Industry News

Bush administration slams anti-predatory-lending bill

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The Bush administration is opposed to most provisions of proposed legislation aimed at predatory lenders, saying they would result in greater uncertainty and increased litigation, worsening the credit crunch and ultimately reducing home ownership. The mortgage lending industry also objects to many provisions of HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, which was approved Nov. 6 by the House Financial Services Committee and is headed for a full House vote this week. The bill's most controversial provisions include a ban on yield spread premiums, prohibitions on prepayment penalties on subprime loans, and the creation of limited "assignee liability" for companies that securitize loans for sale on the secondary market. In a policy statement on HR 3915, administration officials said they favor simplified disclosures to borrowers, a greater focus on unfair and deceptive lending practices, and better training and oversight of loan originators. Regul...