House Passes Anti-Predatory Lending Measure

December 3, 2007

The House of Representatives has approved a controversial bill intended to help combat predatory lending practices, widely considered a central cause of the nation’s credit crunch and rising foreclosure rates. HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, calls for the establishment of a national licensing program for all mortgage loan originators, and would force lenders to ensure a borrower’s reasonable ability to repay the loan, among other requirements.

The original bill called for the elimination of loan origination compensation fees for brokers, however, those fees have been reinstated in the current version of the bill, which has moved on to the Senate.

"The mortgage industry has changed dramatically in recent years, but the laws and regulations designed to protect consumers have lagged behind," said George Hanzimanolis, president of the National Association of Mortgage Brokers. "These reforms will help modernize the regulatory system and drive bad actors from our industry."

Posted in All Things San Diego, Lending, Real Estate