Industry News

Ohio real estate loan fraud bill stalls

State legislators can't agree on plan

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It seems no one's happy with an Ohio bill to crack down on fraudulent mortgage practices, a measure that's been delayed as the state House and Senate work out differences, media reports said today. Consumer advocates who praised the Senate version say the House added loopholes that would allow brokers to keep swindling borrowers by shoving complicated paperwork at them during loan closings, the Cincinnati Enquirer and Associated Press reported. Large banks say the House did nothing to address their worry that they will be targeted by lawsuits, even though the bill specifically exempts them, reports said. The two houses are in recess, but are due to resume work next month, according to reports. The bills are designed to crack down on predatory lending and cool the state's rising foreclosure rate, reports said. Ohio had more than 3.2 percent of its mortgages in foreclosure at the end of 2005, higher than any other state, according to the Mortgage Bankers Association. The national avera...