Nov 16 2007
Here Comes The Regulation
The US House of Representatives passed a bill onto the senate to regulate mortgage lenders. According to the AP article on the legislation the bill, if passed thorugh the senate, would:
- Ban lenders from making loans that borrowers don’t have the ability to repay;
- Prohibit lenders from steering homeowners into refinanced mortgages that don’t provide any benefit and create fines of triple the broker fee and costs;
- Make Wall Street banks that package mortgage securities into investments liable for violations of lending laws;
- Prohibit excessive fees for payoff information or late payments, the financing of points and fees and practices that increase the risk of foreclosure like balloon payments and encouraging borrowers to default; and
- Create a nationwide licensing system for mortgage brokers and bank loan officers called the Nationwide Mortgage Licensing System and Registry.
[…] Henry Paulson, the Treasury Secretary of this great country, has announced that he hopes mortgage companies will soon freeze their rates. He has also urged congress to push through legislation that would regulate the mortgage industry. […]