House passes controversial anti-predatory-lending bill

HR 3915 receives bipartisan support

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

The House of Representatives Thursday approved controversial legislation intended to combat predatory lending, amending some provisions to address criticism that the bill could worsen the credit crunch, but strengthening others.

HR 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, would create a national licensing system for mortgage loan originators and require lenders to determine that borrowers have a reasonable ability to repay a loan. The bill would also create limited liability for companies that bundle mortgages for sale to Wall Street investors.