Senate Democrats propose new restrictions on mortgage lenders

Yield spread premiums, prepayment penalties targeted

Inman News

Senate Democrats have rolled out a bill that, like legislation passed by the House last month, is aimed at preventing mortgage brokers from steering borrowers into higher-cost loans in order to collect bigger fees, and bars prepayment penalties on subprime and high-cost loans.

The Homeownership Preservation and Protection Act of 2007, introduced Wednesday by Sen.

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