 Email this article to a friend  Printable Version FREE Email Newsletter
(NaturalNews) A bill has been introduced into the House of Representatives that would ban companies from giving out loans that the borrower never has a reasonable chance of repaying, and to allow such borrowers to sue for better deals.
Representative Barney Frank, chair of the House Financial Services Committee, introduced the bill to combat the increasingly common practice among lending companies of giving out loans with rates that start out low but jump sharply after an introductory period. More than two million people are estimated to have taken such loans in the past two years, and at least a quarter are expected to default on them and lose their homes.
"The people who package mortgages and sell them into the secondary market were a major cause of the single biggest world financial crisis since the Asian crisis [of 1997]," Frank said, "and it's unthinkable that we would leave that undisturbed."
The bill would require all mortgage lenders to conduct reviews of a borrower's income, credit history and current debt level to determine what kind of loan that person has a "reasonable ability to repay." It would prohibit giving any loan that does not meet this standard.
Loans considered "unreasonable" would include those in which the monthly payments equal or exceed half the borrower's income.
The bill would also prohibit offering incentives to brokers who encourage borrowers to take more expensive loans, and would prohibit certain practices designed to lock borrowers into loans.
If the bill becomes law, borrowers would be able to sue mortgage lenders for unreasonable loans. If able to prove that the lender either did not conduct the proper review of the borrower's financial status or that the lender issued an unreasonable loan anyway, the borrower would be able to force the mortgage lender to renegotiate a fairer loan.
Even those who won lawsuits against lenders would still be required to pay back their loans.
Get articles like this delivered to you FREE in our popular email newsletter
|
(FREE) Thursday evening, Nov. 12 at 6pm Pacific (9pm Eastern), call in to hear the NaturalNews Talk Hour with special guest Dr. Caldwell Esselstyn - "Making Yourself Heart Attack Proof" Register via email to receive call-in number:
|
|
Explore NaturalPedia.com, the internet's largest natural health encyclopedia of knowledge, covering over 50,000 topics. It's free!
Visit NaturalPedia.com.
|
 FREE Report: The Five Best Anti-Viral Products to Beat Influenza, Swine Flu, Bird Flu and SARS
• Top anti-viral remedies
• Where to get them now
• Four things to avoid
• Become self-reliant
• Boost your family safety
Click here to read the FREE report now.
|
W.H.O. Declares Global Pandemic
Turn FEAR into Confidence!
Listen to the complete 3.5 hour recording on 4 audio CDs of the Health Ranger's Swine Flu Advanced Preparedness Course, covering natural anti-virals, family safety, infrastructure disruptions, quarantine, preparedness gear and much more.
Testimonials:
"Mike Adams' preparedness course turned our fears into confidence. This is POWERFUL information, coming from a trusted source. If you want to save yourself countless hours researching and getting prepared and if you want to do everything in your power to protect your family, I highly recommend the Health Ranger’s Advanced Preparedness Course."
- N. Nelson (Arizona)
"This is packed information no one should miss."
- T. Valenzuela
"Thanks Mike... during this class you covered prevention and preparedness from A to Z with integrity, brave honesty and outstanding knowledge! Thank you for your steadfast, thorough and cool-headed approach to well being. With deep gratitude for your service." - Bev
Available NOW for immediate shipping.
100% satisfaction guarantee
 NEW Product: Valley of Longevity Shampoo from the Health Ranger
• 98% Organic
• 100% Natural
• 100% Fragrance Free!
• No SLS
• No Parabens
• No synthetic chemicals
• FREE shipping in U.S. on orders over $75
Click here to read more...
|
|
|
Email this article to a friend
Share this article on: 
