Industry News

NAR asks Fed to help curb abusive lending practices

Group calls for ban on subprime prepayment penalties, other reforms

It has been a busy letter-writing week for the National Association of Realtors. The trade group for about 1.3 million Realtors announced Wednesday that it sent a letter urging the Federal Reserve System Board of Governors "to adopt regulations that combat unfair, deceptive and abuse mortgage lending acts and practices" in light of "the collapse of several investment funds and the failure of more than 100 subprime lenders." Pat V. Combs, the association's president, said in a statement, "The Fed must act responsibly to protect consumers, and NAR pledges its support. We champion the principle that all mortgage originators should act in 'good faith and with fair dealings' in all transactions." Earlier in the week, the Realtor group joined with the Mortgage Bankers Association and the National Association of Home Builders trade groups in a letter to the U.S. Office of Federal Housing Enterprise Oversight that urges that agency "to temporarily increase the caps on the investme...