Industry, consumer groups critique anti-predatory-lending bill

Consumer group complains bill would protect MBS investors

A consumer advocacy group says a bill intended to combat predatory lending contains too many loopholes protecting Wall Street investors from lawsuits when they purchase mortgage loans from deceptive or predatory loan originators.

Michael Calhoun, the head of the Center for Responsible Lending, told House lawmakers that investor demand for securities backed by subprime loans “lies at the heart of today’s mortgage meltdown.”

During the housing boom, Calhoun said, “The demand from Wall Street (for mortgage-backed securities) was so intense that it encouraged subprime lenders to a