Congress takes on Lending Industry
Congress is targeting the rising tide of home foreclosures and the sagging subprime loan business, and its efforts are likely to result in changes in the way the home finance industry does business.
Here are some key proposals on the table:
Source: Gannett News Service, Ana Radelat (4/13/2007)
Here are some key proposals on the table:
- Impose a six-month national moratorium on foreclosures.
- Increase federal support for local foreclosure prevention programs.
- Strengthen the Federal Housing Authority and give it a "rescue fund" that would allow it to buy failed mortgages and restore credit on the loans.
- Increase penalties on banks that violate federal lending laws.
- Extend federal regulations to mortgage brokers and other loan officers who are now only regulated by state laws.
- Create a federal anti-predatory lending law.
- Establish a federal standard for a borrower's ability to pay.
Source: Gannett News Service, Ana Radelat (4/13/2007)