Anti–Predatory Mortgage Bill

This is probably a much needed bill but at the same time I hope it doesn’t limit borrowers access to credit.  “Predatory mortgage practices faulted for damaging the global economy and financial markets are one step closer to tighter restrictions, following a Thursday afternoon vote by the U.S. House of Representatives to approve legislation.  The House voted 300-114 to approve H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act, which would take steps to ensure that borrowers avoid overly costly mortgages, can pay back their creditors and receive better disclosures, among other actions.”

Here is a synopsis that was emailed to me by a Director of Capital Markets.  “The House of Representatives approved a measure that would force mortgage lenders to retain a 5% stake in home loans they make, securitize and then sell to investors. (I imagine that this does not include brokers or small bankers, but I don’t know.) In addition, mortgage brokers would face tighter oversight and lenders would have to prove that homeowners are well-served when they refinance a home loan under the rule. The legislation would also help renters fight eviction when their landlords default on their mortgages. Remember, however, that there is no equivalent Senate legislation, but this certainly shows where some in Congress feel mortgage lending is heading.”

http://www.marketwatch.com/news/story/story.aspx?guid=%7B96539D9E%2D2424%2D4D98%2D8ED7%2DACAC636D4BFC%7D&siteid=rss