Introduced
by
To prohibit a mortgage lender from making a "high cost" (subprime) home loan without ensuring that the borrower had received counseling from an approved nonprofit on the advisability of the loan; ban charging prepayment fees or penalties; ban paying a contractor for home improvements from the proceeds of a loan unless the payment was payable to the borrower, or to both, or to an escrow account; ban charging a fee to modify, renew, extend, or amend a loan or defer any payments; ban financing points or fees in excess of 2 percent of the loan amount, or increasing the interest rate after a default. Payments on a "high cost loan" would have to cover all the interest due.
Referred to the Committee on Banking and Financial Services
