The House this week voted 291-127 to pass the Mortgage Reform and Anti-Predatory Lending Act, Congress' first major attempt to prevent a recurrence of the ongoing subprime meltdown. The bill, supported by every Democrat and 64 Republicans, stabs at the heart of the meltdown by:

• Establishing a national licensing and registration system for mortgage lenders;
• Establishing the Office of Housing Counseling within HUD to help borrowers avoid foreclosure;
• Banning loans that a borrower cannot reasonably repay;
• Banning lenders from steering borrowers towards loans with predatory characteristics;
• Making banks that securitize mortgages liable for violating lending laws.

The mortgage lobby spent several weeks trying to derail the bill as it percolated in Committee. Even some consumer advocates oppose the bill in its current form because it preempts strong consumer protections from the states with a uniform federal standard.

The mortgage lobby has already shifted its focus towards killing companion legislation stalled in the Senate. Senate Banking Chairman Chris Dodd (D-CT) has released only a vague sketch of his chamber's response to the subprime meltdown, saying that his legislation will meet two requirements:[First], it must establish strong standards against abusive practices such as prepayment penalties, steering, and other problems. Second, it must provide for strong enforcement to ensure that those standards are met. My bill...will meet both requirements and help protect homeowners from predatory lending.Still unknown, how he plans to achieve objectives one through two.

The White House has issued a Statement of Administrative Policy objecting to several provisions of the House bill, but has restrained itself from issuing a veto threat.

The Consumers may finally escape from the clutches of mandatory binding arbitration if the House Judiciary Committee smiles favorably today upon the Arbitration Fairness Act. Arbitrators rule against consumers in more than 98% of all disputes; the Subcommittee on Commercial and Administrative Law is currently meeting to consider H.R. 3010, which would restore consumers' rights to resolve disputes fairly and openly.

Today's hearing will feature two panels. Four separate law firms will testify, along with the American Arbitration Association and Public Citizen. Join us as we struggle to interpret the Committee's legalese - which may prove just as futile as binding arbitration.
(Photo: xsparrowx)

2:00: Video Link
2:05: Today's commentary is brought to you by both Carey and Meghann in the hope that two pairs of ears will be able to decipher the Committee's legalese.
2:41: FINALLY! The hearing has been called to order.

2:43: The resolution on this feed is terrible. Someone, a Congresswoman - maybe Rep Sanchez (D-CA), is reviewing the history of arbitration.

2:44: Rep Cannon (R-UT) believes that arbitration provides protection for consumers because it's fairer (what?) cheaper, and faster. That's not right. Individual consumers don't have deep pockets, which is why class action waivers are unconscionable.

2:45: Arbitration is so complex and ingrained that this Committee can't possibly handle the topic today. Ok, Congressman, set up a webcam at the Hawk and Dove and we'll meet you there.

2:47: Nobody has proposed banning arbitration - just mandatory arbitration. Consumers would still have the option to forego a trial, but that's a choice they would be empowered to make, a choice they don't currently have.

2:49: Rep. Johnson (D-GA), sponsor of the measure is here, pointing out that people wouldn't voluntarily sign away other constitutional rights.

2:51: Arbitration carries its own anti-consumer charges. The fees to expedite a hearing can cost $500.

2:53: See Cannon, nobody wants to ban arbitration, they merely want to restore consumers' right to a trial.

2:57: One of the panelists is former Georgia Governor Roy Barnes, who is receiving quite the introduction from Rep Johnson - Governor Barnes helped save Georgia from the subprime meltdown and scared the Confederate flag from the Statehouse.

2:59: That was practically a eulogy.

3:01: Onto Laura McCleary of Public Citizen.

3:02: Arbitration allows "rulings that are silly, wacky, or contrary to law..." "They are flawed by design."

3:04: An eight month analysis of 34,000 cases of credit arbitration, data they could access only because California requires disclosure, showed that the 28 arbitrators who handled most cases