Introduced
by
To prohibit certain practices and limit certain charges related to the provision of "sub-prime" home loans to consumers. "Sub-prime" loans generally have higher interest and fees because they are made to borrowers who are more likely to default.
Referred to the Committee on Banking and Financial Institutions
Substitute offered
To replace the previous version of the bill with one which incorporates changes resulting from committee testimony and deliberation. The new provisions are generally less detailed and restrictive on lenders than the original version. The substitute requires fair dealing and full disclosure of fees and charges by lenders; a prohibition on charging fees when no service is actually provided; and a prohibition on including payments for various types of credit insurance in the loan. The substitute also preempts local governments from regulating in this area.
The substitute passed by voice vote
