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Federal Legislative and Regulatory Issues
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Mortgage Reform/Predatory Lending
The Mortgage Reform and
Anti-Predatory Lending Act of 2009, H.R. 1728, has passed the House of
Representatives. The legislation is purportedly aimed at curbing abusive
mortgages by: reducing the triggers on high-cost loans; requiring
lenders to determine that borrowers have a reasonable ability to repay;
prohibiting lenders and brokers from steering borrowers to more
expensive loans; and allowing borrowers to file a cause of action
against assignees, including securitizers, for violating minimum
underwriting standards. Although the bill was amended in committee in a
positive fashion, we still have concerns in the areas of risk retention
requirements and the narrow safe harbor excluding “garden variety”
adjustable rate mortgages. The Senate has not taken any action on this
bill. |
GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen |
