Congressman Barney Frank is warning home mortgage lenders that they may be facing some harsh new rules in the future. Many have derided lenders as offering home mortgages to customers that they knew could never pay them back, while others have accused home mortgage providers of more deceptive loan practices. Frank is currently working on a home mortgage bill that will be due for a vote soon. The administration has already promised to veto it if it does pass. However, new legislation may be added to help consumers fight back against home mortgage providers that do use deceptive lending practices. This could dramatically change the industry if it does pass. So far, Frank appears to be warning home mortgage lenders first before taking that step.”If this program, this set of inducements, for people to avoid foreclosure doesn’t make much difference, what you will face next year … will be much tougher rules about the home mortgage industry in general,” he said at a Mortgage Bankers Association meeting in Boston.”I think lenders are going to (participate) but with what’s consistent with their fiduciary obligations,” Steve O’Connor, the MBA’s senior vice president of government affairs, told reporters after Frank’s address.
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