Industry News

House Finance Committee holding hearings on mortgage lending

Restrictions on lenders, FHA modernization to be debated

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This week will be a busy one for lawmakers on Capitol Hill, who plan two hearings that could shape the federal government's response to rising delinquencies and foreclosures among subprime mortgage borrowers. At a hearing Tuesday, the House Committee on Financial Services will consider recommendations in a recent report by the Congressional Joint Economic Committee, including increased support for local foreclosure programs and strengthening Federal Housing Authority mortgage insurance programs. The report also recommended instituting a federal anti-predatory-lending law, tougher loan disclosure requirements and suitability standards requiring borrowers to demonstrate their ability to repay mortgage loans. Lending industry groups including the Mortgage Bankers Association say they support stronger foreclosure prevention and FHA insurance programs, but oppose some of the proposed restrictions on lenders such as suitability standards. The House Finance Committee will also hol...