[audio:http://www.consumermortgagereports.com/Audio/Bachus-Bill-Would-Create-Originator-Registry.mp3]
Rep. Spencer Bachus, R-Ala., has introduced a subprime lending reform bill that would establish a national registry for all mortgage originators — including loan officers at federally insured banks and their wholly owned subsidiaries.
The bill “creates a national registration and licensing standard for mortgage originators to enhance accountability and professionalism within the industry,” according to a statement issued by Rep. Bachus.
The Fair Mortgage Practices Act also restricts prepayment penalties on adjustable-rate 2/28 and 3/27 mortgages and requires escrow accounts on all subprime mortgages. Rep. Bachus worked with several Democrats last year in developing a bipartisan anti-predatory-lending bill, but those talks broke down last fall.
House Financial Services Committee Chairman Barney Frank, D-Mass, is currently working on a predatory-lending bill. “I am optimistic we can do a bill this fall,” Rep. Frank said.
Tags: Mortgage Fraud, Mortgage News
