates.  It also requires mortgage lenders to verify that the prospective homebuyer can repay the loan by reviewing the consumers’ credit history, current income, expected future income, current obligations, and other financial measures.

“Across the country, 3 million homes were foreclosed in 2008,” added Gordon.  “These subprime loans created the housing bubble that has now popped and it has affected everything – from job security and retirement savings to county and state budget shortfalls.”

The legislation imposes penalties on lenders that do not comply with the new lending standards.  If a subprime loan is made to a person whose credit history has not been thoroughly reviewed and the homeowner goes into foreclosure, the lender will be held accountable for the costs associated with the consumer losing their home, including the attorney fees.

The bill now moves to the Senate for consideration.