Congresswoman Stephanie Tubbs Jones' Press Release Page

Congresswoman Stephanie Tubbs Jones, Representing the People of the Eleventh District of Ohio

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News Release

June 5, 2002

Press Contact: Nicole Y. Williams
Telephone: (216) 522-4900

"Credit and Homeownership … The Critical Link"
Representative Stephanie Tubbs Jones

I am committed to taking the necessary steps in Washington to protect our citizens against those who would take advantage of folks who have credit vulnerabilities. It is for these reasons that I serve as co-chair of the Housing Committee Task Force for the Congressional Black Caucus and have recently introduced H.R. 3807, the Predatory Mortgage Lending Practices Reduction Act.

The legislation serves to accomplish three primary objectives:

Establish a federal certification program to require mortgage brokers and other agents involved in sub-prime loan transactions to become certified and pass a written examination that covers, among other things, federal law relative to Truth in Lending, Fair Housing, Equal Credit Opportunity Act and other federal legislation;
Sets up minimum standards as they relate to providing information to consumers as well as best practices for dispute/complaint resolution; and
Creates civil penalties for violation of federal law as it pertains to predatory lending.

Being knowledgeable means being credit-empowered. And that greatly increases your ability to qualify for a conventional mortgage at a fair interest rate.

If you are one of those people who think that the most important thing about buying a home is having enough down payment, I have news for you! There's no question that having money for a down payment is important, but with today's low down payment mortgages, this is not as big an issue as it was in the past. The real "show stopper" can be your credit. Credit and how well you handle credit play a critical role in getting a home loan.

Did you know that your loan interest rate might vary according to your credit history? Or that the type of loan you want may depend on your credit score? (For example, most low down payment loans require that borrowers have good credit histories.) And - most important of all - even getting a loan depends, in part, on your credit score?

Today there are many trusted resources available so that you can understand your credit and how it will affect your ability to qualify for a loan. One of the first things you should do is obtain and review your credit report before beginning your home-buying process. You can check the three major credit-reporting agencies: Equifax, Experian and Trans Union who will pull your credit report. (One of the ways you can access your credit report on-line is to use the Credit Expert service on BET's Owning a Home site by logging on to www.BET.com.)

There are groups in your community that can give you guidance on your credit situation. In the Congressional District I represent in the Cleveland area, we are fortunate to have Cleveland Housing Network, Consumer Credit Counseling Services (an organization with national offices) and Resolve It, Inc. All are trustworthy resources to help consumers with their credit questions and needs.

Local housing events are another way to get credit information. For example, in Cleveland, we are welcoming the Congressional Black Caucus Foundation's housing summit "We're Raising the Roof" on June 15. The Summit will offer free credit reports and workshops to help consumers learn how to read and understand their credit reports. Similar workshops may be conducted in your community.

These credit resources are designed to put you in the driver's seat. When you know your credit picture or have worked with a counselor to get poor credit back on track, you are in a good position to make educated decisions and arm yourself against the predatory and subprime lenders that frequent every community taking advantage of people's lack of knowledge.

One final thought on credit: Just because you have purchased your home at a satisfactory, conventional rate doesn't mean that you can forget about your credit. It's important that you maintain good credit for a number of reasons. You may want to refinance at a later date to take equity out of your home to remodel, send kids to college, etc. And, who knows, you may want to move up to a bigger home down the road or move to a new neighborhood that is more convenient to work, shopping or visiting friends and family. In order to do these things, you'll need to maintain good credit.

Having good credit and maintaining it result in a huge benefit: more choices for you. And having choices puts you on the expressway to building wealth.