Released: October 23, 2007

Bill seeks to curb abusive mortgage lending

Source: Associated Press [USA Today]

A leading House Democrat took on the banking industry Monday with a bill to restrict lending practices partly blamed for the nationwide surge in mortgage defaults and foreclosures.

The legislation introduced by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, aims to prod states into enacting stronger mortgage regulations and sets up federal-level regulations if they don’t do so.

The mortgage industry’s troubles may be a prime opportunity for Frank and others who have long pushed for stricter lending laws. Still, banking trade groups remain a powerful lobbying force. They criticized the bill, saying it would raise costs and reduce options for borrowers.

Frank’s bill was crafted through months of discussions with consumer and industry groups

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