|  | | 2007 News and Press Releases | | |
HEADLINE NEWS:
House Votes to Rein in Certain Mortgage Lending Practices
Staff Writer - THE ASSOCIATED PRESS
The New York Times. November 16, 2007
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EXCERPT: With home foreclosures skyrocketing, the House on Thursday voted to crack down on mortgage lenders by enacting federal licensing and to fine them for steering people to risky subprime loans when other financing is available. The measure, which passed 291-127, is a reaction to the mortgage crisis that has entangled millions of people with shaky credit who had signed up for unconventional mortgages and found their mortgage payments rising to unaffordable levels. Besides making lenders responsible for knowing if borrowers can repay loans, the bill would 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. It would also make Wall Street banks that package mortgage securities into investments liable for violations of lending laws. The bill now goes to the Senate, where a similar bill has been stalled for weeks. |
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