Printer Friendly

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.

[ILLUSTRATION OMITTED]

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.
COPYRIGHT 2007 Mortgage Bankers Association of America
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Christopher Dodd
Publication:Mortgage Banking
Article Type:Brief article
Geographic Code:1USA
Date:Oct 1, 2007
Words:213
Previous Article:Credit scores differ among race, ethnic groups.
Next Article:Schumer files bill to lift GSE portfolio caps.
Topics:


Related Articles
Kanjorski calls for self-regulation against predatory lenders.
Oxley: no predatory lending bill this year.
Senate predatory lending hearing to be followed by more hearings.
Congress, policymakers weigh subprime foreclosure fixes.
A tale of too many cities and states: states and cities have been where the action is in terms of new laws and regulations of concern to the mortgage...
MBA cites 'serious issues' with House mortgage reform bill.
House passes mortgage reform bill.
Dodd introduces anti-predatory-lending bill.
Senate passes FHA reform bill.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters