Abusive Lending Bill Being Debated In House

There is a current bill that is being debated Wednesday at the House Financial Services Committee to decide whether or not they should bar mortgage brokers so they don’t get bonuses to sign up borrowers for loans that are higher in price. This bill could also make lenders prove whether consumers are able to repay loans in their current financial situation or if that would be an impossible opportunity.

There are several other points that they are arguing about. Some of these points include “assignee liability,” which would hold private lenders and big banks responsible for bundling and reselling the loans of consumers to other lenders that are out there. This process is known as securitizing.

It could also allow for any borrowers to have their loan rescinded and then all of the money repaid to them if the lender doesn’t meet those requirements that are necessary to the loan. This can be huge for how many lenders have thrown out money to many people over the years of large financial growth and in turn many people not able to financially support payments for loans whether mortgages or other loans. We will keep you posted on what is going on amongst the committee members on this debate.