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by CareyBot

House Democrats on Monday introduced legislation that would require all mortgage loan originators to be licensed, and would create new restrictions on their activities -- including prohibitions on steering borrowers into loans that are "not in the consumer's interest." The product of months of hearings, "The Mortgage Reform and Anti-Predatory Lending Act of 2007" would create new minimum standards for all mortgages -- including a requirement that lenders make good-faith determinations of a borrower's ability to repay. Lenders would also be prohibited from making refinance loans that don't provide "a net tangible benefit to the consumer," the bill's sponsors said in a summary of the legislation. In addition, the bill would create liability for some investors who purchase loans tha...