Syndicated Columnist Kenneth Harney will report in his column tomorrow morning that the new chairman of the House Financial Services Committee, U.S. Representative Barney Frank, a Democrat from Massachusetts, has made it clear that his top priority will be enacting nationwide mortgage lending standards to protect consumers from predatory lending.
I was recently asked by a national housing coalition to sign an endorsement letter for the purpose of showing Congress that there is broad support for federal anti-predatory lending standards which do not preempt state laws. These ideas will be included and give to Rep. Barney Frank:
As Congress begins a new session, we respectfully ask that any new anti-predatory lending legislation be based on the following principles:
- Considering a borrower’s ability to repay in lending
- Eliminating the incentives for steering borrowers into predatory loans
- Ensuring that loans are serviced fairly
- Protecting the right to go after predatory lenders
- Preserving states’ rights to protect against predatory lending
- Preventing foreclosures
[photopress:bankersbrokers_1.jpg,thumb,alignleft]Let the wild debate between banks/mortgage brokers and consumer advocate groups begin! This is one area where the banks and brokers will more than likely combine their lobbying dollars together.
The biggest concern I have for any new federal law is: How are we going to regulate this? Is the money going to come out of my tax dollars? I don’t think so. IMHO the money can come from the profits of bank, credit unions, lenders, and brokers. If you don’t want to self-regulate your own industry, then please don’t make the rest of us pay for it.
[photopress:predator_1_2.jpg,thumb,alignright]We can always ask Chris Hansen from Dateline NBC for help. “You’re naked, holding a container of cool whip and you’re trying to sell an adjustable rate, interest only, pay option ARM to the cute 18 year old mortgage lending prospect in the next room. Is that accurate?