Introduced
by
To prohibit mortgage lenders from financing single premium credit insurance as part of a subprime mortgage; offering loans that do not consider the borrower's ability to repay the loan; “flipping” a home loan without a reasonable and tangible net benefit to the borrower (defined as repeatedly refinancing a borrower for the sole purpose of generating fee income); encouraging a borrower to default on a home loan; charging late fees that exceed certain limits specified in the bill; charging fees for loan payoff statements; unilaterally accelerating the repayment period of home loans; financing loan points and fees; imposing prepayment penalties; making “negative amortization” loans; and imposing higher “default interest” rates. The bill would also prohibit "steering" practices that encourage borrowers who are qualified for prime mortgages towards subprime rates, charges, principal amounts, or prepayment terms that are disadvantageous to the borrower.
Referred to the Committee on Banking and Financial Services
