The U.S. Senate passed legislation meant to increase economic growth which includes protecting service members from predatory lending practices earlier this month.
The Economic Growth, Regulatory Relief, and Consumer Protection Act is bipartisan legislation introduced by Senators Thom Tillis (R-NC) and Elizabeth Warren (D-MA) which would protect Veterans from targeted predatory home loan practices by requiring lenders to demonstrate a material benefit to consumers when refinancing their mortgage.
Tillis announced the legislation as a win for the military community.
“Passage of this bill is proof that Congress can come together on a bipartisan basis and pass meaningful legislation on behalf of the American people. The inclusion of bipartisan legislation I introduced to protect veterans and service members from predatory home-lending will also help families from being targeted by bad actors abusing the VA home loan program, and is a win for the military community,” said Senator Tillis.
“Over the last three years, I have heard from financial institutions across North Carolina about the impact of burdensome regulations, which has restricted access to capital for Americans all across the country. Dodd-Frank’s harmful one-size-fits-all approach has proven to be a failure, and this legislation will help ensure farmers, small-business owners, and first-time home buyers have the resources they need to allow our economy to thrive again. I look forward to this legislation being signed into law, and believe it is an important step—building on the economic growth being generated from the tax reform law Congress passed late last year,” added Tillis.
From April 2016 to August 2018, 1,000,000 VA loans were made which includes 50,000 loans in North Carolina alone.
The bill must be passed by the House to become law.