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Lenders say financial reform will increase costs, red tape

Sweeping legislation could face tough battle in Senate

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A sweeping financial reform bill that would create a Consumer Financial Protection Bureau with jurisdiction over mortgages and other loans has been approved by the House of Representatives, but may face tougher sailing in the Senate.The House voted 237-192 on Wednesday to approve HR 4173, the "Dodd-Frank Wall Street Reform and Consumer Protection Act," as the 2,323-page bill that emerged from a House-Senate conference committee this week has been dubbed. The vote was largely along party lines, with only three Republicans voting for the bill, and 19 Democrats opposed.It remains to be seen whether the bill will be approved in the Senate, where Republicans are not outnumbered as heavily by Democrats. A Senate vote has been postponed until after the July 4 recess, in part because Senate Republicans object to a $19 billion bank fee added during the conference committee negotiations to offset the bill's cost, the Washington Post reported today.Although the new Consumer Financial Pr...