Bill Passage Update

May 14, 2009


A lot of proposed and new legislation regarding mortgage fraud has hit the media in recent days. Here is an update on the latest three bill to be approved by Congress last week.

The House approved a new bill targeting predatory mortgage sales practices. It prohibits lenders from approving mortgages for borrowers who cannot afford the loan, essentially capping debt-to-income guidelines.

Another bill approved another bill that gives federal prosecutors additional funding to combat mortgage fraud. The legislation approves $165 million for the next two years for fraud investigation.

The third bill to pass last week expands eligibility for the "Hope for Homeowners" program; a program designed to help homeowners with exotic and adjustable rate mortgages move to conventional 30-year loans.

Read story at Ely News