Act would prevent insurance companies from using credit information against consumers

Responding to an increasing trend of insurance companies using consumer credit scores in assessing risk and rates, Rep. Melvin L. Watt (D-NC) and Rep. Luis V. Gutierrez (D-IL) introduced legislation that would protect consumers, especially minority citizens, who tend to have lower credit, yet who do not present an increased insurance risk because they are safe drivers.

The Non-Discriminatory Use of Consumer Reports and Consumer Information Act of 2008 (H.R. 5633) is co-sponsored by House Financial Services Committee Chairman Barney Frank (D-MA).

“The introduction of the bill today is a step toward leveling the playing field for purchasers of personal lines of insurance such as automobile and homeowners insurance," said Rep. Watt "The insurance industry has been increasingly using credit information to underwrite and rate personal lines of insurance. Government studies have shown that credit scores correlate with race or ethnicity, so minorities often end up paying more for personal lines of insurance even when they are safe drivers or have never filed claims.”

The Mortgage Reform and Anti-Predatory Lending Act of 2007, introduced by Rep. Brad Miller (NC-13), passed the House of Representatives this Thursday. The bill passed by a vote of 291 to 127

The comprehensive anti-predatory lending legislation will help stop bad loans from being made, and will make sure that consumers get mortgages they can repay. Rep. Miller, Rep. Mel Watt (NC-12), and House Financial Services Committee Chairman Barney Frank introduced the bipartisan national legislation to address the mortgage crises.

Specifically, the bill will do the following:

Requires lenders to ensure a borrower's ability to repay. The bill establishes a simple federal standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold. Lenders would have to determine that a borrower has a "reasonable ability to repay," based on income, credit history, indebtedness and other factors. For refinancing, the bill will require that all loans provide a net tangible benefit to the consumer.

A Column by Congressman Mel Watt

On November 11 we will celebrate Veterans Day, joining others throughout the nation in honoring those Americans who have made tremendous sacrifices in service to our nation. We will also use this occasion to mark our continuing gratitude to the new generation of military personnel who are currently serving.

One way we can honor our veterans is to examine the extent to which we have lived up the commitments we have made to the more than 24 million veterans in America and the hundreds of thousands of military personnel returning from Iraq and Afghanistan and to reaffirm those commitments.

By Jonathan Weisman, Washington Post Staff Writer

The stage Wednesday night at the Congressional Black Caucus's annual legislative conference was a dream that was 37 years old, as old as the caucus itself.

No longer just progressive backbenchers railing at Congress's leadership, the lawmakers who opened the conference were the power elite: the chairmen of the House Ways and Means, Judiciary, Homeland Security, and ethics committees, as well as the House's third-ranking Democrat.

Representatives Brad Miller and Linda Sánchez introduce legislation to protect consumers in financial distress from losing their homes.

Rep. Brad Miller (NC-13), a member of the House Financial Services Committee and Rep. Linda Sánchez (CA-39), Judiciary Subcommittee Chairwoman on Commercial and Administrative Law introduced legislation that will prevent hundreds of thousands of Americans from losing their homes in bankruptcy. Miller and Sánchez were joined by House Financial Services Committee Chairman Barney Frank, House Financial Institutions and Consumer Credit Subcommittee Chairwoman Carolyn Maloney, and House Oversight and Investigations Subcommittee Chairman Mel Watt in cosponsoring the bill.

The legislation is being introduced in response to evidence that as many as 2.2 million homeowners will lose their homes due to unsustainable subprime mortgages.

“Congress needs to act quickly or millions of Americans will lose their homes to foreclosure,” Miller said.

According to the Center for Responsible Lending, a non-partisan, consumer advocacy group, the Miller proposal could help prevent up to 600,000 people from losing their homes in the next 24 months.

Photo Credit: Central Piedmont Community College

Rep. Mel Watt begins his 11th annual "Trading Places" work period today. Every year, the Charlotte Democrat joins in the work of a range of 12th District residents. His three-day event begins today cashing checks and processing deposits at a Charlotte credit union, meeting with homeless people at a shelter, helping with resumes and job searches at a Goodwill career center in Salisbury, and assisting nurses at a blood donation center in Kannapolis.

On Tuesday, he heads to a vineyard in Lexington to pack and serve wine, to a construction site in High Point to work with convicted felons hoping to re-enter society, and to a bus plant also in High Point, to work on the line.

Watt wraps up the events Wednesday learning to operate machinery at a Greensboro training center and answering nonemergency calls at a 911 center in Greensboro. He'll then participate in a class that cooks meals for soup kitchens and play with children at a community child care center, both in Winston-Salem.

"Working alongside my constituents and discussing their concerns provides an excellent firsthand opportunity for me to understand their needs and how I can serve them best in Washington," Rep. Watt said.

U.S. Representative Melvin L. Watt (D-NC), Chairman of the Subcommittee on Oversight and Investigations, today announced a hearing to consider the implications of the growing use of credit-based insurance scores for consumers. Specifically, the hearing will review a Federal Trade Commission (FTC) report to Congress entitled, "Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance" and examine its key findings. The hearing will also study the efforts underway by the States to regulate the use of credit-based insurance scores.

North Carolina’s Democrats in Congress today reaffirmed their support for a new direction in Iraq by voting to pass the Responsible Redeployment from Iraq Act (HR 2956). The bill, which would begin to responsibly redeploy our troops in Iraq and refocus our efforts on protecting Americans from terrorism, is the latest attempt by Democrats to transition the mission in Iraq and lead where Republicans have failed.

While Republicans like Robin Hayes and Elizabeth Dole still support President Bush’s failed strategy, Democrats are keeping their promise to change course in Iraq. This bill requires a responsible redeployment of U.S. troops beginning within 120 days of enactment and requires the President to publicly justify the post-redeployment missions for the US military in Iraq as well as the minimum number of troops necessary to carry out those missions. It is consistent with the advice of military and foreign policy experts, reflects the will of the American people, would ensure the safety of our men and women in uniform, and would enable a transition to an effective offensive strategy for winning the real war on terrorism.

Accomplishments of the 110th Congress:

• Senate Democrats passed comprehensive ethics and lobbying reform.
• Congress passed legislation to help ensure America’s competitive advantage in science, research, and technology.
• Democrats sought better pay for working Americans by passing legislation to raise the federal minimum wage.
• Senate Democrats led the way toward creating a stronger Food and Drug Administration (FDA).
• The Senate-passed 2008 Budget Resolution would improve children’s health care coverage and combat our nation’s health care crisis.
  

from the Charlotte Observer, 5/3/2006

WASHINGTON - Almost a year of behind-the-scenes work by Rep. Mel Watt came to fruition Tuesday when House and Senate leaders from both parties endorsed a bill -- co-authored by the Charlotte Democrat -- that would strengthen and extend for 25 years the Voting Rights Act.