Today posted in the WSJ, we find more information on the tight controls that Congress would like to impose on the lending industry. It is a big question as to whether the consumer will benefit or not from this bill.
Our local business associate, Rachel Dollar, Attorney at Law in her blog www.mortgagefraudblog.com tells of some pretty ugly stories of what brokers have done to the consumer. Listen to her recent interview http://blownmortgage.com/2007/07/23/rachel dollar-mortgagefraudblogcom-interview and her discussion of her new book about the subject.
FYI….
House Panel Clears Bill on Lending
Wall Street Journal (11/07/07) P. A5; Paletta, Damian
The House Financial Services Committee approved a mortgage overhaul bill proposed by Chairman Barney Frank, D-Mass., and the full House will cast votes in the coming week. The legislation would force lenders to consider whether borrowers can afford mortgages when the interest rates reset and only write refinance loans that give borrowers a “net tangible benefit.” The measure also contains a provision holding secondary market investors liable for problem subprime mortgages, bans yield-spread premiums and mandates licensing for mortgage brokers. The banking industry opposes the bill–particularly a provision that permits states to impose stricter regulations–and insists that borrowing costs will rise and mortgages will be more difficult to obtain. It is uncertain when a similar bill will be proposed by Senate Banking Committee Chairman Christopher Dodd, D-Conn., but he says it is in the works.
Denise