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December 14, 2007
Senate Democrats Propose New Restrictions on Mortgage Lenders
Sen. Chris Dodd, D-Conn. introduced the Homeownership Preservation and Protection Act of 2007—which would ban prepayment penalties and yield spread premiums, require mortgage lenders to only make loans that borrowers are able to repay and force loan servicers to implement loss mitigation strategies before initiating foreclosures on homes. MBA Chairman Kieran Quinn said the bill's provisions "concern us deeply" because they would also require mortgage lenders and brokers to make loans in the best interest of borrowers as well as expose investors in mortgage-backed securities to lawsuits by individual borrowers.
Posted by S. Germain at December 14, 2007 07:51 AM