Kagen Votes For An Economy That Works For Everyone
Washington, DC — Congressman Steve Kagen, M.D. is working hard to bring accountability and common sense back to our financial system. Kagen voted in favor of two crucial measures that would end fraud and abuse and create an economy that rewards responsibility and diligence – the Fraud Enforcement and Recovery Act and the Mortgage Reform and Anti-Predatory Lending Act.
“I am working hard for the families in Northeast Wisconsin who are just trying to keep their heads above water,” said Kagen. “Our economy was driven into the ditch by laws that favored Wall Street over Main Street. Now, we are putting our nation on the road to recovery by ending this practice and restoring common sense to our financial system.”
To provide the Justice Department with more tools to fight fraud, the Fraud Enforcement and Recovery Act would allow the use of funds from the Troubled Asset Relief Program (TARP) and Recovery Act as well as increasing accountability for corporate and mortgage frauds that have been a factor in the economic downturn.
Last fall, Congressman Kagen voted against the Troubled Asset Relief Program, stating that the legislation did not include the necessary oversight. Kagen has since repeatedly voted for efforts to enforce accountability and transparency for the use of these funds. These efforts included the TARP Reform and Accountability Act in January and Fraud Enforcement and Recovery Act today.
“We must put an end to the system that looked the other way while high-flying finance schemes, overheated housing markets and maxed-out credit cards crippled our nation. People who work hard and play by the rules should be able to keep a roof over their heads, put food on the table, maybe send their children to college and have enough left over to retire. We need an economy that works for everyone,” said Kagen.
Predatory and reckless mortgage loan practices played a major part in the current financial and economic meltdown. The Mortgage Reform and Anti-Predatory Lending Act would stop these practices. Borrowers would no longer be able to intentionally misrepresent their income to qualify for a loan. This bipartisan bill will ensure that the mortgage industry abides by fundamental principles of sound lending, responsibility, and consumer protection. By assuring that borrowers can repay the loans they are sold, mortgage lenders make loans that are to the consumer’s advantage, and lenders are prohibited from leading borrowers into higher cost loans, the integrity of the mortgage lending industry will be restored and the consumer will be protected. A similar measure passed the House in 2007.
