2007 House Bill 5295 ↩

House Roll Call 540: Passed

To prohibit mortgage lenders from 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); charging late fees that exceed certain limits specified in the bill; imposing prepayment penalties; mischaracterizing a home's appraisal or a borrower's credit history, and more. The bill would also prohibit "steering" a consumer to rates, charges, principal amounts, or prepayment terms that were not judged by the lender to be "reasonably advantageous" to the borrower, and make the lender liable to being sued on this basis.