Mortgage Reform Bill Approved by Financial Services Committee

November 8, 2007

The House Committee on Financial Services today approved mortgage reform legislation and anti-predatory lending practices by a vote of 45 to 19. H.R. 3915, "The Mortgage Reform and Anti-Predatory Lending Act of 2007" will create a licensing system for residential mortgage loan originators, establish a minimum standard requiring that borrowers have a reasonable ability to repay a loan, and will attach a limited liability to secondary market securitizers. The legislation will also expand and enhance consumer protections for "high-cost loans," will include protections for renters of foreclosed homes, and will establish an Office of Housing Counseling through the Department of Housing and Urban Development.