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Dodd to file anti-predatory-lending bill.

The chairman of the Senate Banking Committee has announced his intention to introduce legislation to combat so-called predatory lending through reform of certain mortgage lending practices.


Sen. Christopher Dodd's (D-Connecticut) Sept. 5 announcement followed President Bush's pre-Labor Day Rose Garden rollout of the Federal Housing Administration's (FHA's) FHASecure refinancing program, aimed at curtailing foreclosures (see related story).

"Let me be clear: Affordable home loans are a good thing; predatory lending is not," said Dodd. "Predatory lending needs to be stopped, which is why I intend to introduce legislation that will put an end to the practices that have forced thousands of Americans into foreclosure and put thousands more in danger of losing their homes."

Dodd said his forthcoming bill would end prepayment penalties, prohibit brokers and lenders from "steering" consumers into sub-prime loans, impose a fiduciary duty on brokers and make lenders who pay yield-spread premiums to brokers responsible for the brokers' actions.

Dodd, who is a candidate for the Democratic nomination for president, has elevated homeownership preservation as a prominent theme of his chairmanship, including his hosting of a "Homeownership Summit" in April.

Meanwhile, Dodd's counterpart in the House, Rep. Barney Frank (D-Massachusetts), chairman of the House Financial Services Committee, has said he is working on his own anti-predatory-lending bill.
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Title Annotation:Christopher Dodd
Publication:Mortgage Banking
Article Type:Brief article
Geographic Code:1USA
Date:Oct 1, 2007
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Next Article:Schumer files bill to lift GSE portfolio caps.

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