Mel Watt's Amended Predatory Lending Bill Rejected by Roy Cooper

by BPB1 | April 24, 2009 at 04:51 pm

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Earlier this week North Carolina Congressmen Mel Watt (from Charlotte, NC) and Brad Miller both Democrats, teamed up to revive a Predatory Lending Bill they previously introduced to the U.S. House in 2007.

H.R. 3915, Legislation designed to punish Lenders who approve Home Loans for Unqualified Buyers and stable the Housing Market by preventing repeated Wall Street crashes caused by Toxic Home Loans or Foreclosures, was re-introduced to the U.S. House Financial Services Committee for further consideration.

While the old version of this bill focused more so on Sub prime Lending practices, the new version would also apply to Non-traditional, Fixed Rate Mortgages.

The bill's success or failure rate depends largely upon its text as it relates to whether or not it preempts legislation drafted by each state on Mortgage Regulation.

North Carolina Attorney General Roy Cooper (D) a frontrunner for U.S. Senator Richard Burr's (R) seat, wasted no time voicing his concerns by firmly rejecting the new version of Congressmen Watts and Miller's Predatory Lending bill.

Its been reported Cooper rejects certain text in the U.S. House's amended version that would preempt North Carolina's Predatory Lending statutes.

North Carolina's Predatory Lending Law established since 1999, is one of the most sound in the nation for Mortgage Regulation. The law thoroughly ensures that each prospective buyer can fully afford the homes being purchased.

Cooper's chief concern is that Watt and Miller's amended bill would offer Consumers a lesser form of protection from Mortgage Fraud and Predatory Lending then North Carolina's law.

If you recall a couple of weeks ago I posted a story about Congressman Watt's recent trip to Cuba with fellow Congressional Black Caucus members. In that story I mentioned how it appeared as if he were using that trip to regain the trust of his North Carolina Constituency.

Perhaps I'm mistaken but somehow this latest turn of events also smells of another Political Public Relations tool for Watt.

In addition its no secret that lately he's come under fire for seemingly having dropped the bomb on the 12Th district by allowing the U.S. Supreme Court to rule against Gerrymandering, thus putting the future of his seat in jeopardy.

To gain Cooper's vote of confidence for Watt's Predatory Lending Bill, it looks as if he is going to have to either change some of the bill's language or just let it die.

As it relates to Watt rebuilding his NC Constituency base, that's probably not going to happen any time soon.

After more than a decade on Capitol Hill, stepping down to allow a younger candidate who's more in touch with North Carolina voters like NC Senator Malcolm Graham (D), might be difficult for Watt who obviously enjoys the Political limelight.

However since its apparent he has run out of steam, stepping down just may be Watt's best move for North Carolina yet.

Face it Mel you've had a good run but now its time to pass that baton to the next generation.

The million dollar question is will Congressman Watt go kicking and screaming like a toddler being denied cookies before meal time or with the conduct of a well-educated, respected gentleman?

Inquiring minds want to know.

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